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F E D E R A L R E S E R V E B A N K O F D A LL A S 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 7 5 2 2 2 NEW OFFERING — TREASURY BILLS Circular No. 74-335 Decem ber 10, 1974 To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of two issues of Treasury bills: T h e D epartm ent of the Treasury, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of $4,600,000,000, or thereabouts, to be issued D ecem ber 19, 1974, as follows: 91-D A Y B IL L S (to m aturity d ate) in the am ount of $2,600,000,000, or thereabouts, representing an additional am ount of bills dated Septem ber 19, 1974, and to mature M arch 20, 1975, (C U S IP No. 912793 W A 0 ), originally issued in the am ount of $1,801,895,000, the additional and original uills to be freely interchangeable. 182-D A Y B IL L S (to m aturity date) to be issued D ecem ber 19, 1974, in the am ount of $2,000,000,000, or there abouts, representing an additional am ount of bills dated N ovem ber 4, 1974, to m ature June 19, 1975 (C U S IP No. 912793 W Z 5), originally issued in the am ount of $1,500,835,000, the additional and original bills to be freely interchangeable. T h e bills w ill be issued for cash and in exchange for Treasury bills maturing D ecem ber 19, 1974, outstanding in the am ount of $4,604,420,000, of which G overnm ent accounts and Federal R eserve Banks, for them selves and as agents of foreign and international m onetary authorities, presently hold $2,737,090,000. 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 w ill be issued on a discount basis under com petitive and noncom petitive bidding, and at m aturity their face am ount will be payable w ithout interest. T h ey will be issued in bearer form in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e ), and in book-entry form to designated bidders. Tenders w ill be received at Federal R eserve Banks and Branches up to one-thirty p.m., Eastern Standard Tim e, M onday, D ecem ber 16, 1974. Tenders w ill not be received at the D epartm ent of the Treasury, Washington. 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 the case of com petitive tenders th e price offered m ust be expressed on the basis of 100, with not m ore than three decim als, e.g., 99.925. Fractions m ay not be used. B anking institutions and dealers who m ake prim ary m arkets in G overnm ent securities and report daily to the Federal R eserve Bank of N ew York their positions w ith respect to Government securities and borrowings thereon m ay subm it tenders for account of custom ers provided th e 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. Tenders w ill 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 accom panied by paym ent o f 2 percent of the face am ount of bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust company. P ublic announcem ent w ill be m ade by the D epartm ent of the Treasury of the am ount and price range of accepted bids. T hose subm itting com petitive tenders w ill be advised of the acceptance or rejection thereof. T h e Secretary of th e 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 w ill be accepted in fu ll 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 m ade or com pleted at the Federal R eserve Bank or Branch on D ecem ber 19, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills matur ing D ecem ber 19, 1974. Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents will be m ade for differences betw een the par value of maturing bills accepted in exchange and the issue price of the new bills. U nder Sections 454 (b ) and 1221 (5 ) of th e Internal R evenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of bills (other than life insurance com panies) issued hereunder m ust include in his Federal 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. Departm ent of the Treasury Circular N o. 418 (current revision) and this notice, prescribe the term s of the Treasury B ills and govern the conditions o f their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch. In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso, Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, December 16, 1974. Tenders may not be entered by telephone. Federal Reserve Bank of Dallas Fiscal Agent of the United States LAST PREVIOUS OFFERING OF TREASURY BILLS Am ount, R ange and Approxim ate Y ield of A ccepted Tenders 13-W eek B ills 26-W eek B ills D u e M arch 13, 1975 D u e June 12, 1975 $5,473,280,000 .— T otal A pplied For_________________________________ $3,812,500,000 $2,800,575,000---------------------------------------------------- .T otal A ccep ted __________________________________ $2,101,165,000 P rice R ate Price R ate 98.205 7.101% .-----------------------------------------H igh . ___ 96.527.................... 6.870% 98.177 7.212% -------------------------------------------Low . _____________ ....96.500.................. 6.923% 98.187 7.172% ( 1 ) --------------------------------- A verage.... _____________ 1 (9 6 .5 0 6 _____________6.911% ( 1 ) ( 1 ) T h e s e rates are on a b ank d iscou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 7 .4 1 % for th e 13-w eek b ills, and 7 .2 6 % for th e 2 6 -w eek bills. e e reverse for tender form ) This publication was digitized and made available(Sby the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) CLOfeiNG TIME 12:30 P.M., CENTRAL STANDARD TIME, MONDAY, DECEMBER 16, 1974 TENDER FOR ADDITION TO TREASURY BILLS SECURITY OFFERED I fa O fa E 182 DAYS TO MATURITY Dated November 4,1974 Maturing June 19,191 Pursuant to the provisions of Department of the Treasury Circular No. 418 (current revision) and the provisions! the public announcement issued by the Department of the Treasury, the undersigned offers to purchase Treasury bills ! the amount shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at '•* 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 $200,0? Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the avers! price (in three decimals) of accepted competitive bids. rpt> C O M PE T IT IV E T E N D E R S OTHER THAN BANKS: □ By Cashier’s Check □ By Certified Personal Check □ By Federal Funds Draft □ By Securities Submitted fe n © fa 2E3 >s □ □ □ (Description) I* Prices should ' expressed on '• -$--------------------------- basis of 100, wit --------------------------not more than thi* __________________ decimal places, eJ __________________ 99.925. Fractiof must not be use■> BANKS ONLY: 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 (will be shipped to address at lower right unless indicated otherwise): $10,000 $15,000 $50,000 $100,000 $500,000 $1 Mil. COST: DEPOSIT: DUE TO SUBSCRIBER: DUE FROM SUBSCRIBER: Send to: Book-entry (Banks only — indication of pieces not necessary): □ 01 General Account □ 02 Treasury Tax and Loan C o l l a t e r a l ---------------------------- — □ 04 Pledged to Secretary of Treasury □ 13 Trust A c c o u n t -------------------------------TOTAL $_ o © u (Street Address) (City, State, Zip Code) ------------------------------ - □ -------------------------------------------------------------------- go (N am e of Subscriber) $-------------------------------- 12 Investment A c c o u n t -------------------------------- □ PLEASE PRINT OR TYPE (The information beloi' will be used in delivery of securities.) (Signature and title, if applicable) BANKS ONLY: For the account if tender ia for another subscriber r) 1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiples' $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of f United States, with notation on the envelope reading “TENDER FOR TREASURE OFFERING”. Since enveloH received with this legend will not be opened until after the closing time specified in the public announcement, coming cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from tl 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' tender and the signing of the form by an officer of the corporation will be construed as a representation by him that has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm. 11 should sign in the form ----------------------------------------, a copartnership, b y ---------a member of the firm.” 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in inv4 ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity val( of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment byi incorporated bank or trust company. . . . 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasur material, the tender may be disregarded. (See reverse for announcement)