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F ederal r eser ve b a n k o f Dallas
F IS C A L A G E N T O F T H E U NIT E D S T A T E S

D A LL A S , T E X A S 7 5 2 2 2

2T
C ircu la r No. 74-jS^
J a n u a r y 22, 1974

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your a ttentio n is invited to the following s ta te m e n t giving details of tw o 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 vites te n d e rs fo r tw o series of T re a su ry b ills to th e agg regate 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 bills m a tu rin g J a n u a r y 31, 1974, in th e a m o u n t of
$4,312,435,000, as follow s:
9 1-D A Y B IL L S ( to m a tu r ity d a te ) to be issued Ja n u a r y 31, 1974, in th e a m o u n t of $2,500,000,000, o r th e r e ­
abouts, re p re se n tin g a n a d d itio n al a m o u n t of b ills d a te d N o v e m b er 1, 1973, an d to m a tu re M a y 2, 1974
( C U S I P No. 912793 T K 2 ) , o rig in ally issued in th e a m o u n t of $1,801,125,000, th e a d d itio n a l a n d original
b ills to b e fre ely interch an g eab le.
182-D A Y B IL L S for $1,800,000,000, o r th ere ab o u ts, to b e d a te d J a n u a r y 31, 1974, a n d to m a tu re A u g ust 1, 1974
( C U S I P No. 912793 U H 7 ) .
T h e bills of b o th series will b e issued on a d isco un 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 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 be p a y ab le w itho u t interest. T h e y will be issued in b e a re r form only, a n d in
d e n o m in a tio 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 ra n ch e s 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 S aving T im e , M o n d ay , J a n u a r y 28, 1974. T e n d e rs w ill n o t be received 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 be for a m in im u m of $10,000. T e n d e rs over $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 be used. I t is urged t h a t te n d e rs be m ad e on th e p rin te d form s a n d fo rw ard ed in th e special en velo p es w hich w ill b e su p p lied
b y F e d e ra l R e se rv e B a n k s o r B ra n ch e s o n a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s g enerally 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 am es of th e custo m ers are
se t fo rth in such tend 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 for th e ir own account.
T e n d e rs w ill be receiv ed w ith o u t d ep o sit from in co rp o ra ted b an k s and tr u s t c om pan ies a n d from responsible a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs fro m o th ers m u st be acco 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 bills a p p lie d for, unless th e te n d e rs a re a cc o m p an ied b y a n express g u a ra n 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.
I m m e d ia te ly a f te r th e closing hour, te n d e rs w ill 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 a n n o u n ce m en t w ill be m a d 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 ra n g e of a cc ep te d bids. O nly
th o se su b m ittin g c o m p e titiv e te n d e rs will b e a d v ised of th e acceptance o r 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 o r re je c t a n y or all ten d ers, 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 reservatio ns, n o n c o m p e titiv e te n d e rs for each issue for $200,000 o r less w ith o u t sta te d price from an y
one b id d er will be a cc ep te d in full a t th e av erag e p rice ( in th re e d e cim als) of a cc ep te d c o m p e titiv e bids for th e respective
issues. S e ttle m e n t for a cc ep te d te n d e rs in acco rd an ce w ith th e bids m u st be 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
on Ja n u a r y 31, 1974, in cash or o th e r im m e d ia tely a v ailab le fu n d s o r 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
31, 1974. C ash a n d exchange te n d e rs w ill receive eq u al tre a tm e n t. C ash a d ju stm e n ts will be m ad e fo r difference betw een th e
p a r va lu 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 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 nt a t w hich bills
issued h e re u n d e r a re sold is co nsidered to accrue w hen th e b ills a re sold, re d ee m e d o r otherw ise disposed of, a n d th e bills are
excluded fro m co n sid eratio n a s c ap ital assets. A ccordingly, th e o w ner of T re a su ry bills ( o th e r th a n life in su ran ce co m p an ies)
issued h e re u n d e r m u st include in his incom e ta x re tu rn , as o rd in ary gain or loss, th e difference b e tw ee n th e p rice p a id for th e
bills, w h e th e r on origin al issue or on su b seq u e n t p u rchase, 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 hich th e r e tu rn is m ade.
T re a s u ry D e p a rtm e n t C ircu la r 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 bills a n d
g overn th e c o n ditio ns of th e ir issue. C opies of th e circ u 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 ran ch .

In a cco rd an ce with the a b o v e a n n o u n c e m e n t, te n d e rs will b e received a t this b a n k a n d its b ranches a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M o n d a y , J a n u a r y 28, 1974. Tenders
m a y not be e n te re d by te le p h o n e .
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m o u 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 e n d e rs
13-W eek B ills
26 -W eek B ills
D u e A p ril 25, 1974
D u e J u ly 25, 1974
$4,220,895,000_________________________________ T o ta l A p p lied F o r_________________________________ $4,172,055,000
$2,500,460,000__________________________________ T o ta l A c c ep ted ___________________________________$1,800,115,000
P ric e
Y ie ld
P ric e
Y ield
97.993
7 .9 4 0 % __________________________ H ig h ________________________96.051____________ 7 .811%
97.977
8 .0 0 3 % __________________________ l o w ________________________ 96.044____________ 7 .825%
97.979
7.9 95 % ( 1 ) ____________________ .A verage______________________ 96.047____________ 7 .819% ( 1 )
(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 8.27% for the 13-week bills and 8.25% for
the 26-week bills.

(See 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated January 31,1974

Maturing August 1,1974

T o : Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The---------------------------------------- Branch
El Paso 79999 Houston 77001

San Antonio 78295

(Date)

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 olFers to purchase Treasury bills in the amount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.

NONCOMPETITIVE TENDER $______________________________________

NOT TO EXCEED $200,000

Noncompc litive 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.
/®

COMPETITIVE TENDERS

$ .
$
$.
$

------

^

-----<)
n
@

m

Prices should be
exp ressed on th e
basis of 100, with
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.

ViJ/

.

@

$
$
$
$

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
Number of
pieces

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT

M aturity Value

(5)

$
$
15,000 $
$
(5) $ 50,000 $
(5) $ 100,000 $
(5) $ 500.000 $
(5) $1,,000,000 $
10,000

□

(5)

□

By maturing bills
held by-------------------------------------------Payment to be made by--------------------

□

Charge our reserve account on payment
date
| | Draft enclosed (Effectual delivery of enclosed draft
shall be on latest day which will permit presentment
in order to obtain irrevocably collected funds on pay­
m ent date)

Delivery Instructions:
□

Hold in Custody— General Account

(Subscriber’s full name or corporate title)

□

Hold in Custody— Investment Ac­
count

(Address)

□
□
□

Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan Account
Other___________________________

By-

(Authorized official signature and title)
(For the account of, if tender is for another subscriber)

(Address)

IMPORTANT

2

3.
4,

5.

6.

No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiples of
$5,000 (m aturity value).
Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of 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 m atters should not be enclosed. Envelopes for submitting tenders may be obtained from this
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 the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him that 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.”
Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or tru st company.
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