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federal

R eserve Ba nk of D allas

F IS C A L A G E N T O F T H E U N IT E D

STATES

DALLAS, TEXAS 75222
Circular 73-72
A pril 3, 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 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 am ount
of $4,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing April 12, 1973, in the am ount of
$4,204,960,000, as follows:
91-D A Y B IL L S (to m aturity d ate) to be issued April 12, 1973, in the am ount of $2,400,000,000, or thereabouts,
representing an additional am ount of bills dated January 11, 1973, and to m ature July 12, 1973 (C U S IP No.
912793 R K 4 ), originally issued in the am ount of $1,901,780,000, th e 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 April 12, 1973, and to mature October 11, 1973
(C U S IP No. 912793 R Y 4 ).
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 hey 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 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, April 9, 1973. T enders 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. T enders 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, with 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.
B anking institutions generally m ay subm it tenders for account of customers provided the names of 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 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 the face amount 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, 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. Only those
subm itting com petitive tenders will be advised of the acceptance of 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 De m ade or com pleted at the Federal R eserve Bank on April 12, 1973,
in cash or other im m ediately available funds or in a lik e face am ount of Treasury bills maturing April 12, 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 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 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 income 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 maturity during
the taxable year for which the return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s 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 acco rdance with 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 ran ch es 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 day, April 9, 1973. Tenders m a y not
be e n te re d by telepho ne.
Yours very truly,
P. E. Coldwell
_______________
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Am 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 July 5, 1973
D u e October 4, 1973
$3,889,830,000
- T o t a l A pplied For------------------------------$4,238,740,000
$2,399,830,000___________________________________T otal A ccep ted______________________
$1,800,285,000
P rice
Y ield
P rice
Y ield
98.367_____________6.460% ___________________________ H igh _______________________ 96.585 ____________ 6.755%
98.341____________ 6.563% __________________ _________ Low _______________________ 96.548
6.828%
98.349_____________6.531% ( 1 ) ______________________ A verage______________________96.555____________ 6.814% ( 1 )
( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t b asis. T h e e q u i v a le n t c o u p o n is su e y ie ld s a r e 6 . 7 3 % f o r t h e 3 - m o n t h bills a n d 7 . 1 6 % for
th e 6 - m o n t h 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 11,1973

Maturing July 12,1973

T o : 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 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 at the average
price (in three decimals) of accepted competitive bids.
/u

COMPETITIVE TENDERS

*
$

------ -----()
a
(
a)
(h
c

$

<
r

Prices should be
ex p ressed on th e
basis of 100, with
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
m ust not be used.

$
I
$
$

I S P TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
Number of
pieces

Xd *
m $
(n $

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT

Maturity Value

10,000 $■
15,000 ?-

□
□

50,000 $-C . $ 100,000 $o
M $ 500,000 *
Xu $1,000,000

□

By m aturing bills
held by-------------------------------------------Paym ent to be made by-------------------Charge our reserve account on payment
date

I I D r a f t e n c l o s e d (Effectual delivery of enclosed draft
shall be on latest day which will permit presentment
in order to obtain irrevocably collected fun da on pay­
ment date)

Delivery Instructions:
□

Hold in Custody — General Account

(Subscriber's fu ll nam e or corporate title)

□

Hold in Custody — Investm ent Ac­
count

(Addrew)

□
□
□

Hold in Custody — T rust Account
Pledge to secure Treasury Tax and
Loan Account
Other-----------------------------------------

By-

(Authorized official signature and title)

(For the account of, if tender la for another subscriber)

(Address)

IMPORTANT
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 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 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. Tf 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)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102