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F ederal R eserve Bank o f Dallas 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 C ircu la r No. 74-43 F e b ru a ry 8 , 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 detaiis 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, inv ites ten d e rs for two series of T re a su ry bills to th e ag greg ate a m o u n t of $4,300,000,000, or th ereab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g F e b ru a ry 21, 1974, in th e a m o u n t of $4,253,610,000, as follow s: 91-D A Y B IL L S (to m a tu rity d a te ) to b e issued F e b ru a ry 21, 1974, in th e a m o u n t of $2,500,000,000, or th e re abouts, re p rese n tin g an a d d itio n al a m o u n t of bills d a te d N o v e m b er 23, 1973, a n d to m a tu re M a y 23, 1974 (C U S I P No. 912793 T N 6 ) , o rigin ally issued in th e a m o u n t of $1,800,415,000, th e a d d itio n al a n d original b ills to b e freely interch an g eable. 182-D A Y B IL L S for $1,800,000,000, or th ere ab o u ts, to be d a te d F e b ru a ry 21, 1974, a n d to m a tu re A u gu st 22, 1974 (C U S I P No. 912793 U L 8 ). T h e b ills of b o th series will b e issued on a d isco un t basis u n d e r co m p e titiv e a n d no n c o m p e titiv e b id d in g as h e re in a fte r p rov 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 a b le w itho u t in terest. 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 Sav in g T im e , F rid a y , F e b ru a ry 15, 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 les of $5,000. In th e case of co 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 b e used. I t is u rged 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 envelopes w hich will b e sup 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 on a p p lic atio n th erefo r. B a n k in g in stitu tio n s gen erally m a y su b m it te n d e rs for account of cu stom ers p ro v id ed th e nam es of th e cu sto m ers are set 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 be 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 be received 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 com p anies a n d from resp o nsib le a n d recognized dealers in in v estm e n t securities. T e n d e rs from 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 ten 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 op 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 ranches, follow ing w hich p u b lic a n n o u n ce m en t will 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 price rang e of acc ep te d bids. O nly th o se su b m ittin g c o m p e titiv e ten d e rs w ill b e 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 o r all tenders, in w hole or in p a rt, a n d his actio 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 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 price ( in th re e d e cim als) of a ccep ted co m p e titiv e b ids for th e resp ectiv e issues. S e ttle m e n t for acc ep te d te n d e rs in accordance w ith th e b id s m u st be m ad e or co m p leted a t th e F e d e ra l R e se rv e B a n k o n F e b ru a ry 21, 1974, in cash or o th er im m e d ia tely 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 F e b ru a ry 21, 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 will be m ad e for differences b e tw ee n th e p a r v a lu e of m a tu rin g b ills a ccep ted in exchange a n d th e issue p rice of th e new bills. U n d e r Sections 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 iscou n t a t w hich bills issued h e re u n d e r a re sold is considered to accru e w hen th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re exclu ded from c o n sideration as c ap 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 co m pan 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 o r loss, th e difference b etw een th e p rice p a id fo r th e bills, w h e th e r on orig inal issue or on su b seq u en t p u rch 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 r ity du rin g th e tax a b le y e a r for w hich th e re tu rn 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 b ills a n d govern th e co nditions of th e ir issue. C opies of th e circu lar m ay b e 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., Centra! Daylight Saving Time, Friday, February 15, 1974. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell President F i g u r e 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 y 16 , 1 9 7 4 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 A u g u s t 15 , 1974, 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) TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Maturing May 23,1974 D a te d N o v e m b er 2 3 ,1 9 7 3 T o : F ed era l R e se r v e B ank, S ta tio n K, D a lla s, 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 the public announcement issued by the Treasury Department, the undersigned offers 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. N O N C O M PE T IT IV E T E N D E R $__________________________________________ JNOT TO E X C E E D $2 00 ,0 0 0 Prices should be ex p ressed on th e basis of 1 0 0 , with not more than three decimal places, e.g., 99.925. F ra c tio n s must not be used. TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE 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 $. @ $ - CLOSING ----------------------------___________________ £ C O M PETITIV E T E N D E R S <$ DATE — FR IDA Y, FEBRUARY 15, 1974 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. 500,000 $. □ □ B y m a tu r in g b ills held b y---------------------------------------------------P a y m e n t to be m ade b y ----------------------- - □ C harge our r e ser v e a ccou n t on p a y m e n t date | I D r a ft enclosed (Effectual delivery of enclosed d r a f t @ $ 1 ,0 0 0 ,0 0 0 $. shall be on la te st day which will p e rm it p re s e n tm e n t in o rd er to o b tain irrevocably collected fu n d s on p a y m e n t date) D e liv e r y I n s tr u c tio n s : Hold in C u sto d y — G eneral A ccount (S u b sc rib e r’s fu ll n a m e o r co rp o ra te title) □ OBSERVE □ Hold in C u sto d y — In v e stm e n t A c count (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 Loan A ccou n t □ O ther------------------------------------------------ By(A u th o rized official s ig n a tu re an d title) PLEASE (F o r th e a cc o u n t of, if te n d e r is fo r a n o th e r su b scrib er) (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 of $5,000 (maturity value). 2. 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 matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank or appropriate branch. 3. Any qualified or conditional tender will 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 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.” 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in vest 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 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)
@FedFRASER