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F e d e r a l r e s e r 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, TE X A S 7 5 2 2 2 C ircu la r No. 74-107 A p ril 23, 1974 NEW OFFERING — TREASURY BILLS To All (tanking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your atten tion is invited to th e following s ta te m e n t giving details of tw o 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 tw o series of T re a su ry b ills to th e a g g reg ate a m o u n t of $4,300,000,000, o r th ere ab o u ts, to be issued M a y 2, 1974, as follows: 91-D A Y B IL L S (to m a tu rity d a te ) in th e a m o u n t of $2,500,000,000, or 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 Ja n u a r y 31, 1974, a n d to m a tu re A u gu st 1, 1974 (C U S I P No. 912793 U H 7 ),o r ig in a lly issued in th e a m o u n t of $1,803,345,000, th e a d d itio n al a n d orig in al bills to be fre ely interch ang eable. 182-D A Y B IL L S fo r $1,800,000,000, or th ere ab o u ts, to be d a te d M a y 2, 1974, a n d to m a tu re O cto ber 31, 1974 ( C U S IP No. 912793 U W 4 ). T h e bills will be issued for cash a n d in exchange for T re a su ry bills m a tu rin g M a y 2, 1974, w hich a re o u tsta n d in g in th e a m o u n t of $4,307,940,000. F e d e ra l R e se rv e B anks, for th em selv es a n d as a gen ts of foreign m o n e ta ry a u th o ritie s, a n d G o v e rn m en t accou n ts h o ld $2,278,910,000, w hich m a y be exchanged for th e bills now b ein g offered a t th e a v erage prices of a cc ep te d tenders. T h e bills of b o th series will b e issued on a d isco un 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 pro v id ed , a n d a t m a tu rity th e ir face a m o u n t will b e p a y a b le w ith o ut i n te r e s t T h e y will be issued in b e a re r fo rm only, a n d in den om in atio 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 be re ce iv e d a t F e d e ra l R e se rv e B a n k s an d B ra n ch e s 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 av ing T im e , M on d ay , A p ril 29, 1974. T e n d e rs will 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 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 be 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 urged t h a t te n d e rs b e m a d e on th e p rin te d form s an d fo rw arded in th e special env elo pes w hich will be su pp lied by F e d e ra l R e se rv e B an k s or B ran ch es on a p p lic a tio n th erefo r. B a n k in g in stitu tio n s g en erally m ay su b m it te n d e rs for account of cu stom ers p ro v id ed th e n am es of th e cu sto m ers are set fo rth in such tend ers. O th ers th a n b an 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 e x ce p t fo r th e ir ow n a c c o u n t T e n d e rs will be received w ith o u t d e p o sit fro m in co rp o ra ted b a n k s and tru s t co m p anies a n d fro m resp o nsib le a n d recognized d e ale /s in in v e s tm e n t securities. T e n d e rs fro m o th ers m u st be a cc o 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» easu ry bills a p p lie d for, unless th e te n d e rs a re a cc o 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 tru s t com pany. Im m e d ia te ly a f te r th e closing h ou r, te n d e rs will b e o p ened 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 which 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 ra n g e of a cc ep te d bids. O nly those su b m ittin g c o m p e titiv e te n d e rs will b e a d v ised of th e acceptance or 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 all ten d ers, 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 these reservation s, n o n c o m p e titiv e te n d e rs for each issue fo r $200,000 o r less w ith o u t sta 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 a verag e price ( in th re e d e cim als) of a cc ep te d c o m p e titiv e b id s for th e resp ectiv e issues. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e b id s m u st be m ad e or co 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 y 2, 1974, in cash or o th e r im m e d ia te ly a v ailab le fu nd s or in a lik e face a m o u n t of T re a su ry bills m a tu rin g M a y 2, 1974. C ash a n d exchange te n d e rs w ill receive eq ual tre a tm e n t. C ash a d ju s tm e n ts will b e m ad e for differences b etw een th e p a r v alu e of m a tu rin g bills 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 Sections 454 ( 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 of d isco u n t a t w hich bills issued h e re u n d e r a re sold is considered to accru e w hen th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e b ills are excluded from c on sid eratio n as 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 rance co m p an ies) issued h e re u n d e r m u st in clu de in his incom e tax 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 original issue or on su b seq u e n t p u rchase, a n d th e a m o u n t a ctu a lly receiv ed e ith e r u p o n sale or 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 a r fo r w hich th e r e tu rn is m ade. T re a su ry D e p a rtm e n t C ircu la r No. 418 (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 bills an d govern th e co nd itio n s of th e ir issue. C opies of th e circu lar m ay b e o b ta in e d from a n y F e d e ra l R eserv e B a n k o r B ranch. in a cco rd an ce with the a b o v e a n n o u n c e m e n t, te n d e rs will b e received a t this b a n k a n d its b ranch es a t El Paso, Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Scving Time, M o n d a y , April 29, 1974. Tenders m a y not b e e n te re d by te le p h o n e . Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS A m o u n t R a n g e a n d A p p ro x im ate Y ield of A ccepted T e n d e rs 13-W eek B ills 26-W eek B ills D u e J u ly 25, 1974 D u e O c to b er 24, 1974 $3,433,705,000_________________________________ T o ta l A p p lied F o r _________________ _____ ________ .$2,818,065,000 _ $2,500,075,000__________________________________ T o ta l A c c ep ted _________ ____ _________ ___________$1,800,335,000 P ric e Y ield P ric e Y ield 98.043 7 .7 4 2 % __________________________ .H ig h ________________________95.983____________ 7 .946% 9 7.976 8 .0 0 7 % ___________________________ L ow ________________ ____ ,95.887_____________8.136% 98.014____________ 7 .857% ( 1 ) ____ _ ______________ A verage______________ ____ ... 95.958_____________ 7 .995% ( 1 ) _ (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 8.13% for the 13-week bills and 8.45% for the 26-week bills. (See 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 May 2,1974 Maturing October 31,1974 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) ^ 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 Trpasury 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. NONCOMPETITIVE TENDER $____________________________________ .NOT TO EXCEED $200,000 Noncompetitive tenders fo’* $200,000 or less from any bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. COMPETITIVE TENDERS ($- --------------------------__________________ .§_ <> -§<> ' Prices should be expressed on the basis of 100, with not more than three decimal places, e.g., 99.925. F ra c tio n s must not be used. S® " TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR ARE ACCEPTABLE. Denominations Desired Number of pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PAYMENT M aturity Value (5) $ (5) $ 10,000 $ 15,000 $ □ (5> $ 50,000 $ (5) $ 100,000 $ (5) $ 500,000 $ □ □ By maturing bills held by-------------------------------------------Payment to be made by. Charge our reserve account on payment date | | D r a f t e n c l o s e d (Effectual delivery of enclosed draft shall be on latest day which will perm it presentm ent in order to obtain irrevocably collected funds on pay m ent date) (5) $1;,000,000 $ Delivery Instructions: □ Hold in Custody— General Account (Subscriber’s full name or corporate title) □ Hold in Custody— Investment Ac count (Address) □ □ □ Hold in Custody — Trust Account Pledge to secure Treasury Tax and Loan Account Other___________________________ By- ( Authorized official signature and title) (For the account of, if tender is for another subscriber) (Address 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 (m aturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Ascent 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 m atters 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 tru st companies or responsible and recognized dealers in invest ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amoun* (m aturity 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 tru st 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)
@FedFRASER