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F ederal r eser ve b a n k 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 75222
C ircu lar No. 74-226
A ugust 20, 1974

N EW OFFERING — TREASURY BILLS
To All Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follow ing statem ent giving details of tw o issues o f 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 two series of T re a s u ry bills to th e a g g reg ate a m o u n t
of $4,800,000,000, or th ere ab o u ts, to be issued A ugust 29, 1974, as follow s:
9 2 -D A Y B IL L S ( t o m a tu r ity d a te ) in th e a m o u n t of $2,800,000,000, o r 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 y 30, 1974, a n d to m a tu re N o v e m b er 29, 1974 ( C U S I P No. 912793 V A 1 ), originally
issued in th e a m o u n t of $1,902,570,000, th e a d d itio n al a n d original bills to b e freely interchangeable.
182-D A Y B IL L S fo r $2,000,000,000, o r th ere ab o u ts, to b e d a te d A ugust 29, 1974, a n d to m a tu re F e b ru a ry 27, 1975
( C U S I P No. 912793 V X 1 ).
T h e bills will be issued for cash a n d in exchange for T re a s u ry bills m a tu rin g A ugust 29, 1974, o u tstan d in g in th e a m o u n t
of $4,406,125,000, 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 anks, for them selves 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 e ta ry a u th o ritie s, p re se n tly hold $2,540,175,000. T h ese acco u n ts m a y exchange b ills th e y hold for th e bills now
b eing offered a t th e a v erage prices of a cc ep te d tenders.
T h e bills o f b o th series will be issued on a discount 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 rovided, a n d a t m a tu rity th e ir face a m o u n t w ill be p a y ab le w ith o u t in terest. T h e y will be issued in b e a re r form , a n d in booke n try form to d e sig n ate d bidders, in d e n o m in a tio 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 alue ).
T e n d e rs will be received 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 hour, o n e -th irty p.m ., E a s te rn
D a y lig h t S aving T im e , M onday, A ugust 26, 1974. T e n d e rs w ill n o t b e received 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 over $10,000 m u st be in m u ltip le s of $5,000. In 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 o n 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 a y
n o t b e used. I t is u rged t h a t te n d e rs be m ad e o n th e p r in te d form s a n d fo rw ard ed in th e special envelopes w hich will 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 o n 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 a k e p rim a ry m a rk e ts in G o v e rn m e n t securities a n d r e p o rt d aily 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 positions w ith re sp e c t to G o v e rn m e n t securities a n d borrow ings th e re o n m a y su b m it te n d e rs
for a ccount of custom ers p ro v id ed th e n a m e s of th e custom ers a re set fo rth in such tenders. O th e rs w ill n o t be p e rm itte d to
su b m it te n d e rs e x ce p t for th e ir own account. T e n d e rs w ill be received w ith o u t d e p o sit from in co rp o ra ted b a n k s a n d tr u s t
c om panies a n d from responsible a n d recognized d ealers in in v estm e n t securities. T e n d e rs from o th ers m u st be 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 bills a p p lie d for, unless th e te n d e rs a re a ccom panied b y a n express guar­
a n ty of p a y m e n t by 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 fte r th e closing hour, te n d e rs w ill b e op 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 ranches, 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 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 ra n g e of a cc ep te d 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 acceptance or re je c tio n thereof. T h e S e c re ta ry of th e T re a su ry
expressly reserves 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 o r in p a rt, a n d his a c tio n in a n y such re sp e c t shall be
final. S u b je c t to these reservations, n o n c o m p e titiv e te n d e rs for each issue for $200,000 or less w ith o u t sta te d p rice fro m any
one b id d e r will b e a cc ep te d in full a t th e av erag e 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 accordance w ith th e bids m u st b e 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 A ugust 29, 1974, in cash or o th e r im m e d ia te ly a v ailab le fun d s or in a like face a m o u n t of T re a su ry bills m a tu rin g A ugust 29,
1974. C ash a n d exchange te n d e rs w ill receive e qual tre a tm e n t. C ash a d ju s tm e n ts w ill b e m a d e for differences b e tw ee n th e p a r
v alue 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 Sections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e C ode of 1954 th e a m o u n t of discount a t w hich bills
issued h e re u n d e r a re sold is considered to accrue w h e n 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 c onsideration as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry b ills (o th e r th a n life insurance c o m p an ies)
issued h e re u n d e r m u st include in his incom e tax 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 for th e
bills, w h e th e r on original »<ssue o r o n su b seq u e n t pu rchase, a n d th e a m o u n t actu a lly received e ith e r u p o n sale o r re d e m p tio n a t
m a tu r ity durin g th e tax a b le y e a r for w hich th e re 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 r re n t revision) a n d this notice, p re sc rib e th e te rm s of th e T re a s u ry bills a n d
govern th e conditions of th e ir issue. C opies of th e circular 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 o r B ranch.

In accordance with the ab ove announcement, tenders w ill be received a t this b ank and its branches a t El Paso,
Houston an d San Antonio up to tw e lv e -th irty p.m., Central D aylight Saving Time, M o n d a y , August 26, 1974. Tenders m ay
not be entered by telephone.
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 en d e rs
13-W eek B ills
26-W eek Bills
D u e N o v e m b e r 21, 1974
D u e F e b ru a ry 20, 1975
$3,929,075,000_____________________ ___________ T o ta l A p p lied F o r_____________________ ___________ $2,984,270,000
$2,800,170,000...___ ___________________ ___ ______T o ta l A c c ep ted ___________________________________$2,000,100,000
P ric e
Y ield
P ric e
Y ield
97.794________
...8 .7 2 7 % ................. ......................................H ig h ______________________ 95 .5 6 1 .„„..................... 8 .780%
97.750
8 .9 0 1 % ___________________________ L ow ______________________ 95.467.. .
1.966%
97.764
8 .846% ( 1 ) ______________________A verage____________________ 95.501_____________ 8 .8 9 9 % (1 )
(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 9.17% for the 13-week bills, and 9 .4 5 % for
the 26-week bills.
( S e e r e v e r s e fo r t e n d e r f o r m )

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 February 27, 1975

Dated August 29, 1974
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(Date)

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.
(H

fa

g

|$
if
<
f
$

()
a

$
$
$
$

COMPETITIVE TENDERS

(
a

()
a

tfv)
@

-

Prices should be
expressed on the
basis of 100, with
not more than three
decimal places, e.g.,
99.925. Fractions
must not be used.

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired

Number of
pieces

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

M aturity Value

& $
(a) $

10,000 ?
15,000 $

□
□

(o $
>

50,000 $
(a) ? 100,000 $
(a) $ 500,000 $

□
□

(fi) $1,000,000 $

By maturing bills
held by--------------------------------------------Paym ent to be made by______________
Charge our reserve account on payment
date
Draft enclosed (Effectual delivery of enclosed draft
shall be on latest day which will perm it presentm ent
in order to obtain irrevocably collected funds on pay­
ment date)

Delivery Instructions:
□

Hold in Custody — General Account

(Subscriber’s full name or corporate title)

□

Hold in Custody — Investment Ac­
count

(Address)

□
□

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

□

Other____________________________

By-

(Authorized official signature and title)
(For the account of, if tender is for another subscriber)

(A ddress)

IMPORTANT
l.

2.

3.
4.

5.

6.

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).
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.
Any qualified or conditional tender will be rejected.
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 asa 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.”
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.
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.
(S ee re v e rse f o r an n o u n cem en t)

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