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F ed e r a l R e s er v e Ba n k o f D allas

D A LL A S, T E X A S 7 5 2 2 2
Circular No. 74-245
September 10, 1974
To A ll B a n k in g Institutions a n d O thers Co n cerned
in th e E leventh F e d 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 eta ils o f t w o issues o f T rea su ry bills:
T h e Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount
of $4,300,000,000, or thereabouts, to be issued Septem ber 19, 1974, as follows:
91-D A Y B IL L S (to m aturity date) in the am ount of $2,500,000,000, or thereabouts, representing an additional
am ount of bills dated June 20, 1974, and to mature D ecem ber 19, 1974 (C U S IP No. 912793 V D 5 ), originally
issued in the am ount of $1,901,235,000, 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 19, 1974, and to mature M arch 20,
1975 (C U S IP No. 912793 W A O ).
T h e bills w ill be issued for cash and in exchange for Treasury bills maturing Septem ber 19, 1974, outstanding in the amount
of $4,512,195,000, 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 $2,772,325,000. 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 ey 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 ).
Tenders will 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 16, 1974. Tenders will not be received at the Treasury Departm ent, Washington. Each
tender m ust be for a m inim um of $10,000. T enders 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, with not more than three decimals, e.g., 99.925. Fractions m ay
not be used. It 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.
Banking 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 with respect to G overnm ent securities and borrowings thereon m ay subm it tenders
for account of custom ers 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 a ccou n t Tenders will 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
b y 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
anty 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 w ill 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 he 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 the respective
issues. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted at the Federal R eserve Bank
on Septem ber 19, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing Septem ber
19, 1974. Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents will be made for differences betw een the par
value of maturing bills accepted in exchange and the issue price of th e new bills.
Under Sections 45 4 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 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 th e taxable year for which the return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern th e conditions of their issue. Copies of the circular may 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 ill be received 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 aving T im e, M o n d a y , S e p te m b e r 16, 1 9 7 4 . Tenders
may n ot b e e n tered b y te le p h o n e .
Yours v e ry truly,
P. E. C o ld w e ll
P resident

Am ount, R ange and Approxim ate Y ield of A ccepted Tenders
13-W eek B ills
26-W eek Bills
D u e D ecem ber 12, 1974
D ue March 13, 1975
$3,950,555,000_________________________________T otal A pplied For_________________________________ $4,067,560,000
$ 2,6 0 0,115,000-__________________ m ___________ .Total A ccepted___________________________________$1,800,405,000
Y ield
Y ield
97.720-------------------- 9.020% ___________________________H ig h _______________________ 95.464____________ 8.972%
97.686-------------------- 9.154% ___________________________ L ow________________________ 95.452____________ 8.996%
97.700_____________ 9.099% ( 1 ) _____________________ Average______________________ 95.460____________ 8.980% ( 1 )
( 1 ) T h e s e ra te s a re on a b a n k d is c o u n t basis. T h e e q u iv a le n t cou p o n issue y ie ld s a r e 9 . 4 4 % fo r th e 1 3 -w eek bills, a n d 9 . 5 4 % for
th e 2 6 -w e e k bills.

(See reverse for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Maturing December 19,1974

Dated June 20, 1974
T o : Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The--------------------------------------- Branch
El Paso 79999 Houston 77001

San Antonio 78295


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.
-@ -@



_@ _


Prices should be
ex p ressed on th e
basis of 100, with
not more than three
decimal places, e.g.,
m ust not be used.

Denominations Desired
N u m ber of

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

M a tu rity V alue

_@ $

10,000 $_____________



_@ $

50,000 $____________


$ 100,000 $______________

By maturing bills
held by--------------------------------------------Payment to be made by______________


Charge our reserve account on payment
I | Draft enclosed (Effectual delivery of enclosed d ra ft

$ 500,000 $____________
$1,000,000 $_____________

shall be on latest day which will p e rm it p re s en tm en t
in o rder to obtain irrevocably collected funds on p a y ­
m e n t date)

Delivery Instructions:

Hold in Custody — General Account


Hold in Custody — Investment Ac­


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


(S ub scriber’s f u ll n a m e o r co rpo rate title)

(A ddress)



(A uthorized official s ig n a tu re and 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)


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 (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 to_ make 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)

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