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F ederal R eserve Bank o f 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, TE X A S 7 5 2 2 2 NEW OFFERING — TREASURY BILLS Circular No. 74-315 N ovem ber 26, 1974 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: T h e D epartm ent of the Treasury, b y this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of $4,900,000,000, or thereabouts, to be issued D ecem ber 5, 1974, as follows: 91-D A Y B IL L S (to m aturity d ate) in the am ount o f $2,800,000,000, or thereabouts, representing an additional am ount of bills dated Septem ber 5, 1974, and to mature M arch 6, 1975, (C U S IP No. 912793 V Y 9 ), originally issued in the am ount of $2,005,370,000, the additional and original bills to be freely interchangeable. 182-D A Y B IL L S for $2,100,000,000, or thereabouts, to be dated D ecem ber 5, 1974, and to mature June 5, 1975 (C U S IP N o. 912793 W M 4 ). T h e bills w ill be issued for cash and in exchange for Treasury bills maturing D ecem ber 5, 1974, outstanding in the am ount o f $4,709,640,000, of which G overnm ent accounts and Federal R eserve Banks, for them selves and as agents of foreign and international m onetary authorities, presently hold $2,332,360,000. T h ese accounts m ay exchange bills th ey hold for the bills now being offered a t the average prices of accepted tenders. T h e bills w ill be issued on a discount basis under com petitive and noncom petitive bidding, and a t m aturity their face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e ), and in book-entry form to designated bidders. Tenders w ill be received a t Federal R eserve Banks and Branches up to one-thirty p.m., Eastern Standard T im e, M onday, D ecem ber 2, 1974. Tenders w ill not be received at the D epartm ent of the Treasury, W ashington. E ach 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 th e price offered m ust be expressed on the basis of 100, w ith not m ore than three decim als, e.g., 99.925. Fractions m ay not be used. B anking institutions and dealers who m ake primary m arkets 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 custom ers provided the nam es of the custom ers are set forth in such tenders. Others w ill not be perm itted to subm it tenders except for their own account. 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 fron_ others m ust be accom panied by paym ent of 2 percent of the face am ount o f bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust company. P ublic announcem ent will be m ade by the D epartm ent of th e Treasury of the am ount and price range o f accepted bids. Those subm itting com petitive tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves the right to accept or reject an y 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 w ill be accepted in full a t th e average price (in three decim als) o f accepted com petitive bids for th e respective issues. S ettlem en t for accepted tenders in accordance w ith the bids m ust be m ade or com pleted at the Federal R eserve Bank or Branch on D ecem ber 5, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills matur ing D ecem ber 5, 1974. Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents w ill 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 ) o f the Internal R evenue Code of 1954 th e am ount of discount a t 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 bills (other than life insurance com panies) issued hereunder m ust include in his Federal 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 th e am ount actually received either upon sale or redem ption at m aturity during the taxable year for which th e return is made. D epartm ent of the Treasury Circular N o. 418 (current revision) and this notice, prescribe th e terms of the Treasury B ills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve 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.. Centra! Standard Time, Monday, December 2, 1974. Tenders may not be entered by telephone. Federal Reserve Bank of Dallas Fiscal Agent of the United States LAST PREVIOUS OFFERING OF TREASURY BILLS Am ount, R ange and Approxim ate Y ield of A ccepted Tenders 3-W eek B ills 26-W eek B ills D u e February 27, 1975 D u e M ay 29, 1975 $4,108,475,000_____________________ ________ __T otal A pplied For _________________ $3,340,455,000 $ 2 ,8 0 0 ,2 8 0 ,0 O W J a j M g ia M m £ B » . - - ___ _- T o t a l A ccepted $2,100,270,000 P rice R a te P rice R ate 98.185 ’,260% __________ .H igh _____ _ _ “ ______96.320_____________7.319% 98.158 7.368% --------------Low ,._____ 96.281 7.397% 98.168 7.328% ( 1 ) -----A verage_________ 96.295___________ ’ .369% ( 1 ) ( 1 ) T h e s e ra tes are o n a b an k d iscou nt basis. T h e eq u iv a le n t coupon issu e y ie ld s are 7 .5 7 % for th e 13-w eek b ills, and 7 .7 6 % for th e 2 6 -w eek bills. L (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) CLOSING TIME 12:30 P.M., CENTRAL STANDARD TIME, MONDAY, DECEMBER 2, 1974 TENDER FOR TREASURY BILLS SECURITY OFFERED 182 DAYS TO MATURITY Dated December 5,1974 Maturing June 5,19^ Pursuant to the provisions of Department of the Treasury Circular No. 418 (current revision) and the provisions1 the public announcement issued by the Department of the Treasury, the undersigned offers to purchase Treasury bills j the amount shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and ar 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 $200,0* Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the avera* price (in three decimals) of accepted competitive bids. <31 (ft) (a) (a) (a) C O M PE T IT IV E T E N D E R S OTHER □ By □ By □ By □ By c u 8 ^ H < THAN BANKS: Cashier’s Check Certified Personal Check Federal Funds Draft Securities Submitted P rice s sh o u ld ] $ $ $ $ - expressed on * basis of 100, d not more than thi| decimal places, 99.925. Fractio* must not be use* BANKS ONLY: □ □ □ (Description) s * ALL CHECKS MUST BE PAYABLE TO THE FEDERAL RESERVE BANK By charge to our reserve account on payment date By draft enclosed. By charge to our correspondent: (A written authorization for such charge should be provided from your correspondent.) FEDERAL RESERVE BANK ONLY: Bearer Securities (will be shipped to address at lower right unless indicated otherwise): $10,000 $15,000 $50,000 $100,000 $500,000 $1 Mil. COST: DEPOSIT: DUE TO SUBSCRIBER: O C I Send to :. I J* i M s ? | Book-entry (Banks only- •indication of pieces not necessary): h-! K Q □ 04 Pledged to Secretary of Treasury 12 Investment Account 13 Trust Account □ --------------------------------TOTAL $_ cc § I (N am e o f Subscriber) 02 Treasury Tax and Loan Collateral □ PLEASE PRINT OR TYPE (The information belo will be used in delivery of securities.) 01 General Account □ E p <3 a □ □ B w DUE FROM SUBSCRIBER: (Street Address) (City, State, Zip Code) (Signature and title, if applicable) BANKS ONLY: For the account if tender is for of’l another 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' $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of1 United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since enveloi received with this legend will not be opened until after the closing time specified in the public announcement, comnii cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from 1 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' tender and the signing of the form by an officer of the corporation will be construed as a representation by him th :> has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, 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 inv< ment securities will be disregarded, unless accompanied by a deposit o f 2 percent of the total amount (maturity val1 of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by' 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 material, the tender may be disregarded. (See reverse for announcement)