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F ederal R eserve b a n k of Dallas


Circular No. 73-106
May 8, 1973

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your atte n tio n is invited to the following sta te m e n t giving details of two 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 M ay 17, 1973, in the am ount of
$4,304,335,000, as follows:
91-D A Y B IL L S (to m aturity date) to be issued M ay 17, 1973, in the am ount of $2,500,000,000, or thereabouts,
representing an additional am ount of bills dated February 15, 1973, and to mature August 16, 1973 (C U S IP
No. 912793 R Q 1 ), originally issued in the am ount of $1,802,910,000, the additional and original bills to be
freely interchangeable.
182-D A Y B IL L S for $1,700,000,000, or thereabouts, to be dated M ay 17, 1973, and to m ature N ovem ber 15, 1973
(C U S IP No. 912793 S D 9 ).
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 w ill 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 arid Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving tim e, M onday, M ay 14, 1973. Tenders w ill not be received at the Treasury Departm 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 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 the special envelop es which w ill be
supplied by Federal R eserve Banks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the nam es of the custom ers are
set forth in such tenders. Others than banking institutions w ill not be perm itted to subm it tenders except for their own account.
Tenders w ill 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 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 the closing hour, tenders will 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. Only those
subm itting com petitive tenders w ill be advised of the acceptance or 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 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 M ay 17, 1973,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing M ay 17, 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 of maturing
bills accepted in exchange and the issue price of the new bills.
U nder Sections 454 (b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the amount of discount a t which bills issued
hereunder are sold is considered to accrue w hen 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 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 rd a n c e with the a b o v e a n n o u n c e m e n t, tenders will 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 , M ay 14, 1973. Tenders m ay
not b e e n te re d by telep hon e.
Yours very truly,
P. E, Coldwell
Amount, Range and Approxim ate Y ield of A ccepted Tenders
3-M onth B ills
6-M onth B ills
D u e August 9, 1973
D u e N ovem ber 8, 1973
.T otal A pplied For_______________________________....$3,618,850,000
$2,503,650,000__________________________________ T otal_A ccep ted___________________________________$1,801,475,000
Y ield
Y ield
6.112% ___________________________ H igh_______________________ 96.758______ : _____ 6.413%
98.44 8 ____________ 6.140% ____________________________Low________________________96.741_____________6.4469,
98.44 9_____________6.136% ( 1 ) ______________________Average______________________96.749____________ 6.431% (1 )
( 1 ) T h e s e r a t e s a r e o n a b a n k d is co u n t b asis. T h e e q u i v a le n t cou p o n is sue y ie ld s a r e 6 . 3 2 % f o r t h e 3 - m o n t h bills a n d 6 . 7 4 % for
t h e 6 -m o n t h bills.

(S the Federal Reserve form)
This publication was digitized and made available by e e reverse for tender Bank of Dallas' Historical Library (


Dated February 15, 1973

Maturing August 16,1973

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

Houston 77001

San Antonio 78295


(D ate)

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 pressed on the
------------------« ----------------------------------j>
basis of 100, with
not more than three
COMPETITIVE TENDERS <1 __________________ @ ------------------ $----------------------------------^$
decimal places, e.g.,
------------^— -------------------------------m ust 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.

M aturity Value


10,000 ¥15,000 ¥-


50,000 ¥¥ 100,000 ¥¥ 500,000 ¥¥l.,000,000 ¥


By maturing bills
held by--------------Payment to be made by_


Charge our reserve account on payment
| | Draft 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:

Hold in Custody — General Account


( Subscriber’s full name or corporate title)

Hold in Custody — Investment AcC O U Ilt


m date)


Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
(Authorized official signature and title)
Loan Account______________________________ _____________________________________
_ ,,
(F o r 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
4. If a corporation makes the tender, the form should be
signed by an officerof 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 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
(See reverse for announcement)

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