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F ederal

reserve

Ba n k

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, T EX A S 7 5 2 2 2
C ircu lar No. 74-156
J u n e 11, 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 f o llo w in g sta te m e n t giving details of t w 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, inv ites te n d e rs for two series of T re a su ry b ills to th e a g gregate a m o u n t
of $4,500,000,000, or th ere ab o u ts, to be issued J u n e 20, 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 $2,600,000,000, 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 M a rc h 21, 1974, a n d to m a tu re S e p te m b e r 19, 1974 (C U S IP No. 912793 U Q 7 ), origi­
n a lly issued in th e a m o u n t of $1,801,875,000 ( a n a d d itio n al $100,065,000 was issued on J u n e 5, 1 9 7 4 ), th e
a d d itio n a l a n d original bills to be freely in terch an g eab le.
182-D A Y B IL L S fo r $1,900,000,000, o r th ere ab o u ts, to be d a te d J u n e 20, 1974, a n d to m a tu re D e c em b er 19, 1974
(C U S I P No. 912793 V D 5 ).
T h e bills will be issued for cash a n d in exchange for T re a su ry b ills m a tu rin g J u n e 20, 1974, o u tstan d in g in th e a m o u n t of
$4,300,010,000, of 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 a g en ts of foreign a n d in te r­
n a tio n a l m o n eta ry a u th o ritie s, p re se n tly ho ld $2,611,940,000. T h e se acco u nts m a y exchange b ills th e y hold for th e bills now
b ein g offered a t th e av era g e p rices of a c c e p te d tenders.
T h e b ills of b o th series will be issued on 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 ro v id ed, an d a t m a tu rity th e ir face a m o u n t will be 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 en o 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 will b e receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ran ches 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 , J u n e 17, 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 ashngton. E ac h
te n d e r m u st b e for a m in im u m of $10,000. T e n d e rs ov er $10,000 m u st be 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 price offered m u st be ex pressed on 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 urg ed t h a t te n d e rs b e m ad e on th e p rin te d form s a n d fo rw ard ed in th e special en v elo pes w hich w ill b e 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 o n a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s a n d dealers who m ak e p rim a ry m a rk e ts in G o v e rn m en t securities a n d re p o rt d a ily to th e F e d e ra l
R eserv e B a n k of N ew Y ork th e ir positio ns w ith re sp e ct to G o v e rn m en t secu rities a n d borrow ings th e re o n m a y suD m it te n d e rs
fo r a cco u n t of custo m ers p ro v id ed th e n am es of th e cu stom ers a re se t fo rth in such ten d ers. O th ers w ill n o t be p e rm itte d to
su b m it te n d e rs ex cep t fo r th e ir ow n accounts. T e n d e rs w ill be receiv ed w ith o u t d e p o sit fro m in co rp o ra ted b an k s a n d tru s t
co m p anies a n d from resp on sib le a n d recognized d ealers in in v estm e n t securities. T e n d e rs fro m o th ers m u st b e accom 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 re a su ry b ills a p p lie d for, unless th e te n d e rs a re acco m p an ied b y a n express guar­
a n ty of p a y m e n t b y a n in co rp o ra ted b a n k o r tr u s t com pany.
Im m e d ia te ly a f te r th e closing hour, te n d e rs w ill 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 ranches, follow ing
w hich p u b lic a n n o u n c e m e n t will be m ad e b y th e T re a s u ry D e p a rtm e n t of th e a m o u n t a n d p rice ran ge of a cc ep te d bids. O nly
th ose su b m ittin g c o m p e titiv e te n d e rs will b e a dv ised of th e a ccep tan ce or re je c tio n thereo 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 c c e p t or re je c t a n y o r a ll ten d ers, in whole or in p a rt, a n d his a ctio n in a n y such re sp e ct shall be
final. S u b je c t to th ese reserv atio n s, n o n c o m p e titiv e te n d e rs for each issue for $200,000 o r less w ith o u t sta te d p ric e fro m a n y
o ne b id d e r will be a cc ep te d in full a t th e a v erage p rice ( in th re e d ecim als) of a cc ep te d c o m p e titiv e bids for th e respective
issues. S e ttle m e n t for 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 o r c o m p le te d a t th e F e d e ra l R e se rv e B a n k
on J u n e 20, 1974, in cash or o th er im m e d ia tely a v ailab le fu n d s or in a like face a m o u n t of T re a su ry b ills m a tu rin g J u n e 20, 1974.
C ash a n d exchange te n d e rs will 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 v a lu e
of m a tu rin g b ills a cc ep te d in exchange a n d th e issue price of th e new bills.
U n d e r S ections 4 5 4 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e C ode o f 1954 th e a m o u n t of d isco u nt a t w hich bills
issued h e re u n d e r are sold is considered to accrue w hen th e b ills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re
excluded fro m co n sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a s u ry b ills ( o th e r th a n life in su rance com p an ies)
issued h e re u n d e r m u st inclu d e 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 e r on o riginal issue o r o n su b seq u e n t pu rch ase, a n d th e a m o u n t a ctu 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 rity d u rin g th e tax a b le y e a r fo r w hich th e re tu r n is m ade.
T re a s u 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 b ills a n d
govern th e co n dition s of th e ir issue. C opies of th e c irc u lar m ay b e o b ta in e d fro m a n y F e d e ra l R e se rv e B a n k or B ran ch .

In accord ance with the a b o v e an n o u n c em en t, tenders will b e received at this b an k a n d its branches a t El P aso,
Houston a n d San A ntonio up to tw elve-thirty p.m., Central D aylight S aving Time, M o n d a y , June 17, 1 974 . Tenders m a y
not b e entered b y t e le p h o n e .
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 c c ep ted T e n d e rs
13-W eek B ills
2 6 -W eek B ills
D u e S e p te m b e r 12, 1974
D u e D e c em b er 12, 1974
$3,690,115,000_________________________________ T o ta l A p p lied F o r _________________________________ $3,789,940,000
$2,600,115,000_________________________ _______ T o ta l A c c ep ted ___________________________________$1,900,405,000
_
P ric e
Y ie ld
P ric e
Y ield
97.927
8 .2 0 1 % ___________________________.H ig h _______________________ 95.805____________ 8.2 9 8%
97.905
8 .2 8 8 % ___________________________ L ow ________________________95.785____________ 8.3 37 %
97.912
8.26 0 % ( 1 ) _____________________ A verage______________________ 95.792____________ 8 .3 2 4% ( 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 iv a le n t c o u p o n issu e y ie ld s a r e 8 . 5 5 % f o r th e 1 3 -w eek b ills, a n d 8 .8 1 % fo r
th e 2 6 -w e e k 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
Maturing September 19,1974

Dated March 21,1974
To: Federal Reserve Bank, Station X, Dallas, Texas 75222
or —
The___________________________Branch
El Paso 79999

Houston 77001

San Antonio 78295

( D a t« )

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 a t 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.
(a)
(a)

i

COMPETITIVE TENDERS

i

\

$
$

(a)

\

?

(n)

\

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.

$

(n)

$-

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
N um ber of
p ie c e s

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT

M a tu r i ty V a lu e

0) $
(5) $

10,000 $
15,000 $

□

B y m aturing bills
held by-----------------------------------------------P aym ent to be made by----------------------

□

(5) $ 50,000 $
(5) $ 100,000 $
(3) $ 500,000 $

Charge
□ date our reserve account on paym ent
□

D r a f t e n c l o s e d ( E f f e c tu a l d e liv e ry o f e n c lo sed d r a f t
s h a ll b e o n la te s t d a y w h ic h w ill p e r m i t p r e s e n t m e n t
in o r d e r to o b ta in ir re v o c a b ly c o llec ted f u n d s o n p a y ­
m e n t d a te )

(5) $1 ,000,000 $
Delivery In stru ction s:
□

Hold in C ustody— General Account

( S u b s c r ib e r ’s f u ll n a m e o r c o r p o r a t e t i t l e )

□

Hold in C ustody— Investm ent A c­
count

(A d d ress)

□
□

Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan Account

□

Other_____________________________

B y.
( A u th o r iz e d official s i g n a t u r e a n d t i tle )

( F o r t h e a c c o u n t o f, i f te n d e r is f o r a n o t h e r s u b s c r ib e r )

•J

(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 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 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 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