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F ederal r eser ve b a n k 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. 73-116
M a y IS, 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 for tw o series of T re a su ry b ills to th e ag g reg ate a m o u n t
o f $4,200,000,000, o r th ere ab o u ts, for cash a n d in exchange for T re a su ry bills 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, o r th ere ab o u ts,
re p re se n tin g a n a d d itio n a l 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 u gust 23, 1973 (C U S IP
N o. 912793 R R 9 ) , o rig in ally issued in th e a m o u n t of $1,801,175,000, th e a d d itio n a l a n d o rig in al b ills to be
fre ely interchang eable.
183-D A Y B IL L S for $1,700,000,000, o r 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 e m b er 23, 1973
(C U S IP No. 912793 S E 7 ).
T h e bills of b o th series w ill b e issued o n a d isco u n t b asis u n d e r c o 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 b e issued in b e a re r fo rm 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 rity v a lu e ).
T e n d e rs will b e received 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 ho ur, o n e -th irty p.m ., E a s te rn
D a y lig h t S aving tim e , M on day, M a y 21, 1973. T e n d e rs w ill n ot be received a t th e T re a su ry D e p a rtm e n t, W ashington. E a c 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 over $10,000 m u st be in m u ltip le s 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 o n th e basis o f 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 b e used. I t is u rg e d th a t te n d e rs b e m ad e on th e p r in te d form s a n d forw arded in th e special envelopes w hich w ill b e
su p p lied b y 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 th erefor.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs fo r a cco u n t of cu sto m ers p ro v id ed th e n am es of th e cu sto m e rs a re
set fo rth in such ten d ers. O th ers th a n b a n 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 b e re ce iv e d 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 c om panies a n d fro m resp onsible a n d recognized
d e ale rs in in v e stm e n t securities. T e n d e rs from o th ers m u s t be acco m p an ied b y p a y m e n t o f 2 p e rc e n t of th e fa ce a m o u n t of
T re a su ry b ills a p p lie d for, unless 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 fte r th e closing ho ur, te n d e rs w ill b e o pen 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 a d e b y th e T re a su ry D e p a rtm e n t o f th e a m o u n t a n d p rice range o f a cc ep te d bids. O n ly th o se
s u b m ittin g c o m p e titiv e te n d e rs w ill b e ad v ised of th e acc ep ta n ce o r reje ctio n thereof. T h e S e c re ta ry o f 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 a ll ten d e rs, in w hole o r 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 fo r $200,000 or less w ith o u t s ta te d p rice fro m a n y one b id d e r w ill
b e acc ep te d in fu ll a t th e av erage p ric e ( in th re e de cim als) of acc ep te d co m p e titiv e b ids fo r th e re sp e ctiv e issues. S e ttle m e n t for
a cc ep te d te n d e rs in accordance w ith th e b id s m u st be m ad e o r c o m p le te d 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 or o th e r im m e d ia te ly a v ailab le fu n d s o r in a lik e face a m o u n t of T re a su ry b ills m a tu rin g M a y 24, 1973. C ash a n d
exchange te n d e rs will receiv e e q u al tr e a t m 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 v a lu e o f m a tu rin g
b ills acc 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 4 5 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 o f d isco u n t a t w hich b ills issued
h e re u n d e r a re sold is considered to accru e 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
from 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 a n ies) issued here­
u n d e r m u st in clude in h is incom e ta x re tu rn , a s o rd in a ry g ain or loss, th e difference b e tw ee n th e p rice p a id fo r th e bills, w h e th er
o n original issue o r on su b seq u e n t purch ase, 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 o r re d e m p tio n a t m a tu r ity d u rin g
th e tax ab le y e a r fo r w hich th e r e tu r n is m ade.
T re a su ry D e p a rtm e n t C ircular N o. 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 s u ry b ills a n d
govern th e co n d itio n s of th e ir issue. C opies of th e c irc u lar m a y b e o b tain e d fro m 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 o unt, R a n g e a n d A p p ro x im ate Y ie ld of A ccep ted T e n d e rs
3-M o n th B ills
6 -M onth B ills
D u e A u g u st 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 F o r _________________________________ $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 ie ld
P ric e
Y ield
98.452
6 .1 2 4 % ------------------------------------------ H ig h ______________________ 9 6 .76 1 ._ ___________ 6 .407 %
98.433------------------- 6 .1 9 9 % -------------------------------------------Low ______________________ 96.730_____________ 6 .468 %
98.438
6.179% ( 1 ) ----------------------A verage______________ 96.7.36_____________ 6 .456 % ( 1 )
( 1 ) T h e s e rates a re on a b ank d iscou nt b asis. T h e eq u iv a le n t coupon issue y ie ld s are 6 .3 6 % fo r th e 3-m on th b ills an d 6 .7 7 % for
th e 6-m o n th bills.

( ee
This publication was digitized and made available bySthe reverse for tenderBank) of Dallas' Historical Library (FedHistory@dal.frb.org)
Federal Reserve form

TENDER FOR TREASURY BILLS

183 DAYS TO MATURITY
Dated May 24, 1973

Maturing November 23, 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 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.

NONCOM1 DTITIVE 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.
^

™
' ‘
1$--------------------------- @ ------------------ $-----------------------------------COMPETITIVE TENDERS \1­
$__________________ @ _____
...
$________________
Is__________________(a)____________$_______________________
L
rv
S
•:
^
^
^

Prices should be
ex p ressed on th e
basis of 100, w ith
not more than th ree
decimal places, e.g.,
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.
Denominations Desired
Number o f
pieces

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT

Maturity Value

10,000 $-@ $
.<a$

□

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
I I Draft enclosed (Effectual delivery o f enclosed d r a ft

_@ $1,000,000 $.

shall be on latest day which will permit presentm ent
in order to obtain irrevocably collected funds on pay -

Delivery Instructions:

m date)
ent

□

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
1

□

Other-

R v
(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 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 th e
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 tomake th e
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