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F ederal r e s e r v e Bank o f Dallas

DALLAS. TE X A S 7 5 2 2 2

Circular No. 74-247
Septem ber 12, 1974


To All B a n k in g Institu tions a n d O th e r s C o n c e r n e d
in t h e E leventh F e d e r a l R e se rv e District:

Y our a t t e n t i o n is in v ite d to t h e f o llo w in g s t a t e m e n t g iving d e t a i l s o f a n is s u e o f T re a s u ry bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 364-day Treasury
bills to be dated Septem ber 24, 1974 and to m ature Septem ber 23, 1975 (C U S IP No. 912793 W T 9 ).
T he bills will be issued for cash and in exchange for T reasury bills m aturing Septem ber 24, 1974, outstanding in th e am ount
of $1,802,240,000, of which G overnm ent accounts and Federal Reserve Banks, for themselves and as agents of foreign and inter­
national m onetary authorities, presently hold $925,385,000. T hese accounts m ay exchange bills they hold for th e bills now being
offered a t the average price of accepted tenders.
T h e bills will be issued on a discount basis un der com petitive and noncom petitive bidding as hereinafter provided, and a t
m atu rity the ir face am ount will be payable w ithout interest. T h ey will be issued in bearer form, and in book-entry form to
designated bidders, and in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value).
T enders will be received a t Federal R eserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, W ednesday, Septem ber 18, 1974. Tenders will not be received a t the T reasury D epartm ent, Washing­
ton. E ach ten der 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 th e case of
com petitive tenders the price offered m ust be expressed on the basis of 100, w ith not more th a n three decimals, e.g., 99.925.
Fractions m ay no t be used. I t is urged th a t tenders be m ade on th e printed forms and forwarded in th e special envelope*
which will be supplied by th e Federal R eserve B anks or Branches on application therefor.
Banking institutions and dealers who m ake prim ary m arkets in G overnm ent securities and report daily to the Federal
R eserve B ank of New York th eir 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 will not be perm itted to
subm it tenders except for their own accou nt T enders will be received w ithout deposit from incorporated banks and tru st com­
panies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by
paym ent of 2 percent of the face am ount of T reasury bills applied for, unless th e tenders are accom panied by an express
guaranty of paym ent by an incorporated bank or tru st company.
Im m ediately after th e closing hour, tenders will be opened a t the Federal R eserve Banks and Branches, following which
public announcem ent will be made by the T reasury D epartm ent of th e am ount and price range of accepted bids. Only those
subm itting com petitive tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of the T reasury expressly
reserves the rig ht 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 $200,000 or less w ithout stated price from any one bidder will be
accepted in full a t the average price (in three decim als) of accepted com petitive bids. S ettlem ent for accepted tenders in accor­
dance w ith the bids m ust be m ade or com pleted a t the Federal R eserve B ank on Septem ber 24, 1974, in cash or other im m ediately
available funds or in a like face am ount of T reasury bills m aturing Septem ber 24, 1974. Cash and exchange tenders will receive
equal tre a tm e n t Cash adjustm ents will be m ade for differences between the p ar value of m aturing bills accepted in exchange
and the issue price of th e new bills.
U nder Sections 454 (b ) and 1221 (5 ) of th e Internal R evenue Code of 1954 the am ount of discount a t which bills
issued hereunder are sold is considered to accrue when th e bills are sold, redeem ed or otherwise disposed of, an d th e bills are
excluded from consideration as capital assets. Accordingly, th e owner of T reasury bills (other th a n life insurance com panies)
issued hereunder m ust include in his income tax return, as ordinary gain or loss, th e difference between the price paid for th e
bills, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption
a t m aturity during th e taxable year for which th e retu rn is made.
T reasury D epartm ent Circular No. 418 (curren t revision) and th is notice, prescribe th e term s of th e T reasury bills
and govern the conditions of th eir issue. Copies of th e circular m ay be obtained from any Federal R eserve B ank or Branch.

In a c c o r d a n c e w ith t h e a b o v e a n n o u n c e m e n t , t e n d e r s will b e r e c e iv e d a t this b a n k a n d its b r a n c h e s a t El P a so ,
H o u sto n a n d S an A n to n io u p to t w e l v e - th ir ty p.m ., C e n tral D a y lig h t S a v in g Time, W e d n e s d a y , S e p t e m b e r 18, 1 97 4. T en­
ders m a y not b e e n tered by telep h o n e .

Yours very truly,
P. E. Coldwell

(See reverse for tender form)

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


Maturing September 23, 1975

Dated September 24,1974
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The____________________________ Branch
El Paso 79999 Houston 77001

San Antonio 78295

(D a te )

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 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
decimal places, e.g.,
99.925. Fractions
must not be used.



Payment for this issue of bills cannot be made by
Denominations Desired
credit to Treasury Tax and Loan Account
N um ber of
M a tu rity V a lu e
P ie c e s


$ 10,000
$ 15,000
$ 50,000
$ 100,000
$ 500,000



Hold in Custody — General Account


Hold in Custody — Investment Ac­
Hold in Custody — Trust Account

Charge our reserve account on payment

I I D r a f t e n c l o s e d ( E f f e c tu a l d e liv e ry o f e n c lo s e d d r a f t
s h a ll b e on l a t e s t d a y w h ic h w ill p e r m i t p r e s e n t m e n t
in o r d e r to o b t a i n i r r e v o c a b ly co llec ted f u n d s o n p a y ­
m e n t d ate)

Delivery Instructions:

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


Pledge to secure Treasury Tax and
Loan Account


( S u b s c r ib e r ’s f u ll n a m e o r c o r p o r a t e ti t l e )

(A d d ress)



( A u th o r iz e d official s i g n a t u r e a n d t i tle )

( F o r t h e a c c o u n t o f , i f t e n d e r is f o r a n o t h e r s u b s c r ib e r )

(A ddress)

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 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 at 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 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 (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 announcem ent)

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