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F ederal Reserve Bank of Dallas
F IS C A L A G E N T O F T H E UN ITED S T A T E S

DALLAS, TEXAS 7 5 2 2 2
C ircu la r No. 74-201
J u ly 18, 1974

OFFERING
TREASURY BILL — TAX ANTICIPATION SERIES
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attentio n is invited to the following sta te m e n t giving details of a n issue of 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 $1,500,000,000, or th ereab o u ts, of 4 4-day T re a su ry
bills, to 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 ttitiv e b idd in g as h e re in a fte r p rovided. T h e bills of th is
series will be d a te d A ugust 7, 1974, a n d w ill m a tu re S e p tem b e r 20, 1974 ( C U S I P No. 912793 W X O ) . T h e y will be a cc ep te d
a t face v a u e in p a y m e n t of incom e taxes due on S e p te m b e r 15, 1974, a n d to th e e x te n t th e y are n o t p re se n te d fo r th is p u r ­
pose th e face a m o u n t of th ese bills w ill b e p a y ab le w ith o u t in te re st a t m atu rity . T a x p a y e rs desiring to a p p ly th ese bills in p a y ­
m e n t of S e p te m b e r 15, 1974, incom e taxes m ay su b m it th e bills to a F e d e ra l R e se rv e B a n k or B ra n ch or to th e B u re au of
P u b lic D e b t, W ashington, D. C. 20226, n o t m ore th a n fifteen days before th a t date. I n th e case of bills su b m itte d in p a y m e n t
of incom e taxes of a co rp o ratio n th e y shall be a ccom panied b y a d u ly c o m p le te d F o rm 503 a n d th e office receiving these item s
w ill effect th e d epo sit on S e p te m b e r 15, 1974. I n th e case of bills su b m itte d in p a y m e n t of incom e taxes of all o th e r taxpayers,
th e office receiving th e bills will issue receip ts th erefo r, th e original of w hich th e ta x p a y e r shall su b m it on or before S e p te m ­
b e r 15, 1974, to th e In te rn a l R e v e n u e Service C e n te r D ire cto r for th e D istric t in w hich such taxes are payable. T h e bills will
be issued in b e a re r form , a n d in b ook -entry fo rm to design ated bidders, in den 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 ).
T e n d e rs will b e 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 , T h u rsd a y , A u gust 1, 1974. T e n d e rs w ill not b e received a t th e T re a s u ry D e p a rtm e n t, W ashington. E ac h
te n d e r m u st b e 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. I n th e case of co m p etitiv e
te n 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 ractio n s
m a y n o t b e used. I t is u rg e d t h a t te n d e rs be m ad e on th e p rin te d fo rm s a n d fo rw arded 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 ran ch es on a p p lic a tio n therefo r.
B a n k in g institu tio n s a n d dealers w ho m ak e p rim a ry m a rk e ts in G o v e rn m en 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 o rk th e ir p ositions 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 ay su b m it ten d e rs
for a ccou nt of cu sto m ers p ro v id ed th e n a m e s of th e cu sto m ers a re se t forth in such tenders. O th ers will 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 will be received w ith o u t d e p o sit from in co rp o ra ted b an ks a n d tr u s t
com panies a n d from resp onsib le a n d recognized d ealers in in v estm e n t securities. T e n d e rs from others m u st b e accom p an ied
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 s u ry bills a p p lie d for, unless th e ten d e rs a r e a cc o m p an ied 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.
All b id d ers a re re q u ire d to ag ree n o t to p u rchase or to sell, or to m ak e a n y ag ree m e n ts w ith resp ect to th e purch ase
o r sale or o th er disp osition of a n y bills of th is issue a t a specific ra te o r price, u n til a f te r o n e -th irty p.m., E a s te rn D a y lig h t
S aving T im e , T h u rsd a y , A u gust 1, 1974.
Im m e d ia te ly a fte r th e closing hour, te n d e rs will b e o p 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 c e m e n t will b e m ad e b y th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d p rice range of a ccepted bids. O nly those
su b m ittin g c o m p e titiv e ten d e rs will b e a d vised of th e a cc ep ta n ce or rejectio n thereof. T h e S e c retary of th e T re a su ry expressly
reserves th e rig h t to a c c e p t o r re je c t a n y or a ll tend ers, in whole or in p a rt, a n d his a ctio n in a n y such re sp e ct shall b e final.
S u b je ct to th ese reservations, non c o m p e titiv e te n d e rs for $300,000 or less w ith o u t sta te d p rice from a n y one b id d er will be
a cc ep te d in full a t th e a verage p ric e (in th re e decim als) of a ccepted c o m p e titiv e bids. S e ttle m e n t for a ccepted te n d e rs in
accordance w ith th e bid s m u st b e m a d e or c o m p le te d a t th e F e d e ra l R eserve B a n k in cash o r o th e r im m e d ia tely a v ailab le funds
on A ugu st 7, 1974. A n y qualified d e p o sita ry w ill be p e rm itte d to m a k e se ttle m e n t by c re d it in its T re a su ry tax a n d loan
a ccou nt for T re a su ry bills a llo tte d to it for itself a n d its custom ers.
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 en u e Code 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 consid ered to accrue w h en th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re excluded
from co nsideration as c ap ital assets. Accordingly, th e o w ner of T re a su ry bills (o th e r th a n life insurance co m p an ies) issued h e re ­
u n d e r m u s t inclu de 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 price p a id for th e bills, w h e th er
on original issue or on su b seq u e n t purchase, a n d th e a m o u n t a ctu a lly rece iv e d e ith e r u p o n sale or re d e m p tio n a t m a tu rity during
th e tax a b le y e ar 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 ircular No. 418 ( c u r re n t re v isio n ) a n d this notice, p rescrib e th e te rm s of th e T re a su ry bills and
govern th e cond ition s of th e ir issue. C opies of th e circu lar m a y 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 a ccordance with the a b o v e a n n o u n c e m e n t, te n d ers will be received a t this b a n k a n d its branch es a t El Paso,
Houston a n d San Antonio, up to tw elve-thirty p.m., Central Daylight Saving Time, Thursday, A ugust 1, 1974. Tenders
m a y not b e entered by te le pho ne .
Yours very truly,
P. E. Coldwell
President

(See reverse side for tender form)

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

This issue of Treasury bills will be accepted at face value in payment of income taxes due
on September 15, 1974

TENDER FOR TREASURY BILLS
T A X A N TIC IPA TIO N SERIES
Dated August 7, 1974

44 DAYS TO M ATURITY

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The---------------------------------------- Branch
El Paso 79999

Houston 77001

Maturing September 20, 1974

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

San Antonio 78295

Date

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the
provisions of the public announcement, as shown on reverse side, as 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.
NOT TO EXCEED $300,000
NONCOM PETITIVE TENDERS $
Noncompetitive tenders for $300,000 or less from any one bidder, without stated price, will be accepted in full at the aver­
age price (in three decimals) of accepted competitive bids.
(0)

COM PETITIVE TENDERS

^

i
$
$
$

V

$

Cn)

r

$

?
@

Prices should be
exp ressed 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.

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

N um ber of
Pieces

METHOD OF PAYMENT

Maturity Value

□

(a) $
(a) $

By charge to our Treasury Tax and Loan Account

□

10,000 ?
15,000 ¥

Payment to be made by.......................................................

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

□

By charge to our reserve account on payment date.

(a) $1,000,000 $

□

By draft enclosed (effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment
date).

(Name of Bank)

We certify that we, as well as our customers, if any, listed
hereon have agreed not to purchase or to sell, or to make any
agreements with respect to the purchase or sale or other dis­
position of any bills bid for under this offering at a specific rate
or price, until after one-thirty p.m., Eastern Daylight Saving
Time, Thursday, August 1, 1974.

Delivery Instructions:
□

Hold in Custody — General Account

□

Hold in Custody — Investment Ac­
count

□

Hold in Custody — Trust Account

□

Pledge to secure Treasury Tax and
Loan Account

□

Other___________________________

(Subscriber's full name or corporate title)

(A dd re ss)

By-

(Authorized official signature and title)

(F or the account of, if tender is for another subscriber)

(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, communications
relating to other m atters should not be enclosed. Envelopes for submitting tenders may be requested 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, 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 fo r announcem ent)

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