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DALLAS, TEXA S 7 5 2 2 2
Circular No. 73-40
February 20, 1973

To All Banking Institutions a n d Others Concerned
in th e 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 D epartm ent, by this public notice, invites tenders for two series o f 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 be 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 the am ount of $1,200,180,000 (an additional $500,950,000 was issued on
August 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 August 30, 1973
(C U S IP No. 912793 R S 7 ).
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 will 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 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. Tenders will not be received at the Treasury D epartm 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 of com petitive
tenders the price offered m ust be expressed on the basis of 100, with 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 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 of custom ers 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.
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 o f 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 a t the Federal R eserve Banks and Branches, follow ing which
public announcem ent w ill be m ade by the Treasury D epartm ent o f the am ount and price range of accepted bids. O nly those
subm itting com petitive tenders will 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 will
b e 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 M arch 1, 1973,
in cash or other im m ediately available funds or in a lik e face am ount of Treasury bills maturing M arch 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 o f maturing
bills accepted in exchange and the issue price o f the new bills.
Under Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code o f 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 o f 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 th e 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
th e taxable year for which th e 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 acco rd a n c e with the a b o v e a n n o u n c em e n t, te n d e rs will b e received a t this b a n k a n d its b ran c h e s a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m.. Central Stan d a rd Time, M o nd ay, February 26, 1973. Tenders m a y not
be e n te re d by te le p h o n e .
Yours very truly,
P. E. Coldwell
Am ount, R ange and Approxim ate Y ield o f 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
T otal A pplied For
$2,400,060,000__________________________________ T otal A ccep ted —
-------------------------------------------- $1,800,270,000
P rice
Y ield
Y ield
5.380% ___________________________H ig h ------------------------------------ 97.170 ____________ 5.598%
5.550% ___________________________ Low________________________ 97.098____________ 5.740%
5.455% ( 1 ) _____________________ A verage----------------------------------97.142 ____________ 5.653% ( 1 )
( 1 ) T h e s e rates are on a b ank d iscou nt b asis. T h e eq u iv a le n t cou p on issue y ie ld s are 5 .6 1 % for th e 3-m on th b ills an d 5 .9 0 % for
th e 6-m o n th bills.

(See reverse for tender form)


Dated March 1,1973

Maturing August 30,1973

T o: 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 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 at the average
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 re e
decimal places, e.g.,
99.925. F r a c tio n s
must not be used.



Denominations Desired

Number of

m $

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

Maturity Value

10,000 *


(o' $ 50,000 ¥■
fa $ 100,000 *
(a $ 500,000 ¥■


-© $1,000,000 $-

By m aturing bills
held by_____________________________
Paym ent to be made by__________
Charge our reserve account on paym ent

I I D r a f t e n c l o s e d (Effectual delivery o f enclosed d r a ft
shall be on latest day which will permit presentm ent
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

(Subscriber’s fu ll name or corporate title)


Pledge to secure Treasury Tax and
Loan Account
Ship to



(Authorized official signature and title)
(For 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.
8. 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 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