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F ederal Reserve B ank of 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, TE X A S 7 5 2 2 2 C ircu la r No. 74-113 A p ril 30, 1974 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the 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 ten ders for tw o series of T re a su ry bills 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, to b e issued M a y 9, 1974, as follow s: 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, o r th e re a b o u ts, re p re se n tin g a n a d d itio n a l a m o u n t of b ills d a te d F e b ru a ry 7, 1974, a n d to m a tu re A u g ust 8, 1974 ( C U S I P No. 912793 U J 3 ) , orig inally issued in th e a m o u n t of $1,802,470,000, th e a d d itio n a l a n d o riginal b ills to b e freely in terch an geab le. 182-D A Y B IL L S for $1,800,000,000, o r th ere ab o u ts, to b e d a te d M a y 9, 1974, a n d to m a tu re N o v e m b er 7, 1974 (C U S I P No. 912793 U X 2 ) . T h e bills will b e issued for cash a n d in exchange fo r T re a su ry bills m a tu rin g M a y 9, 1974, o u tstan d in g in th e a m o u n t of $4,305,565,000, of w hich G o v e rn m en t accou n ts a n d F e d e ra l R e se rv e B an ks, for th em se lv es a n d a s a g en ts of fo reign a n d in te r n a tio n a l m o n e ta ry a u th o ritie s, p re se n tly h old $2,319,945,000. T h e s e acco u nts m a y exchange b ills th e y h old fo r th e bills now b eing offered a t th e av erag e p rices of a c c e p te d tenders. T h e b ills of b o th series w ill b e issued o n 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 rov 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 a b le w ith o u t in terest. T h e y will b e 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 received 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 S av in g T im e , M o n d a y , M a y 6, 1974. T e n d e rs will n o t 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 ov er $10,000 m u st b e in m u ltip le s of $5,000. I n th e case of c o m p e titiv e te n d e rs th e p rice offered m u st b e exp ressed 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 te n d e rs be m ad e on th e p r in te d form s a n d forw ard ed in th e special env elo pes w hich w ill be 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 ra n ch e s on a p p lic a tio n th erefor. B a n k in g in stitu tio n s gen erally m a y su b m it te n d e rs for acc o u n t o f custo m ers p ro v id ed th e n a m e s of th e c u stom ers a re se t 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 a c c o u n t T e n d e rs will b e receiv ed w ith o u t d e p o sit from in co rp o ra ted b a n k s a n d tr u s t c om p an ies a n d fro m resp o nsib le a n d recognized d e ale rs in in v e stm e n t securities. T e n d e rs fro m o th ers m u s t be a cc o 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 su ry bills a p p lie d for, u nless 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 tr u s t com pany. Im m e d ia te ly a f te r th e closing h our, te n d e rs will 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 ran ch es, follow ing w hich p u b lic a n n o u n c e m e n t w ill b e m ad e b y th e T re a s u r y D e p a rtm e n t of th e a m o u n t a n d p rice ran g 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 te n d e rs w ill b e ad v ised of th e a cc ep ta n ce or 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 c c e p t o r re je c t a n y or a ll ten d e rs, in w hole or in p a rt, a n d h is a ctio n in a n y such re sp e c t 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 fo r $200,000 o r less w ith o u t sta te d p ric e from a n y o ne b id d e r w ill b e acc 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 bids for th e resp ectiv e issues. S e ttle m e n t fo r a cc ep te d te n 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 leted a t th e F e d e ra l R e se rv e B a n k o n M a y 9, 1974, in cash o r o th e r im m e d ia te ly a v ailab le fu n d s or in a lik e face a m o u n t of T re a su ry b ills m a tu rin g M a y 9, 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 w ill b e m ad e for differences b e tw ee n th e p a r valu e of m a tu rin g bills a cc ep te d in exchange a n d th e issue p ric e of th e n e w bills U n d e r S ectio ns 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 iscou n 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 hen t h e bills a re sold, re d ee m e d or oth erw ise disposed of, a n d th e bills are ex cluded from c o nsid eratio n as c a p ita l assets. A ccordingly, th e o w ner of T re a su ry b ills (o th e r th a n life in su rance co m p anies) issued h e re u n d e r m u st in clu d e in h is 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 e r on orig inal issue o r on su b seq u e n t p u rchase, a n d th e a m o u n t a c tu 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 r ity d u rin g th e tax a b le y e a r 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 N o. 41 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 of th e T re a su ry bills a n d go vern th e c on d itio ns of th e ir issue. C opies of th e c irc u la r m ay be 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 a c co rd an ce with the a b o v e a n n o u n c e m e n t, ten ders will b e received a t this b a n k a n d its b ra n c h e s a t El Paso, Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M o n d a y , M a y 6, 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 ou n t, R a n g e a n d A p p ro x im ate Y ie ld of A ccep ted T e n d e rs 13-W eek B ills 26-W eek Bills D u e A u g u st 1, 1974 D u e O c to b er 31, 1974 $4,091,080,000_________________________________ T o ta l A p p lied F o r ____ ___ _________________________ $2,463,990,000 $2,501,430,000..... ............................................................... .T o ta l A c c ep ted ___________________________________$1,801,435,000 P ric e Y ie ld P ric e Y ield 97.7 9 6........... ..............8 .7 1 9 % __________ ______ __________ H ig h ................................ .............. 95.633____________ 8 .638% 97.712 ____________ 9.051 % ______ _____________________L ow ________________________ 95.475____________8.951 % 97.748____________ 8 .90 9 % ( 1 ) ______________________A v erag e______________________ 95.553____________8.796% ( 1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 9.24% for the 13-week bills and 9.33% for the 2 6-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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated February 7,1974 Maturing August 8,1974 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________ Branch 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. NONCOMrSTITIVE TENDER $____________________________________ JNTOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. COMPETITIVE TENDERS (ri) ip ($! (n) $ i (a) $ I! (a) .$ * ---------------------- 1 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 m ust not be used. 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) ? <a $ 10,000 $ 15,000 $ □ By maturing bills held by------------------------------------------Payment to be made by_____________ □ 50,000 $ & $ 100,000 $ (a) $ 500,000 ? $ □ Charge our reserve account on payment date I__I D r a f t e n c l o s e d (5) $1 ,000,000 $ (Effectual delivery of enclosed d raft sh a ll b e o n l a t e s t d a y w h i c h w ill p e r m i t p r e s e n t m e n t i n o r d e r t o o b t a i n i r r e v o c a b l y c o l l e c t e d f u n d s o n pay m e n t d a te ) 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) (F or the account of, if tender is fo r another subscriber) (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 (m aturity 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 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 th a t 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 amount (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