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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 FISCA L AGENT OF THE UNITED STATES DALLAS, TE X A S 7 5 2 2 2 Circular No. 73-26 January 30, 1973 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in th e Eleventh Federal Reserve District: Your attention is invited to the following s ta te m e n t giving details of tw o issues of Treasury bills: T h e Treasury D epartm ent, b y 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 8, 1973, in the am ount of $4,201,545,000, as follows: 91-D A Y B IL L S (to m aturity d ate) to be issued February 8, 1973, in the am ount of $2,400,000,000, or there abouts representing an additional am ount o f bills dated N ovem ber 9, 1972, and to m ature M ay 10, 1973 (C U S IP No. 912793 Q T 6 ), originally issued in th e am ount of $1,901,370,000, the additional and original bills to be f.e e ly interchangeable. 182-D A Y B IL L S for $1,800,000,000, or thereabouts, to be dated February 8, 1973, and to m ature August 9, 1973 (C U S IP 912793 R P 3 ). 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 va 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, February 5, 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 $10,0C0. 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 made 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 custom ers are set forth in such tenders. Other than banking institutions will not be perm itted to subm it tenders except for their own account. Tenders 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 by an express guaranty of paym ent b y an incorporated bank or trust company. Im m ediately after th e closing hour, tenders w ill be opened a t the Federal R eserve Banks and Branches, follow ing which public announcem ent will be m ade by the Treasury D epartm ent o f th e am ount 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 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 B ank on February 8, 1973, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing February 8, 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. U nder Sections 454 ( b ) and 1221 ( 5 ) o f the Internal R evenue Code of 1954 th e 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 a t m aturity during th e 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 o f the circular m ay be obtained from any Federal R eserve Bank or Branch. In acc o rd a n c e w ith 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 r a n ch e s a t El Paso, Houston a n d San Antonio up to tw elve-thirty p.m., Central Sta n d a rd Time, M on day , February 5, 1973. Tenders m ay not be en te re d by te le p h o n e . Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Am ount, R ange and Approxim ate Y ield of A ccepted Tenders 3-M onth B ills 6-M onth B ills D u e M ay 3, 1973 D u e August 2, 1973 $3,777,465,000 T otal A pplied F o r_________________________________ $4,644,745,000 $2,401,350,000__________________________________ T otal A ccep ted__________________________________ $ 1,800,105,000 P rice Y ield Price Y ield 98.568-------------------- 5.665% -----------------------------------------H ig h _______________________ 97.038 ____________5.859% 98 .5 5 8 _____________ 5.705% ___________________________ Low_______________________ 97.030____________5.875% 98.562-------------------- 5.689% ( 1 ) ---------------------------------A verage_____________________ 97.032 ____________5.871% ( 1 ) ( 1 ) T h e s e rates are o n a b an k d iscou nt basis. T h e eq u iv a le n t coupon issu e y ie ld s are 5 .8 5 % for th e 3 -m on th b ills a n d 6 .1 3 % for th e 6-m o n th bills. (S ee 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 9,1972 Maturing May 10, 1973 T o: 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 averag e price (in three decimals) of accepted competitive bids. COMPETITIVE TENDERS ; ; : : (a) (n) (tf, @ Prices should be ex p ressed on t h 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 m ust not be used. ¥ ¥ ¥ . * ... . TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E CLOSING HOUR ARE ACCEPTABLE. Denominations Desired Number of piecea Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT Maturity Valua ¥ m ¥ 10,000 ¥15,000 ¥- □ □ M ¥ 50,000 ¥.(a. ¥ 100,000 $- □ -ft, ¥ 500,000 ¥ <ci ¥1 ,000,000 ¥- r*l □ Pledge to secure Treasury Tax and Loan Account ^ Charge our reserve account on paym ent date D raft enclosed (Effectual delivery o f enclosed d r a ft shall be on latest day which will permit presen tm en t in order to obtain irrevocably collected funds on p a y ment date) Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ By m aturing bills held by__________________________ Paym ent to be made by__________ (Subscriber's full name or corporate title) (Address) By- (Authorized official signature and title) Ship to------------------------ — ---------(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 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 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 make the tender and the signing of the form by an officer of the corporation will be construed as a representation by him th 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 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 material, Hie tender may be disregarded. (See reverse for announcement)