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F ederal Reserve Bank of Dallas F IS C A L A G EN T O F T H E UN ITED STA TES DALLAS, TEX AS 7 5 2 2 2 Circular N o . 74-2 38 S e p te m b e r 3, 1974 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O th e rs C o n c e r n e d in t h e E leventh F e d e r a l R e serv e District: Y our a t t e n t i o n is invited to t h e f o llo w in g s t a t e m e n t giving d e t a il s of tw o is s u e s of T re a s u ry bills: T h e T rea su ry D e p a r tm e n t, b y th is p u b lic n o tice, in v ites ten ders for tw o series o f T r ea su ry b ills to th e agg rega te am ou n t o f $ 4 ,4 0 0 ,0 0 0 ,0 0 0 , or therea b o u ts, to b e issu ed S e p te m b e r 12, 1974, as fo llo w s: 9 1 - D A Y B I L L S ( t o m a tu rity d a te ) in th e a m o u n t o f $ 2 ,6 0 0 ,0 0 0 ,0 0 0 , or th ereab ou ts, rep resen tin g an a d d itio n a l a m o u n t o f b ills d ated Ju n e 13, 1974, and to m atu re D ec e m b e r 12, 19 74 ( C U S I P N o. 9 1 2 7 9 3 V C 7 ) , o rigin ally issu ed in t h e a m o u n t o f $ 1 ,9 0 2 ,5 3 5 ,0 0 0 , t h e a d d itio n a l and origin al b ills to b e fr e e ly in terch an g ea b le. 1 8 2 -D A Y B I L L S for $ 1 ,8 0 0 ,0 0 0 ,0 0 0 , or th ereab o u ts, to b e d a te d S e p te m b e r 12, 1974, and to m atu re M arch 13, 1975 (C U S IP N o. 912793 V Z 6 ). T h e b ills w ill b e issu ed for cash an d in ex ch a n g e for T reasu ry b ills m a tu rin g S e p te m b e r 12, 1974, o u tsta n d in g in th e a m o u n t o f $ 4 ,4 0 4 ,9 8 0 ,0 0 0 , o f w h ich G o v ern m en t a cco u n ts an d F e d e r a l R e s e r v e B an k s, for th e m s e lv e s an d as a g en ts o f fo reig n a n d in ter n atio n a l m o n e ta ry a u th orities, p r esen tly h o ld $ 2 ,9 0 7 ,8 3 5 ,0 0 0 . T h ese a cco u n ts m a y ex ch a n g e b ills th e y h o ld for t h e b ills now b e in g offered a t th e a v era ge p rices o f a cc e p te d tenders. T h e b ills o f both series w ill b e issu ed on a d isco u n t basis u n d er c o m p e titiv e an d n o n c o m p e titiv e b id d in g a s h erein a fter p ro v id ed , an d a t m a tu rity th eir fa ce a m o u n t w ill b e p a y a b le w ith o u t interest. T h e y w ill b e issu ed in bearer form , a n d in b ooken try form to d esig n a ted bidders, in d en o m in a tio n s o f $ 1 0 ,0 0 0 , $ 1 5 ,0 0 0 , $ 5 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 a n d $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a lu e ) . T e n d e r s w ill b e rece iv ed a t F ed e r a l R e s e r v e B a n k s and B ra n c h e s up to th e clo sin g hour, o n e-th irty p.m ., E astern D a y lig h t S a v in g T im e , M o n d a y , S e p te m b e r 9, 1974. T e n d e r s w ill n o t b e r e ce iv ed at th e T rea su ry D e p a r tm e n t, W a sh in gto n . E ach ten d e r m u s t b e for a m in im u m o f $1 0,0 0 0 . T e n d e r s ov er $1 0 ,0 0 0 m u s t be in m u ltip le s o f $ 5 ,00 0. In th e case o f c o m p e titiv e ten d e rs th e p rice offered m u s t b e exp ressed on th e b a sis o f 100, w ith n ot m ore th a n th ree d ecim als, e.g., 9 9 .9 2 5 . F ra ctio n s m a y n o t b e used . It is urged th a t ten d e rs b e m a d e o n th e p rin ted form s a n d forw ard ed in th e sp ec ia l e n v e lo p e s w h ich w ill b e su p p lie d b y F ed era l R e s e r v e B a n k s or B ra n c h e s on a p p lic a tio n therefor. B a n k in g in stitu tio n s and d ealers w h o m a k e p rim ary m ark ets in G o v ern m en t secu rities an d rep ort d a ily to th e F ed e r a l R e s e r v e B a n k o f N e w Y o rk th eir p o sitio n s w ith resp ect to G o v ern m en t secu rities an d borrow ings th e reo n m a y su b m it ten ders for a cco u n t o f cu sto m ers p ro vid ed t h e n am es o f th e cu sto m ers are se t forth in such tenders. O thers w ill n o t b e p erm itted to su b m it ten d e rs ex c e p t for their ow n a c c o u n t T e n d er s w ill b e rece iv ed w ith o u t d ep o sit from in corp orated ban k s and tru st co m p a n ie s an d from resp o n sib le an d reco g n ized d ea lers in in v e stm e n t secu rities. T e n d er s from oth ers m u st be a cco m p a n ied b y p a y m e n t o f 2 p ercen t o f th e face a m o u n t o f T rea su ry b ills a p p lied for, u n less th e ten d ers are a cco m p a n ied b y an ex p ress guar a n ty o f p a y m e n t b y an in corp orated bank or tru st com p any. I m m e d ia te ly a fter t h e clo sin g hour, ten d e rs w ill b e o p en ed at th e F ed era l R e s e r v e B a n k s an d B ra n ch es, fo llo w in g w h ich p u b lic a n n o u n c em en t w ill b e m a d e b y t h e T rea su ry D e p a r tm e n t o f th e am ou n t an d p rice range o f a cc e p te d bids. O n ly th o se su b m ittin g c o m p e titiv e ten d ers w ill b e a d v ised o f th e a ccep ta n ce or rejectio n th ereof. T h e S ecreta ry o f t h e T rea su ry e x p ressly reserves th e righ t to a c c e p t or reject a n y or all tenders, in w h o le or in part, an d h is a ctio n in a n y su ch resp ect sh all b e final. S u b je c t to th e se reservations, n o n c o m p e titiv e ten d e rs for ea ch issu e for $ 2 0 0 ,0 0 0 or less w ith o u t sta ted price from a n y o n e b id d er w ill b e a c c e p te d in fu ll a t t h e a vera ge p rice ( in th ree d e c im a ls) o f a cc e p te d c o m p e titiv e b id s for th e r e s p ectiv e issu es. S e t tle m e n t for a cc e p te d ten d ers in a ccord an ce w ith th e b id s m u s t b e m a d e or co m p le te d a t th e F e d e r a l R e s e r v e B a n k o n S e p te m b e r 12, 1974, in cash or o th er im m e d ia te ly a v a ila b le funds or in a lik e fa ce am ou n t o f T rea su ry b ills m a tu rin g S e p te m b e r 12, 1974. C ash an d ex ch a n g e ten d ers w ill r ece iv e eq u al trea tm en t. Cash ad ju stm en ts w ill b e m a d e for d ifferen ces b e tw e e n t h e par v a lu e o f m atu rin g b ills a c c e p te d in ex ch a n g e and th e issu e p rice o f th e n ew b ills. U n d e r S e c tio n s 4 5 4 ( b ) a n d 1221 ( 5 ) o f th e In tern al R e v e n u e C od e o f 19 54 th e a m o u n t o f d isco u n t a t w h ich b ills issu ed h ereu n d er are sold is con sid ered to accru e w h en th e b ills are sold, red eem ed or o th erw ise d isp o sed of, an d t h e b ills are ex clu d ed from con sid era tio n as ca p ita l assets. A cco rd in g ly , th e ow n er o f T rea su ry b ills (o th e r th a n life in su ran ce c o m p a n ie s) issu ed h ereu n d er m u st in clu d e in h is in co m e tax return, as ord in ary gain or loss, th e d ifferen ce b e tw e e n th e p r ice p a id for th e b ills, w h eth er o n origin al issu e or o n su b seq u e n t purch ase, an d th e a m o u n t a ctu a lly re c e iv e d e ith er u p o n sa le or r e d em p tio n a t m a tu rity d u rin g t h e ta x a b le y ear fo r w h ich t h e return is m ade. T rea su ry D e p a r tm e n t Circular N o . 4 1 8 (cu rren t rev isio n ) a n d th is n o tice, prescrib e th e term s o f th e T r ea su ry b ills and go v ern th e c o n d itio n s o f th eir issue. C o p ies o f th e circu lar m ay b e o b ta in ed from a n y F ed era l R e s e r v e B a n k or B ranch. In a c c o r d 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 , t e n d e r s will b e r e c e iv e d a t this b a n k a n d its b r a n c h e s a t El P aso , Houston a n d S an A n to n io u p to tw e lv e - th ir ty p .m ., C e n tral D aylight S a v in g Time, M o n d a y , S e p te m b e r 9, 1 9 74. T en d e rs may n o t b e e n t e r e d b y t e l e p h o n e . Y ours v e ry truly, P. E. C oldw ell P re s id e n t LAST PREVIOUS OFFERING OF TREASURY BILLS A m o u n t, R a n g e an d A p p ro x im a te Y ie ld o f A c c e p te d T e n d er s 1 3-W eek B ills 2 6 -W e e k B ills D u e D e c e m b e r 5, 1 9 7 4 D u e M arch 6, 1975 -$ 3 ,8 5 3 ,0 7 5 ,0 0 0 $ 3 ,7 4 0 ,5 5 5 ,0 0 0 -T ota l A p p lie d F o r - ___ __________________ $ 2 ,8 0 0 ,2 0 0 ,0 0 0 _______________ T o ta l A cce p ted -___ ___________________________ - $ 2 ,0 0 0 ,4 6 0 ,0 0 0 P r ic e Y ie ld P r ic e Y ie ld 9 7 .7 2 5 _ .-------- --------- 9 . 0 0 0 % - ------ . H i g h _______________________ 9 5 .3 3 7 _____________ 9 .2 2 4 % 9 7 .6 6 1 _____________9 .2 5 3 % ____________________ L o w ___ ___ —.9 5 .2 8 8 ______________9 .3 2 0 % 9 7 .6 8 3 ---------------------9 .1 6 7 % ( 1 ) — ............. —----------A v era g e___________________9 5 .3 0 7 ________ ___- 9 . 2 8 3 % ( 1 ) ( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t b a sis. 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 9 . 5 1 % fo r t h e 1 3 -w eek b ills, a n d 9 . 8 8 % fo r the 26-w eek 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 TREASURY BILLS 182 DAYS TO MATURITY M a tu rin g M arch 13, 1975 D a te d S ep tem b er 1 2 ,1 9 7 4 T o : F ed era l R e se r v e B ank, S ta tio n K, D allas, T e x a s 75222 or — T h e ______________________________B ran ch 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 oifers 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. N O N C O M P E T IT IV E T E N D E R $_______________________________________________N O T TO E X C E E D $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. (§ C O M P E T IT IV E T E N D E R S $ * $ $ i g (cb (a) (® @ Prices should be e xpressed 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. ? $ BSP TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR ARE ACCEPTABLE. Denominations Desired N u m b e r of pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PAYMENT □ B y m a tu r in g bills held b y --------------------------------------------------- M a tu r ity V alue (§> $ 10,000 $ (® $ 15,000 $ <3> $ 50,000 $ @ $ 100,000 $ (® $ 500,000 $ □ P a y m e n t to be m a d e b y ------------------------ □ C h arge our r e se r v e account on p a y m e n t d ate J | D r a f t e n c lo se d (a) ?1.,000,000 $ (E ffectual delivery o f enclosed d r a f t s h a ll be on la t e 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 t a i n i r r e v o c a b l y c o lle c te d f u n d s o n p a y m e n t d ate) D e liv e r y In str u c tio n s: □ H old in C u stod y — General A cco u n t □ Hold in C u sto d y — I n v e s tm e n t A c count □ H old in C u stod y — T r u s t A cco u n t □ P le d g e to se c u r e T rea su ry T a x and Loan A cco u n t □ O ther_______________________________ ( S u b s c r i b e r ’s f u l l n a m e o r c o r p o r a t e t i t l e ) (A dd ress) By- ( A u t h o r i z e d of fi c ia l s i g n a t u r e a n d t i t l e ) ( F o r t h e a c c o u n t of , i f t e n d e r is f o r a n o t h e r s u b s c r i b e r ) (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 th a t h 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)
@FedFRASER