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F e d e r a l R e s e r v e B a n k o f D a l l a s FISCAL AGENT OF THE UNITED STATES DALLAS. TEXAS 75222 Circular No. 73-21 January 23, 1973 NEW OFFERING — TREASURY BILLS To All Banking institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following sta te m e n t giving details of tw o issues of Treasury bills: T h e Treasury D epartm ent, by th is public notice, invites tenders for two series of Treasury bills to the aggregate am ount of $4,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing February 1, 1973, in the am ount of $4,200,775,000, as follows: 91-D A Y B IL L S (to m aturity d ate) to be issued February 1, 1973, in the am ount of $2,400,000,000, or there abouts, representing an additional am ount of bills dated N ovem ber 2, 1972, and to m ature M ay 3, 1973 (C U S IP No. 912793 Q S 8 ), originally issued in th e amount of $1,901,175,000, the additional and original bills to be freely interchangeable. 182-D A Y B IL L S for $1,800,000,000, or thereabouts, to be dated February 1, 1973, and to m ature August 2, 1973 (C U S IP No. 912793 R N 8 ). T h e bills of both series will 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 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). T enders 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 29, 1973. Tenders w ill not be received at the Treasury Departm 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 more 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 form s 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 custom ers 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 w ithout 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 m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. Only 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 February 1, 1973, in cash or other im m ediately available funds or in a lik e face am ount of Treasury bills maturing February 1, 1973. Cash and exchange tenders w ill receive equal treatment. 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. U nder Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount o f 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, th e 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 maturity 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 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 co rd an ce w ith the a b o v e a n n o u n c e m e n t, tenders will be 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 ta n d ard Time, M o nd ay, J a n u a r y 29, 1973. Tenders m ay not be e n tere d by te le p h o n e . Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approxim ate Y ield of A ccepted Tenders 3-M onth B ills 6-M onth B ills D u e April 26, 1973 D u e July 26, 1973 $3,961,765,000 __Total A pplied For_________________________________ $3,952,950,000 $2,400,345,000____________________ T otal Accepted Price Y ield Price Y ield 98.589_____________ 5.582% ___________________________H ig h _______________________ 97.094.................. 5.748% 98.572_____________ 5.649% ___________________________ Low__________ 97.081_____________ 5.774% 98.576_____________ 5.633% ( 1 ) _____________________ A verage______________________ 97.088____________ 5.760% (1) $1,900,810,000 ( 1 ) T h ese rates are on a b ank d iscou nt basis. T b e eq u iv a le n t coupon issue y ie ld s are 5 .7 9 % for th e 3 -m on th bills and 6 .0 2 % for th e 6 -m o n th b ills. (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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated November 2,1972 Maturing May 3 1973 , To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The------------------------------------- Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) 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 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 av erage price (in three decimals) of accepted competitive bids. 1 $ $ 1 $ © © (a) $ COMPETITIVE TENDERS © ¥ $ $ .... ...... Prices should be ex p ressed on th e basis of 100, w ith not more than th re e decimal places, e.g., 99.925. F r a 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. Payment for this issue of bills cannot be m ade by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT Denominations Desired Number of pieces .(a), ¥ m ¥ M aturity Value 10,000 ¥15,000 ¥- □ □ 50,000 ¥© ¥ 100,000 ¥ m ¥ 500,000 ¥-< $1 ,000,000 ¥& .0) ¥ □ [~~1 Pledge to secure Treasury Tax and Loan Account Ship to--------------------- — -------------- (Subscriber's full name or corporate title) Hold in Custody Account—Member banks for own account only □ □ Charge our reserve account on p aym ent date D raft enclosed (Effectual delivery o f enclosed d r a ft shall be on latest day which will permit p resen tm en t in order to obtain irrevocably collected funds on D «v . ment date) ' Delivery Instructions: □ By m aturing bills held by-----------------------------------------. -Paym ent to be made by___________ _ (Address) B y(Authorized official signature and title) (For the account of, if tender is for another subscriber) (Address) IMPORTANT 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 o f 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 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--------------------------------------------------------_ 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 v alu e) 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)