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F ederal R eserve P ank of Dallas F ISCA L AGENT OF THE UNITED STATES D A L L A S, T E X A S 7 5 2 2 2 Circular No. 74-237 September 3, 1974 NEW O FF E R IN G — TREASURY BILLS To A ll B a n k in g Institutions a n d O thers Co n cerned in th e E leven th F ed e ra l Reserve District: Y o u r a tte n tio n is in v ite d to th e fo llo w in g s ta te m e n t g iv in g d e ta ils o f tw o issues o f T rea su ry bills: T h e Treasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of $4,400,000,000, or thereabouts, to be issued Septem ber 12, 1974, as follows: 91-D A Y B IL L S (to m aturity date) in the am ount of $2,600,000,000, or thereabouts, representing an additional am ount of bills dated June 13, 1974, and to mature Decem ber 12, 1974 (C U S IP No. 912793 V C 7 ), originally issued in the amount of $1,902,535,000, the additional and original bills to be freely interchangeable. 182-D A Y B IL L S for $1,800,000,000, or thereabouts, to be dated Septem ber 12, 1974, and to mature March 13, 1975 (C U S IP No. 912793 V Z 6 ). T h e bills w ill be issued for cash and in exchange for Treasury bills maturing Septem ber 12, 1974, outstanding in the amount o f $4,404,980,000, of which Governm ent accounts and Federal R eserve Banks, for them selves and as agents of foreign and inter national m onetary authorities, presently hold $2,907,835,000. T hese accounts m ay exchange bills they hold for the bills now being offered at the average prices of accepted tenders. T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face am ount will be payable without interest. T h e y will be issued in bearer form, and in bookentry form to designated bidders, in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e ). T enders w ill be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving T im e, M onday, Septem ber 9, 1974. Tenders will not be received at the Treasury Departm ent, W ashington. Each tender m ust be for a m inim um of $10,000. Tenders over $10,000 m ust be in m ultiples of $5,000. In the case of com petitive tenders the price offered m ust be expressed on the basis of 100, w ith not m ore than three decimals, e.g., 99.925. Fractions m ay not be used. !t is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied b y Federal R eserve Banks or Branches on application therefor. B anking institutions and dealers who m ake primary markets in G overnm ent securities and report daily to the Federal R eserve Bank of N ew York their positions w ith respect to G overnm ent securities and borrowings thereon m ay subm it tenders for account of customers provided the nam es of the customers are set forth in such tenders. Others w ill not be perm itted to subm it tenders except for their own acco u n t Tenders w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied by an express guar a nty of paym ent by an incorporated bank or trust company. Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, following which public announcem ent will be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. Only those subm itting com petitive tenders w ill be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted com petitive bids for th e respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted at the Federal R eserve Bank on Septem ber 12, 1974, in cash or other im m ediately available funds or in a like face amount of Treasury bills maturing Septem ber 12, 1974. Cash and exchange tenders w ill receive equal treatm ent. Cash adjustm ents will be m ade for differences betw een the par value of maturing bills accepted in exchange and the issue price of the new bills. Under Sections 454 (b ) and 1221 ( 5 ) of the Internal R evenue Code o f 1954 the am ount of discount at which bills issued hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued hereunder m ust include in his incom e tax return, as ordinary gain or loss, the difference betw een the price paid for the bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is made. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch. In a c co rd an ce w ith th e a b o v e a n n o u n c e m e n t, ten d ers w il l be rece iv ed a t this b a n k a n d its b ranches a t El Paso, Houston a n d San A n to n io up to t w e lv e - th ir t y p .m ., C e n tral D a y lig h t S av in g T im e, M o n d a y , S e p te m b e r 9 , 1 9 7 4 . Tenders may n ot b e en te re d b y te le p h o n e . Yours v e r y tru ly, P. E. C o ld w e ll President LAST PREVIOUS O FF E R IN G O F TREASURY BILLS Am ount, R ange and Approxim ate Y ield of A ccepted Tenders 13-W eek B ills 26-W eek B ills D u e D ecem ber 5, 1974 D ue March 6, 1975 $3,740,555,000______________________________ T otal A pplied For________________________________ $3,853,075,000 $2,800,200,000__________________________________.T otal_A ccepted___________________________________$2,000,460,000 Price Y ield Price Y ield 97.725-------------------- 9.000% ---------------------------------------- H igh________________________95.337____________ 9.224% 97.661-------------------- 9.253% ----------------------------------------- Low________________________ 95.288____________ 9.320% 97.683 -------------------- 9.167% ( 1 ) ------------------------------- -Average______________________ 95.307____________ 9.283% (1 ) ( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t b asis. T h e e q u iv a le n t c o u p o n issue y ie ld s a r e 9 . 5 1 % f o r t h e 13-w eek b ills, a n d 9 . 8 8 % for th e 2 6 -w eek bills. (See reverse for tender form) 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 91 DAYS TO MATURITY Dated June 13, 1974 M aturing December 12, 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 a t 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. S i* (ft < j> ' Prices should be ex pressed on th e $---------------------------- ^ ------------------ *-----------------------------u w u m u iv n i @ ----? ------------------------- ___ r_______ _______________ decimal places, e.g., |« __________________ (g)____________< _ X. » 9 9 .9 2 5 . F ra c tio n s * * m BEFORE THE i ^ r TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVEDust not be used. CLOSING HOUR ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PAYMENT Denominations Desired Num ber of pieces M a tu r ity V a lu e (a) ? (fib $ <> $ 5 <> ? 5 ? 15,000 $ 50,000 ? 1 0 ,0 0 0 1 0 0 ,0 0 0 □ □ $ □ Charge our reserve account on payment date | | D raft enclosed (Effectual delivery of enclosed d r a f t <® $ 500,000 ? (fib $ 1 ,000,000 ? sh all be on la te st day which will p e rm it p re sen tm en t in o rd e r to obtain irrevocably collected fu nd s on pay m e n t d ate) Delivery Instructions: □ Hold in Custody — General Account □ By m aturing bills held by-------------Paym ent to be made by_ (S u bscrib er’s f u ll n a m e o r co rp orate title) Hold in Custody — Investm ent Ac-_________________________________________________ CO Unt □ □ Hold in Custody — T ru st Account Pledge to secure Treasury Tax and Loan Account □ (A ddress) By______ Other----------------------------------------- (A uthorized official s ig n a tu re a n d title) (F o r th e a ccount of, if te n d e r is fo r a n o th e r subscriber) _________________________________________________________ ( A d d re ss) IMPORTANT 1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust be for an amount in multiples of $5,000 (m aturity 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 m atters 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 tomake the tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t 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 and tru st 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 (m aturity 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 tru st 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. (See reverse for announcement)