View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ed e r a l R eser ve Ba n k o f D a lla s
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 lar No. 74-82
M a rc h 26, 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
o f $4,300,000,000, or th ereab o u ts, fo r cash a n d
$4,302,060,000, as follows:
92-D A Y B IL L S (to m a tu rity d a te ) to b e
re p rese n tin g a n ad d itio n al a m o u n t of
No. 912793 U D 6 ) , orig in ally issued in
fre ely in terchan g eab le.

notice, in vites ten d e rs for tw o series of T re a su ry bills to th e ag g reg ate a m o u n t
in exchange for T re a su ry bills m a tu rin g A p ril 4, 1974, in th e a m o u n t of
issued A p ril 4, 1974, in th e a m o u n t of $2,500,000,000, or th ere ab o u ts,
bills d a te d Ja n u a ry 3, 1974, a n d to m a tu re Ju ly 5, 1974 (C U S IP
th e a m o u n t of $1,802,505,000, th e a d d itio n al a n d original bills to be

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 A p ril 4, 1974, a n d to m a tu re O cto b er 3, 1974,
( C U S I P No. 912793 U S 3 ).
T h e bills of b o th series will be issued on a d iscou n t basis u n d e r c o 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 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 ithout in terest. 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 rity v a lu e ).
T e n d e rs w ill be receiv ed a t F e d e ra l R e se rv e B an k s a n d B ran ches 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 nd ay , A pril 1, 1974. T en d e rs w ill not 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 o ver $10,000 m ust be in m u ltip les 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 no t m ore 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 u rged th a t ten d e rs be m ad e on th e p rin te d form s a nd forw ard ed in th e special envelopes w hich w ill b e sup p lied
by F e d e ra l R eserv e B an k s or B ran ch es on a p p lic a tio n th erefor.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs for account of custom ers p ro v id ed th e n am es of th e custo m ers a re
se t fo rth in such tenders. O th ers th a n ban 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 for th e ir own account.
T e n d e rs will be received w ith o u t dep osit from in co rp o rated bank s and tru s t co m pan ies a n d from responsible a n d recognized
d e ale rs in in v estm e n t securities. T e n d e rs from o th ers m u st be acco m p an ied by 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 s u ry bills a p p lie d for, unless th e te n 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
t r 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 be op en ed a t th e F e d e ra l R eserv e B a n k s a n d B ranches, follow ing
w hich pu b lic a n n o u n ce m en t will be m ad e by 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 range of a cc 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 will be ad vised of th e acceptance or rejectio n thereof. T h e S e c retary of th e T re a su ry
e x p ressly reserves th e rig h t to accep t or re je ct a n y or all ten ders, 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 for each issue for $200,000 or less w ith o u t sta te d p rice from a n y
o ne b id d er will be accep ted in full a t th e av erag e p rice (in th re e decim als) of accep ted c o m p e titiv e bids for th e resp ectiv e
issues. S e ttle m e n t for acc ep te d ten d e rs in accordance w ith th e bids m u st be m ad e or co m p leted a t th e F e d e ra l R eserv e B a n k
o n A p ril 4, 1974, in cash or o th e r im m e d ia tely a v ailab le fun d s or in a like face a m o u n t of T re a su ry bills m a tu rin g
A p ril 4, 1974. C ash a n d exchange ten d e rs w ill receive equ al tre a tm e n t. Cash a d ju stm e n ts w ill be m ade fo r differences b etw een
th e p a r value of m atu rin g bills a ccep ted in exchange a n d th e issue price 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 en u e Code of 1954 th e a m o u n t of d isco u nt a t w hich bills
issued h e reu n d e r are sold is considered to accru e w hen th e bills a re sold, red eem ed or otherw ise disposed of, a n d th e bills are
exclu d ed from co n sid eratio n 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 insurance co m p an ies)
issu ed h e reu n d e r m u st include in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference b etw een 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 en t purchase, a n d th e a m o u n t a ctu a lly receiv ed e ith e r up o n sale or re d e m p tio n a t
m a tu r ity du ring th e tax ab le y ear fo r 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 ) an d th is notice, p rescrib e th e te rm s of th e T re a su ry b ills a n d
go vern th e con d itio ns of th e ir issue. C opies of th e circular m ay be o b tain e d from a n y F e d e ra l R eserve B a n k or 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 Dayiight Saving Time, Monday, April 1, 1974. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m o u nt, R a n g e a n d A p p ro x im ate Y ield 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 27, 1974
D u e S e p te m b e r 26, 1974
$3,394,750,000
.T o ta l A p p lied F o r _________________________________ $3,333,045,000
$2,500,110,000__________________________________.T o ta l A c c ep ted ___________________________________$1,800,550,000
P ric e
Y ield
P ric e
Y ield
97.932____________ 8.181 % ___________________________ H ig h _______________________95.867_______ _f_„___8.175 %
97.882
8 .3 7 9 % __________________________ l o w ________________________ 95.830____________ 8 .248%
97.902
8.300% ( 1 ) -------------------------------- A v erag e______________________ 95.839____________ 8.2 31 % (1 )
( 1 ) T h ese rates are o n a b ank discount basis. T h e eq u iv a len t coupon issue y ie ld s are 8 .6 0 % for th e 13-w eek bills and 8 .7 1 % 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated April 4,1974

Maturing October 3,1974

T o : F e d e r a l R ese r v e B ank, S ta tio n K, D alla s, T e x a s 75222
or —
T h e --------------------------------------------- B ran ch
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 $__________________________________________

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

Noncompetitive tenders for $2 0 0 , 0 0 0 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

*

$....
$...
T
$
$

q.

()
a

@
@
@

...

Prices should be
exp ressed on th e
basis of 1 0 0 , with
not more than three
decimal places, e.g.,
99.925. F ra ctio n s
must not be used.

$
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 e r of
pieeee

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

@ $

10,000 $

@ $

15,000 $

@ $

50,000 $

@ ?

100,000 $

@ $

500,000 $

□

B y m a tu r in g bills
held by----------------------------------------------------

□

P a y m e n t to be m ade b y ------------------------

□

C harge our r e se r v e accou n t on p a y m e n t
d ate
I I D r a ft enclosed (E ffectual delivery o f enclosed d ra ft

@ $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 ord er to ob tain irrevocably collected fu n d s on p a y ­
m e n t date)

D eliv 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 scriber’s fu ll n am e o r c o rp o ra te title)

□

Hold 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 cco u n t

□

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

By(A u th o rized official s ig n a tu re an d title )

(F o r th e acc o u n t of, i f 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, w it h S ta t io n 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 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