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F e d e r a l R es er v e Ba n k o f D a lla s

D ALLAS, TE X A S 7 5 2 2 2
Circular N o. 73-16
January 16, 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 Departm ent, b y this public notice, invites tenders for two series o f Treasury bills to th e aggregate am ount
of $4,300,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing January 25, 1973, in the am ount of
$4,101,200,000, as follows:
91-D A Y B IL L S (to m aturity d ate) to be issued January 25, 1973, in the am ount of $2,400,000,000, or there­
abouts, representing an additional am ount of bills dated October 26, 1972, and to m ature April 26, 1973
(C U S IP No. 912793 Q R 0 ), originally issued in th e am ount of $1,800,705,000, th e additional and original bills
to be freely interchangeable.
182-D A Y B IL L S for $1,900,000,000, or thereabouts to be dated January 25, 1973, and to m ature J u ly 26, 1973
(C U S IP N o. 912793 R M 0 ).
T h e b ills o f both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and a t m aturity their face am ount w ill be payable without interest. T h e y w ill 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).
T enders 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 22, 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 decim als, 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 th e special envelopes which w ill be
supplied by Federal R eserve Banks or Branches on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided th e nam es of the custom ers are
set forth in such tenders. Other than banking institutions w ill not be perm itted to subm it tenders except for their own account.
T enders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. T enders from others must be accom panied by paym ent of 2 percent o f the face am ount of
Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent b y an incorporated bank or
trust com pany.
Im m ediately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, follow ing which
public announcem ent w ill be made by the Treasury Departm 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 h e 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. 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 the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with bids m ust be m ade or com pleted at the Federal R eserve Bank on January 25, 1973,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing January 25, 1973. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences betw een the par value o f maturing
b ills accepted in exchange and the issue price of the new bills.
U nder Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount o f discount a t which bills issued
hereunder are sold is considered to accrue w hen the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner o f 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, th e difference betw een the price paid for th e bills, whether
on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m aturity during
the taxable year for which the return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s o f the Treasury bills and
govern th e 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 22, 1973. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell
Amount, R ange and Approxim ate Y ield of A ccepted T enders
3-M onth B ills
6-M onth B ills
D u e April 19, 1973
D u e J u ly 19, 1973
T otal A pplied For_________________________________ $3,672,885,000
T o ta l A ccepted___________________________________$1,900,165,000
P rice
Y ield
P rice
Y ield
98.6 7 8
5.230% _________________________
H igh________________ ___..97,206....................
5.321% __________________________ Low______________________ 97.182.....
5.277% ( 1 ) ---------------------------------A verage_____________________ 97.199_____________ 5.540% (1 )
( 1 ) T h ese ra te s are on a b a n k discount basis. T h e equivalent coupon issue yields are 5 .4 2 % for the 3-m onth bills an d 5 .7 8 % for
th e 6-m onth bills.

This publication was digitized and made available by the reverse for tender form) Dallas' Historical Library (
Federal Reserve Bank of


Dated October 26,1972

M aturing April 26,1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The------------------------------------- Branch
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 t h e
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 a t 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 av erag e
price (in three decimals) of accepted competitive bids.
@ ___________ S__________________________
Prices should be
ex p ressed on t h e
) * ---------------------------- ------------------*-------------------------------------basis of 100, w ith
not more than th r e e
COMPETITIVE TENDERS < $__________________ @ ___________$_______________________
) $ __________________ (a)___________$__________________
decimal places, e.g .,
99.925. F r a c tio n s
\ v ------------------------------------------------- <----------------------------------------- m ust not be used.
Denominations Desired

m $
m $

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.

. Valoe

10,000 $15,000 ?-

□ By maturing b l s
held by_____________________ _


■(5) $ 50,000 $.(3) ? 100,000 ?$ 500,000 *
.<8 $1 ,000,000 $Delivery In stru ction s:
□ Hold in Custody Account—Member
w banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account

Paym ent to be made by_


Charge our reserve account on paym ent
f~l D raft enclosed (E ffectual delivery o f enclosed d r a f t
sh all be on la te st day w hich w ill p e rm it p r e s e n tm e n t
in o rd er to o b tain irrevocably collected fu n ds on p a v .
ra e n t d ate)
(S ub scrib er’s fu ll na m e o r co rp o ra te title)

(A ddress)


(A uth o rized official s ig n a tu re and title)

Ship to------------------------- —---------(F o r th e acco un t of, if te n d e r is fo r a n o th e r sub scrib er)

(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 m ultiples 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 m ake the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him t h a t 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----------------------------------------------------------------i
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 b y 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 T reasu ry is
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