The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ed er a l r e s e r v e Ba n k o f D alla s 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. 73-141 June 12, 1973 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in the 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 ten d e rs for tw o series of T re a su ry bills to th e agg reg ate a m o u n t o f $4,200,000,000, or th ereab 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 of $2,500,000,000, o r th ere ab o u ts, re p re se n tin g an a d 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 No. 912793 R V 0 ) , o rig in ally issued in th e a m o u n t of $1,801,355,000, th e a d d itio n al a n d orig in al bills to be fre ely in terch an g eab le. 182-DA 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 em b er 20, 1973 (C U S I P N o. 912793 S J 6 ) . T h e bills o f b o th series will b e 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 a s h e re in a fte r pro 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 a y ab le w ith o u t in terest. T h e y will be issued in b e a re r fo rm only, a n d in de n o m in a tio n s of $10,000, $15,000, $50,000, $100,000, $500,000 arid $1,000,000 (m a tu rity v a lu e ). T e n d e rs will be receiv ed a t F e d e ra l R eserv e B a n k s a n d B ran ches 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 ing T im e , M o nd ay, J u n e 18, 1973. T e n d e rs w ill n o t 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 fo r a m in im u m of $10,000. T e n d e rs over $10,000 m ust be in m u ltip les of $5,000. I n th e case of c o m p e titiv e ten d e rs th e p rice offered m u st be 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 b e used. I t is urg ed th 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 envelopes w hich w ill b e su p p lie d by F e d e ra l R e se rv e B ank s or B ran ch es o n a p p lic a tio n therefor. B a n k in g in stitu tio n s g enerally m ay su b m it te n d e rs fo r accoun t of custo m ers p ro v id ed th e n am es of th e c ustom ers a re se t fo rth in such tend ers. O th ers 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 te n d e rs ex cep t for 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 rated b a n k s and tr u s t com p an ies a n d fro m respon sible 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 ccom panied 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 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 tru s t com pany. Im m e d ia te ly a f te r th e closing h our te n d e rs will b e op en ed a t th e F e d e ra l R eserv 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 ce m en t will be m ade 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 ra n g e of acc ep te d bids. O nly those s u b m ittin g c o m p e titiv e ten d e rs w ill b e ad v ised of th e acc ep ta n ce o r rejectio n thereof. T h e S e c retary o f th e T re a su ry expressly reserv es th e rig h t to a cc ep t o r re je c t a n y o r a ll ten d ers, in w hole or in p a rt, a n d his 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 reserv atio ns, n o n co m p etitiv e te n d e rs for each issue for $200,000 or less w ith o u t sta te d p rice fro m a n y one b id d e r w ill b e a ccep ted in full a t th e average p rice (in th re e d e cim als) of a ccep ted c o m p e titiv e b ids for th e resp ectiv e issues. S e ttle m e n t for a c c e p te d te n d e rs in accordance w ith th e bids m u st b e m ad e or 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 o r in a like 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 will receive equ 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 v alu e of m a tu rin g bills acc ep te d in exchange a n d th e issue p rice of th e new bills. U n d e r S ections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en 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 accru e w h en th e bills a re sold, red eem ed or otherw ise disposed of, a n d th e b ills a re exclud ed fro m co n sid eratio n as c ap ital assets. A ccordingly, th e ow ner of T rea su ry b ills (o th e r th a n life insuran ce c o m p an ies) issued here u n d e r m u st include in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference betw een th e p rice p a id for th e bills, w h e th er on original issue o r on su b seq u e n t p urchase, a n d th e a m o u n t a ctu a lly received e ith e r u p o n sale o r re d em p tio n a t m a tu rity d u rin g th e tax ab le y e ar 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 lar No. 418 (c u rre n t rev 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 cond ition s of th e ir issue. C opies of th e c irc u lar m ay be o b ta in 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 ccordance with the a b o v e a n n o u n c e m e n t, tenders will b e received a t this b a n k a n d its bra n c h e s a t El Paso, Houston a n d San Antonio up to tw elve-thirty p.m.. Central Daylight Saving Time, M o nd ay, Ju n e 18, 1973. Tenders m ay not b e e n te re d by telepho ne. Yours very truly, P- E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS A m ount, R a n g e a n d A p p ro x im ate Y ield of A ccep ted T e n 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 .... 96.392 7.137% 98.186 7 .1 7 6 % -------------------------------------------L ow _______________________ 96.3 68 _____________ 7.184% 98.198 7 .129% ( 1 ) __________________ A v erag e_____________________ 9 6 .3 7 4 .. 7,172% ( 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 cou p on issue y ie ld s are 7 .3 6 % for th e 3-m on th bills and 7 .5 5 % for th e 6 - m o n th bills. ( S ethe e reverse tenderBank form )of Dallas' Historical Library (FedHistory@dal.frb.org) This publication was digitized and made available by FederalforReserve TENDER FOR TREASURY BILLS 182 DAYS TO MATURITY Dated June 21, 1973 Maturing December 20,1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295------------------------ ----------------------- (D a te) 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. (r . c Prices should be expressed on th e (ft) i* basis of 100, with $ (ft) COMPETITIVE TENDERS < $__________________ @ ------------------¥----------------------------------not more than three $ ¥ decimal places, e.g., (n) '¥ ¥ 99.925. F ra c tio n s ¥ ¥ @ must not be used. TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR ARE ACCEPTABLE. Denominations Desired Number of pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT Maturity Value (a),¥ (a),¥ 10,000 ¥ 15,000 ¥ □ □ 50,000 ¥ fril$ 100,000 ¥ 0 ¥ 500,000 ¥ 0, $l;,000,000 ¥ (a),¥ □ Charge our reserve account on payment date | | Draft enclosed (Effectual delivery of enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on pay- Delivery Instructions: □ □ □ □ □ Hold in Custody — General Account Hold in Custody — Investment Ac count Hold in Custody — Trust Account Pledge to secure Treasury Tax and Loan Account ment date) (Subscriber’s fuff name or corporate title) (Address) ___________________________________ (Authorized official signature and title) _____________________________________ _ (F or the account of, if tender is for another subscriber) Other----------------------------------------— By maturing bills held by__________ Payment to be made by_ --------------------------------------------------------------------------------- (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 at 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)
@FedFRASER