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e d e r a l

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Circular 73-54
M arch 13, 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, b y this public notice, invites tenders for two 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 22, 1973, in the am ount of
$4,207,235,000, as follows:
91-D A Y B IL L S (to m aturity d ate) to be issued M arch 22, 1973, in th e am ount of $2,400,000,000, or thereabouts,
representing an additional am ount of bills dated D ecem ber 21, 1972, and to mature June 21, 1973 (C U S IP No.
912793 Q Y 5 ), originally issued in the am ount o f $1,905,870,000, the additional and original bills to be freely
182-D A Y B IL L S for $1,800,000,000, or thereabouts, to b e dated M arch 22, 1973, and to m ature Septem ber 20, 1973
(C U S IP N o. 912793 R V 0 ).
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 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 a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard tim e, M onday, M arch 19, 1973. T enders w ill not be received at th e 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 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 m ade on the printed forms and forwarded in th e 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 o f customers provided th e 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.
T enders 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 of th e face am ount of
Treasury bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent by 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 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 The Secretary of the Treasury expressly
reserves the right to accept or reject any or all tenders, in w hole 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 a t the average price (in tnree decim als) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance w ith the bids m ust be m ade or com pleted at the Federal R eserve Bank on M arch 22, 1973,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing M arch 22, 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
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 o f 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 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 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 th e term s o f the Treasury bills and
govern the conditions o f their issue. C opies o f th e circular m ay be obtained from any Federal R eserve B ank or Branch.

In accord ance with th e a b o v e a n n o u n c e m e n t, ten d e rs will be 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 tw elve-thirty p.m., Central S ta n d a rd Time, M o n d a y , March 19, 1973. Tenders m a y not
be en te re d by te le p h o n e .
Yours very truly,
P. E. Coldwell


Amount, R ange and Approxim ate Y ield of A ccep ted Tenders
3-M onth B ills
6-M onth B ills
D u e June 14, 1973
D u e Septem ber 13, 1973
-Total A pplied For_________________________________ $2,801,450,000
$2,400,055,000__________________________________ .T otal A ccepted----------------------------------------------------- $1,800,030,000
P rice
Y ield
P rice
Y ield
5.898% ___________________________H ig h_______________________ 96.778____________ 6.373%
6.061% ___________________________ Low-------------------------------------96.715____________ 6.498%
5.997% ( 1 ) --------------------A v era g e---------------------- 96.744____________ 6.440% ( 1 )
( 1 ) T h e s e ra tes are on a h an k d iscou nt b asis. T h e eq u iv a le n t cou p on issu e y ie ld s are 6 .1 7 % for th e 3 -m o n th b ills an d 6 .7 5 % for
th e 6 -m o n th b ills.

(See reverse for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated December 21,1972

Maturing June 21,1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The________________________ Branch
El Paso 79999

Houston 77001

San Antonio 7S295

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 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 a t the average
price (in three decimals) of accepted competitive bids.
Prices should be
---------------------------ex pressed on th e
---------------------------basis of 100, w ith
not more than th ree
decimal places, e.g.,
---------------------------m ust not be used.
Denominations Desired
Number o f

m $
.< ), $
M $

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 $-(a) ? 100,000 $■
/T, $ 500,000 ?.
15, $1,000,000


Charge our reserve account on paym ent
I I D raft enclosed (Effectual delivery o f enclosed d ra ft
shall be on latest day which will permit presentm ent
in order to obtain irrevocably collected funds on p ay­
m ent date)

Delivery Instructions:

Hold in Custody Account—Member
banks fo r own account only
Pledge to secure T reasury Tax and
Loan Account
Ship to--------------------------------------

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

(Subscriber’* fu ll name or corporate title)

(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 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 m ay be obtained from this
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 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 th€ 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