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F e d e r a l R es er v e Ba n k o f D a lla s
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 No. 73-88
April 24, 1973

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your atten tion 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 Departm ent, by this public notice, invites tenders for tw o 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 M ay 3, 1973, in the am ount of
$4,303,150,000, as follows:
91-D A Y B IL L S (to m aturity d ate) to be issued M ay 3, 1973, in the am ount of $2,400,000,000, or thereabouts,
representing an additional am ount of bills dated February 1, 1973, and to m ature August 2, 1973 (C U S IP No.
912793 R N 8 ) , originally issued in the am ount of $1,800,885,000, 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 M ay 3, 1973, and to m ature N ovem ber 1, 1973
(C U S IP N o. 912793 S B 3 ).
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 w ill 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
D ay lig h t Saving tim e, M onday, April 30, 1973. Tenders 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. Tenders over $10,000 m ust be in m ultiples of $5,000. In the case of com petitive
tenders th e price offered m ust be expressed on th e basis of 100, w ith 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 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 custom ers provided the nam es of the custom ers are
set forth in such tenders. Other than banking institutions w ill 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 m ust be accom panied b y paym ent of 2 percent of the face am ount of
Treasury bills applied for, unless the tenders are accompanied 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 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 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 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 for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted at the Federal R eserve Bank on M ay 3, 1973,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing M ay 3, 1973. Cash and
exchange tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een the par value of maturing
bills accepted in exchange and the issue price o f the new bills.
Under Sections 45 4 ( b ) and 1221 ( 5 ) o f the Internal R evenue Code of 1954 the am ount of discount a t 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 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 redem ption a t m aturity during
the taxable year for which the return is made.
Treasury D epartm ent Circular N o. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and
govern the conditions of their issue. Copies o f the circular m ay be obtained from any Federal R eserve Bank or Branch.

In acc o rd a n c e with the a b o v e a n n o u n c e m e n t, tend ers wil' b e received a t this b a n k a n d its bra n c h e s a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M on day, April 30, 1973. Tenders m a y
not be e n te re d b y tele p h o n e .
Yours very truly,
P. E. Coldwell
_______________
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Am ount, R ange and Approxim ate Y ield o f A ccepted Tenders
3-M onth B ills
6-M onth B ills
D u e July 26, 1973
D u e October 25, 1973
$3,473,125,000
T otal A pplied For_________________________________ $3,839,890,000
$2,400,165,000__________________________________ .T otal-A ccep ted------------------------------------------------------$1,800,160,000
P rice
Y ield
Price
Y ield
98.435
6.191% ___________________________H igh________________________ 96.664____________6.599%
98.408
6.298% ___________________________ Low________________________ 96.639____________6.648%
98.420
6.251% ( 1 ) _____________________ A verag e ______________________ 96.648____________6.630% ( 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 basis. T b 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 . 4 4 % fo r t h e 3 - m o n t h bills a n d 6 . 9 6 % for
t b 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 February 1,1973

Maturing August 2 1973
,

To: Federal Reserve Bank, Station E, Dallas, Texas 75222
or —
The______________________ Branch
El Paso 79999 Houston 77001

San Antonio 78295
<D «u)

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.
Prices should be
ex p ressed on th e
1
(ri)
$
basis of 100, with
jr
not more than three
(ri)
COMPETITIVE TENDERS $
decimal places, e.g.,
|$
<n\
99.925. F ra c tio n s
$
@
must not be used.
I
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

M aturity Value

10,000
15,000
(5 ?
<S ? 50,000
? 100,000
.(S3 ? 500,000
.(S $1,,000,000
<, $
5

?-

□

$■
?-

□

?-

□

?.

□

$-

Delivery Instructions:

By m aturing bills
held by--------------------------------------- -Paym ent to be made by-------------------Charge our reserve account on paym ent
date
D raft enclosed (Effectual delivery o f enclosed draft
shall be on latest day which will permit presentment
in order to obtain irrevocably collected fund* on pay­
ment date)

□

Hold in Custody — General Account

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

□

Hold in Custody — Investm ent Ac­
count

(Address)

□
□
□

Hold in Custody — T ru st Account
Pledge to secure T reasury Tax and
Loan Account
Other— --------------------------------------

By-

(Authorized official signature and title)
(For 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, comm; ications 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 th a t 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.
(See reverse for announcement)

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