View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal Reserve Bank of D allas
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. 74-124
M a y 7, 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, by th is p u b lic notice, in vites tenders for two series of T re a su ry bills to th e ag g reg ate am o u n t
of $4,500,000,000, or th ereab o u ts, to be issued M ay 16, 1974, as follow s:
9 1 -D A Y B IL L S ( to m a tu rity d a te ) in th e a m o u n t o f $2,600,000,000, o r th ereab o u ts, re p rese n tin g an ad d itio n al
a m o u n t of bills d a te d F e b ru a ry 14, 1974, a n d to m a tu re A ugust 15, 1974 (C U S IP No. 912793 U K 0 ) , o riginally
issued in th e a m o u n t of $1,799,305,000, th e a d d itio n al a n d original bills to be freely in terchang eab le.
182-DA Y B IL L S fo r $1,900,000,000, or th ereab o u ts, to be d a te d M a y 16, 1974, and to m atu re N o v em b er 14, 1974
(C U S I P No. 912793 U Y 0 ).
T h e bills will be issued for cash a n d in exchange for T re a su ry bills m atu rin g M a y 16, 1974, o u tstan d in g in th e a m o u n t of
$4,303,280,000, o f w hich G o v e rn m en t acco un ts a n d F e d e ra l R eserv e B anks, for th em selv es a n d as ag en ts of foreign a n d in te r­
natio nal m o n eta ry au th o ritie s, p re se n tly hold $2,518,280,000. T h ese accounts m ay exchange bills th e y hold for th e bills now
being offered a t th e average prices of a ccep ted tenders.
T h e bills of b o th series will be issued on a discount basis u n d e r co m p e titiv e and n o nco m p etitive b id din g as h e rein afte r
provided, and a t m a tu rity th e ir face a m o u n t w ill be p a y ab le w ith o u t in terest. T h e y will be issued in b e a re r form only, a n d in
deno m 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 w ill b e receiv ed a t F e d e ra l R e se rv e B an k s a n d B ranches up to th e closing hour, o n e -th irty p.m., E aste rn
D ay lig h t Saving T im e , M onday, M a y 13, 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 ach
ten d er m u st be for a m in im u m of $10,000. T en d e rs o ver $10,000 m u st be in m u ltip les of $5,000. In th e case of com p etitiv e
ten 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 ree decim als, e.g., 99.925. F ra c tio n s m ay
not be used. I t is u rged t h a t ten d e rs be m ad e o n th e p rin te d form s a n d fo rw ard ed 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 atio n therefor.
B ank in g in stitu tio n s an d dealers who m ak e p rim a ry m ark e ts in G o v e rn m en t securities and re p o rt d aily to th e F ed eral
R eserve B a n k of N ew Y o rk th e ir positions w ith resp ect to G o v e rn m en t securities and borrow ings th ere o n m ay su b m it tend ers
for acco u n t of custom ers p ro vided th e nam es of th e custom ers are set forth in such tenders. O th ers will n ot be p e rm itte d to
su bm it ten d e rs ex cep t for th eir own accounts. T e n d e rs w ill be received w ith o u t d epo sit from in co rp o ra ted banks and tru s t
com panies and from responsible and recognized dealers in in v estm e n t securities. T en d e rs from oth ers m u st be accom 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 ap p lied for, unless th e ten d e rs are acco m panied by a n express gu ar­
a n ty of p a y m e n t b y a n inco rp o rated b a n k or tru s t com pany.
Im m e d ia te ly a f te r th e closing hour, te n d e rs will be op en ed a t th e F e d e ra l R eserv e B an k s a n d B ranches, following
which p u b lic an n o u n ce m en t will be 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 and p rice range of a ccep ted bids. O nly
those su b m ittin g c o m p e titiv e ten d e rs will be adv ised of th e acc ep ta n ce or rejectio n thereof. T h e S e c retary of th e T rea su ry
expressly reserves th e rig h t to accep t or re je c t a n y or all tenders, in w hole or in p art, 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 ten d e rs for each issue for $200,000 or less w ith o u t sta te d price from a n y
one b id d er w ill be a ccep ted in full a t th e averag e p rice (in th ree decim als) of a ccep ted c o m p e titiv e bids for th e respective
issues. S e ttle m e n t for a ccep ted ten d e rs in accordance w ith th e bids m u st be m ad e or c om p leted a t th e F e d e ra l R eserve B a n k
on M ay 16, 1974, in cash or oth er im m e d ia tely a v ailab le fu n ds or in a like face a m o u n t of T re a su ry bills m atu rin g M a y 16, 1974.
Cash and exchange ten d e rs will receive equal tre a tm e n t. C ash a d ju stm e n ts w ill be m ade for differences b etw een th e p a r value
of m atu rin g bills a ccep ted in exchange a n d th e issue p ric e 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 en u e Code o f 1954 th e a m o u n t of d isco un t a t w hich bills
issued h e reu n d e r are sold is considered to accrue w h en th e bills are sold, red eem ed or otherw ise disposed of, a n d th e bills are
excluded from co nsid eratio n as cap ital assets. A ccordingly, th e o w ner of T re a su ry bills (o th e r th a n life in su ran ce co m p anies)
issued h e reu n d e r m u st include in his incom e tax retu rn , as o rd in ary gain or loss, th e difference b etw een th e p rice p a id for th e
bills, w h eth 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 received e ith e r u po n sale or re d em p tio n a t
m a tu rity du rin g th e tax ab le y ear 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 No. 418 (c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e term s of th e T re a su ry bills and
govern th e co nditions of th e ir issue. C opies of th e circu lar m a y be o b tain e d from a n y F e d e ra l R eserv e B a n k or Branch.

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, May 13, 1974. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R a n g e a n d A p p ro x im ate Y ie ld of A ccep ted T en d e rs
13-W eek B ills
26-W eek B ills
D u e A ug u st 8, 1974
D u e N o v e m b er 7, 1974
$4,044,800,000
T o ta l A p p lied F o r _________________________________ $3,468,095,000
$2,500,785,000_______________________
.T o ta l A c c ep ted ___________________________________ $1,800,005,000
P ric e
Y ield
P ric e
Y ield
97.737____________ 8 .9 5 3 % ___________________________ H ig h _______________________ 95.477____________ 8.947%
97.707____________ 9 .0 7 1 % ____________________________Low ________________________ 95.439____________ 9.022%
97.716____________ 9 .036% ( 1 ) _____________________ A v erag e______________________ 95.447____________ 9.006% ( 1 )
( 1 ) T h ese rates are on a b ank discount basis. T h e eq u iv ale n t coupon issue y ie ld s are 9 .3 8 % for th e 13 -w eek b ills and 9 .5 7 % 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
Maturing August 15,1974

D ated F eb ru ary 14, 1974
T o: F ed era l R e se r v e B ank, S ta tio n K, D allas, T e x a s 75222
or —
T h e______________________________B ranch
El Paso 79999

Houston 77001

San Antonio 78295

(D a te )

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 T TO E X C E E D $200,000

N O N C O M P E T IT IV E T E N D E R $____________

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 PETITIV E T E N D E R S

i

(a)

\

fffi

;

(7h

;

_

@

$
•$
....

? ............... ......................................-

Prices should be
expressed on the
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.

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
N um ber 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

(5) ?

10,000 $

<® $

15,000 $

(5) ?

50,000 ?

□
□

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

□

(S> $ 100,000 $

B y m a tu r in g bills
held b y---------------------------------------------------

C h arge our r e se rv e a ccou n t on p a y m e n t
d ate

(5) $ 500,000 $

I I D r a ft enclosed

(E ffectu al delivery of enclosed d r a f t
shall be on latest day w hich will p e rm it p re s e n tm e n t
in ord er to o b ta in irrevocably collected fu nds on p a y ­
m e n t date)

(5) $1.,000,000 $
D e liv e ry I n s tr u c tio n s :
□

H old in C ustody — G eneral A cco u n t

(S u b scrib er’s full nam e o r c o rp o ra te title)

□

H old in C ustody — In v e stm e n t A c ­
cou n t

( A d dress)

□

H old in C ustody — T ru st A ccou n t

□

P led g e to secu re T rea su ry T a x and
L oan A ccou n t

□

O ther------------------------------------------------

By(A uthorized official s ig n a tu re an d title)

(F o r th e acco u n t of, if te n d e r is f o r a n o th e r 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 (maturity value).
2. Tenders should be forwarded in an envelope clearly addressed o '■his 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 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.

(See reverse for announcement)

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