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Federal Reserve Ban k o f Dallas 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, TE XA S 7 5 2 2 2 Circular 73-65 March 27, 1973 NEW OFFERING — TREASURY BILLS To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of two issues of Treasury bills: The Treasury Department, 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 April 5, 1973, in the amount of $4,202,790,000, as follows: 91-DAY BILLS (to maturity date) to be issued April 5, 1973, in the amount of $2,400,000,000, or thereabouts, representing an additional amount of bills dated Jannuary 4, 1973, and to mature July 5, 1973 (CU SIP No. 912793 R J 7 ), originally issued in the amount of $1,901,105,000, the additional and original bills to be freely interchangeable. 182-DAY BILLS for $1,800,000,000, or thereabouts, to be dated April 5, 1973, and to mature October 4, 1973 (CU SIP No. 912793 R X 6 ). The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, Monday, April 2, 1973. Tenders will not be received at the Treasury Department, Washington. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples o f $5,000. In the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account o f customers provided the names o f the customers are set forth in such tenders. Other than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment o f 2 percent o f the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only those submitting competitive tenders will 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 whole or in part, and his action in any such respect shall be final. Sub ject to these reservations, noncompetitive tenders for each issue for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on April 5, 1973, in cash or other immediately available funds or in a like face amount of Treasury bills maturing April 5, 1973. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. Under Sections 454 (b ) and 1221 (5 ) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued here under must include in his income tax return, as ordinary gain or loss, the difference between the price paid for the bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made. Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms o f the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso, Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, April 2, 1973. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell _ _ _ _ _ _ _ _ _ President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approximate Y ield of Accepted Tenders 3-Month Bills 6-Month Bills Due June 28, 1973 Due September 27, 1973 $3,656,185,000____________________ __ __________Total Applied For_________________________________ $4,623,900,000 $2,400,780,000__________________________________ Total Accepted___________________________________$1,806,135,000 Price Yield Price Yield 98.430____________ 6.211 % __________________________ .High______ _ _______ :_____96.657__________.....6.613 % _ 98.410____________ 6.290% ____________ _______________ Low_______________________ 96.644__________.....6.638% 98.420____________ 6.251% ( 1 ) --------------------------------- Average-------------------------------- 96.647__________.....6.632% (1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 6.44% for the 3-month bills and 6.9 6% for the 6-month 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 January 4,1973 Maturing July 5,1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The--------------------------------------------Branch E l Paso 79999 Houston 77001 San Antonio 78295 _________________________________________________________ (Data) Pursuant to the provisions of Treasury Department Circular N o. 418 (current revision) and the provisions o f 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. Prices should be e x p resse d on th e basis of 100, with not more than three decimal places, e.g., 9 9 .9 2 5 . F r a c tio n s must not be used. COMPETITIVE TENDERS T E N D E R S M A Y N O T BE A C C E P T E D B Y T E L E P H O N E . T E N D E R S B Y W IR E , IF R E C E IV E D B E F O R E TH E CLO SIN G H O U R A R E A C C E P T A B L E . Denominations Desired Number of pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Maturity Value $ 9 15,000 $ M E TH O D O F P A Y M E N T 10,000 * 50,000 □ By maturing bills held by______________________________ □ Payment to be made by--------------------- $ 100,000 $. □ Charge our reserve account on payment date $ 500,000 $. $l ,000,000 I I D r a f t e n c l o s e d (Effectual delivery o f enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on pay ment date) Delivery Instructions: (Subscriber’s full name or corporate title) □ Hold in Custody Account— Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account (Address) By------------------------------------------------------(Authorized official signature and title) □ Ship to----------------------------------------- (For the account of, if tender is fo r another subscriber) (Address) IM P O R T A N T 1. N o 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 A gen t o f the United States, with notation on the envelope reading “ T E N D E R FOR T R E A S U R Y O F F E R IN G ” . 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 m ay be obtained from this bank or appropriate branch. 3. A n y qualified or conditional tender will be rejected. 4. I f a corporation makes the tender, the form should be signed by an officer o f the corporation authorized to make the tender and the signing o f the form by an officer o f 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 o f 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 (m aturity value) o f 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. I f the language o f this form is changed in any respect, which, in the opinion o f the Secretary o f the Treasury is material, the tender m ay be disregarded. (See reverse fo r announcement)