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F ed eral R eserve Ba n k o f Dallas

D A LLA S, TE X A S 7 5 2 2 2
Circular No. 73-1
January 2, 1973

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the following statement giving details of two issues of Treasury bills:
T h e Treasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount
of $4,300,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing January 11, 1973, in the am ount of
$4,103,330,000, as follows:
91-D A Y B IL L S (to m aturity d ate) to be issued January 11, 1973, in the am ount of $2,400,000,000, or there­
abouts, representing an additional am ount of bills dated October 12, 1972, and to mature April 12, 1973
(C U S IP No. 912793 Q P 4 ), originally issued in the am ount of $1,802,170,000, the additional and original bills
to be freely interchangeable.
182-DA Y B IL L S for $1,900,000,000, or thereabouts to be dated January 11, 1973, and to m ature July 12, 1973
(C U S IP N o. 912793 R K 4 ).
T h e bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face am ount will be payable w ithout interest. T h e y will be issued in bearer form only, and in
denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e).
Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard tim e, M onday, January 8, 1973. Tenders w ill not be received at the Treasury D epartm ent, W ashington. Each
tender m ust be for a m inim um of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of com petitive
tenders the price offered m ust be expressed on the basis of 100, w ith not m ore than three decimals, e.g., 99.925. Fractions m ay
not be used. It is urged that tenders be m ade on the printed forms and forwarded in the special envelopes which w ill be
supplied by Federal R eserve Banks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the nam es of the customers are
set forth in such tenders. Other than banking institutions w ill not be perm itted to subm it tenders except for their own acco u n t
Tenders will be received without deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of the face am ount of
Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust company.
Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which
public announcem ent w ill be made by the Treasury D epartm ent of the am ount and price range of accepted bids. O nly those
subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T he Secretary of the Treasury expressly
reserves the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Sub­
ject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will
be accepted in full at tbe average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance w ith bids m ust be m ade or com pleted at the Federal R eserve B ank on January 11, 1973,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing January 11, 1973. Cash and
exchange tenders w ill receive equal treatment. Cash adjustm ents will be m ade for differences betw een the par value of maturing
bills accepted in exchange and the issue price of the new bills.
Under Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued here­
under m ust include in his incom e tax return, as ordinary gain or loss, the difference betw een the price paid for the bills, whether
on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during
the taxable year for which the return is made.
Treasury D epartm ent Circular N o. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, January 8, 1973. Tenders may
^ot be entered by telephone.
Yours very truly,
P. E. Coldwell
Amount, R ange and Approxim ate Y ield of A ccepted Tenders
3-M onth B ills
D u e April 5, 1973
P rice
Y ield
98.706 ____________ 5.119% _____
98.687 ____________ 5.194% _____
98.695____________5.163% ( 1 ) .

-T o ta l A pplied For______
T otal A ccep ted________
-----------JHigh--------------------L o w Average..

6-M onth B ills
D u e J u ly 5, 1973
_________________ $3,247,505,000
_________________ $1,900,095,000
Y ield
-9 7 .2 9 4 _____________5.353%
-9 7.26 0_____________5.420%
-9 7 .2 7 2 ____________ 5.396% ( 1 )

( 1 ) T h ese ra te s a re on a b a n k discount basis. T h e eq uivalent coupon issue yields are S.3 0 % for th e 3-m onth bills a n d S.6 2 % for
th e 6-m onth bills.

(S e e reverse for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated October 12,1972

M aturing April 12,1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The.------------------------------------ Branch
El Paso 79999 Houston 77001

San Antonio 78295

(D ate)

t Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of tlie
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount
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 bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
$__________________ <57____________$_______________________

Prices should be
ex p ressed on t h e

*---------------------------- ------------------*----------------------------------i m m u m j ^ $-----------------------------@ ---------------- $_______________________
~ ) $___________________(a).__________ $________________________
----------------------------IS------------------ $------------------------------------

basis of 100, w ith
not more than th re e
decimal places, e.g.,
9 9 . 9 2 5 . Fractions
m ust not be used.

w i 'i i m m m

Denominations Desired
Number of

10,000 $
(t $ 15,000 ?
s $ 50,000 $
(i $ 100,000 $
Si $ 500,000 $
(S $1,000,000 $

m $


Payment for this issue of bills cannot be made by
credit to Treasury Tax

M a tu rity V alue


□ By maturing b l s
□ held by_________________________
Payment to be made by_
□ Charge our reserve account on payment
□ Draft enclosed (E ffectual delivery o f enelw w l d r a f ,
shall be on la te s t day w hich w ill pe rm it p re s e n tm e n t
in o rd e r to o b tain irrevocably collected fun ds on

m dofal
m date>

Delivery Instructions:

Hold in Custody Account—Member
banks for own account only


Pledge to secure Treasury Tax and
Loan Account


Ship to

(S u b sc rib e r’s fu ll nam e o r co rp o ra te title )
(A ddress)

(A u tho rized official s ig n a tu re and title)


(F o r the acco u nt of, if te n d e r is f o r a n o th e r subscriber)

(A ddress)

1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust be for an amount in multiples 0f
$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 th e
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 th is
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 th e
tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t h e
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, w ho
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 langauge of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury j8
' m aterial, the tender may be disregarded.

(See reverse for announcement)

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