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F ed er a l r e s e r v e Ba n k o f D allas

DALLAS, TEXAS 7 5 2 2 2
Circular No. 74-218
August 6, 1974
To A ll B a n k in g Institutions a n d O thers Co n cerned
in th e E leventh 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, by this public notice, invites tenders for tw o series of Treasury bills to the aggregate amount
of $4,800,000,000, or thereabouts, to be issued August 15, 1974, as follows:
91-D A Y B IL L S (to m aturity date) in the am ount o f $2,800,000,000, or thereabouts, representing an additional
am ount of bills dated M ay 16, 1974, and to m ature Novem ber 14, 1974 (C U S IP No. 912793 U Y O ), originally
issued in the am ount of $1,902,325,000, the additional and original bills to be freely interchangeable.
182-D A Y B IL L S for $2,000,000,000, or thereabouts, to be dated August 15, 1974, and to mature February 13, 1975
(C U S IP N o. 912793 V V 5 ).
T h e bills w ill be issued for cash and in exchange for Treasury bills m aturing August 15, 1974, outstanding in the amount
of $4,400,755,000, of which G overnm ent accounts and Federal R eserve Banks, for them selves and as agents of foreign and inter­
national m onetary authorities, presently hold $2,672,075,000. T hese accounts m ay exchange bills they hold for the bills now
being offered a t 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 ey w ill be issued in bearer form, and in bookentry form to designated bidders, 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 w ill 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, August 12, 1974. Tenders w ill not be received at the Treasury Departm ent, Washington. Each
tender m ust be for a m inim um of $10,000. T enders over $10,000 m ust be in m ultiples of $5,000. In the case of com petitive
tenders the price offered m ust be expressed on the basis of 100, w ith not m ore than three decimals, e.g., 99.925. Fractions m ay
not be used. It is urged that tenders be m ade 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 G overnm ent securities and report daily to the Federal
R eserve Bank of N ew York their positions w ith respect to G overnm ent securities and borrowings thereon m ay subm it tenders
for account of customers provided the nam es of the custom ers are set forth in such tenders. Others w ill not be perm itted to
subm it tenders except for their own account. T enders will be received without 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
b y 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 the closing hour, tenders w ill be opened a t the Federal R eserve Banks and Branches, following
which public announcem ent w ill 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 of the acceptance or rejection thereof. T h e Secretary of the Treasury
expressly reserves th e 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 w ithout stated price from any
one bidder will 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 w ith the bids m ust be m ade or com pleted at the Federal R eserve Bank
on August 15, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing August 15,
1974. Cash and exchange tenders w ill receive equal treatm ent. Cash adjustm ents w ill be made for differences betw een the par
value of maturing bills accepted in exchange and the issue price o f the new bills.
Under Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code o f 1954 the am ount o f discount at which bills
issued hereunder are sold is considered to accrue w hen the 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 m ust include in his incom e tax return, as ordinary gain or loss, the difference betw een the 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. 4 18 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern th e conditions of their issue. Copies o f the circular m ay be obtained from any Federal R eserve Bank or Branch.
In ac co rd a n c e w ith th e a b o v e a n n o u n c e m e n t, ten d ers w il l b e rece iv ed a t this b a n k a n d its bran ch es a t ElPaso,
Houston a n d San A n to n io up to t w e lv e - th ir t y p .m ., C e n tra l D a y lig h t S a v in g T im e, M o n d a y , A u g u s t 1 2 , 1 9 7 4 . T enders m a y
not b e e n te re d b y te le p h o n e .
Yours v e ry tru ly,
P. E. C o ld w e ll
P resident

Amount, R ange and Approxim ate Y ield of A ccepted Tenders
13-W eek B ills
26-W eek B ills
D u e N ovem ber 7, 1974
D u e February 6, 1975
.T otal A pplied For_________________________________ $4,595,255,000
$2,700,370,000__________________________________ T otal A ccepted___________________________________$2,000,875,000
Y ield
Y ield
98.091_____________ 7.552% ___________________________H ig h _______________________ 95.637____________ 8.630%
97.813_____________ 8.652% ______________________
95.601___ m _______ 8.701%
97.850_____________ 8.505% ( 1 ) _____________________ Average____________
8.660% ( 1 )
(X ) 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 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 . 8 1 % fo r t h e 1 3 -w eek bills, a n d 9 . 1 8 % fo r
t h 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 (


Dated Adgust 15, 1974

M aturing February 13,1975

T o : Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295


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.
$--------------------------- ( -------------------v ----------------------------@ ----------------- $-------------------------- ______
_______________ (a)__________________________


Prices should be
expressed on th e
basis of 100, with
not more than three
99.925. F ra c tio n s
must not be used.

Denominations Desired
N u m b e r of

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

M atu rity V alue

@ $
< $
< $

10,000 $
15,000 $

------------- -


50,000 $
< $ 100,000 ?
< $ 500,000 ?


Charge our reserve account on paym ent
| | D raft enclosed (Effectual delivery of enclosed d r a f t

< $1,000,000 $

shall be on la te st day which will p e rm it p re s e n tm e n t
in o rd er to o bta in irrevocably collected funds on p a y ­
m e n t date)

Delivery Instructions:
□ Hold in Custody — General Account

Hold in Custody — Investm ent Ac-

By m aturing bills
held by_
Payment to be made by_

(S ub scrib er’s fu ll nam e or corp ora te title)


CO Unt


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


(A ddress)



(A uthorized official s ig n a tu re and title)

(F o r th e a ccount of, if te n d e r is fo r a n o th e r subscriber)


(A ddress)

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.
8. Any qualified or conditionaltender will be rejected.
4. If a corporation makes the tender, the form should be
signed by
an officer of the corporation authorized tomake the
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 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 for announcement)

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