The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal R eserve Bank o f D allas FISCAL AGENT OF THE UNITED STATES DALLAS. TEXA S 7 5 2 2 2 Circular 73-50 M arch 6, 1973 NEW OFFERING — TREASURY BILLS 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, b y 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 M arch 15, 1973, in th e am ount of $4,202,855,000, as follows: 91-D A Y B IL L S (to m aturity d ate) to be issued M arch 15, 1973, in the am ount of $2,400,000,000, or thereabouts, representing an additional am ount of bills dated D ecem ber 14, 1972, and to mature June 14, 1973 (C U S IP No. 912793 Q X 7 ), originally issued in the am ount of $1,901,630,000, 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 15, 1973, and to mature Septem ber 13, 1973 (C U S IP N o. 912793 R U 2 ). T h e bills o f 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 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). Tenders w ill be received at Federal R eserve B anks and Branches up to the closing hour, one-thirty p.m., Eastern Standard tim e, M onday, M arch 12, 1973. Tenders w ill not be received at the Treasury D epartm ent, W ashington. Each tender m ust be for a m inim um o f $10,000. Tenders over $10,000 m ust be in m ultiples o f $5,000. In the case o f com petitive tenders the price offered m ust be expressed on th e basis of 100, w ith not more 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 envelopes w hich 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 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. T enders from others m ust be accom panied by paym ent o f 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f 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 of the am ount and price range of accepted bids. O nly those subm itting com petitive tenders will be advised o f 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 with bids m ust be m ade or com pleted at th e Federal R eserve Bank on M arch 15, 1973, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing M arch 15, 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 o f maturing b ills accepted in exchange and the issue price o f the new bills. Under Sections 454 ( b ) and 1221 ( 5 ) o f the Internal R evenue Code o f 1954 the am ount of discount a t 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, the 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 N o. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and govern th e conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch. In acco rdance w ith the a b o v e a n n o u n c e m e n t, te n d e rs 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 on d a y , March 12, 1973. Tenders m a y not be entered by tele p h o n e . Yours very truly, P. E. Coldwell _______________ President LAST PREVIOUS OFFERING OF TREASURY BILLS A m 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 June 7, 1973 D u e Septem ber 6, 1973 $3,619,560,000 T otal A pplied For_________________________________ $3,255,195,000 $2,400,040,000__________________________________ .T otal_A ccepted___________________________________$1,800,390,000 Price Y ield P rice Y ield 98.534 5.800% ___________________________-H igh______________________ 96.872_____________ 6.187% 98.495 5.954% ___________________________ Low_______________________ 96.807_____________ 6.316% 98.514 5.879% ( 1 ) --------------------------------- Average_____________________ 96.829_____________ 6.272% (1 ) ( 1 ) T h ese rates are on a bank discount basis. T h e eq u ivalen t coupon issue yie ld s are 6 .0 5 % for th e 3 -m on th bills and 6 .5 7 % 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 14,1972 Maturing June 14,1973 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 the public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount 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. a # Prices should be exp ressed on th e iS (a ) basis of 100, with $ 11 not more than three (n ) COMPETITIVE TENDERS $ $ decimal places, e.g., |$ (,n ) ? 99.925. F ra c tio n s $ @ must not be used. $ TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR ARE ACCEPTABLE. Denominations Desired Number of pieces M $ m $ Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT Maturity Yalue 10,000 ?15,000 S50,000 $. □ □ m $ M $ 100,000 ?- □ Charge our reserve account on paym ent date [ 1 D raft enclosed (Effectual delivery o f enclosed draft m ? 500,000 $.(a $1,000,000 shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on pay m ent date) Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account Ship to--------------------------------------- □ 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) (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 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 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 this 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 trust 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 (maturity 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 trust company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is m aterial, the tender may be disregarded. (See reverse for announcement)