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F e d e r a l R e s e r v e Ba n k o f D a lla s
FISCAL AGENT O F THE UNITED STATES

DALLAS, TEXAS 75222
Circular No. 73-44
February 27, 1973

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your attentio n is invited to th e 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 th is public notice, invites tenders for tw o series of Treasury bills to th e aggregate am ount
of $4,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing M arch 8, 1973, in th e am ount of
$4,205,515,000, as follow s:
91-D A Y B IL L S (to m aturity d ate) to be issued M arch 8, 1973, in th e am ount of $2 400,000,000, or thereabouts,
representing an additional am ount of bills dated D ecem ber 7, 1972, and to m ature June 7, 1973 (C U S IP No.
912793 Q W 9 ), originally issued in th e am ount o f $1,896,515,000, 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 M arch 8, 1973, and to m ature Septem ber 6, 1973
(C U S IP N o. 912793 R T 5 ).
T h e bills o f 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 w ill be payable without 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).
T enders w ill be received at Federal R eserve Banks and Branches up to th e closing hour, one-thirty p.m., Eastern
Standard tim e, M onday, M arch 5, 1973. Tenders w ill not be received at the Treasury Departm ent, Washington. 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 m ore than three decimals, 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 envelop es 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 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 b y 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 at the Federal R eserve Banks and Branches, follow ing which
public announcem ent w ill be made 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. S ettlem 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 8, 1973,
in cash or other im m ediately available funds or in a lik e face am ount of Treasury bills maturing M arch 8, 1973. Cash and
exchange tenders w ill receive equal treatm en t Cash adjustm ents will 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 4 5 4 ( b ) and 1221 ( 5 ) o f th e Internal R evenue Code of 1954 the am ount o f 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 o f T reasu.y bills (other than life insurance com panies) issued here­
under m ust include in his income tax return, as ordinary gain or loss, tbe 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
the taxable year for which the return is made.
Treasury D epartm ent Circular No. 41 8 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions o f their issue. Copies o f th e circular m ay be obtained from any Federal R eserve B ank or Branch.

In a c co rd ance w ith th e a b o v e a n n o u n c e m e n t, te n d e rs will b e received a t this b a n k a n d its bra n c h e s a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Sta n d a rd Time, M on day , March 5, 1973. Tenders m a y not
be e n te re d by tele 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 o f A ccepted Tenders
3-M onth B ills
6-M onth B ills
D u e M ay 31, 1973
D u e August 30, 1973
$3,470,835,000
T otal A pplied For_________________________________ $3,086,605,000
$2,400,225,000__________________________________ .T otal A ccepted
____________________
$1,800,045,000
P rice
Y ield
P rice
Y ield
98.545
5.756% ______
H igh _______________________ 96.970_____________5.993%
98.522
5.847% _________ __ ________________Low....________
.96.927_____________6.078%
98.531
5.811% ( 1 ) ______________________ Average_____________________96.944____________ 6.045% ( 1 )
( 1 ) T h e s e ra tes are o n a b an k d iscou nt b asis. T h e eq u iv a le n t coupon issu e y ie ld s are 5 .9 8 % for tb e 3 -m on th b ills an d 6 .3 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 (FedHistory@dal.frb.org)

TENDER FOR ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated December 7,1972

Maturing June 7,1973

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 $ _ _________________________________

JMOT 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
exp 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.

*

COMPETITIVE TENDERS

\%
%
s

(a)
(at
<
fi>

$
$
$

• TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
Number of
pieces

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

M aturity Value

M $
m $
«i $

10,000 *15,000 $50,000 $-

□
□

M $ 100,000 ?a, $ 500,000 $■
M $1 ,000,000 $-

By m aturing bills
held by----------------------------------------- __
Paym ent to be made by____________ _

□

Charge our reserve account on paym ent
date
[ I D rait enclosed (Effectual delivery o f enclosed d r a ft
shall be on la te st day w hich will p e rm it p re s e n tm e n t
in order to o b ta in irrevocably collected funds on p a y ­
m e n t date)

Delivery Instructions:
□

Hold in Custody Account—Member
banks for own account only

□

Pledge to secure Treasury Tax and
Loan Account

□

(S ub scriber’s fu ll n a m e o r co rp o ra te title)
(Address)

By-

Ship to---------------------------------------

(A uthorized official s ig n a tu re an d title)
(F o r th e account of, if te n d e r is fo r a n o th e r subscriber)
(Address)

IMPORTANT
1. No tender for less than $10,000 will be considered and each tender over $10,000 must 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 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