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F ederal R eserve b a n k 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
Circular No. 74-67
March 12, 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 ten 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, or 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 M a rc h 21, 1974, in th e a m o u n t of
$4,305,165,000, as follows:
91-D A Y B IL L S ( to m a tu rity d a te ) to b e issued M a rc h 21, 1974, in th e a m o u n t of $2,500,000,000, o r th ere ab o u ts,
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 D ecem b er 20, 1973, a n d to m a tu re J u n e 20, 1974 (C U S I P
No. 912793 T S 5 ) , orig inally issued in th e a m o u n t of $1,799,045,000, th e a d d itio n a l a n d origin al b ills to be
fre ely 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 M a rc h 21, 1974, a n d to m a tu re S e p te m b e r 19,
1974, ( C U S I P No. 912793 U Q 7 ).
T h e b ills of b o th series w ill b e issued o n a disco 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
p ro v id ed , a n d a t m a tu rity th e ir face a m o u n t w ill b e p a y a b le w ith ou t in terest. T h e y w ill be 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 receiv ed 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 h our, o n e -th irty p.m ., E a s te rn
D a y lig h t Savin g T im e , M on day , M a rc h 18, 1974. T e n d e rs w ill 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 of $10,000. T e n d e rs over $10,000 m u st b e in m u ltip le s 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 b asis 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 th a t te n d e rs b e m ad e on th e p r in te d form s a n d fo rw a rd ed in th e special env elo pes 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 ran ch es o n a p p lic a tio 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 c usto m ers p ro v id e d th e na m e s o f th e custo m ers a re
set 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 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 p an ies a n d fro m 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 o r
tr u s t com pany.
Im m e d ia te ly a fte 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 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 p rice ra n g e o f acc 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 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 tenders, 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 b e
final. S u b je c t to th e se reservation s, n o n c o m p e titiv e te n d e rs fo r each issue for $200,000 o r less w ith o u t s ta te d p rice fro m a n y
one b id d e r w ill b e a ccep ted in fu ll a t th e a v 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 fo r th e resp ectiv 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 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
on M a rc h 21, 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 lik e face a m o u n t of T re a su ry b ills m a tu rin g
M a rc h 21, 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 s tm e n ts will b e m ad e fo r differences betw een
th e p a r value 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 I n 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 a re sold is co nsid ered to a ccru e w h en th e b ills are sold, re d ee m e d o r otherw ise disposed of, a n d th e b ills a re
exclu ded fro m co n sid eratio n as c a p ita l 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 clu de in h is 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 original issue o r o n 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 re ce iv e d e ith e r u p o n sale o r re d e m p tio n a t
m a tu r ity d u rin g th e tax a b le y e a r fo r w h ich 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. 41 8 (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 o n dition s of th e ir issue. C opies of th e circ u lar m a y 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., Central Daylight Saving Time, Monday, March 18, 1974. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R a n g e a n d A p p ro x im ate Y ie ld of A ccep ted T e n d e rs
13-W eek B ills
26-W eek B ills
D u e J u n e 13, 1974
D u e S e p te m b e r 12, 1974
$5,174,445,000________________________________ .T o ta l A p p lie d F o r _________________________________ $3,447,265,000
$2,501,750,000__________________________________.T o ta l_A c c ep ted ___________________________________ $1,800,605,000
P ric e
Y ie ld
P ric e
Y ield
98.003
7 .9 0 0 % ----------------------------------------- H ig h _______________________ 96.160____________ 7 .596%
97.995
7 .9 3 2 % ----------------------------------------- l o w ________________________96.123____________ 7.669%
97.998
7.920% ( 1 ) -------------------------------- A v erag e______________________ 96.139____________ 7 .637% ( 1 )
( 1 ) T h e s e rates are on a bank d iscount basis. T h e eq u iv alen t coupon issue y ie ld s are 8 .1 9 % for th e 13-w eek bills a n d 8 .0 5 % 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)

"ENDER FOR ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
D a ted D ecem b er 20, 1973

Maturing June 20,1974

T o: F ed eral 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 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 $__________________________________________

-N O T TO E X C E E D $ 200 ,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.

C O M PETITIV E T E N D E R S

1
;

.

(a)
(??)
/a

;
i

- .

$
$
$

@

$

......................... -

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 alu e

< $
a>

10,000 $.

(5> $

15,000 %

(5> $

□

B y m a tu r in g bills
h eld by----------------------------------------------------

50,000 $.

□

P a y m e n t to be m ad e by ------------------------

(5) $

100,000 $-

□

(cb

500,000 $.

?

C harge our r ese r v e a ccou n t on p a y m e n t
date
| | D r a ft enclosed (Effectual delivery of enclosed d ra ft

(5) $ 1 ,000,000

shall be on la te st day w hich w ill p e rm it p re s e n tm e n t
in o rd e r to o btain irrevocably collected fu nds on p a y ­
m e n t date)

D e liv e r y 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 full n a m 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)

□

H old in C u stod y — T ru st A cco u n t

□

P le d g e to secu re T reasu ry T a x and
L oan 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 account of, if te n d e r is fo r a n o th e r su b scrib er)

(A ddress)

IMPORTANT
l

2.

3.
4.

5.

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).
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.
Any qualified or conditional tender will be rejected.
If a corporation makes the tender, the form should besigned 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 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)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102