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F e d e r a l 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 N IT E D S T A T E S DALLAS, TEXAS 75222 Circular No. 73-146 June 19, 1973 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in th e Eleventh Federal Reserve District: Your atten tion 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 ite s te n 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, o r th ere ab o u ts, fo r cash a n d in exchange for T re a su ry bills m a tu rin g J u n e 28, 1973, in th e a m o u n t of $4,304,990,000, as 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 28, 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 rese n tin g a n a d d itio n al a m o u n t of b ills d a te d M a rc h 29, 1973, a n d to m a tu re S e p te m b e r 27, 1973 (C U S IP No. 912793 R W 8 ) , originally issued in th e a m o u n t of $1,806,600,000, th e a d d itio n a l a n d o rig in al b ills to be fre ely in terch an g eab le. 182-D A Y B IL L S for $1,700,000,000, o r th ere ab o u ts, to b e d a te d J u n e 28, 1973, a n d to m a tu re D e c em b er 27, 1973 (C U S IP N o. 912793 S K 3 ). T h e b ills of b o th series will b e issued o n 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 ed , a n d a t m a tu rity th e ir face a m o u n t w ill be p a y ab le w ith o u t interest. T h e y w ill b e issued in b e a re r fo rm 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 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 S av in g T im e , M o nday, J u n e 25, 1973. T e n d e rs w ill n o t b e 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 be for a m in im u m of $10,000. T e n d e rs over $10,000 m u st b e in m u ltip le s of $5,000. I n th e case o f c o 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 urg ed 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 n velo pes 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 ank s o r B ra n ch e s o n a p p lic a tio n th erefor. B a n k in g in stitu tio n s generally m ay su b m it te n d e rs for acc o u n t of custom ers p ro v id ed th e n a m e s of th e cu sto m ers a re se t fo rth in such ten d ers. O th ers th a n b a n k in g in stitu tio n s w ill n o t b e p e rm itte d to su b m it te n d e rs ex ce p t fo r th e ir ow n account. T e n d e rs will b e receiv ed w ith o u t d ep o sit fro m in co rp o ra ted b a n k s and tr u s t com p an ies a n d fro m resp onsible a n d recognized de ale rs in in v estm e n t securities. T e n d e rs from o th ers m u s t be acco 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 s u ry b ills 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 ra n ty o f 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 hou r, 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 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 o f th e a m o u n t a n d p rice ran ge of a cc ep te d bids. O n ly th o se su b m ittin g co m p e titiv e te n d e rs w ill b e a d v ised of th e acc ep ta n ce o r re je ctio n th ereo f. 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 or re je c t a n y o r a ll ten d ers, in w hole o r in p a rt, a n d his a ctio 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 $209,000 or less w ith o u t sta te d p rice from a n y one b id d e r w ill b e a cc ep te d in fu ll a t th e av erag e p rice (in th re e decim als) of a cc 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 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 a d 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 o n J u n e 28, 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 28, 1973. C ash a n d ex chan ge 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 a d e fo r differences b etw een th e p a r v alu 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 n ew bills. U n d e r S ections 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 o f d isco unt 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 h en th e bills a re sold, re d ee m e d or o therw ise disposed of, a n d th e bills a re exclu ded 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 ra n 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 ta x re tu rn , a s o rd in a ry g ain or loss, th e difference b e tw ee n th e p rice p a id fo r th e bills, w h e th er o n o rig in al issue o r o n su b seq u e n t p u rchase, a n d th e a m o u n t a c tu a lly receiv ed 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 rn is m ade. T re a su ry D e p a rtm e n t C ircular 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 g o v e rn th e co n d itio n s of th e ir issue. C opies of th e c irc u lar m a y b e 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 acc o rd a n c e with the a b o v e a n n o u n ce m e n t, tend ers 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 on day, J u n e 25, 1973. Tenders m ay lot b e 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 of A c c ep 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 20, 1973 D u e D e c em b er 20, 1973 $4,164,680,000----------------------------------- ------------- .T o ta l A p p lied F o r_________________________________ $3,773,035,000 $2,500,400,000-----------------------------------------------------T o ta l A c c e p te d ___________________________________$1,700,005,000 P ric e Y ie ld P ric e Y ield 98.177 7 .2 1 2 % ---------------------------.H ig h ------------------------ 96.352 ____________ 7.216% 98.160 7 .2 7 9 % --------------------------------------Low ---------------------------------- 96.328____________ 7.263% 98.164 7 .263% ( 1 ) -------------------------------- A v erag e --------------------------------- 96.332____________ 7.255% ( 1 ) ( 1 ) T h e s e ra tes are o n a b an k d iscou nt b asis. T h e eq u iv a le n t coupon issu e y ie ld s are 7 .5 0 % for th e 3 -m on th b ills an d 7 .6 4 % for th e 6-m on th bills. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) ( S e e reverse for tender form ) - r TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated March 29,1973 Maturing September 27, 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 $200,000 or less from any bidder, without stated price, will be accepted in full a t the average price (in three decimals) of accepted competitive bids. ^ Prices should be e x pressed on th e rri> 1$ basis of 100, with fn) COMPETITIVE TENDERS < $----------------------------@ ------------------$----------------------------------not more than three $ decimal places, e.g., 1$ fn) 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 ACCEPTABLE, Denominations Desired Number o t pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT M aturity Value (5) $ m $ 10,000 ? 15,000 $ □ □ 50,000 ? m $ 100,000 ¥ (a),$ 500,000 $ <® ? □ Charge our reserve account on payment date | I Draft enclosed (Effectual delivery o f enclosed draft (a).$1,000,000 ¥ shall be on latest day which will permit presentm ent in order to obtain irrevocably collected funds on pay ment date) Delivery Instructions: □ □ □ □ □ Hold in Custody — General Account Hold in Custody — Investment Ac count Hold in Custody — Trust Account Pledge to sec are Treasury Tax and Loan Account Other --------------------- By maturing bills held by--------------Payment to be made by_ (se m fuii ^ e or corporate title , (A ddress) By. (A uthorised official signature and title) _____________________________________ (F or the account of, if tender is fo r 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 that 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)
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