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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.

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

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OTHER THAN BANKS:
□ By Cashier’s Check
□ By Certified Personal Check
□ By Federal Funds Draft
□ By Securities Submitted

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BANKS ONLY:
□
□
□

(Description)

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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:

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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)

□

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□

□

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13 Trust Account

□ -------------------------------TOTAL $_

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(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)

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