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F ederal r eser v e bank of Da lla s F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEXAS 75222 Circular No. 73-59 M arch 21, 1973 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the f o llo w in g state m e n t giving details of an issue of Treasury bills: T h e Treasury D epartm ent, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 346-day Treasury bills for cash and in exchange for Treasury bills maturing March 31, 1973, in the amount of $1,701,930,000. T h e bills of this series w ill be dated March 31, 1973, and w ill mature M arch 12, 1974 (C U S IP No. 912793 S N 7 ). T h e bills will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face amount will 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 ). Tenders w ill be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard T im e, Tuesday, March 27, 1973. Tenders will not be received at the Treasury D epartm ent, Washington. Each tender m ust be for a m inim um of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of com petitive ten ders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which w ill be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account. Tenders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accompanied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied by 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, following which public announcem ent w ill be made by the Treasury D epartm ent of the am ount and price range of accepted bids. Only those sub m itting com petitive tenders w ill be advised of the acceptance or 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. Subject to these reservations, noncom petitive tenders for $200,000 or less without 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. Settlem ent for accepted tenders in accor dance with the bids m ust be made or com pleted at the Federal R eserve Bank on April 2, 1973, in cash or other im m ediately available funds or in a like face amount of Treasury bills maturing March 31, 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 of the new bills. Under Sections 454 (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 th e 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 must 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 redemption 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 a ccord ance with the a b o v e an n o u n c em en t, tenders will b e received at this b an k a n d its branches at El Paso, Houston an d San Antonio up to twelve-thirty p.m., Central Standard Time, Tuesday, March 27 , 1973. Tenders m a y not b e entered by tele p h o n e . Yours very truly, P. E. Coldwell President (S e e 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 TREASURY BILLS 346 DAYS TO MATURITY Maturing March 12,1974 Dated March 31,1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The__________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (D .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. .NOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $. Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. /* &}\ 8 Prices should be ex p ressed on th e (a) basis of 100, with $ 1? not more than three COMPETITIVE TENDERS/$ (a) % $ decimal places, e. g., 99.925. F ra ctio n s (n) $ must not be used. TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Denominations Desired N u m b e r of Pieces M a tu rity V alue <> $ 5 (5) $ METHOD OF PAYMENT 10,000 $ 15,000 $ □ 50,000 ? (® $ 100,000 $ (5> $ 500,000 $ (3) $ - - (ff> □ By maturing bills held by---------------------------------------------Payment to be made by--------------------- □ | $1:,000,000 $ Delivery Instructions: Charge our reserve account on payment date | D r a f t e n c l o s e d (Effectual delivery of enclosed d r a f t shall be on latest day which will p e rm it p re sen tm en t in order to obtain irrevocably collected fu n d s on p a y m en t date) □ Hold in Custody Account—Member banks for own account only (S ubscriber’s fu ll nam e o r corporate title) □ Pledge to secure Treasury Tax and Loan Account (Address) □ Ship to----------------------------------------- By- (A uthorized official s ig n a tu re a n d title) (F o r the 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 (maturity 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 matters 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 that 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 pf 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 material, the tender may be disregarded. (See reverse for announcement)