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F e d e r a l r e s e r v e Ba n k

* 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
C ircu la r N o. 73-128
M a y 29, 1973

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your attentio n is invited to th e following s ta te m e n t giving detaiis 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 vites te n d e rs for tw o series of T re a su ry b ills to th e a g g reg a te a m o u n t
o f $4,200,000,000, o r th ere ab o u ts, fo r cash a n d in exchange fo r T re a su ry bills m a tu rin g J u n e 7, 1973, in th e a m o u n t of
$4,287,370,000, a s follow s:
91-D A Y B IL L S (to m a tu rity d a te ) to b e issued J u n e 7, 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 arch 8, 1973, a n d to m a tu re S e p te m b e r 6, 1973 (C U S IP No.
912793 R T 5 ) , originally issued in th e a m o u n t of $1,800,490,000, th e a d d itio n a l a n d original bills to be fre ely
in terch an g eab le.
182-D A Y B IL L S fo r $1,700,000,000, o r th ere ab o u ts, to b e d a te d J u n e 7, 1973, a n d to m a tu re D e c em b er 6, 1973
(C U S IP N o. 912793 S G 2 ).
T h e bills of b o th series will b e issued on a d iscoun 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 e d , 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 ab le w ith o u t in terest. T h e y w ill be 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 be 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 h our, o n e -th irty p.m ., E a s te rn
D a y lig h t Sav ing tim e , M o n d ay , J u n e 4, 1973. T e n d e rs w ill no t b e received a t th e T re a su ry D e p a rtm e n t, W ash ington. E a c h
te n d e r m u s t be fo r a m in im u m of $10,000. T e n d e rs o ver $10,000 m u st b e 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 s t be expressed o n 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 b e used. I t is u rg e d t h a t te n d e rs be m ad e on th e p rin te d fo rm s a n d forw arded in th e special e n v elopes w hich w ill b e
su p p lie d b y F e d e ra l R e se rv e B a n k s o r B ran ch es o n a p p lic a tio n th erefor.
B a n k in g in stitu tio n s g en erally m ay su b m it te n d e rs for acc o u n t of c usto m ers p ro v id ed th e n am es o f th e cu sto m ers a re
se t fo rth in such ten d ers. O th e rs th a n b an k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it ten d e rs ex ce p t fo r th e ir ow n a c c o u n t
T e n d e rs w ill be receiv ed w ith o u t d ep o sit fro m in co rp o ra ted b a n k s a n d tr u s t com panies a n d b o m respo nsib le a n d recognized
d e a le rs in in v e s tm e n t securities. T e n d e rs fro m o th ers m u s t be a ccom 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 s u r y b ills 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 c o rp o ra ted b a n k or
t r 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 ranch es, 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 range of a cc ep te d bids. O nly th o se
su b m ittin g co m p e titiv e te n d e rs will b e a d v ised of th e a cc ep ta n ce o r re je ctio n th ereof. T h e S e c retary of th e T re a su ry expressly
re se rv e s 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 h is a ctio 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 reservations, n o n co m p e titiv e te n d e rs fo r each issue fo r $200,000 o r 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 a c c e p te d in full a t th e a v erag e p rice ( in th re e d e cim als) of acc ep te d co 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 c c e p te d te n d e rs in accord ance w ith th e b id s m u st b e 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 J u n e 7, 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 like face a m o u n t of T re a su ry bills m a tu rin g Ju n e 7, 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 will b e m ad e for differences b e tw ee n th e p a r v a lu e o f m a tu rin g
b ills a c c e p 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 4 5 4 ( b ) a n d 1221 ( 5 ) o f 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 isco unt a t w hich bills issued
h e re u n d e r a re sold is co nsid ered to accru e w hen th e b ills a re sold, re d ee m e d or o therw ise disposed of, a n d th e bills a re exclud ed
fro m co n sid era tio n a s 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 , a s o rd in ary gain or loss, th e difference betw een th e p rice p a id fo r th e bills, w h e th er
o n o rig in a l issue or 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 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 ta x a b 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 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
go v ern th e co n d itio n s of th e ir issue. C opies of th e c irc u la r m ay b e o b ta in e d from a n y F e d e ra l R eserv e B a n k o r B ranch .

In a c c o rd a n c e w ith th e a b o v e a n n o u n c e m e n t, tend ers will b e 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 twelve-thirty p.m., Central Daylight Saving Time, M o n d a y , J u n e 4, 1973. Tenders m a y
not be e n te re d by tele p h o n e .
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ou nt, R a n g e a n d A p p ro x im ate Y ie ld o f A c c ep ted T e n d e rs
3 -M o n th B ills
6 -M on th B ills
D u e A ug ust 30, 1973
D u e N o v e m b er 29, 1973
$3,450,260,000
.T o ta l A p p lied F o r--------------------------------------------------- $3,563,040,000
$2,500,085,000__________________________________ T o ta l_A c c ep ted ___________________________________ $1,700,610,000
P ric e
Y ield
P ric e
Y ield
98.332------------------- 6 .5 9 9 % -------------------------------H ig h _________________ 96.554____________ 6.816%
98.289------------------- 6 .7 6 9 % ------------------------------------------ L ow ________________________ 96.518____________ 6.887%
98.308------------------- 6 .69 4% ( 1 ) --------------------------------- A v erag e ______________________ 96.530____________ 6 .864 % ( 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 issu e y ie ld s are 6 .9 0 % for th e 3 -m on th b ills an d 7 .2 1 % for
th 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 FO

ADDITION TO TREASURY BILLL

91 DAYS TO MATURITY
Dated March 8,1973

Maturing September 6,1973

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 a t 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.
■

^
‘1 1
,1 v3»

rf
COMPETITIVE TENDERS { $
$_______________
S
$

ft
i:
$
f)
n
$
@--------------- $-----------------------------fi
n

$

@

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
m ust not be used.

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEP A.BLE.
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

(S $
3
(S $

10,000 $
15,000 $

□
□

50,000 ?
(S $ 100,000 $
(i $ 500,000 $
S
(53 $1 ,000,000 $
(S *

By maturing bills
held by-------------------------------Payment to be made by_

□

Charge our reserve account on payment
date
| | Draft enclosed (Effectual delivery of enclosed draft
shall be on latest day which w ill permit presentm ent
in order to obtain irrevocably collected funds on pay-

Delivery Instructions:
□

Hold in Custody — General Account

□

m date)
ent

Hold in Custody — Investment Ac-

( Subscriber’s full name or corporate title)

(Address)

COUIlt

□
□
□

Hold in Custody — Trust Account
Pledge tO Secure Treasury Tax and
Loan Account

By.___________________________________
(Authorized official signature and title)

_____________________________________

_

(F or the account of, if tender is for another subscriber)

Other-----------------------------------------

------------- --------------------—----------------------------------------------------------------------------------------

(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, by------------------------------------------------------------- a member of the firm.”
5. Tenders from those other than incorporated banks and rust 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