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F E D E R A L R E S E R V E B A N K OF D A LLA S
FISCAL AGENT OF THE UNITED STATES

DALLAS, TEXAS 75222
Circular 73-83
April 17, 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 the following sta te m e n t giving details of two issues of Treasury bills:
T h e Treasury D epartm 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 26, 1973, in the am ount of
$4,200,830,000, as follows:
91-D A Y B IL L S (to m aturity d ate) 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 July 26, 1973 (C U S IP No.
912793 R M 0 ), originally issued in the am ount of $1,901,115,000, 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 April 26, 1973, and to mature October 25, 1973
(C U S IP No. 912793 S A 5 ).
T h e bills of both series will 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 w ithout 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 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. Tenders 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, with not more than three decimals, 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 will 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 accou n t
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 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 m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. O nly those
subm itting com petitive tenders w ill be advised of the acceptance o f rejection thereof. T he 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 April 26, 1973,
in cash or other im m ediately available funds or in a lik e face am ount of Treasury bills maturing April 26, 1973. Cash and
exchange tenders w ill receive equal treatment. Cash adjustm ents will be m ade for differences betw een the par value of maturing
bills accepted in exchang >
and the issue price of the new bills.
Under Sections 454 ( b ) and 1221 ( 5 ) o f 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 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 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, tend ers will be received a t this b a n k a n d its bra n ch 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 nday, April 23, 1973. Tenders m a y not
be entered by teleph 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 Tenuers
3-M onth B ills
6-M onth B ills
D u e J uly 19, 1973
D u e October 18, 1973
$4,170,500,000
^
T otal A pplied F o r _ . . - _______________
$3,759,800,000
$2,400,550,000_______________________________
T otal A ccepted. _________________
$1,800,120,000
Price
Y ield
Price
Y ield
98.443_____________6.160% ---------------H igh er.,
______
.,*96.778_____________ 6.373%
98.432_____________6.203% _________
Low____ .___________________ 96.765____________ 6.399%
98.436
6.187% ( 1 ) ___________!______ .___Average_____________________ 96.770_____________6.389% ( 1 )
( 1 ) T h e s e rates are on a b a n k discount basis. T h e eq u iv a le n t coupon issue y ie ld s are 6 .3 7 % for th e 3-m on th bills and 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 (FedHistory@dal.frb.org)

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Dated April 26,1973

Maturing October 25, 1973

T o: Federal Reserve Bank, Station E, Dallas, Texas 75222
or —
The________________________ Branch
El Paso 79999 Houston 77001

San Antonio 78295
(Date)

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.
Prices should be
expressed on th e
----------------------------basis of 100, with
________________
not more than three
decimal places, e.g.,
99.925.
----------------------------must not be used.

COMPETITIVE TENDERS
f

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
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 $$
.(a), $ 500,000 *
M $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 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:
□

Hold in Custody — General Account

(Subscriber's fu ll name or corporate title)

□

Hold in Custody — Investm ent Ac­
count

(Address)

□
□
□

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

By-

(Authorized official signature and title)

(F or 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 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. 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