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F ederal Reserve Bank o f 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, TEXAS 7 5 2 2 2 C ircu la r No. 74-206 J u ly 30, 1974 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your atte ntion is invited to th e 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, invites te n d e rs for tw o series of T re a su ry b ills to th e ag greg ate a m o u n t of $4,500,000,000, or th ere ab o u ts, to b e issued A ug u st 8, 1974, as follows: 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 b ills 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 ) o riginally issued in th e a m o u n t of $1,801,315,000, ( a n a d d itio n al $100,065,000 w as issued o n Ju n e 5, 1 9 7 4), th e a d d i tio n a l a n d o rigin al b ills to be freely interch ang eable. 182-D A Y B IL L S fo r $1,900,000,000, or th ere ab o u ts, to b e d a te d A ug u st 8, 1974, a n d to m a tu re F e b ru a ry 6, 1975 (C U S IP No. 912793 V U 7 ). T h e bills will b e issued fo r cash a n d in exchange fo r T re a su ry b ills m a tu rin g A u g ust 8, 1974, o u tstan d in g in th e a m o u n t of $4,303,015,000, of w hich G o v e rn m en t accounts a n d F e d e ra l R e se rv e B ank s, for th em se lv es a n d a s ag en ts of fo reign a n d in te r n a tio n a l m o n e ta ry au th o ritie s, p re se n tly ho ld $2,566,520,000. T h ese acco u nts m a y exchange b ills th e y ho ld fo r th e b ills now b ein g offered a t th e a v era g e p rices of a c c e p te d tenders. T h e bills of b o th series w ill b e issued on a d isco u n 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 prov ided, 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 w ill be issued in b e a re r form , a n d in booke n try form to d e sig n ate d bidd ers, in den 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 be receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ra n ch e s 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 Sav ing T im e , M o n d ay , A ugust 5, 1974. T e n d e rs w ill n o t b e re ce iv e d 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 s t b e in m u ltip le s of $5,000. I n th e case of co 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 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 rged t h a t te n d e rs be m a d e on th e p rin te d form s a n d fo rw a rd ed in th e special en v elop es w hich will be su p p lied b y F e d e ra l R e se rv e B a n k s or B ran ch es on a p p lic a tio n therefor. B a n k in g in stitu tio n s a n d dealers w ho 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 r e 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 o rk th e ir p ositio ns w ith re sp e c t to G o v e rn m en t securities a n d borrow ings th e re o n m a y su b m it ten d e rs for acco u n t of c usto m ers p ro v id ed th e n am es of th e c usto m ers are se t fo rth in such ten d ers. O th e rs w ill n o t b e 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 account. T e n d e rs will be received w ith o u t d ep o sit fro m in co rp o ra ted b a n k s a n d tr u s t c o m pan ies a n d fro m respo n sible 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 a ccom panied 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, un less th e te n d e rs a re a cco 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 or tr u s t com pany. Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill be 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 a d 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 a n d p rice ran ge of a ccep ted bids. O nly those 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 accep tan ce o r 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 or re je c t a n y or all tenders, in w hole or in p a rt, a n d h is 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 fo r $200,000 or less w ith o u t sta te d p rice fro m a n y one b id d e r will be acc ep te d in fu ll a t th e average 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 acc ep te d te n d e rs in accordance w ith th e bids m u st be m ad e or 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 A ug u st 8, 1974, in cash or o th e r im m e d ia te ly a v ailab le fu nd 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 A u g ust 8, 1974. C ash a n d exchange te n d e rs w ill receive e q u al tre a tm e n t. C ash a d ju s tm e n ts will 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 bills a cc ep te d in exchange a n d th e issue p rice of th e new bills. _ U n d e r S ectio n s 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e C ode of 1954 th e a m o u n t of d iscount a t w hich bills issued h e re u n d e r a re sold is considered to accru e w h en th e bills are sold, re d ee m e d o r otherw ise disposed of, a n d th e bills are excluded fro m co n sid 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 insuran ce co m p anies) issued h e re u n d e r m u st include in his incom e ta x re tu rn , as o rd in ary gain or loss, th e difference b e tw ee n th e p ric e p a id fo r th e bills, w h e th er o n original issue or on su b seq u e n t p urchase, a n d th e a m o u n t a c tu a lly received e ith e r u p o n sale or re d e m p tio n a t m a tu r ity d u rin g th e ta x a b le y e a r for 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 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 s u ry b ills a n d govern th e c o n dition s of th e ir issue. C opies of th e circ u lar m ay be o b tain e d from a n y F e d e ra l R e se rv e B a n k or B ranch. In ac c ord an c e with the a b o v e a n n o u n c e m e n t, tend ers 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 , A u gust 5, 1974. Tenders m a y not b e e nte re d by te lepho ne. 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 ield of A ccep ted T e n d e rs 13-W eek B ills 26-W eek B ills D u e O c to b er 31, 1974 D u e J a n u a r y 30, 1975 $3,953,695,000_________________________________ T o ta l A p p lied F o r_______________________ __ _______$2,883,535,000 $2,600,175,000_______________________________ __ T o ta l A c c ep ted __________________________________ $1,900,110,000 P ric e Y ield P ric e Y ield 98.079____________ 7 .6 0 0 % ......_____ __________________H ig h ___ ___________________ 96.031_____________7.851% 98.032____ ''.7 8 5 % ___________________ ___ ...Low ________________________ 95.888____________ 8 .134% 98.054_____________7 .6 98 % ( 1 ) ______________ _______ A v erag e_____________________ 9 5 .9 2 8 ____________ 8 .055% ( 1 ) ( 1 ) These rates are on a bank discount basis. T he equiavlent coupon issue yields are 7.96% for the 13-week bills, and 8.51% for the 26-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 May 9,1974 Maturing November 7,1974 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 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. / <t 1? COMPETITIVE TENDERS ? '? $ /Wi « @ @ @ @ $ $ . Prices should be exp ressed 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 o f pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PAYMENT Maturity Value <fl> $ <n> $ (a) $ 10,000 $ 15,000 $ □ □ 50,000 ? (a) $ 100,000 $ (S) $ 500,000 $ (a) $1 ,000,000 ? Delivery Instructions: By maturing bills held by____________________________ Payment to be made by_____________ □ Charge our reserve account on payment date | | D r a f t e n c lo se d (E ffectual delivery of enclosed d ra ft sh all be on la te s t day which will p e rm it p re s e n tm e n t in o rd e r to o b ta in irrevocably collected fu n d s on pay m e n t d ate) □ Hold in Custody — General Account (S ub sc rib e r’s full n a m e o r c o rp o ra te title) □ Hold in Custody — Investment Ac count (Address) □ □ □ 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 th e a ccoun t of, if te n d e r is fo 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 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 (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 fo r announcem ent)
@FedFRASER