View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F

ederal

Reserve

bank of

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, TE X A S 7 5 2 2 2

Circular No. 73-118
M ay 17, 1973

NEW OFFERING — TREASURY BILLS

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the fo llo w in g statem en t giving d etails of an issue o f Treasury bills:
T h e Treasury Departm ent, b y this public notice, invites tenders for $1,800,000,000, or thereabouts, of 341-day Treasury
bills for cash and in exchange for Treasury bills maturing M ay 31, 1973, in the am ount of $6,004,980,000. T h e bills of this
series w ill be dated M ay 31, 1973, and
will mature M ay 7, 1974 (C U S IP No. 912793 SQ O ).
T h e bills 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 without interest. T h e y 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 w ill be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving T im e, Thursday, M ay 24, 1973. Tenders w ill not be received at the Treasury Departm ent, Washington. Each
tender m ust be for a m inim um o f $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of com petitive ten­
ders the price offered m ust be expressed on the basis of 100, with 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.
Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are
set forth in such tenders. Others than banking institutions will 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 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 w ill be opened at the Federal R eserve Banks and Branches, follow ing which
public announcem ent will be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. O nly those sub­
m ittin g com petitive tenders will 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.
Subject to these reservations, noncom petitive tenders 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. Settlem ent for accepted tenders in accor­
dance with the bids m ust be m ade or com pleted at the Federal R eserve Bank on M ay 31, 1973, in cash or other im m ediately
available funds or in a like face amount of Treasury bills maturing M ay 31, 1973. Cash and exchange tenders w ill receive
equal treatment. 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.
Under Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount of discount at 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 income 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 redemption at maturity 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 terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In accord ance with the a b o v e a n n o u n c em en t, tenders will b e received a t this b an k a n d its b ran ch es a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Centra! Daylight S aving Time, Thursday, M a y 24, 1 97 3 . Tenders m a y
not b e entered b y te le p h o n e .
Yours very truly,
P. E. Coldwell
President

(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 TREASURY BILLS

341 DAYS TO MATURITY
Maturing May 7,1974

Dated May 31,1973
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The__________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(D ate)

Pursuant to th e provisions o f T reasury D epartm ent Circular N o. 418 (current revision) and the provisions o f the
public announcement issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the amount
shown below, and agrees to pay for th e am ount allotted, on or before the issu e date, by the method and at the rate indicated.

_NOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $.

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.

(%______________ @ ________ $----------------U ___________________@ ___________ $_______________________

COMPETITIVE TENDERS/ g ________________ @__________ $____________________
)$-------------- @ ---------$-----------------

Prices should be
e x p r e s s e d on th e
basis o f 100, w ith
not m ore than three
decimal places, e.g .,
9 9 .9 2 5 . F r a c tio n s
m ust not be used.

T E N D E R S MAY NOT BE E N T E R E D BY TELE PH O N E . T E N D E R S BY W IRE, IF RECEIVED BEFO RE THE
CLOSING HOUR, A RE ACCEPTABLE.
P aym en t fo r this issu e o f bills cannot be made
by credit to T reasury T ax and Loan Account.

Denominations Desired
N u m b er of
Pieces

M a tu rity V alue

10,000
$ 15,000
$ 50,000
$ 100,000
$ 500,000
$1 ,000,000

@ $
(O
b

METHOD OF P A Y M E N T

t

*

<®

(5)
<>
5
<>
S

□
□

Payment to be made by-------------

□

*

B y maturing bills
held by----------------------------

Charge our reserve account on payment
date

$$$.
|

Delivery Instructions:
□

Hold in Custody — General Account

□

Hold in Custody — Investment A c ­
count

□

Hold in Custody — Trust Account

□

Pledge to secure Treasury Tax and
Loan Account

□

Other__________________________

[ D r a f t e n c l o s e d (Effectual delivery o f enclosed d ra ft
sh all be on la te st day w hich w ill p e rm it p re sen tm en t in
o rd e r to o btain irrevocably collected fu n d s on p ay m en t
date)
(S u b scrib er’s fu ll n am e o r c o rp o rate title)
(A ddress)

By(A uthorized official s ig n a tu re an d title)
(F o r th e acco u n t of, if te n d e r is f o r a n o th e r subscriber)
(A ddress)

IMPORTANT
1. N o tender for le ss than $10,000 w ill be considered and each tender over $10,000 m ust be for an am ount in m ultiples of
$5,000 (m aturity value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as F iscal A g en t o f the
United S tates, w ith notation on the envelope reading “T EN D E R FOR T R E A SU R Y O FFE R IN G ”. Since envelopes
received w ith th is legend w ill not be opened until a fter the closing tim e specified in the public announcement, communi­
cations relating to other m atters should not be enclosed. E nvelopes for subm itting tenders m ay be obtained from this
bank or appropriate branch.
3. A ny qualified or conditional tender w ill be rejected.
4. I f a corporation m akes the tender, the form should be signed by an officer o f the corporation authorized to m ake the
tender and the sign in g o f the form by an officer o f the corporation w ill be construed as a representation by him that he
has been so authorized. If the tender is made by a partnership it should be signed by a member o f the firm, who
should sig n in the form “ ................................................................, a copartnership, by............................................................................... — ,
a member o f the firm”.
5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in vest­
m ent securities w ill be disregarded, unless accompanied by a deposit of 2 percent o f the total amount (m aturity value)
o f the Treasury bills applied for, or unless the tenders are accompanied by an express gu aranty of full paym ent by an
incorporated bank or trust company.
6. If the language o f th is form is changed in any respect, which, in the opinion o f the Secretary o f th e T reasury is
m aterial, the tender m ay be disregarded.

(See reverse for announcement)

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