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PLEASE OBSERVE CLOSING DATE — FRIDAY, DECEMBER 20, 1974 F ed e r a l R eser ve 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 7 5 2 2 2 NEW OFFERING — TREASURY BILLS Circular N o. 74-339 D ecem ber 13, 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, by this public notice, invites tenders for tw o series of Treasury bills to the aggregate am ount of $4,600,000,000, or thereabouts, to be issued D ecem ber 26, 1974, as follows: 91-D A Y B IL L S (to m aturity d ate) in the am ount of $2,600,000,000, or thereabouts, representing an additional am ount of bills dated Septem ber 26, 1974, and to m ature M arch 27, 1975 (C U S IP No. 912793 W B 8 ), orig inally issued in the am ount of $1,800,305,000, the additional and original bills to be freely interchangeable. 182-D A Y B IL L S for $2,000,000,000, or thereabouts, to be dated D ecem ber 26, 1974, and to m ature June 26, 1975 (C U S IP No. 912793 W Q 5). T h e bills w ill be issued for cash and in exchange for Treasury bills maturing D ecem ber 26, 1974, outstanding in the am ount of $4,601,08 0,000, 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 $2,799,600,000. T h ese accounts m ay exchange bills they hold for the b ills now being offered at th e average prices o f 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 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 at Federal R eserve Banks and Branches up to one-thirty p.m., Eastern Standard T im e, Friday, D ecem ber 20, 1974. Tenders w ill not be received at the D epartm ent of the Treasury, Washington. 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 the basis of 100, with not m ore than three decimals, e.g., 99.925. Fractions m ay not be used. B anking institutions and dealers who m ake primary markets in G overnm ent securities and report daily to the Federal R eserve Bank of N ew Y ork their positions w ith respect to Government 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 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 from others m ust be accom panied b y paym ent o f 2 percent of the face am ount of 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 w ill be made by the D epartm ent of the Treasury of the am ount and price range of accepted bids. T hose subm itting com petitive tenders will be advised o f the acceptance or rejection thereof. T h e 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, 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 at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal R eserve Bank or Branch on D ecem ber 26, 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 26, 1974. Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents w ill be made for differences betw een the par value o f maturing bills accepted in exchange and the issue price of the new bills. Under Sections 4 5 4 (b ) and 1221 (5 ) of the Internal R evenue Code of 1954 the 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 th e bills are excluded from consideration as capital assets. Accordingly, the owner o f 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 th e 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 th e taxable year for which the return is made. D epartm ent of th e Treasury Circular N o. 418 (current revision) and this notice, prescribe the term s of the Treasury B ills and govern the conditions of their issue. Copies o f the circular m ay be obtained from any Federal R eserve Bank or Branch. In accordance with rhe 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, Friday, December 20, 1974. Tenders may not be entered by telephone. Federal Reserve Bank of Dallas Fiscal Agent of the United States F ig u re s c o n c e r n i n g o f f e r i n g o f 9 1 - D a y T r e a s u r y Bills m a t u r i n g M a r c h 2 0 , 1 9 7 5 , a n d 1 8 2 - D a y T r e a s u r y Bills m a t u r i n g J u n e 19 , 1 9 7 5 , n o t a v a i l a b l e w h e n this c ir c u l a r w a s p r i n t e d . (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, FRIDAY, DECEMBER 20, 1974 TENDER FOR TREASURY BILLS SECURITY OFFERED 182 DAYS TO MATURITY Dated December 26, 1974 Maturing June 2 6 ,19fl Pursuant to the provisions of Department of the Treasury Circular No. 418 (current revision) and the provisions J 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 at I-* rate indicated. N O N C O M P E T IT IV E T E N D E R $_ JNOT TO E X C E E D $200,00? Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the aver«l price (in three decimals) of accepted competitive bids. C O M PE T IT IV E T E N D E R S ¥ $ ..... I® r® @ ¥ ¥ $ ¥ @ ¥ I OTHER THAN BANKS: □ By Cashier’s Check □ By Certified Personal Check □ By Federal Funds Draft □ By Securities Submitted ci Prices should ^ expressed on basis of 100, wi( not more than th n* decimal places, e.f! 99.925. Fractio( ^mustjiotJbejise^ BANKS ONLY: □ □ □ (Description) 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.) ALL CHECKS MUST BE PAYABLE TO THE FEDERAL RESERVE BANK 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 COST: DEPOSIT: $1 Mil. DUE TO SUBSCRIBER: DUE FROM SUBSCRIBER: Send to:_ PLEASE PRINT OR TYPE (The information belotf will be used in delivery of securities.) Book-entry (Banks only- ■ indication of pieces not necessary): $ □ 02 Treasury Tax and Loan Collateral □ 04 Pledged to Secretary of Treasury (City, State, Zip Code) □ □ 12 Investment Account (Signature and title, if applicable) 13 Trust Account TOTAL $_ I e a I u (N am e of Subscriber) 01 General Account □ -------------------------------- M - □ (Street Address) BANKS ONLY: For the account it of,^ if tender is forr another subscriber iber fI 1 No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiplesJ $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of I United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since enveloj received with this legend will not be opened until after the closing time specified in the public announcement, commit cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from p 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 constnied as a representation by him tha' 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.” Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in int{ ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity val6 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. . , If the language of this form is changed in any respect, which, in the opmion of the Secretary of the Treasury material, the tender may be disregarded. (See reverse for announcement)