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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 U N IT E D S T A T E S DALLAS, TEXAS 75222 C ircu lar No. 74-140 M a y 23, 1974 TREASURY OFFERS $ 8 0 0 MILLION STRIP OF WEEKLY BILLS To All B a n k in g Institutions a n d O th e r s C o n c e r n e d in th e E le venth F e d e r a l R e serv e District: Your a t t e n t i o n is in vited to th e f o llo w in g s t a t e m e n t giving d e t a i l s of a strip of o u t s t a n d i n g T re a s u ry 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, in vites ten d ers for a d d itio n al am o u n ts of e ig h t series of T re a su ry bills to th e a gg reg ate a m o u n t of $800,000,000, or th ere ab o u ts, for cash. T h e a d d itio n al bills will be issued Ju n e 5, 1974, will b e in th e am o u n ts a n d w ill b e in a d d itio n to th e bills o rig in ally issued a n d m a tu rin g as follow s: Am ount of A ddition al Issue O rig ina l Issue Dates M a tu rity Dates $100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 M a r. 21, 1974 M ar. 28, 1974 A p ril 4, 1974 A p ril 11, 1974 A p ril 18, 1974 A p ril 25, 1974 M a y 2, 1974 M a y 9, 1974 S ept. 19, 1974 S ept. 26, 1974 Oct. 3, 1974 Oct. 10, 1974 Oct. 17, 1974 Oct. 24, 1974 Oct. 31, 1974 Nov. 7, 1974 $800,000,000 CUSIP Nos. 912793 912793 912793 912793 912793 912793 912793 912793 UQ7 UR5 US3 UT1 UU8 UV6 UW 4 UX2 A verage Days from June 5 , 1 9 7 4 to M aturity Am ount Currently Outstanding (in millions) 106 113 120 127 134 141 148 155 $1,801 1,801 1,810 1,802 1,804 1,801 1,802 1,801 130.5 T h e a d d itio n a l a n d o rig in al b ills w ill b e fre ely in terch ang eable. E a c h te n d e r s u b m itte d m u st b e in th e m in im u m a m o u n t of $80,000. T e n d e rs ov er $80,000 m u st b e in m u ltip le s of $40,000. O n e-eig h th of th e a m o u n t te n d e re d will be a p p lie d to each of th e ab ov e series of bills. • T h e b ills offered h e re u n d e r will b e issued on a d iscou n t basis un d er c o m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r p ro vided , a n d a t m a tu rity th e ir face a m o u n t will b e p a y ab le w ith o u t in terest. T h e y w ill b e issued in b e a re r fo rm only, a n d 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 ). T e n d e rs will be receiv ed a t F e d e ra l R eserv e B a n k s a n d B ranches 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 Sav in g T im e , T h u rsd a y , M a y 30, 1974. T e n d e rs w ill n o t be received a t th e T re a su ry D e p a rtm e n t, W ashington. I n th e case of c o m p e titiv e te n d e rs th e p rice offered m u st b e 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 ay n o t b e used. A single p rice m u st be su b m itte d for each ten d er. I t is u rg e d t h a t te n d e rs be m a d e on th e p rin te d form s a n d fo rw arded in th e special en velo p es w hich will b e su p p lied b y F e d e ral R e se rv e B a n k s or B ra n ch e s on a p p lic a tio n th erefor. B a n k in g in stitu 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 po sition s w ith re sp e c t to G o v e rn m en t secu rities a n d borrow ings th e re o n m a y su b m it ten d e rs for a cc o u n t of custo m ers p ro v id ed th e n am es of th e custom ers a re set fo rth in such ten ders. 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 will be received w ith o u t d ep o sit from in co rp o ra ted b an k s a n d tr u s t com p a n ie s a n d from resp on sib le a n d recognized dealers in in v e stm e n t securities. T e n d e rs from o th ers m u st be acco m pan 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 su ry bills a p p lie d for, unless th e te n d e rs a re acco m p anied 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. Im m e d ia te ly a fte r th e closing hour, ten d e rs w ill be o p ened a t the 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 ce m en t w ill be 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 price ran g e of a cc ep te d bids. O n ly th ose su b m ittin g c o m p e titiv e te n d e rs w ill b e a dv ised of th e acc 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 all tend ers, in w hole o r in p a rt, a n d his a ctio n in a n y such re sp e ct shall be final. S u b je c t to th ese reserv atio ns, n o n c o m p e titiv e te n d e rs for $160,000 or less (in am o u n ts as set fo rth in th e second p a ra g ra p h ) w ith o u t sta te d p rice fro m a n y one b id d e r will be a cc ep te d in full a t th e a v erage p rice ( in th re e d ecim als) of a cc ep te d com p e titiv e bids. 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 or co m p le te d a t th e F e d e ra l R eserv e B a n k in cash or o th er im m e d ia tely a v ailab le fu nd s on J u n e 5, 1974. U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e C ode of 1954 th e a m o u n t of d isco un t a t w hich bills issued h e re u n d e r a re sold is co nsid ered to accrue w h en th e b ills a re sold, re d ee m e d o r otherw ise disposed of, a n d th e bills a re excluded from co n sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T rea su ry bills (o th e r th a n life in su rance co m p an ies) issued h e re u n d e r m u st in clu de in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference be 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 p urch ase, 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 o r re d em p tio n a t m a tu rity du rin g th e ta x a b le y e ar for w hich th e r e tu rn is m ade. P u rc h a se rs of a strip of th e bills offered h e reu n d e r should, for ta x purposes, ta k e such bills onto th e ir books on th e basis of th e ir p u rc h ase p rice p ro ra te d to each of th e e ig h t o u tstan d in g issues u sing as a basis for p ro ra tio n th e closing m a rk e t prices fo r each of th e issues on J u n e 5, 1974. (F e d e ra l R e se rv e B an k s will ha v e a v ailab le a list of th ese m a rk e t prices, b ased on th e m ea n b e tw ee n th e b id a n d asked q u o tatio n s fu rn ish e d b y th e F e d e ra l R e se rv e B a n k of N ew Y o rk .) T re a s u ry D e p a rtm e n t C ircu la r N o. 418 (c u rre n t re v isio n ) an d th is notice, p re sc rib e th e te rm s of th e T re a su ry bills a n d govern th e co nditions of th e ir issue. C opies of th e circu lar m ay be o b ta in e d from a n y F e d e ra l R e se rv 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 re 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 a s o , H o u sto n a n d S an A n to n io , up to t w e l v e - th ir ty p .m ., Central D a y li g h t S a v in g Time, T h u rs d a y , M a y 30, 1974. T e n d e rs m a y not b e en tered by te lep h o n e . Yours very truly, P. E. Coldwell President (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 ADDITION TO TREASURY BILLS Maturing: 1974 — September 19, September 26, October 3, October 10, October 17, October 24, October 31, and November 7 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The___________________________________ Branch El Paso 79999 Houston 77001 _________________________ (Date) San Antonio 78295 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. NONCOM PETITIVE TENDER $____________________________ NOT TO EXCEED $160,000 (Minimum $80,000 — over th at multiples of $40,000, for each subscriber) Noncompetitive tenders for $160,000 or less (in multiples of $40,000 over $80,000 minimum) without stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted competitive bids. „ COMPETITIVE TENDERS i a > a. @----------------- $------------------------------ 1$__________________ @ ____________ $______________________ ( $ jj. (minimum $80,000 — over th a t a, multiples of $40,000, for each /? @ --------------------$---------------------------------subscriber)----------------------- ( ? ------------------------------------ @ ------------------ $---------------------------------- Prices should be e xp ressed on th e basis of 100, with not more than three decimal places, e.g., 99-9? 5- , fra c tio n s m ust not be used. A single price must be submitted for each tender. TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. METHOD OF PAYMENT □ Delivery Instructions:. . . . . Treasury Bills allotted will be delivered in convenient denominations. Describe by issue, if more than one of the following methods of delivery is desired. □ shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date). „ . . , , , □ Payment to be made by..................................................... Hold in Custody — General Account □ By charge to our reserve account on payment date. „ , „ , , , « . , j □ By draft enclosed (effectual delivery of enclosed draft ___________________________________________ Hold in Custody — Investment Account □ Hold i Custody — TrUSt Account n □ Ts^rito’Tl n m o croaette sul a e r oprt il) Pledge to secure Treasury Tax and Loan Account ______________________________________________ (Address) □ Other___________________________________ By- (Authorized official signature and title) (For the account of, if tender is fo r another subscriber) (Address) IMPORTANT 1. No tender for less than $80,000 will be considered and each tender over $80,000 must be for an amount in multiples of $40,000 (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 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 per cent 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. (Se reverse for announcement)
@FedFRASER