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F e d e r a l R es er v e Ba n k o f D allas

DALLAS, TEXAS 7 5 2 2 2
Circular No. 74-230
August 23, 1974
To A ll B a n k in g Institutions a n d O thers Co n cerned
in th e E leven th 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 two series of Treasury bills to the aggregate amount
of $4,800,000,000, or thereabouts, to be issued Septem ber 5, 1974, as follows:
91-D A Y B IL L S (to m aturity date) in the am ount of $2,800,000,000, or thereabouts, representing an additional
am ount of bills dated June 6, 1974, and to mature D ecem ber 5, 1974 (C U S IP No. 912793 V B 9 ), originally
issued in the am ount of $1,903,910,000, the additional and original bills to be freely interchangeable.

rL B A S E


C L O S l Sfti I M f f e

F K ID A T ,




182-D A Y B IL L S for $2,000,000,000, or thereabouts, to be dated Septem ber 5, 1974, and to mature March 6, 1975
(C U S IP No. 912793 V Y 9 ).
T h e bills w ill be issued for cash and in exchange for Treasury bills maturing Septem ber 5, 1974, outstanding in the amount
of $4,407,040,000, of which G overnm ent accounts and Federal R eserve Banks, for them selves ard as agents of foreign and inter­
national m onetary authorities, presently hold $2,461,890,000. T hese accounts m ay exchange bills they hold for the bills now
being offered at the average prices of accepted tenders.
T h e bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face am ount will be payable w ithout interest. T h ey will 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 will 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, Friday, August 30, 1974. T enders w ill not be received at the Treasury Departm ent, W ashington. Each
tender m ust be for a m inim um of $10,000. Tenders over $10,000 m ust be in m ultiples of $5,000. In th e case of com petitive
tenders the price offered m ust be expressed on the basis of 100, w ith not more 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
Reserve B ank of N ew York their positions w ith respect to Governm ent securities and borrowings thereon m ay subm it tenders
for account of customers provided the nam es of the customers are set forth in such tenders. Others w ill not be perm itted to
subm it tenders except for their own account. Tenders will be received w ithout deposit from incorporated banks and trust
com panies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accompanied
by 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 at the Federal R eserve Banks and Branches, following
which public announcem ent will be made by the Treasury D epartm ent of the amount and price range of accepted bids. Only
those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury
expressly reserves the 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 with the bids m ust be made or com pleted at the Federal R eserve Bank
on Septem ber 5, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing Septem ber
5, 1974. Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents will be made for differences betw een the par
value of maturing bills accepted in exchange and the issue price of the new bills.
Under Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code o f 1954 the am ount of discount at which bills
issued hereunder are sold is considered to accrue when th e 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 th e taxable year for which the return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and
govern th e conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch.
In a c co rd an ce 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 received a t this b a n k a n d its bran ch es ar El Paso,
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 av in g T im e, F rid a y , A u g u s t 3 0 , 1 9 7 4 . T enders m a y
not be en 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

Figures concerning offering of 92-Day Treasury Bills maturing November 29, 1974 and 182-Day Treasury Bills maturing
February 27, 1975 not available when this circular was printed.

(See reverse for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Maturing March 6, 1975

Dated September 5, 1974
T o : 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.




30, 1974
















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

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

Denominations Desired
N u m b e r of

M atu rity V alue

10,000 ¥
& ¥ 15,000 ¥
(5> ¥ 50,000 ¥
(5> ¥ 100,000 ¥
(5) ¥ 500,000 ¥
(5> ¥1 ,000,000 ¥
& ¥



By m aturing bills
held by-----------------------------Paym ent to be made by_
Charge our reserve account on paym ent
D raft enclosed (Effectual delivery o f enclosed d r a f t
shall be on la te st day which will p e rm it p re s e n tm e n t
in o rder to obtain 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
Hold in Custody — T ru st Account
Pledge to secure Treasury Tax and
Loan Account


(S u bscrib er’s fu ll n a m e o r corp orate title)

(A ddress)


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

(F o r the account of, if te n de r is fo r a n o th e r subscriber)

(A ddress)






No tender for less than $10,000 will be considered and each tender over $10,000 m ust be for an amount in multiples of
$5,000 (m aturity 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 m atters 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 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.”
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.
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