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DALLAS, TE X A S 7 5 2 2 2
Circular No. 73-17
January 16, 1973

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your a ttention is invited to the following sta te m e n t 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 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 the am ount of $1,800,705,000, the 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 No. 912793 R M 0 ).
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 w ill be payable w ithout interest. T h ey 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).
Tenders w ill 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 Departm ent, Washington. Each
tender m ust be for a m inim um of $10,000. T enders 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 more 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.
B anking 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 account.
T enders w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others must 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 b y 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 will be made by the Treasury D epartm ent of the amount and price range of accepted bids. O nly those
subm itting com petitive tenders w ill 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 without 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 w ith 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 maturing January 25, 1973. Cash and
exchange tenders w ill receive equal treatm ent. Cash adjustm ents w ill 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 am ount 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 No. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch.

In a c cordan ce with the a b o v e a n n o u n c e m e n t, tend ers will b e received a t this b a n k a n d its b ran ches a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central S tand ard Time, M o nd ay , J a n u a r y 22, 1973. Tenders m ay
not be e n te re d by telep ho ne.
Yours very truly,
P. E. Coldwell
Amount, R ange and Approximate Y ield of A ccepted Tenders


3-M onth B ills
6-M onth B ills
D u e April 19, 1973
D u e July 19, 1973
T otal A pplied For_________________________________ $3,672,885,000
T otal A ccepted— _________________________
Y ield
Y ield
5.230% ---------------- ----- -------...........
5.321% -----------------------------------.Low_____________________ 97.182____________ 5.574%
5.277% ( 1 ) -------------------A verage_______ _________ 9 7.199_________ 5.540% (1 )
( 1 ) T h e s e rates are on a b an k discount basis. T h e eq u iv a le n t coupon issue y ie ld s are 5 .4 2 % for th e 3-m on th bills and 5 .7 8 % fot
th e 6 -m on th bills.

(See reverse for tender form)

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


Dated January 25, 1973

Maturing July 26, 1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
T he------------------------------------- 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 th 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 $______________________ ______________


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.





Prices should be
expressed on t h e
basis of 100, w ith
not more than th r e e
decimal places, e.g.
99.925. F r a c tio n s
must not be used.


Denominations Desired
Nnmber of



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

Maturity Value

$ 15,000
* 50,000
$ 100,000
¥ 500,000



Charge our reserve account on pay m en t
I I D raft enclosed (Effectual delivery of enclosed d r a f t
shall be on la te st day which will p erm it p r e s e n t m e n t
in order to ob ta in irrevocably collected funds on
m e n t d a te )

Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only

Pledge to secure Treasury Tax and
Loan Account
Ship to ..

By m aturing bills
held by--------------------------------------- ---Paym ent to be made by_

(S u bscrib er’s full nam e or co rp o ra te title)
(A ddress)

(A uthorized official s ig n a tu re an d title)
(F o r the a ccount of, if te n d e r is fo r a n o th e r subscriber)

1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in m ultiples 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 o f +y,0
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, com m unj.
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 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, ■w-j,0
should sign in the form “__
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 in v e st­
' 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 rea su ry 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