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F ederal R eserve Ba 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. 74-74
March 19, 1974

NEW OFFERING — TREASURY BILLS
To Ail 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 two series of T re a su ry b ills to th e a g gregate 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 M a rc h 28, 1974, in th e a m o u n t of
$4,326,545,000, as follows:
91-D A Y B IL L S ( to m a tu rity d a te ) to be issued M a rc h 28, 1974, in th e a m o u n t of $2,500,000,000, or 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 e c em b er 27, 1973, a n d to m a tu re J u n e 27, 1974 (C U S IP
No. 912793 T T 3 ) , orig in ally issued in th e a m o u n t of $1,801,745,000, th e a d d itio n a l a n d orig in al bills to be
freely in terch an geab le.
182-D A Y B IL L S for $1,800,000,000, or th ere ab o u ts, to b e d a te d M a rc h 28, 1974, a n d to m a tu re S e p te m b e r 26,
1974 (C U S I P No. 912793 U R 5 ) .
T h e bills of b o th series will b e issued on a d isco u nt 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 w ill b e p a y ab 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
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 rity 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 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 , M onday, M a rc h 25, 1974. T e n d e rs w ill n ot 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 o v er $10,000 m u st b e in m u ltip le s o f $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 be expressed o n 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 a y
n o t b e used. I t is u rg ed t h a t te n d e rs be 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 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 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 gen erally m ay su b m it te n d e rs for acco u nt of cu sto m ers p ro v id ed th e n am es of th e cu sto m ers are
set fo rth in such ten d ers. O th ers 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 re ce iv e d w ith o u t d e p o sit fro m in co rp o ra ted b ank s and tr u s t com p anies a n d from resp o nsib le a n d recognized
d e ale rs in in v estm e n t securities. T e n d e rs fro m o th ers m u st be a cco m pan 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 cco m p anied b y an 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 ho ur, 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 ran ches, follow ing
w hich p u b lic an 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 ran ge of acc ep te d bids. O nly
th ose su 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 ereof. 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 or all ten ders, in w hole o r 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, no n c o m p e titiv e te n d e rs fo r each issue fo r $200,000 or less w ith o u t sta te d p rice fro m a n y
o ne b id d e r will b e acc ep te d in full a t th e av erag e p rice ( in th re e decim 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 fo r acc ep te d te n d e rs in accordance w ith th e bids m u st be m ad e or 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 M a rc h 28, 1974, in cash or o th e r im m e d ia tely a v ailab le fu nd s or in a like face a m o u n t of T re a su ry bills m atu rin g
M a rc h 28, 1974. C ash a n d exchange ten 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 for differences betw een
th e p a r v alu e 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 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 of d isco un t a t w hich bills
issued h e re u n d e r a re sold is co nsidered to a ccru e w h en th e bills a re sold, re d e e m e d or otherw ise disposed of, a n d th e bills are
excluded fro m co n sid eratio n a s c a p ita l assets. A ccordingly, th e ow ner of T re a su ry b ills (o th e r th a n life in su ran ce c o m p an ies)
issued h e re u n d e r m u st in clu d e 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 er on original issue or 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 o r 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 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. 4 18 (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 bills a n d
govern th e c on d itio ns of th e ir issue. C opies of th e circ u 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, March 25, 1974. Tenders
may 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 ield of A ccep ted T en d e rs
13-W eek B ills
26-W eek B ills
D u e J u n e 20, 1974
D u e S e p te m b e r 19,1974
$3,763,235,000
.T o ta l A p p lied F o r_________________________________ $3,072,290,000
$2,500,120,000__________________________________.T o ta l_A c c ep ted ___________________________________ $1,800,260,000
P ric e
Y ield
P ric e
Y ield
98.003
7 .9 0 0 % -----------------------------------------H ig h ________________________ 96.085____________ 7.744%
97.953
8 .0 9 8 % ___________________________L ow ________________________ 95.994____________ 7.924%
97.966
8 .047% ( 1 ) -------------------------------- A v erag e ---------------------------------- 96.015____________ 7.882% (1 )
( 1 ) T h e s e rates are on a b ank discount basis. T h e eq u iva le n t coupon issue y ie ld s are 8 .3 3 % for th e 1 3 -w eek b ills an d 8 .3 2 % 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)

TENDER FOR ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
D a ted D ecem b er 2 7 ,1 9 7 3

Maturing June 27,1974

T o : F ed eral 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 P E T IT IV E T E N D E R $__________________________________________

_NOT TO E X C E E D $200,000

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.
(55

^

«

1$

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

@

$

fib
fib

$

%
$

%
$

-

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.

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

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 $_

$

50.000 $_
1 0 0 ,0 0 0

$_

$

B y m a tu r in g bills
held b y__________________________________

□

$_

$ 500,000

□

P a y m e n t to b e m ad e b y _______________

□

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

$ 1 ,000,000 $ -

shall be on la te st day which will p erm it p re sen tm en 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 :
□

H old 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)

□

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

□

P led g e to secu re T reasu ry T a x and
Loan A cco u n t

□

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

By(A u th o rized 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 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 andtrust 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