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F ederal R eserve 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
Circular No. 74-95
April 9, 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 s u 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 tw o 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 ere ab o u ts, fo r cash a n d in exchange fo r T re a su ry bills m a tu rin g A p ril 18, 1974, in th e a m o u n t of
$4,304,200,000, a s follow s:
91-D A Y B IL L S ( to m a tu rity d a te ) to b e issued A p ril 18, 1974, in th e a m o u n t o f $2,500,000,000, o r th ere ab o u ts,
re p re se n tin g a n ad d itio n al a m o u n t of b ills d a te d J a n u a r y 17, 1974, a n d to m a tu re J u ly 18, 1974 (C U S I P
No. 912793 U F 1 ) , o rig inally issued in th e a m o u n t of $1,811,475,000, th e a d d itio n a l a n d orig inal bills to b e
fre e ly in terchan g eab 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 A p ril 18, 1974, a n d to m a tu re O cto b er 17, 1974,
( C U S I P No. 912793 U U 8 ) .
T h e b ills o f b o th series will b e issued o n a d isc o 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 r ity th e ir face a m o u n t will b e p a y ab le w ith ou t in te re st. 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 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 ran ch es 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 avings T im e , M o n day , A pril 15, 1974. T e n d e rs will 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 a c 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 ov er $10,000 m u st b e in m u ltip le s 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 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 ay
n o t be used. I t is u rg ed t h a t ten d e rs b e m ad e on th e p rin te d form s a n d fo rw a rd ed in th e special envelopes 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 gen erally m ay su b m it te n d e rs fo r acco un t of c u stom ers p ro v id ed th e n a m e s of th e c usto m ers a re
set fo rth in such ten ders. O th e rs 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 e x ce p t fo r th e ir ow n account.
T e n d e rs w ill b e receiv ed 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 co m pan ies a n d from respo n sible a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs fro m o th e rs m u st be 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 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 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 com pany.
Im 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 e n 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 ranch es, follow ing
w hich p u b lic a n n o u n ce m en t w ill b e 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 rang e 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 b e ad v ised of th e acceptance o r re je ctio n thereo f. T h e S e c retary of th e T re a su ry
expressly reserves th e rig h t to a cc ep t or re je c t a n y o r all ten d ers, in w hole o r in p a rt, a n d his a ctio n in a n y such re sp e c t 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 fo r $200,000 or less w ith o u t s ta te d p rice fro m a n y
one b id d e r will b e a cc ep te d in full a t th e av erag e p rice ( in th re e d e cim als) of acc ep te d c o m p e titiv e b id s fo r 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 b e m a d 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 A p ril 18, 1974, in cash o r o th e r im m e d ia te ly a v ailab le fu n d s o r in a like face a m o u n t of T re a su ry b ills m a tu rin g
A p ril 18, 1974. C ash a n d exchange te n d e rs w ill receive 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 for differences betw een
th e p a r v alue of m a tu rin g b ills a cc ep te d in exchange a n d th e issue p rice of th e new bills.
U n d e r S ection s 4 5 4 ( b ) a n d 1221 ( 5 ) of th e In 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 disco u n t a t w hich b ills
issued h e re u n d e r a re sold is co nsidered to accru e w hen th e b ills a re sold, re d ee m e d o r oth erw ise disposed of, a n d th e b ills a re
excluded from c o n sid eratio n a s c ap ital 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 rance c o m p an ies)
issued h e reu n d e r m u st in clu d e in his incom e ta x re tu rn , as o rd in a ry gain o r 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 origin al issue or on su b seq u e n t p urchase, 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 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 la r No. 4 1 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 nd itio n s of th e ir issue. C o p ies of th e circ u lar m ay be 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, April 15, 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 11, 1974
D u e O cto b er 10, 1974
$3,908,395,000
T o ta l A p p lied F o r.________________________________ $3,451,115,000
$2,500,535,000__________________________________.T o ta l A c c ep ted ___________________________________$1,800,450,000
P ric e
Y ie ld
P ric e
Y ie ld
97.836------------------- 8J 1 % ------------------------H ig h ____________ 95.785____________ 8 .33 7 %
97.809------------------- 8 .6 6 8 % -------------------------------------------L ow _______________________ 95.749____________ 8 .409%
97.814____________ 8 .6 4 8% ( 1 ) ----------------------------------Average______________________ 95.757
8 .39 3 % ( 1 )
( 1 ) T h e s e rates are on a bank d iscount basis. T h e eq u iv a le n t coupon issue yie ld s are 8 .9 6 % for th e 13 -w eek bills a n d 8 . 8 9 % for
th e 2 6 -w eek bills.

S e reverse for tender
This publication was digitized and made available (bye the Federal Reserve form) of Dallas' Historical Library (FedHistory@dal.frb.org)
Bank

TENDER FOR ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated January 17,1974

Maturing July 18,1974

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The------------------------------------ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(Dmte)

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 $200,000

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.

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

s

$
$
$
$

^

£

()
a
@
@
@

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 ctio n s
must not be used.

f
t
$
$

1 5 ^ 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

< $
a>

10,000 $

(3> $

15,000 $

&

$

50,000 $

&

?

100,000 $

<® $

500,000 $

□

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

□

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

□

C harge ou r re se r v e acco u n t on p a y m e n t
d a te
| | D r a ft en closed (E ffectual delivery o f enclosed d ra ft

(5) $1 ,000,000 $

sh all be on la te st day which w ill p e rm it p re sen tm en t
in ord er to o b tain 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 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 c o 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 le d g e to secu re T rea su ry T a x and
L oan A cco u 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 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 m ust 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 m 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 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.

( e r v r ef ra n u c m n )
S e ees o n o n e e t

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