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F ederal r eser ve Bank o f Dallas F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEXAS 75222 Circular No. 73-107 M ay 8, 1973 NEW OFFERING — TREASURY BILLS To Ail Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attentio n is invited to th e following sta te m e n t giving details of two issues of Treasury bills: T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, invites ten d e rs fo r tw o series of T re a su ry bills to th e agg regate a m o u n t of $4,200,000,000, or th ere ab o u ts, fo r cash a n d in exchange for T re a su ry b ills m a tu rin g M a y 17, 1973, in th e a m o u n t of $4,304,335,000, a s follow s: 91-D A Y B IL L S (to m a tu rity d a te ) to b e issued M a y 17, 1973, in th e a m o u n t of $2,500,000,0O0, o r th ere ab o u ts, re p re se n tin g a n a d d itio n al a m o u n t of bills d a te d F e b ru a ry 15, 1973, a n d to m a tu re A ugust 16, 1973 (C U S IP No. 912793 R Q 1 ) , o rig in ally issued in th e a m o u n t of $1,802,910,000, th e a d d itio n a l a n d original bills to b e fre ely in terchang eable. 182-D A Y B 7L LS for $1,700,000,000, o r th ere ab o u ts, to b 2 d a te d M a y 17, 1973, a n d to m a tu re N o v e m b er 15, 1973 ( C U S I P No. 912793 S D 9 ). ......■ . ... T h e bills of b o th series w ill b e issued on a d iscou nt basis u n d e r co m p e titiv e a n d n o n co m p e titiv e b id d in g as h e re in a fte r pro v id ed , a n d a t m a tu rity th e ir face a m o u n t w ill b e p a y a b le w ith o u t in te re st. T h e y w ill be issued in b e a re r form only, a n d in d e nom inatio ns of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu rity v a lu e ). T e n d e rs will b e receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ran ch es u p to th e closing hour, o n e -th irty p.m ., E a s te rn D a y lig h t Sav ing tim e, M o nday, M a y 14, 1973. T e n d e rs w ill n o t be received a t th e T re a su ry D e p a rtm e n t, W ashington. E ach te n d e r m u st be fo r a m in im u m of $10,000. T e n d e rs over $10,000 m u st be in m u ltip les of $5,000. I n th e case of co m p e titiv e te n d e rs th e p rice offered m u st b e expressed on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay n o t be used. I t is u rg e d t h a t te n d e rs b e m ad e on th e p rin te d fo rm s a n d forw arded in th e special env elop es w hich w ill b e su p plied b y F e d e ra l R e se rv e B a n k s or B ran ch es on a p p lic a tio n th erefor. B a n k in g in stitu tio n s gen erally m a y su b m it te n d e rs fo r acco u n t of custom ers p ro v id ed th e nam es of th e c usto m ers a re set fo rth in such ten ders. O th ers th a n b an k in g in stitu tio n s w ill n o t b e p e rm itte d to su b m it te n d e rs ex ce p t fo r th e ir ow n account. T e n d e rs w ill b e receiv ed w ith o u t d e p o sit from in co rp o ra ted b a n k s and tr u s t co m panies a n d fro m respo nsib le a n d recognized dealers in in v e stm e n t securities. T e n d e rs from o th ers m u s t be a ccom panied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of T re a su ry bills a p p lie d for, u nless th e te n d e rs a re a cco m p an ied b y a n express g u a ra n ty of p a y m e n t b y a n in co rp o ra ted b a n k or tr u s t com pany. Im m e d ia te ly a f te r th e closing hour, te n d e rs w ill b e o p e n ed a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich p u b lic a n n o u n ce m en t w ill b e m ad e b y th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d p rice ra n g e of acc ep te d bids. O n ly tho se su b m ittin g c o m p e titiv e te n d e rs w ill be a d v ised of th e a cc ep ta n ce o r reje ctio n thereof. T h e S e c re ta ry of th e T re a su ry expressly reserves th e rig h t to a c c e p t o r re je c t a n y o r all ten d e rs, in w hole o r in p a rt, a n d his actio n ir. a n y such re sp e c t shall b e final. S u b je c t to th ese reserv atio ns, n o n c o m p e titiv e te n d e rs for each issue fo r $200,000 o r less w ith o u t sta te d p rice fro m a n y one b id d e r w ill be acc ep te d in fu ll a t th e av erag e p rice (in th re e de cim als) of acc ep te d c o m p e titiv e b id s for th e re sp e ctiv e issues. S e ttle m e n t for a ccep ted te n d e rs in accordance w ith th e bids m u st be m ad e o r c o m p leted a t th e F e d e ra l R e se rv e B a n k on M a y 17, 1973, in cash o r o th e r im m e d ia te ly a v a ila b le fu n d s o r in a lik e face a m o u n t of T re a su ry bills m a tu rin g M a y 17, 1973. C ash a n d exchange te n d e rs w ill receive eq u al tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e for differences b etw een th e p a r valu e o f m a tu rin g bills a cc ep te d in exchange a n d th e issue p rice o f th e new bills. U n d e r S ections 45 4 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e C ode of 1954 th e a m o u n t of d iscou nt a t w hich b ills issued h e re u n d e r a re sold is co nsidered to accrue w hen th e b ills a re sold, red eem ed or otherw ise disposed of, a n d th e b ills a re excluded from co n sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life in su ran ce c o m p a n ies) issued h e re u n d e r m u st in clude in his incom e ta x re tu rn , as o rd in a ry g ain o r loss, th e d ifference b etw een th e p rice p a id fo r th e bills, w h e th er o n o rig in al issue or on su b seq u en t p urch ase, a n d th e a m o u n t a c tu a lly receiv ed e ith e r u p o n sale o r re d e m p tio n a t m a tu rity d u rin g th e tax ab le y e a r fo r w hich th e r e tu rn is m ade. T re a su ry D e p a rtm e n t C ircu lar No. 418 ( c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e te rm s of th e T re a su ry b ills a n d govern th e conditions of th e ir issue. C opies of th e c irc u lar m ay b e o b tain e d from a n y F e d e ra l R e se rv e B a n k o r B ranch. In a c cord ance with the a b o v e a n n o u n c e m e n t, ten ders 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 twelve-thirty p.m., Centra! Daylight Saving Time, M on day, M a y 14, 1973. Tenders m ay not be e n te re d by telep ho ne. Yours very truly, T. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS A m o unt, R a n g e a n d A p p ro x im ate Y ield of A ccep ted T en d e rs 3 -M o n th B ills 6 -M onth B ills D u e A u g u st 9, 1973 D u e N o v em b er 8, 1973 $4,375,140,000 .T o ta l A p p lied F o r._______________ ..... $ 3,618,850,000 $2,503,650,000__________________________________ .T o ta l A c c ep ted ___________________________________$1,801,475,000 P ric e Y ield P ric e Y ield 98.455 6 .1 1 2 % ------------------------------------------ H ig h _________________ _____ 96.7 58____ .....6.413% 98.44 8------------------- 6 .1 4 0 % ----------------------------------------- L ow _____________________ 9 6 .7 4 1 ..._..._____ ...6.446% 98.44 9------------------- 6 .13 6% ( 1 ) ----------------------A verag e______________ 96.749._____________ 6.4 31% (1 ) ( 1 ) T h e s e rates are on a b ank d iscou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 6 .3 2 % for th e 3 -m on th h ills an d 6 .7 4 % t h e 6 - m o n th bills. ' (S e e reverse for tender form) fo r 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 Maturing November 15,1973 Dated May 17, 1973 To: Federal Reserve Bank, Station K, 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 oifers 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 exp ressed on th e basis of 100, with not more than three decimal places, e.g., 99.925. F ra c tio n s must not be used. 9 COMPETITIVE TENDERS ¥ (n) (a) $ ¥ (Ft) ¥ ¥ @ ¥ ¥ 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 ¥ □ □ 50,000 ¥ @ $ 100,000 $ @ $ 500,000 $ @$ By maturing bills held by_____________________________ Payment to be made by_____________ □ Charge our reserve account on payment date | | Draft enclosed (Effectual delivery of enclosed d raft @ $1;,000,000 ¥ shall be on latest day which will permit presentm ent in order to obtain irrevocably collected funds on p ay ment date) Delivery Instructions: □ Hold in Custody — General Account (Subscriber’s full name or corporate title) □ Hold in Custody — Investment Ac count (Address) □ □ Hold in Custody — Trust 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 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 officerof the corporation authorized to make th 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)
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