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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 ircu la r No. 74-225
A ugust 20, 1974

N EW O F F E R IN G — TREASURY BILLS
To A ll Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follo w ing statem ent giving details of tw o issues of Treasury bills:
T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, invites te n d e rs for tw o series of T re a su ry bills to th e a ggregate a m o u n t
of $4,800,000,000, or th ere ab o u ts, to b e issued A ugust 29, 1974, as follow s:
9 2-D A Y B IL L S ( to m a tu rity d a te ) in th e a m o u n t of $2,800,000,000, o r th ere ab o u ts, re p re se n tin g a n a d d itio n al
a m o u n t of bills d a te d M a y 30, 1974, a n d to m a tu re N o v em b er 29, 1974 ( C U S IP No. 912793 V A 1 ), originally
issued in th e a m o u n t of $1,902,570,000, th e a d d itio n al a n d original bills to b e freely interchangeable.
182-D A Y B IL L S for $2,000,000,000, or th ere ab o u ts, to be d a te d A ugust 29, 1974, a n d to m a tu re F e b ru a ry 27, 1975
( C U S IP No. 912793 V X 1 ).
T h e bills w ill b e issued for cash a n d in exchange for T re a s u ry bills m a tu rin g A ugust 29, 1974, o u tstan d in g in th e a m o u n t
of $4,406,125,000, of w hich G o v e rn m e n t accounts a n d F e d e ra l R e se rv e B anks, for them selves a n d as ag en ts of foreign a n d in te r­
n atio n a l m o n e ta ry au th o ritie s, p re se n tly hold $2,540,175,000. T h ese accounts m a y exchange bills th e y hold for th e bills now
b e in g offered a t th e a v era g e prices of a cc ep te d tenders.
T h e bills of b o th series will b e issued on a discount basis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g a s h e re in a fte r
p rovided, a n d a t m a tu rity th e ir face a m o u n t will b e p a y ab le w ith o u t interest. T h e y w ill be issued in b e a re r form , a n d in booke n try fo rm to d esig n ated bidders, in de n o m in a tio 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 w ill b e receiv ed a t F e d e ra l R e se rv e B a n k s 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 S aving T im e , M onday, A ugust 26, 1974. T e n d e rs will n o t b e received a t th e T re a su ry D e p a rtm e n t, W ashington. E a c h
te n d e r m u st b e for a m in im u m of $10,000. T e n d e rs o v e r $10,000 m u st be in m u ltip le s of $5,000. In th e case of co m p e titiv e
te n d e rs th e p rice offered m u st be 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 ay
n o t be used. I t is u rg e d t h a t te n d e rs be m a d e on th e p r in te d form s a n d fo rw arded in th e special envelopes w hich w ill b e su p p lied
b y F e d e ra l R e se rv e B a n k s o r B ran ch es o n a p p lic a tio n therefor.
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 en t securities a n d r e p o rt d aily to th e F e d e ra l
R e se rv 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 cc o u n t of custom ers p ro v id e d th e n a m e s of th e custom ers a re se t fo rth in such tenders. O th e rs w ill n o t b e p e rm itte d to
su b m it te n d e rs e xcept for th e ir ow n account. T e n d e rs w ill b e receiv ed w ith o u t dep o sit from inco rp o ra ted b a n k s a n d tr u s t
com panies 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 from o th ers m u st b e a ccom panied
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 s u ry b ills a p p lie d for, unless th e te n d e rs a re a cc o m p an ied b y a n express guar­
a n ty of p a y m e n t by a n in co rp o ra ted b a n k o r tru s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill be o p ened 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 will be m a d 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 p rice range of a c c e p te d bids. O nly
those su b m ittin g c o m p e titiv e te n d e rs will b e ad v ised of th e acceptance or re je ctio n thereof. T h e S e c retary of th e T re a su ry
expressly reserves th e rig h t to a c c e p t or re je c t a n y or a ll tenders, in whole o r in p a rt, a n d his a ctio n in a n y such re sp e ct shall be
final. S u b je c t to these reservations, n o n c o m p e titiv e te n d e rs for each issue for $200,000 or less w ith o u t
sta te d p rice from a n y
o ne b id d e r will be a cc ep te d in full a t th e average p rice (in th re e decim als) of a cc ep te d c o m p e titiv e
bids for th e respective
issues. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e bids m u st be m ad e o r 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 29, 1974, in cash or o th e r im m e d ia tely av ailab le fu n d s 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 29,
1974. C ash a n d exchange te n d e rs w ill receive e qual tre a tm e n t. Cash a d ju s tm e n ts will be m ad e for differences b e tw ee n 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 p rice of th e new bills.
U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) of th 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 d isco u n t a t w hich bills
issued h e re u n d e r a re sold is considered to accrue w h e n th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills are
e xcluded from consideration 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 c o m p an ies)
issued h e re u n d e r m u st in clude in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference b e tw ee n th e price p a id for th e
bills, w h e th e r on original issue o r on su b seq u e n t pu rchase, a n d th e a m o u n t a c tu a lly re ce iv e d e ith e r u p o n sale or re d e m p tio n a t
m a tu rity d u rin g th e ta x a b le y e a r for w hich th e re tu rn is m ade.
T re a s u ry D e p a rtm e n t C ircu lar No. 418 (c u rre n t revision) a n d th is notice, p re sc rib e th e te rm s of th e T re a s u ry bills a n d
govern th e c onditions of th e ir issue. C opies of th e c ircu lar m ay be o b tain e d from a n y F e d e ra l R e se rv e B a n k o r B ranch.

In accordance w ith the ab ove announcement, tenders w ill be received a t this b ank an d its branches a t El Paso,
Houston an d San Antonio up to tw elve -th irty p.m., Central Daylight Saving Time, M o n d a y , August 26, 1974. Tenders m ay
not be entered by telephone.
Yours very truly,
P. E. Coldwell
President

LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R a n g e a n d A p p ro x im ate Y ield of A c c ep ted T e n d e rs
13-W eek B ills
26-W eek Bills
D u e N o v e m b er 21, 1974
D u e F e b r u a ry 20, 1975
$3,929,075,000________________________________ .T o ta l A p p lied F o r ________ ____ ____________________ $2,984,270,000
$2,800,170,000___________ ____ __________________ T o ta l A ccepted
______________________________ $2,000,100,000
P ric e
Y ie ld
P ric e
Y ield
97.794____________ 8.727% .... ................................................ H ig h __________________ ____ 95.561________ _ -8 .7 8 0 %
_
97.750........................ 8 .9 0 1 % ____________________________ L ow ________________________ 95.467_____________8.966%
97.764____________ 8.846% ( 1 ) ______________________ A v e ra g e ______________________ 95.501_____________8 .899% ( 1 )
( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 9.17% for the 13-week bills, and 9.45% for
the 26-week bills.
( S e e rev e r se fo r te n d e r fo r m )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

TENDER FOR ADDITION TO TREASURY BILLS

92 DAYS TO MATURITY
Maturing November 29, 1974

Dated May 30, 1974
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The________________________ Branch
El Paso 79999

Houston 77001

San Antonio 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.

NONCOMPETITIVE TENDER $______________________________________ NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
(g

s

Prices should be
expressed on the
basis of 100, with
not more than three
decimal places, e.g.,
99.925. Fractions
must not be used.

(n)

COMPETITIVE TENDERS

?
IS
f

@
ft)

$

@

$

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
Number of
pieces

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT

Maturity Value

(a) $
(a) $

10,000 9
15,000 $

□
□

50,000 $
(S $ 100,000 ?
)
(a) $ 500,000 $

(a) $

□
□

....(a) $1,000,000 $

By maturing bills
held by______________________________
Payment to be made by--------------------Charge our reserve account on payment
date
Draft enclosed (Effectual delivery of enclosed draft
shall be on latest day which will perm it presentm ent
in order to obtain irrevocably collected funds on pay­
m ent date)

Delivery Instructions:
□

Hold in Custody — General Account

(Subscriber's full name or corporate title)

□

Hold in Custody — Investment Ac­
count

(Address)

□
□

Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan Account

□

Other____________________________

By-

(Authorized official signature and title)
(For the account of, if tender is for another subscriber)
(Address)

1.
2.

3.
4.

5.

fi.

IMPORTANT
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).
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.
Any qualified or conditional tender will be rejected.
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.”
Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by 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.
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 f o r an n o u n cem en t)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102