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F ederal Reserve

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

DALLAS, TEX A S 7 5 2 2 2
C ircu la r No. 74-157
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 o f 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, in v ites te n d e rs for tw o 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 re se 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 I P 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 w as issued o n J u n e 5, 1 9 7 4 ), th e
a d d itio n a l a n d origin al bills to be freely in terch an geab 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 bills 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 e n 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
n a tio n a l m o n e ta ry a u th o ritie s, p re se n tly ho ld $2,611,940,000. T h e se acco un ts m a y exchange b ills th e y hold fo r th e b ills now
b eing offered a t th e av era g e p rices of a cc ep te d ten ders.
T h e bills of b o th series will b e issued on a d isco un t 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 be 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 ch es u p to th e closing h our, 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 o n d a y , J u n e 17, 1974. T e n d e rs will n o t b e receiv ed 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 be for a m in im u m of $10,000. T e n d e rs o v er $10,000 m u st be in m u ltip le s of $5,000. In th e case of c o m p e titiv e
te n 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 re e decim als, e.g., 99.925. F ra c tio n s m ay
n o t be used. I t is urged t h a t te n d e rs be m ad e on th e p rin te d form s a n d fo rw ard ed in th e special env 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 or 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 a n d d ealers w ho m ak e p rim a ry m a rk e ts in G o v e rn m e n t securities a n d re p o rt d a ily to th e F e d e ra l
R e se rv e B a n k of N ew Y ork th e ir p o sitio n s 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 su b m it te n d e rs
for a cc o u n t of cu stom ers p ro v id ed th e n am es of th e cu sto m ers a re se t fo rth in such tend ers. O th ers will n o t b e p e rm itte d to
su b m it te n d e rs ex cep t for 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 a n k s a n d tr u s t
com p an ies a n d fro m resp o nsib le a n d recognized d ealers in in v e stm e n t securities. T e n d e rs fro m o th ers m u st be 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 bills 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 gu ar­
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 or 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 en 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 ce m en 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 price rang e of a cc ep te d bids. O nly
tho se su b m ittin g c o m p e titiv e te n d e rs w ill be a d v ised of th e a ccep tan ce o r re je ctio 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 cc ep t or re je c t a n y or a ll tend ers, in w hole 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 ation s, n o n c o m p e titiv e te n d e rs fo r each issue fo r $200,000 o r less w ith o u t sta te d p rice fro m a n y
one b id d e r will b e a cc ep te d in full a t th e a v erag e p rice ( in th re e d e cim als) of a cc 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 for a cc ep te d te n d e rs in accordance w ith th e b id s m u st b e m ad e o r c o m p leted 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 o r o th e r 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 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 u al tre a tm e n t. C ash a d ju stm e n ts will be m ad e for differences b e tw ee n th e p a r valu e
of m a tu rin g bills acc ep te d in exchange a n d th e issue p rice of th e new bills.
U n d e r Sections 4 54 ( 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 un t a t w hich bills
issued h e re u n d e r are sold is co nsidered to
accru e w h en th e bills a re sold, re d ee m e d o r o th erw ise disposed of, a n d th e bills a re
excluded from co n sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills ( 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 in clud e in his incom e ta x 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 original issue o r o n su b seq u e n t purchase, 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 for w hich th e r e tu rn 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 rev 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
g overn th e co nd itio n s of th e ir issue. C opies of th e c irc u lar m a y 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 or B ranch.

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 a n k a n d its branches at 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 97 4 . Tenders m a y
not b e entered b y t e le p h o n e .
Yours very truly,
P. E. Cold well
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R an 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
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 ccep ted ___________________________________$1,900,405,000
_
P ric e
Y ield
P ric e
Y ield
97.927
8 .2 0 1 % __________________________ H ig h ________________________95.805_________________ 8.2 98 %
97.905
8 .2 8 8 % ___________________________Low ________________________ 95.785_________________ 8.3 37 %
97.912
8 .26 0 % ( 1 ) ____________________ .A verage______________________ 95.792_____________ 8.3 24 % ( 1 )
( 1 ) T h e s e r a te s a r e o n a b a n k d is c o u n t basis. 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 % for
th e 2 6 -w e e k b ills.

(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 TREASURY BILLS

182 DAYS TO MATURITY
Maturing December 19,1974

Dated June 20,1974
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.
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.

-@ -@ -

COMPETITIVE TENDERS
$

fiST TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
N um b er o f
p ieces

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

(5) $
(5) $

10,000 $
15,000 $

□

By m aturing bills
held by_______________________________
P aym ent to be made by______________

□

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

□

Charge our reserve account on paym ent
date

I__I 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 en c lo sed d r a f t
s h a ll b e o n l a 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 co 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 Custody — 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 tle )

□

Hold in Custody — Investm ent Ac­
count

(A d d ress)

□
□

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

□

Other_____________________________

By.
( 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 th e a c c o u n t o f, if t e n d e r is f o r a n o t h e r s u b s c r ib e r )

(A d d ress)

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 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 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