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federal

R e s e r v e Ba n k o f D a lla s

F IS C A L A G E N T O F T H E U NIT E D ST A T E S

DALLAS, TEXAS 7 5 2 2 2
C ircu la r N o. 73-120
M a y 18, 1973

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your attention is invited to th e following s ta 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 ag g reg ate 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 fo r T re a su ry bills m a tu rin g M a y 31, 1973, in th e a m o u n t of
$6,004,980,000, a s follow s:
91-D A Y B IL L S (to m a tu rity d a te ) to be issued M a y 31, 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 al a m o u n t of bills d a te d M a rc h 1, 1973, a n d to m a tu re A ug ust 30, 1973 (C U S IP
N o. 912793 R S 7 ) , o riginally issued in th e a m o u n t o f $1,800,425,000, th e a d d itio n a l a n d o rig in al bills to be
fre ely interchang eable.
182-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 31, 1973, a n d to m a tu re N o v e m b er 29, 1973
(C U S I P N o. 912793 S F 4 ).
T h e bills of b o th series w ill be issued o n a d isco u n t basis u n d e r co m p e titiv e a n d no n c o m p e titiv e b id d in g as h e re in a fte r
p ro v id ed , a n d a t m a tu r ity 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 will b e issued in b e a re r form only, a n d in
d en 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 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 S av in g tim e, F rid a y , M a y 25, 1973. T e n d e rs w ill n o t be receiv ed 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 fo r a m in im u m of $10,000. T e n d e rs o ver $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 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 rged th a t te n d e rs b e m a d e on th e p rin te d fo rm s a n d forw arded in th e special envelopes w hich w ill be
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 generally 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 n am es o f th e c u stom ers a re
se t fo rth in such ten ders. O th e rs th a n b an k in g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs e x cep 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 e p o sit fro m in co rp o ra ted b a n k s a n d tr u s t com p an ies 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 st b e a cco m p an ied 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 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 rang e o f a cc ep te d bids. O nly those
su 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 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 in a n y such re sp e c t sh all b e final. S u b ­
je c t to th ese reservatio ns, 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 sta te d p rice from a n y o ne b id d e r will
be a ccep ted in full a t th e average o rice (in th re e de cim 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 fo r
acc ep te d te n d e rs in accord ance w ith th e b ids m u st b e m ad e o r c om pleted a t th e F e d e ra l R e se rv e B a n k on M a y 31, 1973,
in cash o r o th e r im m e d ia te ly a v ailab le fu n d s or in a lik e fa ce a m o u n t of T re a su ry b ills m a tu rin g M a y 31, 1973. C ash a n d
exchange te n d e rs will receiv e eq ual tre a tm e n t. C ash a d ju s tm e n ts w ill b s m ad e for differences b e tw ee n th e p a r valu e of m a tu rin g
bills acc ep te d in exchange a n d th e issue p ric e of th e new bills.
U n d e r Sections 454 (b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e Code of 1954 th e a m o u n t of d iscoun t a t w hich b ills issued
h e re u n d e r a re sold is considered to a ccru e w hen th e b ills a re sold, red eem ed o r otherw ise disposed of, a n d th e bills a re exclud ed
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 insuran ce c o m p a n ies) issued h e re ­
u n d e r m u st inclu de in his incom e tax re tu rn , as o rd in ary gain o r loss, th e difference b etw een th e p rice p a id fo r th e bills, w h e th er
on original issue o r on su b seq u e n t pu rch ase, a n d th e a m o u n t a c tu a lly received e ith e r up on sale o r re d e m p tio n a t m a tu rity d u rin g
th e ta x a b le y e a r for 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 ircu la r 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 su ry b ills a n d
govern th e co n d itio n s of th e ir issue. C opies o f th e c irc u lar m ay be 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 a c co rd an ce with the a b o v e an n o u n c e m e n t, ten ders will be received a t this b a n k a n d its b ra n ch e s a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, Friday, M a y 25, 1973. Tenders m ay
not be e n te re d by telep hon e.
Yours very truly,
P. E. Coldwell
President

Figures c o n c ern in g offering o f 91 -D ay Treasury Bills maturing A ugust 2 3 , 1 9 7 3 , a n d 1 8 3 -D a y Treasury Bills m a turing N o v e m ­
ber 2 3 , 1 9 7 3 , not a v a i la b l e w h en this circular w a s printed.

( See 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

182 DAYS TO MATURITY
Dated May 31,1973

Maturing November 29,1973

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 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.

CLOSING

DATE — FRIDAY, M Y 25, 1973
A

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.
c
Prices should be
expressed on th e
(ri)
basis of 100, with
$
$
(ri)
COMPETITIVE TENDERS \ $ __________________ @ ------------------ $-------------------------------------not
more than thre
S
p
decimal places, e.g.,
i$
(ri)
?
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 i
pieces

(a) $

10,000 s. -

fn) $

15,000 $

(i $
r

50,000

OBSERVE

□
□

$

fa) $ 100,000 $
fa $ 500,000 $
),
fa $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 ra ft
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

□

PLEASE

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

M aturity Value

Hold in Custody — Investment Ac-

( Subscriber’s full name or corporate title)

(Address)

COUnt

□
□
□

Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan A
c
c
o
u
n
_ „
Other-----------------------------------------

(Authorized official signature and title)

t

_____________________________________
(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 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 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 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, b y
,
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