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Circular 73-82
April 17, 1973

To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your attentio n 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, by th is 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 26, 1973, in the am ount of
$4,200,830,000, as follow s:
91-D A Y B IL L S (to m aturity d a te) to be issued April 26, 1973, in the am ount of $2,400,000,000, or thereabouts,
representing an additional am ount of bills dated January 25, 1973, and to m ature Ju ly 26, 1973 (C U S IP No.
912793 R M 0 ), originally issued in th e am ount of $1,901,115,000, the additional and original bills to be freely
182-D A Y B IL L S for $1,800,000,000, or thereabouts, to be dated April 26, 1973, and to m ature O ctober 25, 1973
(C U S IP N o. 912793 S A 5 ).
T h e b ills 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 will be issued in bearer form only, and in
denom inations o f $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 23, 1973. T enders w ill not be received at the Treasury Departm ent, Washington. 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 th e special envelop es 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 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.
Tenders will be received w ithout deposit from incorporated banks and trust com panies and from responsibie and recognized
dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent o f 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 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 o f the am ount and price range of accepted bids. O nly 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 w ill
be accepted in full at the average price (in three decim als) of accepted com petitive bids for tl e respective issues. S ettlem ent for
accepted tenders in accordance w ith th e bids m ust be m ade or com pleted a t the Federal R eserve Bank on April 26, 1973,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing April 26, 1973. Cash and
exchange tenders will 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 o f the new bills.
Under Sections 454 ( b ) and 1221 ( 5 ) o f the 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 income tax return, as ordinary gain or loss, the difference betw een th e 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 a t 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 term s o f the Treasury bills and
govern the conditions of their issue. Copies of th e circular m ay be obtained from any Federal R eserve Bank or Branch.

In a c cord ance with 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 be received a t this b a n k a n d its b r a 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 , April 23, 1973. Tenders m a y not
be entered by tele p h o n e .
Yours very truly,
P E. Coldwell
Am ount, R an ge and Approxim ate Y ield o f A ccepted Tenders
3-M onth B ills
6-M onth B ills
D u e Ju ly 19, 1973
D u e O ctober 18, 1973
$4,170,500,000________________________________ .Total A pplied For____________________
$2,400,550,000__________________________________ -Total A ccep ted$1,800,120,000
P rice
Y ield
P rice
Y ield
98.443_____________ 6.160% __________________________ .H igh-______________________ 96.778_____________6.373%
6.203% ___________________________ Low________________________96.765____________ 6.399%
98.436---------------------6.187% ( 1 ) _____________________A v era g e_____________________ 96.770____________ 6.389% ( 1 )
( 1 ) T h e s e ra tes are on a b ank d iscou nt basis. T h e eq u iv a le n t coupon issu e y ie ld s are 6 .3 7 % for th e 3-m on th b ills an d 6 .6 9 % for
th e 6 -m on th bills.

(See reverse for tender form)

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


Dated January 25, 1973

M aturing July 26, 1973

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

Houston 77001

San Antonio 78295____________________________________________________________

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.

V-------------------------------------- •< --------------------------V ----------------1$

( it


COMPETITIVE TENDERS ( $------------------------@__________ $

(a 5

Prices should be
exp ressed on th e
basis of 100, with

not more than three

decimal places, e.g.,
99.925. F rac tio n s
must not be used.


Denominations Desired
Number o f

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

Maturity Value

(5i $
to ?

10,000 $15,000 $-


50,000 *.
m $ 100,000
m $ 500,000
m $i ,000,000

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


Charge our reserve account on payment
I I D raft enclosed (Effectual delivery o f enclosed draft
shall be on latest day which will permit presentment
in order to obtain irrevocably collected funds on pay-

Delivery Instructions:

ment dat*)

Hold in Custody — General Account
Hold in Custody — Investm ent Ac­

(Subscriber's fu ll name or corporate title)

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

g y___________________________________


(Authorized official .^ n a t u r e 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 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 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.

( e r v r ef ra n u c m n )
Se ees o n o n e e t

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