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Federal reserve Bank of Dallas
F ISC A L A G E N T O F T H E U N ITED S T A T E S

DALLAS, TEXAS 7 5 2 2 2

C ircu la r No. 74-228
A ugust 20, 1974

TREASURY’S 2 9 9 -D A Y BILL OFFERING

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

Your attention is invited to the fo llo w ing statem ent giving details o f a n issue o f 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 ten d e rs for $2,000,000,000, or th ere ab o u ts, of 299-day T rea su ry
bills, to b e 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 titiv e b id d in g as h e re in a fte r provided. T h e bills of this
series w ill b e d a te d S e p te m b e r 4, 1974, a n d will m a tu re J u n e 30, 1975 (C U S IP No. 912793 W Y 8 ) w hen th e 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 w ill be issued in b e a re r form in de 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 rity v a lu e ) a n d in b o o k -e n try form to d esig n ated bidders.
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 and B ran ch es 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 Saving tim e, A ugust 28, 1974. T e n d e rs will n o t b e received a t th e T re a su ry D e p a rtm e n t, 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 over $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 te n d e rs th e
p rice offered m u st be expressed o n 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 be used.
I t is u rg e d t h a t te n d e rs b e m ad e o n th e p r in te d form s a n d fo rw arded in th e special envelopes w hich w ill 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 ra n ch e s o n a p p lic atio n therefor.
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 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 positions w ith re sp e c t to G o v e rn m en 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 acco u n t of custom ers, p ro v id ed th e n a m e s of th e custom ers a re se t fo rth in such ten d 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 e x ce p t for th e ir ow n account. T e n d e rs w ill b e received w ith o u t dep o sit from in co rp o ra ted b a n k s a n d tr u s t com ­
p a n ie s a n d from responsible a n d recognized d e ale rs in in v estm e n t securities. T e n d e rs from o th ers m u st be a ccom p anied 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 b ills a p p lie d for, unless th e te n d e rs a re 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 o r tr u s t com pany.
All b id d ers are re q u ire d to agree n o t to pu rch ase or to sell, o r 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 rc h ase or
sale or o th e r disposition of a n y bills of th is issue a t a specific r a te or 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 Saving
tim e, W ednesday, A ugust 28, 1974.
Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill b e op 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 s u ry D e p a rtm e n t of th e a m o u n t a n d p ric e range of a cc ep te d bids. O nly
those su b m ittin g c o m p e titiv e te n d e rs will b e ad v ised of th e a cc ep tan ce o r re je ctio n thereof. T h e S e c re ta ry of th e T re a su ry
expressly reserves th e rig h t to a c c e p t or r e je c t a n y or all tenders, in w hole o r in p a rt, a n d his a c tio n in a n y such re sp e ct shall
b e final. S u b je c t to th e se 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 er
w ill b e a cc ep te d in full a t th e a v erage p rice ( i n th re e decim als) of a cc ep te d c o m p e titiv e bids. S e ttle m e n t for a cc ep te d ten d e rs
in accordance w ith th e bids m u st b e m ad e or c o m p le te d a t th e F e d e ra l R e se rv e B a n k in cash o r o th er im m e d ia te ly a v ailab le
funds o n S e p te m b e r 4, 1974.
U n d e r S ections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n 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 are sold is considered to accrue w h e n th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills are
e xcluded from co n sid eratio n as c ap ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life in su ra n ce com panies)
issued h e re u n d e r m u st in clude in his incom e tax re tu rn , as o rd in ary gain o r loss, th e difference b e tw ee n th e p rice p a id for
th e bills, w h e th e r 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 c tu a lly receiv ed e ith e r u p o n sale or re d e m p tio n
a t m a tu rity d u ring th e ta x a b le y e a r 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 ircu lar N o. 418 (c u rre n t rev isio n ) a n d th is notice, p re sc rib e th e te rm s o f th e T re a s u ry b ills a n d
govern th e conditions of th e ir issue. C opies of th e c irc u lar m a y b e 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 o r B ranch.

In accordance w ith the ab o v e announcem ent, tenders w ill be received a t this b a n k a n d its branches a t El Paso,
Houston and San A ntonio up to tw elv e -th irty p.m ., Central D aylig h t Saving Time, W e d n es d a y , August 28, 1974. Tenders
m ay not be entered by telephone.

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 TREASURY BILLS

299 DAYS TO MATURITY
Maturing June 30, 1975

Dated September 4,1974
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The__ _______________________ Branch
El Paso 79999

Honston 77001

San Antonio 78295

(D a te )

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

NONCOMPETITIVE TENDER $_

_NOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
Prices should be
expressed on th e
$
b a sis of 100, w ith
I
fn)
COMPETITIVE TENDE
not more than three
?
decimal places, e.g.,
1?
(8>
?
99.925. F ra c tio n s
must not be used.
$ ............ -

1

$

2 ^ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT

Denominations Desired
Number of
Pieces

M a t u r i t y V a lu e

(a)
&
(a)
()
a
()
a

$ 10,000
$ 15,000
$ 50,000
$ 100,000
$ 500,000
@ $1,,000,000

$
$
$
$
$
%

□
□
□
□

By maturing bills
held by--------------------------------------------Payment to be made by--------------------Charge our reserve account on payment
date
Draft enclosed ( E f f e c tu a l d e liv e ry o f en closed d r a f t

s h a ll be o n l a t e s t d ay w h ic h w ill p e r m i t p r e s e n t m e n t
in o r d e r to o b ta in i r r e v o c a b ly c o llec ted f u n d s o n p a y ­
m e n t d ate)

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____________________________

(S u b scrib e r's fu ll n a m e or co r p o r a te t itle )

(A d d ress)

By( A u th o r iz e d official s i g n a t u r e a n d t i tle )

( F o r th e a c c o u n t o f , i f te n d e r is f o r a n o th e r su b scrib er)

(A d d ress)

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, 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 asa representation by him that 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 trust 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)