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F ederal R eserve Ba n k o f D allas
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. 73-115
M ay 15, 1973

NEW OFFERING — TREASURY BILLS
To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the following statement 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, in v ites 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, for cash a n d in exchange for T re a su ry b ills m a tu rin g M a y 24, 1973, in th e a m o u n t of
$4,301,240,000, as 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 24, 1973, in th e a m o u n t of $2,500,000,000, or 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 22, 1973, a n d to m a tu re A ug ust 23, 1973 (C U S IP
No. 912793 R R 9 ) , originally issued in th e a m o u n t of $1,801,175,000, th e a d d itio n al a n d original bills to be
fre ely interchan geab le.
183-D A Y B IL L S for $1,700,000,000, or th ere ab o u ts, to be d a te d M a y 24, 1973, a n d to m a tu re N o v em b er 23, 1973
(C U S IP No. 912793 S E 7 ).
T h e b ills of b o th series w ill b e issued on a d isco u n t basis u n d e r co m p e titiv e a n d n o n c o m p e titiv e b id d in g a s h e re in a fte r
p ro 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 terest. T h e y w ill be issued in b e a re r form only, a n d in
d e n o m in a tio n s of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu r ity 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 ranches 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 21, 1973. T e n d e rs w ill not b e receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington. E ac h
te n d e r m u st b e for a m in im u m of $10,000. T e n d e rs ov er $10,000 m u st be in m u ltip le s of $5,000. I n th e case of c o m p etitiv e
te n d e rs th e p ric e offered m u st be expressed o n th e basis of 100, w ith n o t m o re 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 fo rw arded in th e special envelopes w hich will b e
su p p lied by F e d e ra l R e se rv e B a n k s o r B ra n ch e s on a p p lic a tio n therefor.
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 for acco u n t of custo m ers p ro v id ed th e n am es of th e custom ers a re
se t 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 for th e ir ow n account.
T e n d e rs w ill be receiv ed w ith o u t d ep o sit from in co rp o ra ted b a n k s and tru s t co m panies a n d from resp onsible a n d recognized
de ale rs in in v estm e n t securities. T e n d e rs from o th ers m u st b e a cco m 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 ran ty of p a y m e n t b y a n in c o rp o ra ted b a n k or
tru 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 open 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 c e m e n 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 rang e of a cc ep te d bids. O nly those
su b m ittin g co m p e titiv e ten d e rs will b e advised of th e a cc ep ta n ce o r reje ctio n thereof. T h e S e c retary of th e T re a su ry expressly
reserv es th e rig h t to a cc ep t or re je c t a n y o r all ten d ers, in w hole or in p a rt, a n d his a ctio n in a n y such re sp e c t shall b e final. S u b ­
je c t to th ese reservations, n o n c o m p e titiv e te n d e rs for each issue for $200,000 o r less w ith o u t sta te d p rice fro m a n y one b id d er w ill
be acc ep te d in full a t th e av erage p rice (in th re e d ecim als) of acc ep te d co m p e titiv e b id s fo r th e re sp e ctiv e issues. S e ttle m e n t for
acc ep te d te n d e rs in accordance w ith th e bids m u st b e m ad e or c o m pleted a t th e F e d e ra l R e se rv e B a n k o n M a y 24, 1973,
in cash o r o th e r im m e d ia tely a v ailab le fu n d s or 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 24, 1973. Cash a n d
exchange te n d e rs will 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 e tw ee n th e p a r v a lu e of m a tu rin g
bills acc ep te d in exchange a n d th e issue p rice of th e new bills.
U n d e r S ectio ns 454 (b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e C ode of 1954 th e a m o u n t of d iscou nt a t w hich bills issued
h e re u n d e r a re sold is considered to accrue w h en th e b ills a re sold, re d ee m e d or otherw ise disposed of, a n d th e b ills a re excluded
fro m co n sid era tio 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 an ies) issued h e re ­
u n d e r m u st in clu d e in his incom e ta x re tu rn , as o rd in ary g ain or loss, th e difference b etw een th e p rice p a id fo r th e bills, w h eth er
on original issue or on su b seq u en t p urchase, a n d th e a m o u n t a c tu a lly received e ith e r u p o n sale or re d e m p tio n a t m a tu rity during
th e tax a b le y e a r fo r w nich th e r e tu r n is m ade.
T re a su ry D e p a rtm e n t C ircu la r No. 41 8 (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 bills a n d
govern th e c o nditions o f th e ir issue. C opies of th e c irc u lar m a y 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 accordance with the above announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Monday, May 21, 1973. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R a n g e a n d A p p ro x im ate Y ield of A c c ep ted T e n d e rs
3 -M o n th Bills
6-M on th Bills
D u e A u gust 16, 1973
D u e N o v e m b er 15, 1973
$3,788,540,000
.T o ta l A p p lied For. _________________________________$3,560,895,000
$2,500,480,000___________________________________T o ta l A c c ep ted ___________________________________$1,701,300,000
P ric e
Y ield
P ric e
Y ield
98.452____________ 6 .1 2 4 % ___________________________ H ig h ____ __
96.761____________ 6 .40 7 %

98.433__________ 6.199 %_______________________ Low____________________ 96.730__________6.468 %
98.438____________ 6 .17 9 % ( 1 ) ______________________A v erag e ______________________ 96.7.36____________6 .4 5 6 % ( 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 b asis. T h e e q u i v a le n t coup o n issue y ie ld s a r e 6 . 3 6 % f o r th e 3 - m o n th b ills a n d 6 . 7 7 % for
t h e 6 -m o n th bills.

(S e e 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
Maturing August 23,1973

Dated February 22,1973
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(D a te)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount
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 $___________________________________

JNOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
Prices should be
---------1 ----------------------------------ex p ressed on th e
,$
In)
basis of 100, w ith
$
not more than th ree
X
fn)
COMPETITIVE TENDERS
decimal places, e.g.,
$
fn)
99.925. F ra c tio n s
$
@
m ust not be used.
TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING HOUR ARE ACCEPTABLE.
Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT

Denominations Desired
Number of
pieces

M aturity Value

@$

10,000 $

□

15,000 $
□

@ ? 50,000 $
@ $ 100,000 $

□

@ $ 500,000 $
@$1,000,000 $

By maturing bills
held by------------------------------------------ _
Payment to be made by____________ _
Charge our reserve account on payment
date

| | D r a f t e n c l o s e d (Effectual delivery o f enclosed d r a ft
shall be on latest day which will permit presentm ent
in order to obtain irrevocably collected funds on p a y ­
m ent 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 o r 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 a fter 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 th is
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 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