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F e d e r a l R e s e r v e B a n k o f D a l l a s FISCAL AGENT OF THE UNITED STATES DALLAS, TEXAS 75222 Circular 73-60 M arch 20, 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 Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $4,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing M arch 29, 1973, in the am ount of $4,205,120,000, as follows: 91-D A Y B IL L S (to m aturity d ate) to be issued M arch 29, 1973, in the am ount of $2,400,000,000, or thereabouts, representing an additional am ount of bills dated D ecem ber 28, 1972, and to mature June 28, 1973 (C U S IP No. 912793 Q Z 2), originally issued in the am ount of $1,903,160,000, 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 29, 1973, and to m ature Septem ber 27, 1973 (C U S IP No. 912793 R W 8 ). 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 will be payable without 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 will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard tim e, M onday, M arch 26, 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 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, w ith 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 o f customers provided the nam es o f the customers 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 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 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 by an incorporated bank or trust company. Im m ediately after the 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 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 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 the bids m ust be m ade or com pleted at the Federal R eserve Bank on M arch 29, 1973, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing M arch 29, 1973. Cash and exchange tenders w ill receive equal treatm ent. 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 ) of the Internal R evenue Code of 1954 the am ount of 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 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 No. 418 (current revision) and this notice, prescribe the terms 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 ac cordance 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 b ran ch 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 o n d a y , March 26, 1973. Tenders m ay not be en tered by tele ph on e . Yours very truly, P. E. Coldwell _______________ President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, 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 21, 1973 D u e Septem ber 20, 1973 $3,466,985,000 T otal A pplied For____________ $4,686,345,000 $2,400,030,000__________________________________ .T otal-A ccep ted ----------------------------------------------------- $1,801,085,000 P rice Y ield Price Y ield 98.414_____________ 6.274% __________________________ .H igh______________________ 96.590_____________ 6.745% 98.388_____________ 6.3 77 % __________________ Low_____________ 96.5 79_____________ 6.767 % 98.399_____________ 6.334% ( 1 ) _____________________A v era g e _____________________ 96.583_____________ 6.759% (1 ) ( 1 ) T h e s e ra tes are o n a b an k d iscou nt basis. T h e eq u iv a le n t cou p on issue y ie ld s are 6 .5 3 % for th e 3-m on th b ills an d 7 .1 0 % for th e 6 -m o n th bills. (S ee 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 28, 1972 Maturing June 28, 1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (D a t.) 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. /1 f , j. Prices should be ex pressed on th e fn ) basis of 100, w ith 1 ? ¥ not more than th ree COMPETITIVE TENDERS ¥ ¥ decimal places, e.g., (a) ¥ ¥ 99.925. F ra c tio n s ¥ @ ¥ must not be used. I O F TENDERS MAY NOT B E 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 Maturity Value M ¥ m ¥ 10,000 ¥15,000 ¥- □ □ 50,000 ¥/« ¥ 100,000 ¥M ¥ 500,000 ¥(n ¥1;,000,000 ¥■ fS, ¥ □ Pledge to secure Treasury Tax and Loan Account Ship to_________________________ (Subscriber’s full nam e or corporate title) Hold in Custody Account— Member banks for own account only □ □ Charge our reserve account on paym ent date [ I D r a f t e n c l o s e d (Effectual delivery o f enclosed d raft 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: □ By m aturing bills held by--------------------------------------------Paym ent to be made by-------------------- (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 at he has been so authorized. If the tender is made by a partnershi] 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)