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F ederal R eserve Bank of Dallas
FIS C A L A G EN T O F T H E U N ITED S T A T E S

DALLAS, T EX A S 7 5 2 2 2
Circular N o . 73-2
J an u a ry 2, 1973

NEW OFFERING — TREASURY BILLS
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 t h e E leventh F e d e r a l R e serv e District:
Your a t te n t io n is in v ite d to th e f o llo w in g s t a t e m e n t giving d e t a il s of tw o iss u e s o f T re a s u ry bills:
T h e T r ea su ry D e p a r tm e n t, b y t h is p u b lic notice, in v ite s tenders for tw o series o f T r ea su ry b ills to t h e ag g reg ate a m o u n t
o f $ 4 ,3 0 0 ,0 0 0 ,0 0 0 , or therea b ou ts, for ca sh and in ex ch a n g e fo r T r ea su ry b ills m a tu rin g J an u a ry 11, 19 73 , in t h e a m o u n t o f
$ 4 ,1 0 3 ,3 3 0 ,0 0 0 , as follo w s:
9 1 - D A Y B I L L S ( t o m a tu r ity d a te ) to b e issu ed J a n u a ry 11, 197 3, in th e a m o u n t o f $ 2 ,4 0 0 ,0 0 0 ,0 0 0 , or th ere­
ab ou ts, rep resen tin g an a d d itio n a l a m o u n t o f b ills d ated O cto b er 12, 1972, an d to m atu re A p ril 12, 1973
( C U S I P N o. 9 1 2 7 9 3 Q P 4 ) , o rig in a lly issu ed in th e a m o u n t o f $ 1 ,8 0 2 ,1 7 0 ,0 0 0 , t h e a d d ition a l and o rig in a l b ills
to b e fr e e ly in terch an g eab le.
1 8 2 -D A Y B I L L S for $ 1 ,9 0 0 ,0 0 0 ,0 0 0 , or th e rea b o u ts to b e d a te d J a n u ary 11, 19 73 , an d to m a tu re J u ly 12, 1973
( C U S I P N o. 9 1 2 7 9 3 R K 4 ) .
T h e b ills o f b oth series w ill b e issu ed o n a d isco u n t b asis u n d er c o m p e titiv e and n o n c o m p e titiv e b id d in g a s h erein a fter
p rovid ed , and a t m a tu rity th eir fa ce a m o u n t w ill b e p a y a b le w ith o u t in terest. T h e y w ill b e issu ed in b earer form o n ly, a n d in
d en o m in a tio n s o f $ 1 0 ,0 0 0 , $ 1 5 ,0 0 0 , $ 5 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 a n d $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a lu e ) .
T e n d e r s w ill b e rece iv ed a t F ed era l R e s e r v e B a n k s a n d B ranches up to t h e clo sin g hour, o n e-th irty p.m ., E a ste rn
S tan d ard tim e , M o n d a y , J a n u ary 8, 19 73 . T e n d e r s w ill n o t b e receiv ed a t t h e T rea su ry D e p a r tm e n t, W ash in g to n . E a c h
ten d er m u st b e for a m in im u m o f $1 0,0 00 . T e n d e r s o v er $ 1 0 ,0 0 0 m ust b e in m u ltip le s o f $ 5,000. In th e case o f c o m p e titiv e
tenders th e p rice offered m u st b e exp ressed o n th e b a sis o f 100, w ith n o t m ore th a n th ree d ecim a ls, e.g., 9 9.9 25 . F ra ctio n s m a y
n ot b e used . I t is urged th a t ten d e rs b e m a d e o n t h e p rin ted form s and forw ard ed in t h e sp ec ia l e n v e lo p e s w h ich w ill b e
su p p lied b y F ed era l R e s e r v e B a n k s or B ra n c h e s o n a p p lica tio n therefor.
B a n k in g in stitu tio n s g en era lly m a y su b m it ten d e rs for accou n t o f cu sto m ers p ro v id ed t h e n a m e s o f t h e cu sto m ers are
se t forth in such ten ders. O th er th a n b a n k in g in stitu tio n s w ill n o t b e p er m itte d to su b m it ten d e rs ex c e p t for th e ir o w n accou n t.
T e n d er s w ill b e re c e iv e d w ith o u t d ep o sit from in corp orated b an k s and trust co m p a n ie s an d from resp o n sib le an d reco gn ized
dealers in in v e stm e n t secu rities. T e n d e r s from others m u st b e a cco m p a n ied b y p a y m e n t o f 2 p ercen t o f th e fa ce a m o u n t o f
T rea su ry b ills a p p lied for, u n less t h e ten d e rs are a cco m p a n ied b y an ex p ress gu aran ty o f p a y m e n t b y a n incorp orated b a n k or
trust co m p a n y .
I m m e d ia te ly a fter t h e c lo sin g hour, ten d ers w ill b e o p e n e d a t th e F ed era l R e s e r v e B a n k s and B ra n ch es, fo llo w in g w h ich
p u b lic a n n o u n c em en t w ill b e m a d e b y th e T rea su ry D e p a r tm e n t o f th e a m o u n t an d price ran ge o f a cc e p te d bids. O n ly th o se
su b m ittin g c o m p e titiv e ten ders w ill b e a d v ised o f t h e a c c e p ta n c e or rejectio n th ereof. T h e S ecreta ry o f th e T rea su ry ex p ressly
reserv es th e righ t to a ccep t or reject a n y or a ll ten d ers, in w h o le or in part, and h is a ctio n in a n y such resp ect sh all b e final. S u b ­
j e c t to th e se reservations, n o n c o m p e titiv e ten d e rs fo r ea ch issu e for $ 2 0 0,0 00 or less w ith o u t sta ted p rice from a n y o n e b id d er w ill
b e a ccep ted in fu ll a t th e a vera ge p rice ( in th r ee d e c im a ls) o f a c c e p te d c o m p e titiv e b id s for the resp ectiv e issu es. S e t tle m e n t for
a ccep ted ten d ers in a ccord an ce w ith b id s m u st b e m a d e or c o m p leted a t t h e F ed era l R e s e r v e B a n k on J a n u ary 11, 1973,
in cash or o th e r im m e d ia te ly a v a ila b le fu n d s or in a lik e fa c e a m o u n t o f T rea su ry b ills m a tu rin g Jan u ary 11, 1973. Cash and
ex ch a n g e ten d ers w ill rece iv e eq u a l trea tm en t. C ash a d ju stm en ts w ill b e m a d e for d ifferen ces b e tw e e n th e par v a lu e o f m atu rin g
b ills a ccep ted in ex ch a n g e and th e issu e p rice o f th e n ew bills.
U n d e r S e c tio n s 4 5 4 ( b ) an d 1221 ( 5 ) o f th e In tern a l R e v e n u e C o d e o f 1954 th e a m o u n t o f d isco u n t a t w h ich b ills issu ed
h ereu n d er are sold is con sid ered to accru e w h en th e b ills are sold, red eem ed or o th erw ise d isp o sed of, an d t h e b ills a re ex clu d ed
from co n sid era tion as ca p ita l assets. A cco rd in g ly , th e o w n er o f T reasu ry b ills ( o th e r th an life insu ran ce c o m p a n ie s) issu ed h ere­
under m u st in c lu d e in h is in co m e ta x return, a s ord in ary g ain or loss, t h e d ifferen ce b e tw e e n t h e p rice p aid for th e b ills, w h eth er
o n orig in a l issu e or o n su b seq u e n t purchase, and t h e a m o u n t a c tu a lly receiv ed e ith er u p o n sa le or r ed em p tio n a t m a tu rity during
th e ta x a b le y ea r for w h ich th e return is m ade.
T r ea su ry D e p a r tm e n t Circular N o. 4 1 8 (cu rren t rev isio n ) and th is n o tic e, prescrib e t h e term s o f the T rea su ry b ills and
govern th e co n d itio n s o f th e ir issue. C o p ies o f t h e circular m a y b e o b ta in ed from a n y F e d e r a l R e s e r v e B a n k or B ranch.

In a c c o r d a n c e w ith t h 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 w ill b e r e 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 ,
^ sto n a n d S an A n to n io u p to tw e l v e - th ir ty p .m ., C e n tral S t a n d a r d Time, M o n d a y , J a n u a r y 8, 1 9 7 3 . T e n d e rs m a y
b e en tered by te leph on e.
Y ours v e r y truly,
P. E. C oldw ell
P re s id e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m o u n t, R a n g e an d A p p ro x im a te Y ie ld o f A c c e p te d T e n d er s
3 -M o n th B ills
6 -M o n th B ills
D u e A p ril 5, 1 97 3
D u e J u ly 5, 1 97 3
$ 3 ,6 3 7 ,2 6 5 ,0 0 0 ___________________________________ T o ta l A p p lie d F o r ____________________________________$ 3 ,2 4 7 ,5 0 5 ,0 0 0
$ 2 ,4 0 0 ,2 0 5 ,0 0 0 ____________________________________ .T o ta l A cce p ted
P r ic e
Y ie ld
P r ic e
Y ie ld
9 8 .7 0 6 ______________ 5 .1 1 9 % ____________________________.H ig h _____ ___
9 7 .2 9 4 _____________ 5 .3 5 3 %
9 8 .6 8 7 ..........
5 .1 9 4 % ____________________
L o w ________________ 9 7 .2 6 0 _____________ 5 .4 2 0 %
9 8 .6 9 5 ______________ 5 .1 6 3 % ( 1 ) _______
, A v e r a g e _______________________ 9 7 .2 7 2 _____________ 5 .3 9 6 % ( 1 )

$ 1 ,9 0 0 ,0 9 5 ,0 0 0

( 1 ) T h e s e r a te s a r e o n a b a n k d is c o u n t basis. T h e e q u iv a le n t c o u p o n issu e y ie ld s a r e 5 . 3 0 % fo r t h e 3 - m o n th b ills a n d 5 . 6 2 % fo r
th e 6 -m o n th hills.

(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

182 DAYS TO MATURITY
D ated J an u a ry 11, 1973

M atu rin g Ju ly 12, 1973

T o: F ed era l R e se r v e B an k , S ta tio n K, D allas, T e x a s 75222
or —
T h e --------------------------------------------B ranch
El Paso 79999 Houston 77001 San Antonio 78295
(D ate)

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.
N O N C O M P E T IT IV E T E N D E R $___________________________________________
JNOT TO E X C E E D $20 0,000
Noncompetitive tenders for $200,090 or less from any bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.

$
1$
$
C O M PETITIV E T E N D E R S ( $

...

.

..

....

$

(it
(a)
f7
i>
(„
©

*
$
S

Prices should be
ex p ressed on th e
basis of 100, with
not more than three
decimal places, e.g.
99.925. F ra c tio n s
must not be used.

%
<
%

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.

.© ?

10,000 $.

$

15,000 $.

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT
□ B y m a tu r in g bills
held b y_______________________________ _

$

50,000 ?-

□

■<3) ?
Ci ?
<

100,000 ?-

D e n o m in a t io n s D e s i r e d
N u m b e r of

pieces

M a tu rity V alue

n

P a y m e n t to b e m a d e by_

□

C harge our r e se r v e acco u n t on p a y m e n t
d a te
I | D r a ft enclosed ( E f f e c t u a l d e l i v e r y o f e n c l o s e d d r a f t

500,000 *

© $ 1 ,000,000 $-

s h a l l be o n l a t e s t d a y w h i c h -will 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 t a i n i r r e v o c a b l y c o lle c te d f u n d s o n p a y .
m e n t d ate)

D e liv e r y In str u ctio n s:
□

Hold in C u stod y A cco u n t— M em ber
ban k s fo r ow n accou n t only

□

P le d g e to se cu re T rea su ry T a x and
L oan A ccou n t

(S u b s c rib e r's fu ll n a m e o r c o rp o r a te title)

(A ddress)

By
( A u t h o r i z e d of fi c ia l s i g n a t u r e a n d t i t l e )

□

Ship to ---------------------------------------------( F o r t h e a c c o u n t o f , i f t e n d e r Is f o r a n o t h e r s u b s c r i b e r )

(A ddress)

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 he 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 he disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity valye )
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 js
material, the tender may be disregarded.
(See reverse for announcement)

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