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F ederal R eserve 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. 74-21
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 ite s te n d e rs fo r tw o series of T re a su ry bills to th e a g gregate 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 fo r 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 r ity d a te ) to b e issued J a n u a r y 24, 1974, in th e a m o u n t o f $2,500,000,000, o r th e re ­
ab o u ts, re p re se n tin g a n ad d itio n al a m o u n t of b ills 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 N o. 912793 T J 5 ) , o rig in ally 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 fre ely in terch an geab le.
182-D A Y B IL L S fo r $1,800,000,000, or th ere ab o u ts, to b e d a te d J a n u a r y 24, 1974, a n d to m a tu re J u l y 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 n t 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 a s h e re in a fte r
prov ided, 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 a b le w ith o ut in terest. T h e y will b e issued in b e a re r form only, a n d in
den 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 h our, 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 day , J a n u a r y 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 ac h
te n d e r m u st b e fo r a m in im u m o f $10,000. T e n d e rs o v e r $10,000 m u st be in m u ltip le s of $5,000. I n th e case of c o m p e titiv e
te n d e rs th e p rice offered m u st b e 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 be used. I t is u rg e d t h a t te n d e rs b e m ad e o n th e p rin te d form s a n d forw ard ed in th e special en v elop es w hich w ill b e su pp lied
b y F e d e ra l R e se rv e B a n k s o r B ran ch es o n a p p lic a tio n th erefor.
B a n k in g in stitu tio n s generally m a y su b m it te n d e rs for acco un t of cu stom ers p ro v id ed th e n a m e s o f th e c u stom ers are
se t fo rth in such ten d e rs. O th e rs th a n b a n k in g in stitu tio n s w ill 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 w ill b e receiv ed w ith o u t d ep o sit fro m in co rp o ra ted b a n k s and tr u s t co m p an ies a n d from respo n sible 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 b e a cco m p an ied 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 b ills a p p lie d for, unless th e te n d e rs a re a cco m p an ied b y a n express g u a ra n ty o f 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 h our, te n d e rs will b e o p en 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 b e 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 rang 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 b e ad v ised of th e acceptance o r re je c tio n th ereof. T h e S e c re ta ry of th e T re a su ry
expressly reserves th e rig h t to a c c e p t o r re je c t a n y o r all ten d ers, in w hole or in p a rt, a n d h is actio n in a n y such re sp e c t shall be
final. S u b je c t to th ese reserv atio n s, n o n c o m p e titiv e te n d e rs fo r each issue for $200,000 or less w ith o u t sta te d p rice fro m a n y
one b id d e r w ill b e acc ep te d in full a t th e av erag e p rice ( in th re e decim als) o f acc ep te d c o m p e titiv e b id s fo r th e resp ectiv e
issues. S e ttle m e n t fo r a cc ep te d ten d e rs in accordance w ith th e b id s m u st b e m ad e o r c o m p le te d 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 o r o th e r im m e d ia te ly a v ailab le fu n ds or in a like face a m o u n t of T re a su ry bills m a tu rin g J a n u a ry
24, 1974. C ash a n d exchange te n d e rs will receiv e eq u al tre a tm e n t. C ash a d ju s tm e n ts w ill b e m ad e fo r difference b e tw ee n th e
p a r v alu e of m a tu rin g b ills a cc ep te d in exchange a n d th e issue p rice of th e new bills.
U n d e r Sections 45 4 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e Code of 1954 th e a m o u n t o f d isco u n t a t w hich bills
issued h e re u n d e r a re sold is considered to a ccru e 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 b ills are
excluded fro m c o nsid eratio n as cap ital assets. A ccordingly, th e o w ner of T re a su ry b ills (o th e r th a n life insuran ce c o m p an ies)
issued h e re u n d e r m u st in clud e in his incom e tax re tu rn , as o rd in a ry g ain o r loss, th e difference b e tw ee n th e p rice p a id for th e
bills, w h e th er on orig in al issue o r on su b seq u e n t p urch ase, 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 ta x a b le y e a r for w h ich th e re tu r n is m ade.
T re a s u ry D e p a rtm e n t C ircu lar No. 418 (c u rre n t re v 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 b ills a n d
govern th e c on d itio ns of th e ir issue. C opies of th e circu lar m a y b e o b tain 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
Hiay not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ou n t, R a n g e a n d A p p ro x im ate Y ie ld of A c c ep ted T en d e rs
13-W eek B ills
26-W eek B ills
D u e A p ril 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 ccepted___________________________________ $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 % ____________________________L ow _______________________ 96.016____________ 7.880%
97.982
7 .9 8 3% ( 1 ) ------------------ a------------- A v erag e_____________________ 96.023_____________7 .867% ( 1 )
( 1 ) T h e s e rates are on a b ank discount basis. T h e eq u ia v len t coupon issue y ield s are 8 .2 6 % for th e 13 -w eek b ills and 8 .3 1 % for
th e 2 6 -w eek bills.

(S e e reverse for tender form)

a

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Dated January 24,1974

Maturing July 25,1974

T o : F ed era l R e ser v e B ank, S ta tio n K, D allas, T e x a s 75222
or —
T h e _____________________________ B ranch
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 th e
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount
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 O N C O M PETITIV E T E N D E R $ _ _ _______________________________________

_NOT TO E X C E E D $ 2 0 0 ,0 0 0

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.

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$

(a)

$

$

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$

$

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£

$

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

Prices should b e
ex p ressed on t h e
basis of 1 0 0 , w ith
not more than th ree
decimal places, e.g .,
99.925. F r a c tio n s
must not be used.

HSiP TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E
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

<> $
0

10,000 $-

(5) $

15,000 $-

$

50,000 $-

$

100,000 $-

(5) $

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 ad e by_

□

C harge our r e se r v e acco u n t on p a y m e n t
d a te
D r a ft enclosed (E ffectual delivery o f enclosed d r a f t

□

(5) $1 ,000,000 $■

shall be on la te st day w hich will p e rm it p re s e n tm e n t
in o rd e r to o b tain irrevocably collected fu n d s on p a y ­
m e n t d ate)

D eliv e r y I n s tr u c tio n s :
□

H old in C u sto d y — G eneral A ccou n t

(S u b scrib er’s fu ll n a m e o r c o rp o ra te title)

□

H old 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 cco u n t

□

P le d g e to secu re T rea su ry T a x and
L oan A cco u n t

□

O ther------------------------------------------ -----

By-

(A uthorized official s ig n a tu re a n d title)

(F o r th e a cco u n t 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 w ill be considered and each tender over $10,000 m ust be for an amount in m ultiples of
$5,000 (maturity value).
_
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f the
United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes
received with this legend will not be opened until after the closing time specified in the public announcement, communi­
cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this
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 the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t he
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who
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 in v est­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity valu e)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment b y an
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 is
’ 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