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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.

ip

(n)

$

i

COMPETITIVE TENDERS

(ri)

($!

(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 D r a f t e n c l o s e d
I

(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)

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