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F ederal r es er v e 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. 73-140
June 12, 1973

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your a ttention is invited to the following sta te m e n t giving details of tw o 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 tend urs 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, or 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 J u n e 21, 1973, in th e a m o u n t of
$4,306,315,000, as follows:
91-D A Y B IL L S (to m a tu rity d a te ) to b e issued J u n e 21, 1973, in th e a m o u n t o f $2,500,000,000. or th ere ab o u ts,
re p rese n tin g a n ad d itio n al a m o u n t of bills d a te d M a rc h 22, 1973, a n d to m a tu re S e p te m b e r 20, 1973 (C U S IP
N o. 912793 R V 0 ) , o riginally issued in th e a m o u n t of $1,801,355,000, th e a d d itio n a l a n d o rig in al bills to b e
fre ely in terch an geable.
182-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 J u n e 21, 1973, a n d to m a tu re D e c e m b e r 20, 1973
(C U S IP No. 912793 S J 6 ).
T h e bills of b o th series will be issued on a d isco unt 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 as 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 will be p ay ab 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 r ity 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 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 Savin g T im e , M o nd ay, J u n e 18, 1973. T e n d e rs w ill n o t b s receiv ed a t th e T re a su ry D e p a rtm e n t, W ashing ton . 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 o ver $10,000 m ust be in m u ltip le s of $5,000. In th e case of c o m p e titiv e
te n d e rs th e p rice offered m u st be expressed on 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 be 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 rin te d form s a n d forw arded in th e special e nvelo pes w hich w ill be
su p p lie d by F e d e ra l R e se rv e B a n k s or B ranches on a p p lic a tio n therefor.
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 acco unt of cu stom ers p ro v id ed th e nam es of th e c u stom ers a re
s e t fo rth in such ten ders. O th ers th a n b an k in g in stitu tio n s will n o t b e p e rm itte d to su b m it te n d e rs ex cep t fo r th e ir ow n account.
T e n d e rs will be receiv ed w ith o u t d ep o sit from in co rp o ra ted b anks and tru s t com p an ies a n d fro m respon sible a n d recognized
d e ale rs in in v estm e n t securities. T e n d e rs from o th ers m u st be accom pan 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 ry bills a p p lie d for, unless th e ten d e rs a re a cco m panied 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 fte r th e closing hour, te n d e rs will be o p e n ed a t tho 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 will be m ad e by 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 ccep ted bids. O nly th o se
s u b m ittin g c o m p e titiv e te n d e rs will be adv 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
re se rv e s th e rig h t to a c c e p t o r re je ct a n y or a ll ten d ers, in w hole or in p a rt, a n d h is actio n in a n y such re sp e ct sh all 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 sta te d p rice from a n y on e b id d e r w ill
b e acc ep te d in full a t th e average p rice (in th re e decim als) of a cc 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 ids m u st be m ad e c r c o m p leted a t th e F e d e ra l R e se rv e B a n k on J u n e 21, 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 J u n e 21, 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 w ill be m ad e for differences b e tw ee n th e p a r valu e of m a tu rin g
b ills acc ep te d in exchange a n d th e issue p rice 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 e n u e C ode of 1954 th e a m o u n t of d iscoun t a t w hich bills issued
h e re u n d e r a re sold is con sidered to accrue w hen th e bills a re sold, red eem ed o r o therw 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 o w ner of T rea su ry bills (o th e r th a n life in su ran ce c o m p a n ies) issued h e re ­
u n d e r m u st include in h is incom e tax re tu rn , as o rd in ary gain or loss, th e d ifference b etw een tire p rice p a id for th e bills, w h e th er
o n o rig in al issue o r 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 o r re d e m p tio n a t m a tu rity d uring
th e ta x a b le y e a r for w hich th e re tu rn is m ade.
T re a su ry D e p a rtm e n t C ircu la r No. 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 bills a n d
go vern th e c o nditions of th e ir issue. C opies of th e c irc u la r m a y be o b ta in e d from a n y F e d e ra l R e se rv e B a n k or B ranch .

In acc o rd a n c e with the a b o v e a n n o u n c e m e n t, ten ders will b e received a t this b a n k a n d its bra 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, M on day, Ju n e 18, 1973. Tenders m a y
not b e e n te re d by telep h o n e .
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m oun t, R a n g e a n d A p p ro x im ate Y ield of A c cep ted T en d e rs
3 -M o n th B ills
6 -M o n th B ills
D u e S e p te m b e r 13, 1973
D u e D e c em b er 13, 1973
$3,578,100,000------------------------------------ „ .
T o ta l A p p lied F o r...$3,213,940,000
$2,500,870,000----------------------------------T o ta l A c c ep ted ____
$1,700,355,000
P ric e
Y ield
P ric e
Y ield
98.213
.7 .0 6 9 % --------------------------H ig h _____________ 9 6 .3 9 2 ____________ 7.137%
98.186
7 .1 7 6 % ---------------------------------L o w ___________________96.368____________ 7.184%
A v e rag e _______
9 6 .3 7 4 _____________7.172% ( 1 )
98.198
7.129% ( 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 issue y ie ld s are 7 .3 6 % for th e 3-m on th b ills and 7 .5 5 % for
th e 6 - m o n th bills.

(S e e
This publication was digitized and made available by the reverse for tender form )of Dallas' Historical Library (FedHistory@dal.frb.org)
Federal Reserve Bank

TENDER FOR ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated March 22,1973

Maturing September 20, 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.

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.
f9

^

c

in)
■■
H ...........
(.a
COMPETITIVE TENDERS <$__________________ @)------------—
%
IS
in)
%

$----------------------------------?

@

Prices should be
expressed on th e
basis of 100, with
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.

BSP TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired

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

Number of
pieces

Maturity Value

J ii

$

(a $

10,000 $

□

15,000 $---------------------50,000 $

J ii

$

J ii,

□

$ 100,000 $______________

By maturing bills
held by__________
Payment to be made by.

□

Charge our reserve account on payment
date
Cl Draft enclosed (Effectual delivery of enclosed d raft

______ @ $ 500,000 $---------------------______ @$1,000,000 $______________

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

Delivery Instructions:
□

Hold in Custody — General Account

□

Hold in Custody — Investment Ac-

m date)
ent
(Subscriber’s full name or corporate title)

____________________________

COUnt

(Address)

□
□

Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
(Authorised official signature and title)
Loan Account___________________________________________________________________

□

Other

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

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

( A ddress)

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 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