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F ederal Reserve bank of Dallas F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEXAS 75222 C ircular No. 74-222 A u g u st 15, 1974 NEW OFFERING — TREASURY BILLS To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the follow ing statem ent giving details of an issue of Treasury bills: T h e T re a s u ry D e p a rtm e n t, b y th is p u b lic notice, in v ites te n d e rs for $1,800,000,000, o r th ere ab o u ts, of 364-day T re a su ry bills to b e d a te d A ugust 27, 1974, a n d to m a tu re A ugust 26, 1975 ( C U S I P No. 912793 W S 1 ). T h e bills will be issued for cash a n d in exchange for T re a su ry bills m atu rin g A ugust 27, 1974, o u tstan d in g in th e a m o u n t of $1,804,820,000, of w hich G o v e rn m en t accounts a n d F e d e ra l R eserve B anks, for them selves a n d as agents of foreign a n d in te r n a tio n a l m o n e ta ry au th o ritie s, p re se n tly hold $721,135,000. T h ese accounts m ay exchange bills th e y hold for th e bills now being offered a t th e a verage p rice of a cc ep te d tenders. T h e b ills will b e issued on a d isco u n t basis u n d e r co m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r pro v id ed , a n d a t m a tu rity th e ir face a m o u n t w ill be p a y ab le w ith o u t in te re st. T h e y will be issued in b e a re r form , a n d in book -en try form to d esig n ated bidders, a n d in d en o m in atio n s of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu rity v a lu e ). T e n d e rs will be receiv ed a t F e d e ra l R e se rv e B anks a n d B ra n ch e s u p to th e closing hour, o n e -th irty p.m., E a s te rn D a y lig h t Saving T im e , W ednesday, A ugust 21, 1974. T e n d e rs will n o t be received a t th e T re a su ry D e p a rtm e n t, W ashing ton. E a c h te n d e r m u s t b e for a m in im u m of $10,000. T e n d e rs ov er $10,000 m u s t b e in m u ltip le s of $5,000. I n th e case of c o m p e titiv e ten d e rs th e p rice offered m u st b e expressed on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t b e used. I t is u rg e d t h a t te n d e rs b e m a d e on th e p rin te d form s a n d fo rw a rd ed in th e special envelopes w hich will b e su p p lied b y th e F e d e ra l R e se rv e B a n k s o r B ra n ch e s on a p p lic a tio n th erefor. B a n k in g in stitu tio n s a n d dealers w ho m ak e p rim a ry m a rk e ts in G o v e rn m e n t securities a n d re p o rt d a ily to th e F e d e ra l R eserv e B a n k of N ew Y o rk th e ir positions w ith re sp e ct to G o v e rn m e n t securities a n d borrow ings th e re o n m a y su b m it ten d e rs for a cco u n t of custom ers p ro v id ed th e na m e s of th e custom ers a re se t fo rth in such tenders. O th ers w ill n o t be p e rm itte d to su b m it te n d e rs e xcept for th e ir own account. T e n d e rs w ill b e received w ith o u t d ep o sit from in co rp o ra ted ban k s a n d tr u s t com p anies a n d fro m responsible a n d recognized dealers in in v estm e n t securities. T e n d e rs fro m o th ers m u st be acco m p an ied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of T re a su ry bills a p p lie d for, unless th e ten d e rs a re acco m p an ied b y a n express g u a ran ty of p a y m e n t b y a n in co rp o ra ted b a n k or tr u s t com pany. Im m e d ia te ly a f te r th e closing hour, te n d e rs w ill b e o p en ed a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich p u b lic a n n o u n c e m e n t w ill b e m ad e b y th e T re a s u ry D e p a rtm e n t of th e a m o u n t a n d price range of a cc ep te d bids. O nly those su b m ittin g co m p e titiv e te n d e rs will b e a d v ised of th e a cc ep ta n ce or reje ctio n thereof. T h e S e c retary of th e T re a s u ry expressly reserves th e rig h t to a c c e p t o r re je c t a n y or all ten d ers, in w hole or in p a rt, a n d his a ctio n in a n y such re sp e c t shall b e final. S u b je c t to th ese reservations, n o n c o m p e titiv e te n d e rs for $200,000 or less w ith o u t s ta te d p rice from a n y one b id d e r w ill be a cc ep te d in full a t th e a verage price ( in th re e decim als) of a cc ep te d co m p e titiv e bids. S e ttle m e n t for a cc ep te d te n d e rs in accor d ance w ith th e bids m u st be m a d e or c o m p le te d a t th e F e d e ra l R e se rv e B a n k on A ugust 27, 1974, in cash or o th e r im m e d ia tely av ailab le funds or in a like face a m o u n t of T re a su ry bills m a tu rin g A ugust 27, 1974. C ash a n d exchange ten d e rs will receive e q u al tre a tm e n t. C ash a d ju s tm e n ts will be m a d e for differences b etw een th e p a r v a lu e of m a tu rin g bills a cc ep te d in exchange a n d th e issue price of th e new bills. U n d e r S ections 454 ( b ) a n d 1221 ( 5 ) of t h e In te rn a l R e v e n u e C ode of 1954 th e a m o u n t of discount a t w hich bills issued h e re u n d e r are sold is considered to accrue w hen th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re excluded fro m con sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insurance co m p a n ies) issued h e re u n d e r m u st include in his incom e tax re tu rn , as o rd in ary gain o r loss, th e difference b e tw ee n th e p rice p a id for th e bills, w h e th er on original issue or on su b seq u e n t purchase, an d th e a m o u n t a c tu a lly received e ith e r u p o n sale or re d em p tio n a t m a tu rity d u rin g th e tax a b le y e a r for w hich th e r e tu r n is m ade. T re a su ry D e p a rtm e n t C ircu la r N o. 418 ( c u r re n t re v isio n ) a n d th is notice, pre sc rib e th e te rm s of th e T re a su ry bills a n d govern th e conditions of th e ir issue. C opies of th e c ircu lar m a y be o b tain e d fro m a n y F e d e ra l R eserv e B a n k o r B ranch. In accordance w ith the a b ove announcement, tenders w ill be received at this b a n k an d its branches a t El Paso, Houston an d San Antonio up to tw e lv e -th irty p.m., Central D aylight Saving Time, W e d n esd ay , August 21, 1974. Tenders m a y not be entered by telephone. Yours very truly, P. E. Coldwell President ( S e e r e v e r s e fo r t e n d e r f o r m ) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 364 DAYS TO MATURITY Maturing August 26, 1975 Dated August 27,1974 To: Federal Reserve Bank, Station E, Dallas, Texas 75222 or — The_________________________ Branch E l P a s o 79999 H o u sto n 77001 S a n A n to n io 78295 (Date) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated. JNOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $. Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. Prices should be expressed on the $ ? basis of 100, with not more than three (a) $ decimal places, e.g., (a) $ 99.925. Fractions must not be used. - $ ...... ■ @ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by Denominations Desired credit to Treasury Tax and Loan Account Number of M aturity Value Pieces METHOD OF PAYMENT (a) $ 10,000 $□ B y m aturing bills (a) $ _<® (a) (a) (a) 15,000 $50,000 $■ $ $ 100,000 $■ $ 500,000 $$1;,000,000 $- □ □ Hold in Custody — Investm ent A c count □ Hold in Custody — T rust Account □ Pledge to secure Treasury T ax and Loan Account □ Other______________________________ I D r a f t e n c l o s e d (Effectual delivery of enclosed d raft shall be on latest day which will perm it presentm ent in order to obtain irrevocably collected funds on pay m ent date) Hold in Custody — General Account □ Charge our reserve account on paym ent date I D elivery In stru ction s: □ held by----------------------- -----------------------P aym ent to be m ade by---------------------- (Subscriber’s full name or corporate title) ( Address) By- (Authorized official signature and title) (F o r the account of, if tender is for another subscriber) (Address) IM P O R T A N T 1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiples of $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes received with this legend will not be opened until after the closing time specified in the public announcement, communi cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank or appropriate branch. 3. Any qualified or conditional tender will be rejected. 4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the tender and the signing of the form by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who should sign in the form __________ _ _____ ______ , a copartnership, by.... ....... ...... ............... — ............ ................ , _ ...... a member of the firm”. 5. Tenders from those other than incorporated banks andtrust companies or responsible and recognized dealers in invest ment securities will be disregarded, unless accompaniedby a deposit of 2 percent of the total amount (maturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an incorporated bank or trust company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is material, the tender may be disregarded. (S ee re v e rse fo r an n o u n cem en t)
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