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F ed e r a l R e s e r v e Ba n k o f D allas
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
Circular No. 74-251
September 17, 1974

NEW OFFERING — TREASURY BILLS
To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the following statement giving details of two issues of Treasury bills:
The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $4,300,000,000, or thereabouts, to be issued September 26, 1974, as follows:
91-DAY BILLS (to maturity date) in the amount of $2,500,000,000, or thereabouts, representing an additional
amount of bills dated June 27, 1974, and to mature December 26, 1974, (CUSIP No. 912793 VE3), originally
issued in the amount of $1,900,585,000, the additional and original bills to be freely interchangeable.
182-DAY BILLS for $1,800,000,000, or thereabouts, to be dated September 26, 1974, and to mature March 27,
1975 (CUSIP No. 912793 WB8).
The bills will be issued for cash and in exchange for Treasury bills maturing September 26, 1974, outstanding in the amount
of $4,501,665,000, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and inter­
national monetary authorities, presently hold $2,554,865,000. These accounts may exchange bills they hold for the bills now
being offered at the average prices of accepted tenders.
The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form, and in bookentry form to designated bidders, in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity
value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Daylight Saving Time, Monday, September 23, 1974. Tenders will not be received at the Treasury Department, Washington. Each
tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. In the case of competitive
tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may
not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied
by Federal Reserve Banks or Branches on application therefor.
Banking institutions and dealers who make primary markets in Government securities and report daily to the Federal
Reserve Bank of New York their positions with respect to Government securities and borrowings thereon may submit tenders
for account of customers provided the names of the customers are set forth in such tenders. Others will not be permitted to
submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust
companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guar­
anty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following
which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only
those submitting competitive tenders will be advised of the acceptance or rejection thereof. The 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, noncompetitive tenders for each issue for $200,000 or less without stated price from any
one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective
issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank
on September 26, 1974, in cash or other immediately available funds or in a like face amount of Treasury bills maturing September
26, 1974. Cash and exchange tenders will receive equal treatment Cash adjustments will be made for differences between 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 Revenue Code of 1954 the amount of discount at which bills
issued hereunder are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are
excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies)
issued hereunder must include in his income tax return, as ordinary gain or loss, the difference between the price paid for the
bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Monday, September 23, 1974. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and Approximate Yield of Accepted Tenders
13-Week Bills
26-Week Bills
Due December 19, 1974
Due March 20, 1975
$4,605,075,000
Total Applied For___________________________ $3,070,070,000
$2,500,965,000____________________________ Total_Accepted._ _________________________ $1,800,085,000
_
Price
Yield
Price
Yield
97.9 12---------------- 8.142%_______________
High______
95.865__________ 8.179%
97.923
8.217%----------------------------------- Low_ ___________
_
95.815__________ 8.278%
97.931
8.185% (1 )--------------------------- Average__________________ 95.853__________ 8.203% (1)
( 1 ) T h e s e rates are on a bank discount basis. T h e eq u iv a le n t coupon issue y ie ld s are 8 .4 7 % for th e 13-w eek bills, and 8 .6 8 % for
th e 2 6 -w eek bills.

(S e e 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 TREASURY BILLS

182 DAYS TO MATURITY
Maturing March 27,1975

Dated September 26,1974
T o : F e d er a l R e se r v e B an k , S ta tio n K , D a lla s, T e x a s 75222
or —
T h e ______________________________B ranch
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.
N O N C O M P E T IT IV E T E N D E R $_______________________________________________N O T TO E X C E E D $ 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.
«

1
$
C O M PE T IT IV E T E N D E R S

(a)

$
$
$

(n)

$

<a>

$-......

@

........

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.

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
□ B y m a tu r in g bills
h eld b y---------------------------------------------------

M aturity Value

$

10,000 $-

<> $
a

15,000 $-

<> $
a

50,000 $-

m

□
□

100,000 $-

m

?

m

% 500,000 $-

P a y m e n t to b e m a d e b y _______________
C h arge ou r r e se r v e a ccou n t on p a y m e n t
d a te
D r a f t enclosed (Effectual delivery of enclosed draft

□

(5) $ i ,000,000

shall be on latest day which w ill permit presentment
in order to obtain irrevocably collected funds on pay­
ment date)

D e liv e r y In str u c tio n s:
□

H old in C u stod y — G eneral A ccou n t

(Subscriber’s fu ll name or corporate title)

□

H old in C u stod y — In v e stm e n t A c ­
cou n t

(Address)

□

H old in C u stod y — T r u st A cco u n t

□

P le d g e to se cu r e T r e a su r y T a x and
L oan A cco u n t

□

O ther_______________________________

B y-

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

(Address)

IMPORTANT
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 and trust companies or responsible and recognized dealers m 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.
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