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F ederal Reserve b a n k of Dallas FISCAL A G E N T OF THE UNITED STATES DALLAS, TE X A S 7 5 2 2 2 Circular No. 72-269 November 22, 1972 OFFERING TREASURY BILL — TAX A NTICIPATION SERIES To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the fo llo w ing statem ent giving details of an issue of Treasury bills: The Treasury Department, by this public notice, invites tenders for $2,500,000,000, or thereabouts, of 199-day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated December 5, 1972, and will mature June 22, 1973 (CUSIP No. 912793 R H 1). They will be accepted at face value in payment of income taxes due on June 15, 1973, and to the extent they are not presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment of June 15, 1973, income taxes may submit the bills to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington, not more than fifteen days before that date. In the case of bills submitted in payment of income taxes of a corporation they shall be accompanied by a duly completed Form 503 and the office receiving these items will effect the deposit on June 15, 1973. In the case of bills submitted in payment of income taxes of all other taxpayers, the office receiving the bills will issue receipts therefor, the original of which the taxpayer shall submit on or before June 15, 1973, to the District Director of Internal Revenue for the District in which such taxes are payable. The bills will be issued in bearer form only, and in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard Time, Wednesday, November 29, 1972. Tenders will not be received a t the Treasury Department, Washington. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this issue a t a specific rate or price, until after one-thirty p.m., Eastern Standard Time, Wednesday, November 29, 1972. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only those submitting competitive tenders will be advised of the acceptance or rejection thereof. 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 $400,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on December 5, 1972. Any qualified depositary will be permitted to make settlement by credit in its Treasury Tax and Loan account for Treasury bills allotted to it for itself and its customers. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued here under must include in his income tax return, as ordinary gain or loss, the difference between the price paid for the bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made. Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. In accordance w ith the a b o v e announcem ent, tenders w ill be received a t this b ank a n d its branches a t El Paso, Houston a n d San Antonio, up to tw elv e -th irty p.m., Central Standard Time, W ed n esd ay, N ovem ber 2 9, 1972. Tenders m a y not be entered by telephone. Y ours v e ry truly, P. E. C old w ell P re s id e n t (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 June 15,1973 TENDER FOR TREASURY BILLS TAX ANTICIPATION SERIES Dated December 5,1972 199 DAYS TO MATURITY To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The--------------------------------------- Branch E l P aso 79999 H ouston 77001 Maturing June 22, 1973 _______ San Antonio 78295 (D ate) P ursuant to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and to the provisions of th e public announcement, as shown on reverse side, as issued by th e Treasury D epartm ent, the undersigned offers to purchase T reasury bills in the am ount shown below, and agrees to pay for the am ount allotted, on or before th e issue date, by th e method and a t th e rate indicated. NONCOMPETITIVE TENDER $_ NOT TO EXCEED $400,000 Noncompetitive tenders for $400,000 or less from any one bidder, w ithout sta te d price, will be accepted in full a t the average price (in three decimals) of accepted com petitive bids. Prices should be e x p re s s e d on th e basis of 100, w ith n o t m ore th a n th ree decimal places, e.g., 99.925. F r a c tio n s m ust not be used. $- COMPETITIVE TENDERS \ $_ (a) ~ NiT " h .<a_ U - E ST T E N D E R S MAY NOT BE EN TE R E D BY TE L EPH O N E . T E N D E R S BY W IRE, I F RECEIV ED BEFO RE TH E CLOSING HOUR, A RE ACCEPTABLE. Denominations Desired N um ber of P ie c e s METHOD OF PAYM ENT M a t u r i t y V a lu e s □ (5) $ (5) $ <> $ 50,000 $5 ,0/ $ 100,000 *. (5) $ 500,000 $(5) $1 ,000,000 $- By chaige to our T reasu ry T ax and Loan Account □ 10,000 $15,000 * P aym ent to be m ade by................................................. (N am e of Bank) □ By charge to our reserve account on paym ent date. □ By d ra ft enclosed (effectual delivery of enclosed d ra ft shall be on la te st day which will perm it presentm ent in order to obtain irrevocably collected funds on paym ent date). We certify th a t we, as well as our custom ers, if any, listed hereon have agreed not to purchase or to sell, or to make any agreem ents w ith respect to the purchase or sale or other d is position of any bills on this issue at a specific ra te or price, until a fte r one-thirty p.m., E astern S tandard Time, W ednesday, November 29, 1972. Delivery Instructio n s: ---------------------------------------------------------(Subscriber's fu ll nam e o r corporate title) □ Hold in Custody Account — M banks for own account only e m □ b e r ______________________________________ (Address) Pledge to Secure T reasury Tax and Loan’Account (Authorized official sig n atu re and title) [~ | Ship to_________________________________ ~ (F or the account of, if tender is fo r another subscriber) (A ddress) IM PORTANT 1. No ten d er fo r less th a n $10,000 will be considered and each ten d er over $10,000 m u st be fo r a n am ount in m ultiples of $5,000 (m atu rity value). 2. T enders should be forw arded in an envelope clearly addressed to this bank or ap propriate branch as Fiscal A gent of th e United Spates, with notation on th e envelope reading “T E N D E R FOR TREA SU RY O FF E R IN G ”. Since envelopes received w ith th is legend will not be opened until a fte r th e closing tim e specified in th e public announcem ent, communications relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be requested from th is bank or appro p riate branch. 3. A ny qualified or conditional ten der will be rejected. 4. I f a corporation m akes th e tend er th e form should be signed by an officer of th e corporation authorized to m ake the tender and th e signing of th e form by an officer of th e corporation will be construed as a representation by him th a t he has been so authorized. If th e ten d er is m ade by a p artn ersh ip it should be signed by a m em ber of th e firm, who should sign in the form “............................................................... , a copartnership, by................................................................................ , a m em ber of the firm ”. 5. Tenders from those o ther th a n incorporated banks and tr u s t com panies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of th e to ta l am ount (m atu rity value) of the T reasu ry bills applied for, or unless th e ten ders are accompanied by a n express g u a ra n ty of full paym ent by an incorporated bank or tr u s t company. 6. If the language of th is form is changed in any respect, which, in th e opinion of th e S ecretary of th e T reasury, is m aterial, th e te n d er m ay be disregarded. (See reverse for announcement)