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F ederal R eserve Bank 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 D A L L A S, T E X A S 7 5 2 2 2 Circular No. 74-151 June 4, 1974 N E W O FF E R IN G — TREASURY BILLS To A ll B a n k in g Institutions a n d O thers C o ncerned in th e Eleven th F ed e ra l Reserve District: Y o u r a tte n tio n is in v ite d to th e fo llo w in g s ta te m e n t g iv in g d e ta ils o f tw o issues o f T rea su ry bills: T h e Treasury Departm ent, b y this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of $4,500,000,000, or thereabouts, to be issued June 13, 1974, as follows: 91-D A Y B IL L S (to m aturity date) in the am ount of $2,600,000,000, or thereabouts, representing an additional am ount of bills dated M arch 14, 1974, and to mature Septem ber 12, 1974 (C U S IP N o. 912793 U P 9 ) , originally issued in the am ount of $1,801,885,000, the additional and original bills to be freely interchangeable. 182-D A Y B IL L S for $1,900,000,000,or thereabouts, to be dated June 13, 1974, and to m ature D ecem ber 12, 1974 (C U S IP No. 912793 V C 7 ). T h e bills will be issued for cash and in exchange for Treasury bills maturing June 13, 1974, outstanding in the am ount of $4,303,175,000, o f which Governm ent accounts and Federal R eserve Banks, for them selves and as agents o f foreign and inter national m onetary authorities, presently hold $2,529,650,000. T hese accounts m ay exchange bills they hold for the bills now being offered at the average prices of accepted tenders. T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face am ount w ill be payable w ithout interest. T h e y w ill be issued in bearer form only, and in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e). Tenders will be received at Federal R eserve Banks and Branches up to the closing hour,one-thirty p.m., Eastern D aylight Saving T im e, M onday, June 10, 1974. Tenders will not be received at the Treasury Departm ent, W ashington. Each tender m ust be for a m inim um of $10,000. Tenders over $10,000 m ust be in m ultiples of $5,000. In the case o f com petitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decim als, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which w ill be supplied by Federal R eserve Banks or Branches on application therefor. Banking institutions and dealers who m ake primary markets in Governm ent securities and report daily to the Federal Reserve Bank of N ew York their positions with respect to Governm ent securities and borrowings thereon m ay subm it tenders for account of customers provided the nam es of the customers are set forth in such tenders. Others will not be perm itted to subm it tenders except for their own accounts. Tenders w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied by an express guar anty of paym ent by an incorporated bank or trust company. Im m ediately after th e closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, following which public announcem ent will be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. Only those subm itting com petitive tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder w ill be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids must be m ade or com pleted at the Federal R eserve B ank on June 13, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing June 13, 1974. Cash and exchange tenders will receive equal treatment. Cash adjustm ents will be m ade for differences betw een th e par value of m aturing bills accepted in exchange and the issue price of the new bills U nder Sections 454 ( b ) and 1221 ( 5 ) o f the Internal R evenue Code o f 1954 the am ount of discount a t which bills issued hereunder are sold is considered to accrue when th e bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued hereunder must include in his incom e tax return, as ordinary gain or loss, the difference betw een th e price paid for the bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is made. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of th e Treasury bills and govern the conditions o f their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch. In a c co rd an ce w it h th e a b o v e a n n o u n c e m e n t, te n d ers w il l be rece iv ed a t this b a n k a n d its b ran ch e s a t El Paso, Houston a n d San A n to n io up to t w e lv e - t h ir t y p .m ., C e n tra l D a y lig h t S av in g T im e, M o n d a y , June 1 0 , 1 9 7 4 . Tenders m a y not b e e n te re d b y t e le p h o n e . Yours v e r y tru ly, P. E. C o ld w e ll Presid en t LAST PREVIO US O FF E R IN G O F TREASURY BILLS Am ount, Range and Approxim ate Y ield o f A ccepted Tenders 13-W eek B ills D u e Septem ber 5, 1974 $3,575,590,000_________________ $2,600,045,000_________________ Price Y ield 97.940_____________8.149% ____ 9 7 .8 8 8 ____________ 8.355% ____ 97.902____________ 8.300% ( 1 ) . 2 6-W eek B ills D u e D ecem ber 5, 1974 ..Total A pplied For. ________________ $3,379,565,000 T otal A ccepted_ ________________ $1,900,125,000 Price Y ield H igh----------------------------------- 95.779____________ 8.349% -Low_______________________ 95.725 8.456% ..Average.. .95.740____________ 8.426% ( 1 ) ( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t b asis. T h e e q u i v a le n t c o u p o n issu e y ie ld s a r e 8 . 6 0 % f o r th e 1 3 -w eek b ills, a n d 8 .9 2 % fo r t h e 2 6 -w e e k bills. See reverse for tender Bank This publication was digitized and made available (by the Federal Reserve form) of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Maturing September 12,1974 Dated March 14,1974 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________ Branch 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. NONCOMPETITIVE TENDER $____________________________________ .NOT 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. (j ^ 5 % % (a) (a) (a) ! $- @ : 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. ................ 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 Maturity Value <> $ 5 (5) $ 10,000 $ 15,000 $ □ □ 50,000 $ <> $ 100,000 ? 5 (5) $ 500,000 $ (5) $1 ,000,000 $ <> ? 5 By m aturing bills held by-------------------------------------------Payment to be made by_____________. Charge □ date our reserve account on paym ent □ D raft enclosed (E ffectual delivery of enclosed d r a f t shall be on la te st day w hich will p e rm it p re s e n tm e n t in o rd er to ob tain irrevocably collected funds on p a y m e n t date) Delivery Instructions: □ Hold in Custody— General Account (S u bscriber’s full n a m e or c o rp o ra te title) □ Hold in Custody — Investm ent Ac count (A ddress) □ □ Hold in Custody — Trust Account Pledge to secure Treasury Tax and Loan Account □ Other----------------------------------------- By. (A uthorized official s ig n a tu re a n d title) ( F o r the accou nt 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 (m aturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of th e 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 ofthe corporation authorized to make th e 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 besigned 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)
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