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F ederal Reserve 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 N o. 74-44 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 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 for tw o series of T re a su ry bills to th e a gg reg ate a m o u n t o f $4,300,000,000, o r th ere ab o u ts, fo r cash a n d in exchange fo r T re a su ry b ills 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, a s follow s: 91-D A Y B IL L S ( to m a tu r ity 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 ab o u ts, re p re se n tin g a n a d d itio n a l a m o u n t of b ills 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 rig inally 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 in terch 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 F e b ru a ry 21, 1974, a n d to m a tu re A u g u st 22, 1974 ( C U S IP No. 912793 U L 8 ). T h e b ills of b o th series will b e issued o n a d iscou 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 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 a b le w ith o ut in terest. T h e y will b e issued in b e a re r fo rm 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 ho ur, o n e -th irty p.m ., E a s te rn D a y lig h t S aving 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 a c 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 ov er $10,000 m u st b e in m u ltip le s of $5,000. I n th e case of co m p e titiv e te n d e rs th e p ric e offered m u s t 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 e d t h a t te n d e rs b e m ad e o n th e p r in te d form s a n d fo rw ard ed in th e special e n velop 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 gen erally 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 o f th e c u sto m ers a re 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 e x ce p t fo r th e ir ow n a c c o u n t T e n d e rs w ill b e re ce iv e d 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 pan ies a n d from resp o n sib le a n d recognized d e ale rs 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 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 b ills a p p lie d for, u n less 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 co m pany. Im m e d ia te ly a f te r th e closing ho u r, 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 b e 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 o f a cc ep te d bids. O nly th ose s u b m ittin g c o m p e titiv e ten d e rs will b e ad 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 reserv es th e rig h t to a cc ep t o r re je c t a n y o r a ll ten ders, in w hole o r in p a rt, a n d h is a ctio n in a n y such re sp e c t 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 s ta te d p rice fro m a n y o ne b id d e r w ill b e a cc ep te d in full a t th e av erage p rice ( in th re e d e cim als) of a cc ep te d c o m p e titiv e b id s for th e re sp e ctiv e issues. S e ttle m e n t fo r a cc ep te d te n d e rs in accordance w ith th e bids m u st be 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 F e b ru a ry 21, 1974, in cash or o th e r im m e d ia tely av ailab le fu n d s or in a lik e face a m o u n t of T re a su ry bills m a tu rin g F e b r u a ry 21, 1974. C ash a n d ex change te n d e rs w ill receiv e e q 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 differences b e tw ee n th e p a r v a lu e o f m a tu rin g b ills a cc ep te d in exchange a n d th e issue p rice o f th e n ew bills. U n d e r S ectio ns 4 5 4 ( b ) a n d 1221 ( 5 ) of th e I n te rn a l R e v e n u e C ode o f 1954 th e a m o u n t o f d isco u n t a t w hich b ills issu ed h e re u n d e r a re sold is considered to accrue w h en th e b ills a re sold, re d ee m e d o r otherw ise disposed of, a n d th e b ills are exclu ded fro m c o n sideration a s c a p ita l 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 rance 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 ta x re tu rn , as o rd in a ry gain or 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 o n o rigin al issue o r on su b seq u e n t pu 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 d u rin g th e ta x a b le y e ar fo r 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. 41 8 (c u r re n t re v isio n ) a n d th is notice, p re sc rib e th e te rm s o f th e T re a su ry b ills a n d go vern th e c o n d itio n s of th e ir issue. C op ies of th e circu lar m a y b e o b tain e d from a n y F e d e ra l R e se rv e B a n k o r B ran ch . 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, 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 1 6 , 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 i r 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 TREASURY BILLS 182 DAYS TO MATURITY Maturing August 22, 1974 Dated February 21,1974 T o: F ed era l R e ser 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 P E T IT IV E T E N D E R $__________________________________________ _NOT TO E X C E E D $ 200,000 — 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. j! — — — ---------— ___________________ /<p C O M PE T IT IV E T E N D E R S < $$- ! -@ - I S P TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR ARE ACCEPTABLE. Denominations Desired N u m b er of pieces DATE Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PAYMENT M atu rity V alue @ $ 10,000 $ @ $ 15,000 $ @ $ (a ) $ □ B y m a tu r in g b ills held by---------------------------------------------------- 50,000 $ □ P a y m e n t to b e m ad e b y ----------------------- 100,000 $ □ C harge our r e se r v e a ccou n t on p a y m e n t d ate | I D r a ft enclosed (Effectual delivery of enclosed d ra ft @ $ 500,000 $ OBSERVE CLOSING @ $ 1,000,000 $ PLEASE 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 raction s must not be used. shall be on la te st day which will p e rm it p re sen tm en t in o rd e r to o btain irrevocably collected fun d s on p a y m e n t d ate) 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 ccou n t (S u b scrib er’s fu ll nam e o r co rp o ra te title) □ H old in C u sto d y — In v e stm e n t A c count (A ddress) □ Hold in C ustody — T r u st A ccou n t □ P led ge to secu re T rea su ry T ax and Loan A ccou n t □ O ther-------------------------------------------- --- B y- (A u th o rized official s ig n a tu re an d title) (F o r th e acco 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 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 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 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 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)
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