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FEDERAL RESERVE BANK OF DALLAS F I S C A L A G E N T O F T H E U N IT E D S T A T E S D A L L A S .T E X A S 7 5 2 2 2 Circular No. 7^-38 January 31? 1974 To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Quoted below is the text of a statement issued by the Treasury Department yesterday concerning February financing plans. TREASURY ANNOUNCES FEBRUARY REFINANCING The Treasury announced today that it will provide funds for retiring the $4.5 billion of publicly held notes and bonds maturing on February 15 by auctioning to the public up to $2.25 billion of 3-1/4 year notes, up to $1.5 billion of 7-year notes and up to $300 million of 19-1/2 year bonds. Additional amounts of the notes and bonds will be allotted to Government accounts and the Federal Reserve Banks in exchange for their holdings of the maturing secu rities, which total $0.9 billion. The securities to be auctioned will be: Treasury Notes of Series C-1977 dated February 15? 1974, due May 15, 1977 (CUSIP No. 912827 DQ2), with interest payable on May 15 and November 15? 1974, and thereafter on May 15 and November 15, Treasury Notes of Series A-I98I dated February 15? 1974, due February 15, 1981 (CUSIP No. 912827 DRO), with interest payable on February 15 and August 15? and an additional amount of the 7-l/2$ Treasury dated August 15? 1973? due August 15? 1993? option of the United States on any interest and after August 15, 1988 (CUSIP No. 912810 payable on February 15 and August 15. Bonds of 1988-93? callable at the payment date on BQO), with interest The coupon rates for the two issues of notes will be announced on Monday, February 4. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2 - The notes and bonds will be issued in registered and bearer form in denominations of $1,000, $ 5?000, $10,000, $100,000, and $1,000,000. Tenders for the 7-year notes will be received up to 1:30 p.m., Eastern Daylight Saving time, Tuesday, February 5? 1974, tenders for the 3-1/4 year notes will be received up to 2:00 p.m., EDST, Wednesday, February 6 , 1974, and tenders for the 19-1/2 year bonds will be received up to 1:30 p.m., EDST, Thursday, February 7? 1974, at any Federal Reserve Bank or Branch, and at the Bureau of Govern ment Financial Operations, Banking and Cash Management, Washington, D. C. 20222; provided, however, that noncompetitive tenders will be considered timely received if they are mailed to any such agency under a postmark no later than February 4 for the 7-year notes, February 5 for the 3-1/4 year notes and February 6 for the bonds. Each tender must be in the amount of $1,000 or a multiple thereof, and must state the price offered, if it is a competitive tender, or the term "noncompetitive", if it is a noncompetitive tender. The price on competitive tenders for the notes must be ex pressed on the basis of 100, with two decimals, e.g., 100.00. Tenders at a price less than 99*26 for the 3-l/4 year notes and 98.26 for the 7-year notes will not be accepted. Tenders at the highest prices will be accepted to the extent required to attain the amount offered. Successful competitive bidders for the notes will be required to pay for the notes at the price they bid. Non competitive bidders will be required to pay the average price of all accepted competitive tenders for the issue. The price on competitive tenders for the bonds must be expressed on the basis of 100, with two decimals in a multiple of .05, e.g., 100.10, 100.05, 100.00, 99.95, etc. Tenders for the bonds at a price less than 95.30 will not be accepted. Tenders at the highest prices will be accepted to the extent required to attain the amount offered. All accepted tenders for the bonds will be awarded at the price of the lowest accepted bid. Fractions may not be used in tenders. The notation "TENDER FOR TREASURY NOTES (SERIES C-1977 or A-I98I)" or "TENDER FOR TREASURY BONDS" should be printed at the bottom of the envelopes in which tenders are submitted. The 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 noncompetitive tenders for $500,000 or less for each issue of notes will be accepted in full at the average price of - 3 accepted competitive tenders and noncompetitive tenders for $250,000 or less for the bonds will be accepted in full at the same price as the lowest accepted competitive tender. The prices may be 100.00, or more or less than 100.00. Commercial banks, which for this purpose are defined as banks accepting demand deposits, may submit tenders for account of customers provided the names of the customers are set forth in such tenders. Others than commercial banks will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from commercial and other banks for their own account, Federally-insured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds, inter national organizations in which the United States holds membership, foreign central banks and foreign States, dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank of New York their positions with respect to Government securities and borrowings thereon, Federal Reserve Banks, and Govern ment accounts. Tenders from others must be accompanied by payment of 5 percent of the face amount of securities applied for. Payment for accepted tenders for the notes must be completed on or before Friday, February 15, 1974. Payment for accepted tenders for the bonds, including interest from February 15 to February 28, 1974 ($2.69337 per $1,000) must be completed on or before Thursday, February 28, 1974. Payments must be made at the Federal Reserve Bank or Branch or at the Bureau of Government Financial Operations in cash, 7 - 3 / 4 Treasury Notes of Series C-1974 or 4-1/8°}0 Treasury Bonds of 1974, which will be accepted at par, or other funds imme diately available to the Treasury by that date. Where full payment is not completed in funds available by the payment date, the allot ment will be canceled and the deposit with the tender up to 5 per cent of the amount of securities allotted will be subject to forfei ture to the United States. The Treasury will construe as timely payment any check drawn to the order of the Federal Reserve Bank or the United States Treasury that is received at such bank or office by Wednesday, February 13, 1974, for the notes and Monday, February 25, 1974, for the bonds, provided the check is drawn on a bank in the Federal Reserve District of the bank or office to which the tender is submitted. Other checks will constitute payment only if they are fully and finally collected by the payment date. Checks not so collected will subject the in vestor's deposit to forfeiture as set forth in the preceding paragraph. A check payable other than at a Federal Reserve Bank received on the payment date will not constitute immediately available funds on that date. - k - Commercial banks are prohibited from making unsecured loans, or loans collateralized in -whole or in part by the securities bid for, to cover the deposits required to be paid when tenders are entered, and they will be required to make the usual certification to that effect. Other lenders are requested to refrain from making such loans. All bidders are required to agree not to purchase or to make any agreements with respect to the purchase other disposition of the securities bid for under this a specific rate or price, until after the closing hour of tenders for each particular issue. or to sell, or sale or offering at for the receipt Combination tender forms/circular letters are enclosed. Yours very truly, P. E. Coldwell President Enclosures UNITED STATES* OF AMERICA TREASURY NOTES OF SERIES C -1977 D ated a n d b e a rin g interest from February 15, 1974 Due M ay 15, 1977 D EPA R TM EN T OF T H E TREA SURY Office of th e S ecreto ry W ash in gto n, J a n u a r y 31, 1974 DEPARTMENT CIRCULAR P u b lic D e b t S eries — N o. 1-74 PLEASE OBSERVE CLOSING TIME OF 1:00 P.M., CENTRAL DAYLIGHT SAVING TIME, WEDNESDAY, FEBRUARY 6, 1974 I. OFFERIN G O F NOTES 1. T h e S e c retary of th e T rea su ry , p u rs u a n t to th e a u th o rity of the Second L ib e rty B o nd A ct, as am en d ed , in v ite s te n d e rs a t a p rice n o t less th a n 99.26 p e rc e n t of th e ir face v alue for $2,250,000,000, o r th ere ab o u ts, of n o tes of th e U n ite d S tates, de sig n ate d T re a su ry N otes of Series C-1977. T h e in te re st r a te fo r th e notes will be p u b lic ly a n n o u n ced b y th e S e c retary of th e T re a su ry on F e b ru a ry 4, 1974. A n a d d itio n a l a m o u n t of th e no~es m ay be a llo tte d b y th e S e c retary of th e T re a su ry to G o v e rn m en t accou n ts a n d F e d e ra l R e se rv e B a n k s a t th e av erag e p rice of a cc ep te d te n d e rs in exchange for T re a su ry no tes a n d bonds m a tu rin g F e b ru a ry 15, 1974. T e n d e rs will b e receiv ed u p to 2 :0 0 p.m ., E a s te rn D a y lig h t S av ing tim e, W ednesday, F e b ru a ry 6, 1974, 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 b idding, as se t fo rth in S ection I I I hereof. T h e 7 % p e rc e n t T re a su ry N otes of Series C-1974 a n d 4 1/8 p e rc e n t T re a su ry B on ds of 1974, m a tu rin g F e b ru a ry 15, 1974, will b e acc ep te d a t p a r in p a y m e n t, in w hole or in p a rt, to th e e x te n t te n d e rs are a llo tte d b y th e T reasu ry . II. DESCRIPTION O F NOTES 1. T h e n o tes will b e d a te d F e b ru a ry 15, 1974, a n d will b e a r in te re st from t h a t d a te , p a y a b le on a sem ian n u al basis on M a y 15 a n d N jv e m b e r 15, 1974, a n d th e re a fte r on M a y 15 a n d N o v e m b er 15 in each y e a r u n til th e p rin c ip a l a m o u n t becom es p a y a b ’e. T h e y w ill m a tu re M a y 15, 1977, a n d w ill n o t b e su b je ct to call for re d e m p tio n p rio r to m a tu rity . 2. T h e incom e d e riv e d fro m th e n o tes is su b je ct to all tax es im po sed u n d e r th e In te rn a l R e v e n u e C ode of 1954. T h e n o tes a re su b je ct to e state , in h eritan c e, g ift or o th er excise taxes, w h e th er F e d e ra l or S ta te , b u t a re e x em p t fro m all tax a tio n now o r h e re a fte r im posed on th e p rin cip a l or in te re st th ere o f b y a n y S ta te , o r an y of th e possessions of th e U n ite d S tates, or b y a n y local tax in g a u th o rity . 3. T h e no tes will b e a cc ep ta b le to secure dep o sits of p u b lic m oneys. T h e y w ill n o t b e a cc ep ta b le in p a y m e n t of taxes. 4. B e a re r n otes w ith in te re st coupons a tta c h e d , a n d n o tes re g iste red as to p rin c ip a l a n d in te re st, w ill be issued in den o m in atio n s o f $1,000, $5,000, $10,000, $100,000 a n d $1,000,000. P io v isio n will be m ad e for th e in te rc h an g e of n otes of differe n t d en o m in atio n s an d of coupon a n d re g iste red notes, a n d for th e tra n s fe r of re g iste red notes, u n d e r ru les a n d re g u la tio n s p re sc rib e d b y th e S e c retary of th e T rea su ry . 5. T h e n o tes will b e su b je ct to th e g eneral re g u la tio n s o f th e D e p a rtm e n t of th e T re a su ry , now o r h e re a fte r p rescrib ed , governing U n ite d S ta te s notes. III. TENDERS A N D ALLOTMENTS 1. T e n d e rs w ill 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 ran ch es a n d a t th e B u re au of G o v e rn m en t F in a n c ia l O peration s, W ashington, D . C. 20222, u p to th e closing hour, 2 :0 0 p.m ., E a s te rn D a y lig h t S av in g t i n s , W edn esd ay , F e b ru a ry 6, 1974. E a c h te n d e r m u st sta te th e face a m o u n t of n otes b id for, w hich m u st b e $1,000 or a m u ltip le th ereo f, an d th e p rice offered, e x ce p t t h a t in th e case or n o n c o m p e titiv e te n d e rs th e te rm “n o n c o m p e titiv e ” should be used in lieu of a price. In th e case of c o m p e titiv e ten d e rs, th e p rice m u st b e expressed on th e basis of 100, w ith tw o decim als, e.g., 100.00. T e n d e rs a t a price less th a n 99.26 will n o t be accepted . F ra c tio n s m ay n o t be used. N o n c o m p etitiv e te n d e rs from a n y one b id d e r m a y n o t exceed $500,000. 2. C om m ercial bank s, w hich fo r th is p u rp o se a re defined as b a n k s accep ting d e m a n d deposits, m a y su b m it te n d e rs fo r account of cu stom 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 ten ders. O th e rs th a n co m m ercial b an k s 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 fo r th e ir ow n account. T e n d e rs will b e received w ith o u t d ep o sit fro m b a n k in g in stitu tio n s fo r th e ir own account, F e d e rally -in su red savings a n d loan associations, S tates, p o litical subdivisions or in stru m e n ta litie s th ereo f, p u b lic p e n sio n a n d re tire m e n t a n d o th e r p u b lic funds, in te rn a tio n a l o rgan izatio ns in w hich th e U n ite d S ta te s holds m em b ersh ip , fo reign c en tral b a n k s a n d foreign S tates, d ealers w ho m ak 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 aily 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 c t to G o v e rn m an t secu rities an d borrow ings th ereo n , a n d G o v e rn m en t accounts. T e n d e rs fro m o th ers m u st be acco m p an ied b y p a y m e n t ( in cash o r th e securities re fe rre d to in S ectio n I w hich will be a cc ep te d a t p a r ) of 5 p e rc e n t of th e face a m o u n t of n o tes a p p lie d for. 3. Im m e d ia te ly a f te r th e closing h o u r te n d e rs will be op en ed , 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 D e p a rtm ?n * ,°^ t ^ e T re a su 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 hose su b m ittin g ten d e rs will be adv ised of th e acc ep ta n ce or re je ctio n thereo f. In co nsidering th e acc ep ta n ce of ten d ers, th o se a t th e h ig h est prices w ill b e a cc ep te d to th e e x te n t re q u ire d to a tta in th e a m o u n t offered. T e n d e rs a t th e low est a cc ep te d p rice will be p ro ra te d if necessary. 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 all ten d e rs, in w hole o r in p a rt, in clud ing th e rig h t to a c c e p t less th a n $2,250,000,000 of ten d e rs and h is a ctio n in a n y such re sp e ct sh all be final. S u b je c t to th ese reserv atio n s, n o n c o m p e titiv e te n d e rs for $500,000 or less w ith o u t sta te d price from a n y one b id d er will be a cc ep te d in full a t th e a v erag e p rice* ( in two d e cim als) of a cc ep te d c o m p e titiv e ten d ers. 4. A1J b id d ers a re re q u ire d to ag ree n o t to p u rc h ase or sell, or to m ak e a n y a g ree m e n ts w ith re sp e ct to th e p u rch ase or sale or o th e r d ispo sitio n of a n y n o tes of th is issue a t a specific ra te or p rice , u n til a fte r 2 :0 0 p.m ., E a s te rn D a y lig h t Saving tim e, W ednesday, F e b ru a ry 6, 1974. 5. C om m ercial b a n k s in su b m ittin g te n d e rs will b e re q u ire d to c e rtify t h a t th e y h a v e no beneficial in te re st in a n y of th e te n d e rs th e y e n te r fo r th e a cc o u n t of th e ir custom ers, a n d th a t th e ir cu sto m ers h a v e no beneficial in te re st in th e b a n k s’ te n d e rs fo r th e ir own account. IV. PA Y M EN T 1. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e bids m u st be m a d e o r c o m p leted on o r before F e b ru a ry 15, 1974, a t th e F e d e ra l R e se rv e B a n k o r B ra n ch or a t th e B u re au of G o v e rn m en t F in a n cia l O peratio ns, W ash in gto n, D . C. 20222, in cash, securities re ferre d to in S ection I ( in te re s t coupons d a te d F e b ru a ry 15, 1974, should be d e ta c h e d ) or o th e r fu n ds im m e d ia tely a v ailab le b y th a t date. P a y m e n t w ill n o t be de em e d to h? v e b e en co m p le te d w h ere re g iste red n o tes a re re q u este d if th e a p p ro p ria te id en tify in g n u m b er as re q u ire d on tax re tu rn s a n d o th e r d o cu m en ts su b m itte d to th e In te rn a l R e v en u e S ervice ( a n in d iv id u a l’s social security n u m b er or a n e m p lo y e r id entificatio n n u m b e r) is n o t furnished. I n e v ery case w h ere full p a y m e n t is n o t co m p leted , th e p a y m e n t w ith th e te n d e r u p to 5 p e rc e n t of th e a m o u n t of n o tes a llo tte d shall, u p o n d e cla ra tio n m ad e b y th e S e c retary of th e T re a su ry in his discretion, be fo r fe ite d to th e U n ite d States. W h en p a y m e n t is m ad e w ith securities, a cash a d ju s tm e n t w ill be m ad e to o r re q u ire d of th e b id d er fo r a n y difference b e tw ee n th e face a m o u n t of securities su b m itte d a n d th e a m o u n t p a y ab le on th e n o tes a llo tted. V. A SS IG NM EN T O F REGISTERED SECURITIES 1. R e g iste re d secu rities te n d e re d as d ep o sits a n d in p a y m e n t fo r notes a llo tte d h e re u n d e r a re n o t re q u ire d to b e assigned if th e notes a re to be reg istered in th e sam e narr. is a n d form s as a p p e a r in th e re g istra tio n s or a ssig n m ents of th e securities su rren d ered. S p e cific in stru ctio n s fo r th e issuance an d d eliv ery of th e notes, signed b y th e ow ner or his a u th o riz ed re p rese n tativ e, m u st acco m p any th e securities p re se n te d . O therw ise, th e securities should be assigned by th e re g iste red p ayees or assignees th e re o f in accordance w ith th e g eneral reg u latio n s governing U n ite d S ta te s securities, as h e re in a fte r se t forth. N o tes to be re g iste red in n am es an d form s different fro m those in th e in scrip tio n s or a ssign m ents of th e secu rities p re se n te d should b e assigned to “T h e S e c retary of th e T re a su ry for T re a su ry N o tes of Series C -1977 in th e n a m e of ( n a m e a n d ta x p a y e r id en tify in g n u m b e r ) .” I f n o tes in cou p on form are desired, th e assig n m en t should be to “T h e S e c retary of th e T re a su ry fo r coupon T re a su ry N o tes of S eries C -1977 to b e d eliv ered to ____________________________ -------------- --------- — _— --------” S ecu rities ten d e red in p a y m e n t should b e su rren d ered to th e F e d e ra l R eserv e B a n k or B ran ch or to th e B u re au of G o v e rn m en t F in a n cia l O perations, B a n k in g a n d C ash M a n ag em en t, W ashington, D. C. 20222. T h e securities m u st be deliv ered a t th e expense a n d risk of th e holder. VI. GENERAL P R OV IS IO N S 1. As fiscal ag en ts of th e U n ite d S tates, F e d e ra l R eserv e B an k s are au th o rized a n d re q u ested to receive ten d ers, to m ak e such allo tm e n ts as m ay be p rescrib ed b y th e S ec retary of th e T rea su ry , to issue such notices as m ay be necessary, to receive p a y m e n t fo r an d m ak e deliv ery of n o tes on fu ll-p aid ten d e rs allo tte d , a n d th e y m ay issue in te rim receip ts p en d in g d eliv ery of th e definitive notes. 2. T h e S ecretary of th e T re a su ry m ay a t a n y tim e, o r fro m tim e to tim e, p rescrib e su p p le m e n tal or a m e n d a to ry ru les a n d reg u la tions governing th e offering, w hich will b e c o m m u n icated p ro m p tly to th e F e d e ral R eserv e Banks. G E O R G E P. SH ULTZ, S ecretary of th e T rea su ry ♦A v e ra g e p rice m ay b e at, o r m o re o r less th a n 100.00. (See reverse for tender form) . TENDER FOR TREASURY NOTES OF SERIES C-1977 Dated and bearing interest from February 15,1974 Maturing May 15,1977 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The__________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) Pursuant to the provision of Treasury Department Circular, Public Debt Series No. 1-74, as shown on the reverse side, the undersigned offers to purchase Treasury notes 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. JtfOT TO EXCEED $500,000 Noncompetitive tenders for $500,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in two decimals) of accepted competitive bids. /<U ^ 1$ @ $ 1$ $ @ COMPETITIVE TENDERS @ $ $ $ @ $ Prices should be ex pressed on the basis of 100, with two decimals, e. g., 100.00. Tenders at a price less than 99.26 will not be accepted. Fractions must not be used. METHOD OF PAYMENT Denominations Desired Number of Pieces □ Payment to be made by_______________ □ By charge to our reserve account on payment date. □ 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). * M aturity Value (5) $ m $ (fib $ 1,000 $ 5,000 $ 10,000 $ (fib $ 100,000 $ (fib $1:,000,000 $ SCHEDULE FOR ISSUE OF REGISTERED SECURITIES Name or names in which securities are to be registered, tax account number of owner and mailing address for interest checks. Denominations Desired ■ o>■< ■ Pieces ■ Please Observe Closing Time of 1:00 P.M., Central Daylight Saving Time, Wednesday, February 6,1974 NONCOMPETITIVE TENDER $_____________________________________ Social Security No. Denomination Amount <§) $ $ ($ ? £ Far1*; A m o u n t............... $ Employer Identification No. CERTIFICATION BY COMMERCIAL BANKS We hereby certify that we have received tenders from our customers in the amounts set opposite the customers’ names on the list which is made a part of this tender; that there has been paid to us by each such customer as required by the official offering circular, not subject to withdrawal until after allotment, not less than 5 percent of the amount bid for; that we have not made unsecured loans, or loans collateralized in whole or in p art by the notes bid for, to supply the amounts of such payments to any of such customers; that we have no beneficial interest in the tenders of such customers; and that none of our customers has any beneficial interest in the amount bid for our own account. We further certify that tenders received by us, if any, from the other commercial banks for their own account and for the account of their customers have been entered with us under the same conditions, agreements and certifications as set forth in this form. CERTIFICATION BY ALL SUBSCRIBERS We certify that all subscribers listed hereon have agreed not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any of the notes of this issue at a specific rate or price, until after 2:00 p.m., Eastern Daylight Saving Time, Wednesday, February 6, 1974. Delivery Instructions: (Subscriber’s full nam e or corporate title) □ Hold in Custody — General Account □ Hold in Custody — Investment Ac count □ Hold in Custody — Trust Account □ Pledge Pledge to secure Treasury Tax and Loan iAccount □ Other. (Address) By- (Authorized official signature and title) (For th e account of, if tender is for another subscriber) (A ddress) (See reverse for announcement) UNITED STATES OF AMERICA TREASURY NOTES OF SERIES A -1981 Dated an d bearing interest from February 15, 1974 Due February 15, 1981 D EPA R TM EN T OF T H E TREA SURY Office of th e S e c retary W ash ing ton , Ja n u a ry 31, 1974 DEPARTMENT CIRCULAR P u b lic D e b t S eries — No. 2-74 5, 1974 I. P.M., CENTRAL DAYLIGHT SAVING TIME, TUESDAY, FEBRUARY II. 12:30 OFFERING OF NOTES 1. T h e S e c retary of th e T re a su re r, p u rs u a n t to th e a u th o rity of th e Second L ib e rty B o n d A ct. as am en d ed , in v ite s te n d e rs a t a p rice n o t less th a n 98.26 p e rc e n t of th e ir face v alue for $1,500,000,000, o r th ere ab o u ts, of notes of th e U n ite d S tates, d esig n ated T re a su ry N otes of Series A-1981. T h e in te re st ra te fo r th e notes w ill be p u b lic ly an no u nced b y th e S e c retary of th e T re a su ry on F e b ru a ry 4, 1974. A n a d d itio n a l a m o u n t of th e n o tes m ay b e a llo tte d b y th e S e c retary of th e T re a su ry to G o v e rn m en t accou n ts a n d F e d e ra l R eserv e B an k s a t th e av erag e p rice of a cc ep te d te n d e rs in exchange fo r T re a su ry n o tes and bo n ds m a tu rin g F e b ru a ry 15, 1974. T e n d e rs will be received u p to 1:3 0 p.m ., E a s te rn D a y lig h t S aving tim e, T u esd ay , F e b ru a ry 5, 1974, 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 b idding, as se t fo rth in S ectio n I I I hereof. T h e 7 % p e rc e n t T re a su ry N o tes of S eries C -1974 and 4 V s p e rc e n t T re a su ry B on d s of 1974, m a tu rin g F e b ru a ry 15, 1974, will be a cc ep te d a t p a r in p a y m e n t, in w hole or in p a rt, to the e x te n t te n d e rs a re a llo tte d by th s T rea su ry . DESCRIPTION O F NOTES 1. T h e n o tes w ill b e d a te d F e b ru a ry 15, 1974, a n d will b e a r in te re st from t h a t d ate, p a y ab le se m ia n n u a lly on A ug u st 15, 1974, a n d th e re a fte r on F e b ru a ry 15 a n d A ugust 15 in each y e a r u n til th e p rin c ip a l a m o u n t becom es p ay able. T h e y will m a tu re F e b ru a ry 15, 1981, a n d will n o t be su b je ct to call for re d e m p tio n p rio r to m a tu rity . 2. T h e incom e d eriv ed fro m th e no tes is su b je ct to all tax es im posed u n d e r th e In te rn a l R e v en u e Code of 1954. T h e n o tes are su b je ct to e state , in h eritan c e, g ift o r o th e r excise taxes, w h e th e r F e d e ra l or S ta te , b u t a re ex em p t fro m all tax a tio n now o r h e re a fte r im po sed on th e p rin c ip a l o r in te re st th e re o f b y a n y Svate, o r a n y of th e possessions of th e U n ite d S tates, o r b y a n y local tax in g a u tho rity . 3. T h e n o tes w ill be a cc ep ta b le to secure d ep osits of p u b lic m oneys. T h e y will n o t b e a cc ep ta b le in p a y m e n t of taxes. 4. B e a re r n o tes w ith in te re st coupons a tta ch e d , a n d n o tes re g iste red as to p rin c ip a l a n d in te re st, w ill b e issued in d eno m in atio n s of $1,000, $5,000, $10,000, $100,000 a n d $1,000,000. P ro v isio n w ill be m a d e for th e in te rc h an g e of n otes of different d en o m in atio n s a n d of co u po n a n d re g iste red notes, a n d fo r th e tra n s fe r of re g iste red notes, u n d e r rules a n d reg u latio n s p re sc rib e d b y th e S e c retary of th e T rea su ry . _ 5. T h e n otes w ill be su b je c t to th e gen eral re g u la tio n s o f th e D e p a rtm e n t of th e T re a su ry , now o r h e re a fte r p re sc rib e d , governing U n ite d S ta te s notes. III. TENDERS A N D ALLOTMENTS 1. T e n d e rs w ill be receiv ed a t F e d e ra l R eserv e B a n k s a n d B ranch es a n d a t th e B u re a u of G o v e rn m e n t F in a n c ia l O peratio n s, W ashington, D . C. 20222, u p to th e closing hour, 1 :3 0 p.m ., E a s te rn D a y lig h t Saving tim e , T u esd ay , F e b ru a ry 5, 1974. E ac h te n d e r m u st sta te th e face a m o u n t of n o tes b id for, w hich m u st be $1,000 or a m u ltip le thereo f, a n d th e p rice offered, ex cep t t h a t in th e case of no n c o m p e titiv e te n d e rs th e te rm “n o n c o m p e titiv e ” should be u se d in lieu of a price. I n th e case of c o m p e titiv e tend ers, th e price m u st b e expressed on th e basis of 100, w ith tw o decim als, e.g., 100.00. T e n d e rs a t a p rice less th a n 98.26 w ill n o t be accep ted . F ra c tio n s m ay n o t be used. N o n c o m p etitiv e te n d e rs from a n y one b id d e r m a y n o t exceed $500,000. 2. C om m ercial b anks, w hich fo r th is p u rp o se are defined a s b a n k s accepting d e m a n d deposits, m a y su b m it te n d e rs fo r accou n t of custo m 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 ten d e rs. O th ers th a n co m m ercial b an k s w ill n o t b e p e rm itte d to su b m it te n d e rs ex cep t for th e ir own account. T e n d e rs will b e receiv ed w ith o u t d ep o sit fro m b a n k in g in stitu tio n s for th e ir own account, F e d e rally -in su red savings a n d lo an associations, S tates, p o litical subdivisions or in stru m e n ta litie s th ereo f, p u b lic p e nsio n a n d re tire m e n t a n d o th e r p u b lic funds, in te rn a tio n a l o rg anization s in w hich th e U n ite d S ta te s holds m em b ersh ip , foreign c e n tra l b an k s a n d foreign S tates, d ealers w ho m ak e p rim a ry m a rk e ts in G o v e rn m en t secu rities a n d re p o rt d a lly 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 positions w ith re sp e ct to G o v e rn m en t secu rities a n d borrow ings th ereon , a n d G o v e rn m en t accounts. T e n d e rs fro m o th ers m u st be acco m p an ied b y p a y m e n t ( in cash o r th e securities re ferre d to in S ectio n I w hich will be a cc ep te d a t p a r ) of 5 p e rc e n t of th e face a m o u n t o f n o tes a p p lie d for. 3. Im m e d ia te ly a f te r th e closing h o u r te n d e rs will b e o pened, follow ing w hich p u b lic a n n o u n ce m en t w ill be m a d e b y th e D e p a rt m e n t of th e T re a su ry of th e a m o u n t a n d price range of a cc ep te d bids. T hose su b m ittin g te n d e rs will be adv ised of th e a cc ep ta n ce or re je ctio n th ereo f. In considering th e acc ep ta n ce of ten d e rs, th o se a t th e h ig h est p rices w ill be acc ep te d to th e e x te n t re q u ire d to a tta in th e a m o u n t offered. T e n d e rs a t th e low est a cc ep te d p rice will b e p ro ra te d if necessary. 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 c c e p t o r re je c t a n y or all ten ders, in whole or in p a rt, in clu d in g th e rig h t to a cc ep t less th a n $1,500,000,000 of ten d e rs and his a ctio n in a n y such re sp e c t shall b e final. S u b je c t to th e s e reservation s, n o n c o m p e titiv e te n d e rs for $500,000 o r less w ith o u t sta te d p rice fro m a n y one b id d er will b e a cc ep te d in full a t th e av erag e p rice* (in tw o d e cim als) of a cc ep te d c o m p e titiv e ten d ers. 4. AI) b id d ers a re re q u ire d to agree n o t to p u rc h ase or sell, or to m ak e a n y a g ree m e n ts w ith re sp e ct to th e p u rch ase or sale or o th e r d isp o sitio n of a n y n o tes of th is issue a t a specific ra te o r price, u n til a fte r 1 :3 0 p.m ., E a s te rn D a y lig h t S aving tim e, T u esd ay , F e b ru a ry 5, 1974. 5. C om m ercial b a n k s in su b m ittin g te n d e rs will be re q u ire d to c ertify t h a t th e y h a v e n o beneficial in te re st in a n y of th e te n d e rs th ey e n te r for th e a cc o u n t of th e ir custom ers, a n d th a t th e ir custom ers h av e no beneficial in te re st in th e b a n k s’ te n d e rs for th e ir own account. PLEASE OBSERVE CLOSING TIME OF IV. P AY M EN T 1. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e bids m u st be m ad e o r c o m p le te d on or b efore F e b ru a ry 15, 1974, at tlie F e d e ra l R e se rv e B a n k o r B ra n ch or a t th e B u re au of G o v e rn m en t F in a n c ia l O p eratio n s, W ash ing ton , D. C. 20222, in cash, securities re ferre d to in S ectio n I (in te r e s t coupons d a te d F e b ru a ry 15, 1974, should b e d e ta c h e d ) or o th e r fu n ds im m e d ia tely a v ailab le b y th a t date. P a y m e n t will n o t be deem ed to have b een c o m p le te d w h ere re g iste red n o tes are re q u este d if th e a p p ro p ria te id en tify in g n u m b e r as re q u ire d on tax re tu rn s a n d o th e r d o cum en ts s u b m itte d to th e In te rn a l R e v en u e Service ( a n in d iv id u a l’s social se c u rity n u m b e r or an em p lo y er id entificatio n n u m b e r) is n o t fu rn ish ed . In e v ery case w here fu ll p a y m e n t is n o t co m pleted , th e p a y m e n t w ith th e te n d e r up to 5 p e rc e n t of th e a m o u n t of n o tes a llo tte d shall, u p o n d e cla ra tio n m ad e b y th e S e c retary of th e T re a su ry in his discretion, be fo rfeited to th e U n ite d S tates. W h en p a y m e n t is m ad e w ith securities, a cash a d ju s tm e n t w ill b e m ad e to o r re q u ire d of th e b id d e r for a n y d if feren ce be tw ee n th e face a m o u n t of secu rities su b m itte d a n d th e a m o u n t p a y ab le on th e n o tes allo tted . V. A SS IG N M EN T OF REGISTERED SECURITIES 1. R e g iste re d secu rities te n d e re d as d epo sits a n d in p a y m e n t fo r notes a llo tte d h e re u n d e r a re n o t re q u ire d to be assigned if th e notes a re to b e reg istered in th e sam e n am es a n d form s as a p p e a r in th e re g istra tio n s o r a ssig nm en ts of th e secu rities surrend ered . S pe cific in stru ctio n s for th e issuance a n d d e liv e ry of th e notes, signed b y th e ow ner or his a u th o riz ed re p rese n tativ e, m u st acco m p an y th e securities p re se n te d . O therw ise, th e secu rities should be assigned b y th e re g iste red p a y ee s or assignees th ere o f in accordance w ith th e general reg u latio n s governing U n ite d S ta te s securities, as h e re in a fte r se t forth. N o tes to b e reg istered in nam es an d form s d ifferen t from those in th e inscrip tio n s o r a ssig nm en ts of th e securities p re se n te d should be assigned to “T h e S e c retary of th e T re a su ry for T re a su ry N o tes of Series A-1981 in th e n a m e of (n a m e a n d tax p a y e r id en tify in g n u m b e r ) .” If n o tes in coupon form a re desired, th e assig nm en t should be to “T h e S e c retary of th e T re a su ry fo r coupon T re a su ry N otes of Series A -1981 to b e d eliv ered to ___________________ ________— . ------------------------------------------- .” S ecu rities ten d e red in p a y m e n t should be su rren d ered to th e F e d e ral R eserv e B a n k or B ran ch or to th e B ureau of G o v e rn m en t F in a n cia l O perations, B an k in g an d C ash M a n ag em en t, W ashington, D. C. 20222. T h e securities m u st be delivered a t th e expense a n d risk of th e holder. VI. GENERAL P R OV IS IO N S 1. As fiscal ag en ts of th e U n ited S tates, F e d e ral R eserv e B an k s are au th o rized a n d re q u este d to receive ten d ers, to m ak e such allo tm e n ts as m ay b e prescrib ed b y th e S ecretary of th e T re a su ry , to issue such notices as m ay be necessery, to receive p a y m e n t for an d m ak e deliv ery of notes on fu ll-p aid ten d e rs allo tte d , an d th e y m ay issue in te rim receip ts p e n d in g deliv ery of th e definitive notes. 2. T h e S ecretary of th e T rea su ry m a y a t a n y tim e, o r from tim e to tim e, p rescrib e su p p le m e n tal o r am en d a to ry rules a n d reg u la tions governing th e offering, w hich will b e co m m u n icated p ro m p tly to th e F e d e ra l R eserv e Banks. G E O R G E P. SH U LTZ, S ecretary of th e T rea su ry ♦A v e ra g e p rice m ay b e a t, or m o re or less th a n 100.00. * (See reverse for tender form) TENDER FOR TREASURY NOTES OF SERIES A-1981 Dated and bearing interest from February 15,1974 Maturing February 15,1981 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The__________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 __________ (Date) Pursuant to the provision of Treasury Department Circular, Public Debt Series No. 2-74, as shown on the reverse side, the undersigned offers to purchase Treasury notes 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. -NOT TO EXCEED $500,000 Noncompetitive tenders for $500,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in two decimals) of accepted competitive bids. /$ COMPETITIVE TENDERS Prices should be ex pressed on the basis of 100, with two decimals, e. g., 100.00. Tenders at a price less than 98.26 will n o t be accepted. Fractions must not be used. q @ 1 1$ * $ % $ $ $ METHOD OF PAYMENT Denominations Desired □ N um ber of Pieces (5) ? (5) $ (5) $ 1,000 % Payment to be made by_______________ M aturity Value 5,000 $ □ By charge to our reserve account on payment date. 10,000 $ □ 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). (5> $ 100,000 $ (5) $1,,000,000 $ SCHEDULE FOR ISSUE OF REGISTERED SECURITIES Name or names in which securities are to be registered, tax account number of owner and mailing address for interest checks. Denominations Desired Pieces ■ u © I 1 Please Observe Closing Time of 12:30 P.M., Central Daylight Saving Time, Tuesday, February 5, 1974 NONCOMPETITIVE TENDER $_____________________________________ Social Security No. Denomination Amount (a) $ $ (a) $ $ Face A m o u n t...............$ Employer Identification No. CERTIFICATION BY COMMERCIAL BANKS We hereby certify that we have received tenders from our customers in the amounts set opposite the customers’ names on the list which is made a part of this tender; th at there has been paid to us by each such customer as required by the official offering circular, not subject to withdrawal until after allotment, not less than 5 percent of the amount bid for; that we have not made unsecured loans, or loans collateralized in whole or in part by the notes bid for, to supply the amounts of such payments to any of such customers; that we have no beneficial interest in the tenders of such customers; and that none of our customers has any beneficial interest in the amount bid for our own account. We further certify that tenders received by us, if any, from the other commercial banks for their own account and for the account of their customers have been entered with us under the same conditions, agreements and certifications as set forth in this form. CERTIFICATION BY ALL SUBSCRIBERS We certify that all subscribers listed hereon have agreed not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any of the notes of this issue at a specific rate or price, until after 1:30 p.m., Eastern Daylight Saving Time, Tuesday, February 5, 1974. Delivery Instructions: -------- ---------------------------------------------------------------(Subscriber’s full name o r corporate title) □ 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___________________________ □ (Address) By-------------------------------------------------(Authorized official signature and title) (For the account of, if tender is for another subscriber) ---------------------------------------------------------------------------------------- (See reverse for announcement) (Address) TENDER * ■FOR ADDITION TO VA% TREASURY BONDS OF 1988-93 Maturing August 15, 1993 Dated August 15,1973, with interest from February 28,1974 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) Pursuant to the provision of Treasury Department Circular, Public Debt Series No. 3-74, as shown on the reverse side, the undersigned offers to purchase Treasury Bonds 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. NONCOMPETITIVE TENDER $______________________ ____________ _ _NOT TO EXCEED $250,000 _______________ .<§>_ -■@ . ------------------------ COMPETITIVE TENDERS -----------------------_______________ (n ) _______________ Prices should be ex pressed on the basis of 100, with two decimals in a multiple of .05, e.g. 100.10, 100.05, 100.00, 99.95, etc. Tenders at a price less th a n 95.30 will not be accepted. Fractions must not be used. All accepted competitive tenders will be awarded at the price of the lowest accepted bid. METHOD OF PAYMENT Denominations Desired Num ber of Pieces Payment must include accrued interest from February 15 to February 28, 1974 at the rate of $2.69337 per $1,000 allotted. M aturity Value @ $ @ $ __<§> $ $ 1,000 5,000 $. 10,000 100,000 $ . $ . □ Payment to be made by......................................................... □ By charge to our reserve account on payment date. □ By d raft 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). $1,000,000 $___ SCHEDULE FOR ISSUE OF REGISTERED SECURITIES Name or names in which securities are to be registered, tax account number of owner and mailing address for interest checks. Denominations Desired Pieces Denomination ■ o i-s ■ ooic 1 Security No. Am ount $ $ (S> S $ (p) i Please Observe Closing Time of 12:30 P.M., Central Daylight Saving Time, Thursday, February 7,1974 Noncompetitive tenders for $250,000 or less from any one bidder, without stated price, will be accepted in full at the price of the lowest accepted bid (in two decimals). Face A m o u n t .................. $ Employer Identification No. CERTIFICATION BY COMMERCIAL BANKS We hereby certify that we have received tenders from our customers in the amounts set opposite the customers’ names on the list which is made a part of this tender; that there has been paid to us by each such customer as required by the official offering circular, not subject to withdrawal until after allotment, not less than 5 percent of the amount bid for; that we have not made unsecured loans, or loans collateralized in whole or in part by the bonds bid for, to supply the amounts of such payments to any of such customers; that we have no beneficial interest in the tenders of such customers; and that none of our customers has any beneficial interest in the amount bid for our own account. We further certify that tenders received by us, if any, from other commercial banks for their own account and for the account of their customers have been entered with us under the same conditions, agreements and certifications as set forth in this form. CERTIFICATION BY ALL SUBSCRIBERS We certify that all subscribers listed hereon have agreed not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any of the bonds of this issue at a specific rate or price, until after 1:30 p.m., Eastern Daylight Saving Time, Thursday, February 7, 1974. Delivery Instructions: ______________________________________________ (Subscriber’s full name or corporate title) □ Hold in Custody — General Account □ Hold in Custody — Investment Account □ Hold in Custody — Trust Account □ Pledge to secure Treasury Tax and Loan Account □ Other_________ (Address) By— (Authorized official signature and title) (For the account of, if tender is for another subscriber) (A ddress) (See reverse for announcement)
@FedFRASER