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federal R e s e r v e Ba n k o f D a lla s 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. 74-334 D ecem ber 10, 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 o f th e Treasury, b y th is public notice, invites tenders for two series of Treasury bills to th e aggregate am ount of $4,600,000,000, or thereabouts, to be issued D ecem ber 19, 1974, as follows: 91-D A Y B IL L S (to m aturity d a te) in the am ount o f $2,600,000,000, or thereabouts, representing an additional am ount of bills dated Septem ber 19, 1974, and to mature M arch 20, 1975, (C U S IP N o. 912793 W A 0 ), originally issued in the am ount of $1,801,895,000, the additional and original bills to be freely interchangeable. 182-D A Y B IL L S (to m aturity date) to be issued D ecem ber 19, 1974, in the am ount of $2,000,000,000, or there abouts, representing an additional am ount of bills dated N ovem ber 4, 1974, to m ature June 19, 1975 (C U S IP No. 912793 W Z 5 ), originally issued in th e am ount of $1,500,835,000, the additional and original bills to be freely interchangeable. T h e bills w ill be issued for cash and in exchange for Treasury bills maturing D ecem ber 19, 1974, outstanding in the am ount o f $4,604,420,000, 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 $2,737,090,000. T h ese accounts m ay exchange bills they 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 at m aturity their face am ount w ill be payable w ithout in te re st T h ey w ill be issued in bearer form in denom inations o f $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., E astern Standard T im e, M onday, D ecem ber 16, 1974. Tenders w ill not be received a t th e D epartm ent of the Treasury, 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 th e 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 prim ary markets in G overnm ent securities and report daily to th e Federal R eserve Bank o f 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 th e nam es of the custom ers are set forth in such tenders. Others w ill not b e perm itted to subm it tenders except for their own a cco 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 b y paym ent o f 2 percent of th e face am ount o f bills applied for, unless the tenders are accom panied by an express guaranty of paym ent b y an incorporated bank or trust company. P ublic announcem ent w ill be m ade b y the D epartm ent of the Treasury of the am ount and price range o f accepted bids. T hose subm itting com petitive tenders w ill be advised o f th e acceptance or rejection thereof. T h e Secretary o f th e Treasury expressly reserves th e right to accept or reject any or all tenders, in w hole 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 fu ll 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 or Branch on D ecem ber 19, 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 19, 1974. Cash and exchange tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een th e par value of maturing bills accepted in exchange and the issue price of the new bills. Under Sections 4 54 ( b ) and 1221 (5 ) of the Internal R evenue Code of 1954 th e am ount of discount at w hich bills issued hereunder are sold is considered to accrue w hen the bills are sold, redeem ed or otherwise disposed of, and th e 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 the am ount actually received either upon sale or redem ption at m aturity during th e taxable year for which th e return is made. D epartm ent o f the Treasury Circular N o. 418 (current revision) and this notice, prescribe the terms o f th e Treasury B ills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank 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 Standard Time, Monday, December 16, 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 13-W eek B ills 26-W eek B ills D u e M arch 13, 1975 D u e Jun e 12, 1975 $5,473,280,000 .T otal A pplied For_________________________________ $3,812,500,000 $2,800,575,000-----------------------------------------------------T otal A ccepted___________________________________$2,101,165,000 P rice R ate Price R ate 98.205 7.101% ------------------------------------------ H igh _______________________ 96.527____________ 6.870% 98.177 7.212% -------------------------------------------Low_______________________ 96.500____________ 6.923% 98.187 7.172% ( 1 ) --------------------------------- A verage............................. 96.506_____________6.911% ( 1 ) ( 1 ) T h e s e rates are on a b an k d iscou nt basis. T h e eq u iv a le n t cou p on issue y ie ld s are 7 .4 1 % for th e 13-w eek b ills, an d 7 .2 6 % for th e 2 6 -w eek bills. This publication was digitized and made available(S e ethe Federal Reserveform ) of Dallas' Historical Library (FedHistory@dal.frb.org) by reverse for tender Bank CLOSING TIME 12:30 P.M., CENTRAL STANDARD TIME, MONDAY, DECEMBER 16, 1974 TENDER FOR ADDITION TO TREASURY BILLS SECURITY OFFERED 91 DAYS TO MATURITY Dated September 19,1974 Maturing March 20, IS Pursuant to the provisions of Department of the Treasury Circular No. 418 (current revision) and the provisions the public announcement issued by the Department of the Treasury, the undersigned offers to purchase Treasury bills the amount shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at rate indicated. N O N C O M P E T IT IV E T E N D E R $_ JSTOT TO E X C E E D $200,0 0 Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the aven price (in three decimals) of accepted competitive bids. E. * o u £U 6b C O M PE T IT IV E T E N D E R S @ f? @ OTHER THAN BANKS: □ By Cashier’s Check □ By Certified Personal Check □ By Federal Funds Draft □ By Securities Submitted Z QW 2 s^ a * BANKS ONLY: □ □ □ (Description) S $ ? ? $ 6b ? $. Prices should expressed on basis of 100, v not more than thi decimal places, e 99.925. Fractii must not be us< 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: CO 55 o H 55 R © E _ <5 h S o n DUE FROM SUBSCRIBER: Send to :_ Book-entry (Banks only- • indication of pieces not necessary): PLEASE PRINT OR TYPE (The information beloi will be used in delivery of securities.) $-------------------------------- (N am e o f Subscriber) 01 General Account □ 02 Treasury Tax and Loan Collateral 04 Pledged to Secretary of Treasury (City, State, Zip Code) □ 12 Investment Account (Signature and title, if applicable) □ & •« □ □ § pH a a 13 Trust Account □ -------------------------------TOTAL $_ C O § o (Street Address) BANKS ONLY: For the account of, if tender is for another subscriber 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 of United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelo received with this legend will not be opened until after the closing time specified in the public announcement, comm cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from t bank or appropriate branch. Any qualified or conditional tender will be rejected. 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 that 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, b y -----------------------------------------------------a member of the firm.” Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in ** ment securities will be disregarded, unless accompanied by a deposit of 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 b y 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)