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F ederal R eserve Ba n k of D allas
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, TE X A S 7 5 2 2 2

C ircu lar No. 74-273
O cto b er 10, 1974

N E W OFFERING — TREASURY BILLS

To A ll Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:

Y our attention is invited to the fo llo w ing statement giving details of an issue of Treasury bills:
T h e D e p a rtm e n t of th e T rea su ry , b y th is p u b lic notice, in v ite s te n d e rs fo r $2,000,000,000, o r th ereab o u ts, of
T re a s u r y bills to be d a te d O cto ber 22, 1974, a n d to m a tu re O c to b er 21, 1975 ( C U S I P No. 912793 W U 6 ).

364-day

T h e b ills will be issued for cash a n d in exchange fo r T re a s u ry bills m a tu rin g O cto b er 22, 1974, o u tstan d in g in th e a m o u n t
of $1,801,790,000, of w hich G o v e rn m e n t accou nts a n d F e d e ra l R e se rv e B anks, for them selves a n d as agents of foreign a n d in te r­
na tio n a l m o n e ta ry auth o ritie s, p re se n tly hold $1,036,180,000. T h e s e acco u n ts m ay exchange bills th e y h old for th e bills now being
offered a t th e average price of a cc ep te d tenders.
T h e bills w ill be issued on a d iscou nt 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 bidding, a n d a t m a tu rity th e ir face
a m o u n t will be p a y a b le w ith o u t in terest. T h e y will be issued in b e a re r form 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 a lu e ) , a n d in bo o k -en try form to d esign ated bidders.
T e n d e rs will b e 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 o n e -th irty p.m., E a s te r n D a y lig h t Saving T im e ,
W edn esday, O cto ber 16, 1974. T e n d e rs w ill n o t b e received a t th e D e p a rtm e n t of th e T rea su ry , W ashington. E a c 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 o ver $10,000 m u st b e in m u ltip le s of $5,000. In th e case of c o m p e titiv e ten 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 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.
B a n k in g in stitu tio n s a n d dealers who 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 re 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 ork th e ir positio ns w ith re sp e ct 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 ten d e rs
fo r a ccou nt of custom ers p ro v id ed th e n am es of th e cu sto m ers a re se t fo rth in such tend ers. O th e rs will n o t b e p e rm itte d to
su b m it te n d e rs except for th e ir own account. T e n d e rs w ill b e received w ith o u t d e p o sit from inco rp o ra ted b ank s a n d tr u s t com ­
p a n ie s a n d from respon sible a n d recognized de ale rs in in v e s tm e n t securities. T e n d e rs from o th ers m u st be a cco m panied by
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 bills a p p lie d for, un less th e te n d e rs a re a cco m panied b y a n express g u a ran 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.
P u b lic a n n o u n c e m e n t w ill be m a d e b y th e D e p a rtm e n t of th e T re a s u ry of th e a m o u n t a n d p rice rang e of a cc ep te d bids.
T h o se su b m ittin g c o m p e titiv e ten d e rs will be ad v ised of th e a ccep tan ce or 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 cc ep t or re je c t a n y o r all tenders, in w hole or in p a rt, a n d his a ction 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 $200,000 or less w ith o u t sta te d p rice from a n y one b id d e r will be
a cc ep te d in full a t th e a verage p rice ( in th re e d ecim als) of a cc ep te d c o m p e titiv e bids. S e ttle m e n t for a ccep ted ten d e rs in accor­
dance w ith th e bids m u st be m a d e or co m p leted a t th e F e d e ra l R eserve B a n k or B ra n c h on O cto b er 22, 1974, in cash or o th er
im m e d ia te ly a v ailab le fu nds or in a lik e face a m o u n t of T re a s u ry bills m a tu rin g O cto ber 22, 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 a d e for differences b e tw ee n th e p a r v alu e of m a tu rin g bills a ccepted
in exchange a n d th e issue p ric e of th e n ew bills.
U n d e r S ections 454 ( b ) a n d 1221 ( 5 ) of th e I n te rn a l R e v e n u e Code o f 1954 th e a m o u n t of d isco u n t a t w hich bills
issued h e re u n d e r are sold is considered to accru e w h e n th e bills a re sold, re d ee m e d o r otherw ise disposed of, a n d th e bills are
excluded from c o nsideration as c ap ita l assets. Accordingly, th e ow ner of bills ( o th e r th a n life in su ran ce co m pan ies) issued he re ­
u n d e r m u st includ e in his F e d e ra l incom e ta x re tu rn , a s o rd in a ry gain o r loss, th e difference betw een th e p rice p a id for th e bills,
w h e th e r on original issue o r on su b seq u e n t p urchase, a n d th e a m o u n t a ctu 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 tax a b le y e ar for w hich th e re tu rn is m ade.
D e p a rtm e n t of th e T re a s u ry C ircular No. 418 ( c u rre n t rev isio n ) a n d th is notice, prescrib 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 o f th e c irc u lar m a y be o b ta in e d fro m a n y F e d e ra l R e se rv e B a n k o r B ranch.

In accordance w ith the above 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, W ed n esd a y, October 16, 1974. Ten­
ders m ay not be entered by telephone.

Yours very truly,
P. E. Coldwell
President

(S e e reverse for te n d e r fo rm )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

CLOSING
TIME

12:30 P.M., CENTRAL DAYLIGHT SAVING TIME, WEDNESDAY, OCTOBER 16,1974

TENDER FOR TREASURY BILLS

SECURITY
OFFERED

364 DAYS TO MATURITY
Dated October 22, 1974

Maturing October 21, 1975

Pursuant to the provisions of Department of the Treasury Circular No. 418 (current revision) and the provisions of
the public announcement issued by the Department of the Treasury, 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

N n o p t t v t n e s f r $ 0 , 0 o l s from any b d e ,w t o t s a e pie w l b a c p e i fl a t ea e a e
o c m e i i e e d r o 2 0 0 0 r es
i d r i h u t t d rc, il e c e t d n ul t h v r g
p i e ( n t r e d c m l ) o a c p e c m e i i e bd.
r c i h e e i a s f c e t d o p t t v is

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Prices should be
expressed 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.

$

(a)
(a)

)$

(a)

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OTHER THAN BANKS:
□ By Cashier’s Check
□ By Certified Personal Check
□ By Federal Funds D raft
□ By Securities Submitted

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*

£
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*
5

$
BANKS ONLY:
□
□
□

(D escription)

ALL CHECKS MUST BE PAYABLE TO
THE FEDERAL RESERVE BANK

By charge to our reserve account on payment
date
By draft enclosed.
By charge to our correspondent:
(A written authorization for such charge should
be provided from your correspondent.)

FEDERAL RESERVE BANK ONLY:

Bearer Securities:

______ @ $

DEPOSIT:

15,000 $_

DUE TO SUBSCRIBER:

______ @ $

o

10,000 $_

______ @ $
go

COST:

50,000 $_
DUE FROM SUBSCRIBER:

______ @ $ 100,000 $_

5
2
«
£
02On

____ _ @ $ 500,000 $_
PLEASE PRINT OR TYPE (The information below
will be used in delivery of securities.)

_______@ $1,000,000 $_
Book-entry (Banks only):

S
3

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0
3
W
>
i- h
J
w
Q

H
P
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□ 01 General Account
□
□

$_
_

(S tre e t A d d ress)

04 Pledged to Secretary
of Treasury

_

(C ity, S ta te , Z ip Code)

□

12 Investment Account

□ 13 Trust Account
□

_
_

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

-

TOTAL $_

cc

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1
Q

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(N am e o f Subscriber)

02 Treasury Tax and
Loan Collateral

(S ig n a tu re a n d title, if applicable)

BANKS ONLY:
F o r th e a ccount of. |
if te n d e r is fo r
>
a n o th e r su b scriber I

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 at 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, b y --------------------------------- -------------- ------------ f
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