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F ed er 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 75222 Circular No. 74-20 January 15, 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: T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, in v ites te n d e rs for tw o series of T re a su ry b ills to th e a gg reg ate a m o u n t of $4,300,000,000, o r th ere ab o u ts, for cash a n d in exchange for T re a su ry b ills m a tu rin g J a n u a r y 24, 1974, in th e a m o u n t of $4,301,275,000, as follow s: 91-D A Y B IL L S (to m a tu rity d a te ) to b e issued J a n u a ry 24, 1974, in th e a m o u n t of $2,500,000,000, or th e re ab ou ts, re p re se n tin g an a d d itio n a l a m o u n t of bills d a te d O cto b er 25, 1973, a n d to m a tu re A p ril 25, 1974 (C U S I P No. 912793 T J 5 ) , o rig inally issued in th e a m o u n t of $1,801,625,000, th e a d d itio n a l a n d original b ills to b e freely interch an geab le. 182-D A Y B IL L S fo r $1,800,000,000, o r th ere ab o u ts, to be d a te d J a n u a r y 24, 1974, a n d to m a tu re J u ly 25, 1974 (C U S I P No. 912793 U G 9 ). T h e b ills of b o th series w ill b e issued o n a d isco u nt basis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r p ro v id ed , a n d a t m a tu rity th e ir face a m o u n t will b e p a y ab le w itho u t interest. T h e y will b e issued in b e a re r form only, a n d in d en o m in atio n s of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu r ity v a lu e ). T e n d e rs w ill b e re ce iv e d a t F e d e ra l R e se rv e B a n k s a n d B ran ch es u p to th e closing hour, o n e -th irty p.m ., E a s te rn D a y lig h t Saving T im e , M o n d ay , J a n u a ry 21, 1974. T e n d e rs will n o t be receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington. E ach te n d e r m u st b e fo r a m in im u m of $10,000. T e n d e rs ov er $10,000 m u st be in m u ltip le s of $5,000. In th e case of c o m p e titiv e te n d e rs th e p rice offered m u st be expressed on th e basis of 100, w ith n o t m o re th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay n o t b e used. I t is u rg ed t h a t ten d e rs be m ad e on th e p rin te d form s a n d fo rw arded in th e special env elo pes w hich will b e sup p lied b y F e d e ra l R eserv e B a n k s or B ran ch es on a p p lic atio n therefo r. B a n k in g in stitu tio n s generally m a y su b m it te n d e rs fo r accou n t of custo m ers p ro v id ed th e n am es of th e cu stom ers are se t fo rth in such ten d ers. O th e rs th a n b a n k in g in stitu tio n s will n o t b e p e rm itte d to su b m it te n d e rs ex cep t fo r th e ir ow n account. T e n d e rs will be receiv ed w ith o u t d e p o sit fro m in co rp o ra ted b a n k s and tr u s t co m p anies a n d from resp o nsib le a n d recognized dealers in in v e stm e n t securities. T e n d e rs fro m o th ers m u st be a cco m p anied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of T re a su ry bills a p p lie d for, unless th e te n d e rs a re acco m p an ied b y a n express g u a ran ty of p a y m e n t b y a n in co rp o ra ted b a n k or tr u s t com pany. Im m e d ia te ly a f te r th e closing hour, te n d e rs will b e open ed a t th e F e d e ra l R e se rv e B a n k s a n d B ran ch es, follow ing w hich p u b lic an n o u n ce m en t w ill be m ad e b y th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d p rice ran g e of a cc ep te d bids. O nly those su b m ittin g c o m p e titiv e te n d e rs w ill be ad v ised of th e acceptance or re je ctio n th ereo f. T h e S e c retary of th e T re a su ry expressly reserves th e rig h t to a cc ep t or re je c t a n y or all tenders, in w hole or in p a rt, a n d his a ctio n in a n y such re sp e ct shall be final. S u b je c t to th ese reservations, n o n c o m p e titiv e te n d e rs for each issue fo r $200,000 o r less w ith o u t sta te d p rice from a n y one b id d e r will b e a cc ep te d in full a t th e av erag e p rice ( in th re e d ecim als) of acc ep te d c o m p e titiv e bids fo r th e resp ectiv e issues. S e ttle m e n t for acc ep te d ten d e rs in accordance w ith th e b id s m u st b e m a d e or c o m p leted a t th e F e d e ra l R e se rv e B a n k o n J a n u a ry 24, 1974, in cash or o th er im m e d ia tely a v ailab le funds or in a lik e face a m o u n t of T re a su ry b ills m a tu rin g J a n u a ry 24, 1974. C ash a n d exchange ten d e rs will receive eq ual tre a tm e n t. C ash a d ju stm e n ts w ill b e m ad e fo r difference b etw een th e p a r v a lu e of m a tu rin g b ills acc ep te d in exchange a n d th e issue p rice of th e new bills. U n d e r S ections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e C ode of 1954 th e a m o u n t of d isco u n t a t w hich bills issued h e re u n d e r are sold is considered to accrue w hen th e bills a re sold, re d ee m e d o r otherw ise disposed of, a n d th e bills are excluded from co n sid eratio n as cap ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life in su ran ce com pan ies) issued h e re u n d e r m u st inclu d e in his incom e tax re tu rn , as o rd in ary g ain or loss, th e difference b e tw ee n th e p rice p a id fo r th e bills, w h e th er on original issue or on su b seq u en t purchase, a n d th e a m o u n t a c tu a lly receiv ed e ith e r u p o n sale or re d e m p tio n a t m a tu rity d u rin g th e tax ab le y e a r for w hich th e re tu r n is m ade. T re a su ry D e p a rtm e n t C ircu lar No. 418 (c u rre n t rev isio n ) a n d th is notice, p re sc rib e th e te rm s of th e T re a su ry bills a n d go vern th e c o n dition s of th e ir issue. C opies of th e circu lar m a y be o b ta in e d fro m a n y F e d e ra l R e se rv e B a n k o r B ranch. 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, January 21, 1974. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS A m o un t, R a n g e a n d A p p ro x im ate Y ie ld of A ccep ted T en d e rs 13-W eek B ills 26-W eek B ills D u e A pril 18, 1974 D u e Ju ly 18, 1974 $3,775,920,000 T o ta l A p p lied F o r _________________________________ $3,600,585,000 $2,500,105,000__________________________________ T o ta l A c c ep ted ___________________________________$1,808,725,000 P ric e Y ie ld P ric e Y ield 97.993 7 .9 4 0 % _______________________ H ig h ..__ 96.049_____________7.815% 97.973 8 .0 1 9 % ___________________________ Low ________________________ 96.016____________ 7.880% 97.982 7 .983% ( 1 ) ---------------------------------A v erag e______________________ 96.023____________ 7.867% ( 1 ) ( 1 ) T h ese rates are on a bank discount basis. T h e eq u ia vlen t coupon issue yie ld s are 8 .2 6 % for th e 1 3 -w eek bills and 8 .3 1 % 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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Maturing April 25 ,1974 Dated October 25, 1973 T o: F ed era l R eser v e Bank, S ta tio n K, D allas, T e x a s 75222 or — B ranch T h e ________________________ El Paso 79999 Houston 77001 San Antonio 78295 (D ate) 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 a m o u n t 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 ON C O M PETITIVE 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. ,5 - ----------- ---------------__________________ _____________ C O M PETITIV E T E N D E R S ( $ /$ 5- - -5 - -@ - -I- - @ Prices should he exp ressed on the basis of 1 0 0 , with not more than three decimal places, e.g-> 99.925. Fractions must not be used. USr' TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH® CLOSING HOUR ARE ACCEPTABLE. Denominations Desired N u m b e r of pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PAYMENT M a tu rity V alue _@ $ 10,000 $------------------- _@ $ 15,000 $_____________ _@ $ 50,000 $_____________ _@ $ 100,000 $------------------- _@ $ 500,000 $_ □ B y m a tu r in g b ills held by_______________________________— □ P a y m e n t to b e m ade b y ____________ - - □ C harge our r eser v e accou n t on p a y m e ^ d ate I j D r a ft enclosed (E ffectual delivery o f enclosed dr» fti*^ $ 1,000,000 $_ sh all be on la te st d ay w hich w ill p e rm it presen tm e® in o rd e r to o btain irrevocably collected fu nds on m e n t date) D e liv e ry I n s tr u c tio n s : □ H old in C u sto d y — G eneral A ccount (S u b scrib er’s fu ll nam e o r co rp o ra te title) □ Hold in C u sto d y — In v e stm e n t A c cou n t (A ddress) □ H old in C ustody — T r u st A ccou n t □ P led g e to secu re T rea su ry T a x and L oan A ccou n t □ O ther-------------------------------- --------------- R v (A uthorized official s ig n a tu re a n d title ) (F o r th e account of, if te n d e r is fo r a n o th e r subscriber) (A ddress) 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 $5,000 (maturity value). 2 Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of -L ’ United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelope received with this legend will not be opened until after the closing time specified in the public announcement, comm1-1, :c cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from ‘ bank or appropriate branch. 3. Any qualified or conditional tender w ill be rejected. 4 If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make U ’ 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, v > a copartnership, by -----------------------------------------------should sign in the form “---------a m e m b e r o f t h e f irm .” 5 T e n d e r s f r o m th o s e o t h e r t h a n i n c o r p o r a te d b a n k s a n d t r u s t c o m p a n ie s o r r e s p o n s ib le a n d r e c o g n iz e d d e a le r s in m v. m e n t s e c u r itie s w ill b e d i s r e g a r d e d , u n le s s a c c o m p a n ie d b y a d e p o s it o f 2 p e r c e n t o f t h e t o t a l a m o u n t ( m a t u r i t y vtt o f t h e T r e a s u r y b ills a p p lie d f o r , o r u n le s s t h e t e n d e r s a r e a c c o m p a n ie d b y a n e x p r e s s g u a r a n t y o f f u ll p a y m e n t by in c o r p o r a te d b a n k o r t r u s t c o m p a n y . 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) >, . jjj ^
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