View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.


e d e r a l


e s e r v e


a n k

o f


a l l a s


Circular No. 73-22
January 23, 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 Departm ent, by this 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 mature M ay 3, 1973
(C U S IP No. 912793 Q S 8 ), originally issued in the am ount of $1,901,175,000, the additional and original bills
to be freely interchangeable.
1S2-D AY B IL L S for $1,800,000,000, or thereabouts, to be dated February 1, 1973, and to mature August 2, 1973
(C U S IP No. 912793 R N 8 ).
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 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 29, 1973. Tenders w ill not be received at the Treasury D epartm 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 decim als, e.g., 99.925. Fractions may
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 custom ers 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 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 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 will 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 amount of discount at 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 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 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 co rd ance with the a b o v e a n n o u n c e m e n t, ten ders will be received a t this b a n k a n d its b ra n c h e s a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central S ta n d a rd Time, M o n d a y , J a n u a r y 29, 1973. Tenders m ay
not be e n te re d by te le ph on e.
Yours very truly,
P. E. Coldwell
Am ount, R ange and Approxim ate Y ield of A ccepted Tenders
3-M onth Bill:
6-M onth B ills
D u e April 26, 1973
D u e July 26, 1973
$3,961,765,000-------------------------------------------------- T otal A pplied For_________________________________ $3,952,950,000
$2,400,345,000-------------------------------------.T otal A ccepted___________________________________$1,900,810,000
Y ield
Y ield
98.589-------------------- 5.582% ----------------------------------------- H igh _______________________ 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 ) T h e s e rates are on a b ank d iscou nt basis. T h 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 b ills and 6 .0 2 % for
th e 6-m o n th bills.

(See reverse for tender form)

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


Dated February 1,1973

Maturing August 2 1973

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

San Antonio 78295

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 o u n t
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 a t the a v e ra g e
price (in three decimals) of accepted competitive bids.











Prices should be
ex p ressed 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
m ust not be u sed .


Denominations Desired
Number of

Maturity Value


M ?
M ?

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

10,000 $15,000 $-


M $ 50,000 ?m ? 100,000 ?-


Charge our reserve account on p ay m en t
|~1 D raft enclosed (Effectual delivery o f enclosed d r a f t

$ 500,000 *
-< $ i ,000,000 $&
Delivery Instructions:
□ Hold in Custody Account—Member
banks fo r own account only
□ Pledge to secure Treasury Tax and
Loan Account

By m aturing bills
held by____________________________
Paym ent to be made by_

ehall be on la te st day w hich w ill p e rm it pre sen
in order to ob ta in irrevocably collected fun d s o n
m e n t d a te )
(S ubscriber's fu ll n a m e o r c o rp o ra te title)
(A ddress)


(A uthorized official s ig n a tu re an d title)

Ship to-------------------------------------(F o r the a ccount of, if te n d e r is fo 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 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, com m uni­
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 s t­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity v a lu e )
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of fuff payment b y aj,
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 re asu ry is
material, the tender may be disregarded.

( e r v r ef rannouncement)
S e ees o

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