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e d e r a l


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Circular N o. 73-39
February 20, 1973

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your a ttention 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 Departm ent, by th is public notice, invites tenders for tw o 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 M arch 1, 1973, in the am ount of
$4,201,685,000, as follows:
91-D A Y B IL L S (to m aturity d ate) to he issued M arch 1, 1973, in the am ount of $2,400,000,000, or thereabouts
representing an additional am ount of bills dated M ay 31, 1972, and to m ature M ay 31, 1973 (C U S IP No.
912793 P X 8 ) , originally issued in th e am ount of $1,200,180,000 (an additional $500,950,000 was issued on
A ugust 31, 1972, and an additional $1,902,735,000, was issued on N ovem ber 30, 1 9 7 2 ), the additional and orig­
inal bills to be freely interchangeable.
182-D A Y B IL L S for $1,800,000,000, or thereabouts, to be dated M arch 1, 1973, and to m ature A ugust 30, 1973
(C U S IP No. 912793 R S 7 ).
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 a t 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).
T enders w ill be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard tim e, M onday, February 26, 1973. T enders 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 m ust be in m ultiples of $5,000. In the case o f 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 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 o f customers provided the nam es o f 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 will 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 o f the face am ount of
Treasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust company.
Im m ediately after th e 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. O nly those
subm itting com petitive tenders w ill be advised of the acceptance o f 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 w ill
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 M arch 1, 1973,
in cash or other im m ed iately available funds or in a like face am ount of Treasury bills maturing M arch 1, 1973. Cash and
exchange tenders w ill receive equal treatm en t Cash adjustm ents w ill be m ade for differences betw een the par value o f 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 th e am ount o f discount at which b ills 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 o f Treasury bills (other than life insurance com panies) issued here­
under m ust include in his income 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 th e 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 N o. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and
govern the conditions of their issue. Copies o f the circular m ay be obtained from any Federal R eserve Bank or Branch.

In ac cordance with th e 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 ranch es 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 26, 1973. Tenders m a y not
be entered b y te le p h o n e .
Yours very truly,
P. E. Coldwell
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 24, 1973
D u e August 23, 1973
$3,267,940,000_________________________________ T otal A pplied F or---------------------------------------------------$2,798,320,000
$2,400,060,000__________________________________ .T otal A ccepted----------------------------------------------------- $1,800,270,000
P rice
Y ield
Y ield
5.380% __________________________ .H igh------------------------------------ 97.170____________ 5.598%
5.550% ___________________________Low ------------------------------------- 97.098____________ 5.740%
5.455% ( 1 ) ____________________ A v e r a g e ______________________ 97.142____________ 5.653% ( 1 )
( 1 ) T h e s e rates e r e on a b an k d iscou nt basis. T h e eq u iv a le n t cou p on issu e y ie ld s are 5 .6 1 % for tb e 3 -m on th b ills an d 5 .9 0 % for
th e 6 -m o n th b ills.

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


Dated May 31,1972

Maturing May 31,1973

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 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 average
price (in three decimals) of accepted competitive bids.







Denominations Desired

Number of

J® $

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

M aturity Value

10,000 ?15,000 *
50,000 $.


m ?
.(a). ?
C $ 100,000 *


M $1,000,000 ?-


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

(Subscriber’s fu ll name or corporate title)

Hold in Custody Account—Member
banks fo r own account only


Charge our reserve account on paym ent
D raft enclosed (Effectual delivery o f enclosed draft
shall be on latest day which will permit presentm ent
in order to obtain irrevocably collected funds o n p a y ­
m ent date)

Delivery Instructions:

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


M $ 500,000 *


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.



(Authorized official signature and title)
(F or the account of, if tender is for another subscriber)


1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust be for an amount in multiples 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 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 make th e
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 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 by an
incorporated bank or tru st company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
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