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federal R es er v e 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 Circular No. 74-85 April 2, 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, invite* ten 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, o r th ere ab o u ts, fo r cash a n d in exchange for T re a su ry bills m a tu rin g A p ril 11, 1974, in th e a m o u n t of $4,307,755,000, as follow s: 91-D A Y B IL L S ( to m a tu rity d a te ) to b e issued A pril 11, 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 rese n tin g a n a d d itio n al a m o u n t of bills d a te d J a n u a r y 10, 1974, a n d to m a tu re J u ly 11, 1974 ( C U S I P N o. 912793 U E 4 ) , origin ally issued in th e a m o u n t of $1,809,540,000, th e a d d itio n al a n d orig in al bills to be fre ely in terchan g eab 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 A p ril 11, 1974, a n d to m a tu re O c to b er 10, 1974, ( C U S I P No. 912793 U T 1 ) . T h e bill* of b o th series will b e issued on a d isco 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 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 be p a y ab le w ithout in terest. T h e y will 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 will b e received 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 hour, o n e -th irty p.m ., E a s te rn D a y lig h t S avings T im e , M on d ay, A p ril 8, 1974. T e n d e rs w ill n o t b e 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 be for a m in im u m of $10,000. T e n d e rs over $10,000 m ust 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 be expressed on th e basis of 100, w ith n o 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 urged t h a t ten d e rs be m ad e on th e p rin te d form s a n d forw ard ed in th e special en v elop 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 on a p p lic a tio n therefor. 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 account of cu stom ers p ro v id ed th e n am es of th e c u stom ers are set fo rth in such tend 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 except fo r th e ir own account. T e n d e rs will be received w ith o u t dep o sit fro m in co rp o ra ted b an k s and tr u s t co m pan ies a n d from resp o nsib le a n d recognized d ealers in in v estm e n t securities. T e n d e rs fro m o th ers m u st be a ccom 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 bills 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 ran ty of p a y m e n t by a n in co rp o ra ted b a n k or tr u s t com pany. I m m e d ia te ly a f te r th e closing h o 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 an 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 p rice ra n g e 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 thereof. 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 or re je c t a n y o r 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 ct 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 o r less w ith o u t sta te d p rice from any o ne b id d e r will b e acc ep te d in full a t th e a v erag e p rice ( in th re e d ecim als) of a cc ep te d c o m p e titiv e b id s for th e respective issues. S e ttle m e n t for a cc ep te d ten d e rs in acco rd an ce w ith th e b id s 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 on A p ril 11, 1974, in cash o r o th e r im m e d ia tely av ailab le fu n ds o r in a like face a m o u n t of T re a su ry bills m a tu rin g A pril 11, 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 w ill b e m ad e fo r differences betw een th e p a r v alue of m a tu rin g b ills acc ep te d in exchange a n d th e issue price 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 en 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 nsidered to accru e w hen th e bills a re sold, re d ee m e d o r otherw ise disp osed of, a n d th e bills are e x cluded from c o nsid eratio n as cap ital assets. A ccordingly, th e ow 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 clud e in his incom e tax 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 for th e bills, w h e th er on original issue or on su b seq u e n t purchase, a n d th e a m o u n t a ctu 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 rity d u rin g th e tax a b le y e ar for 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. 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 bill* 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 from 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, April 8, 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 e n d e rs 13-W eek B ills 26-W eek B ills D u e J u ly 5, 1974 D u e O ctob er 3, 1974 $3,716,895,000 T o ta l A p p lied F o r _________________________________ $3,927,675,000 $2,500,130,000---------------------------------------------------- T o ta l_A c c ep ted ___________________________________$1,808,255,000 P ric e Y ield P ric e Y ield 97.890------------------ 8.25 '% ------------------------------------------- H ig h _______________________ 95.869____________ 8.171% 97.856------------------ 8 .3 9 0 % ------------------------------------------- l o w ________________________95.845____________ 8.219% 97.864------------------ 8 .358% ( 1 ) --------------------------------- A verage______________________ 95.849____________ 8.2 11 % ( 1 ) ( 1 ) T h ese rates are on a b ank d iscount basis. T h e eq u iv a le n t coupon issue y ie ld s are 8 .6 6 % for th e 1 3-w eek b ills and 8 .6 9 % 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 J a n u a r y 1 0 ,1 9 7 4 Maturing July 11, 1974 T o : F e d e r a 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 E3 Pa > 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 $___________________________________________ _NO T TO E X C E E D $2 00,00 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 PE T IT IV E T E N D E R S 1 ? P i Gb (a) P P @ 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 $_ -@ $ 1 0 0 , 0 0 0 $_ -@ $ 500,000 $_ □ B y m a tu r in g b ills h eld b y---------------------------------------------------- □ P a y m e n t to b e m a d e b y ------------------------ □ C harge ou r r e se r v e a ccou n t on p a y m e n t d a te |~| D r a ft enclosed (E ffectual delivery o f enclosed d r a f t $1,000,000 $_ sh all be on latest day which will p e rm it p re sen tm en t in ord er to o b ta in irrevocably collected fu n d s on p a y m e n t d ate) D e liv e r y I n s t r u c t io n s : □ H old in C u sto d y — G eneral A ccou n t (S u b sc rib e r’s fu ll n a m e o r c o rp o ra te title) □ H old in C u sto d y — In v e s tm e n t A c co u n t (A ddress) □ H old in C u stod y — T r u s t A cco u n t □ P le d g e to secu re T rea su ry T a x and L oan A ccou n t □ O th er------------------------------------------------ By- (A u th o rized official s ig n a tu re a n d title) (F o r th e a ccou 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 m ust 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. 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.” 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)
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