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F ed eral Reser ve 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 S T A T E S DALLAS, TEXAS 75222 Circular No. 73-147 June 19, 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 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, in v ites ten d e rs fo r tw o series of T re a su ry bills to th e agg regate 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 b ills 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 re se n tin g a n a d d itio n al a m o u n t o f bills d a te d M arch 29, 1973, a n d to m a tu re S e p te m b e r 27, 1973 (C U S IP N o. 912793 R W 8 ), orig in ally 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 orig in al bills to be fre ely in terch angeable. 182-D A Y B IL L S fo r $1,700,000,000, o r th ere ab o u ts, to be d a te d J u n e 28, 1973, a n d to m a tu re D e c e m b e r 27, 1973 ( C U S I P N o. 912793 S K 3 ). T h e b ills of b o th series w ill b e issued o n a d isco u n t basis u n d e r co m p e titiv e a n d n o n co 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 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 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 r ity v a lu e ). T e n d e rs will b e 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 h our, o n e -th irty p.m ., E a s te rn D a y lig h t Savin g T im e , M ond ay , J u n e 25, 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 ashing ton . E ac h te n d e r m u st be fo r a m in im u m of $10,000. T e n d e rs ov er $10,000 m u st be in m u ltip les 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 rg e d th a t te n d e rs be m a d e o n th e p rin te d form s a n d forw ard ed 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 ran ch es o n a p p lic a tio n th erefo r. B a n k in g in stitu tio n s gen erally m a y su b m it te n d e rs fo r acc o u n t of custom ers p ro v id ed th e n a m e s o f th e c u stom ers a re s e 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 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 be receiv ed w ith o u t d e p o sit from in co rp o ra ted b a n k s a n d tru s t com panies a n d from 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 fro m o th ers m u st b e a cco m 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 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 ran 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 open 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 ran ch es, follow ing w hich p u b lic an 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 ran ge of acc ep te d bids. O nly th o se s u b m ittin g c o m p e titiv e ten d e rs w ill be ad v ised of th e accep tan ce o r rejectio 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 cc ep 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 his a ctio n in a n y such re sp e ct shall 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 price from a n y one b id d e r will b e acc ep te d in full a t th e av erage p rice (in th re e d ecim als) of acc ep te d co m p e titiv e b ids fo r th e re sp e ctiv e issues. S e ttle m e n t for a c c e p te d ten d e rs in accordance w ith th e b id s m u st b e m ad e o 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 o n J u n e 28, 1973, in cash or o th e r im m e d ia tely a v a ila b le fu n d s o r 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 28, 1973. C ash a n d exchange te n d e rs will 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 fo r differences b e tw ee n th e p a r v alu e of m a tu rin g b ills a ccep ted in exchange a n d th e issue p ric e of th e new bills. U n d e r S ections 454 ( 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 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 b ills a re sold, red eem ed or otherw ise disposed of, a n d th e b ills a re exclu ded fro m co n sid eratio 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 in su ran ce c o m p an ies) issued h e re u n d e r m u st in clude in his incom e tax re tu rn , as o rd in a ry g ain o r 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 orig 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 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 o f th e T re a su ry bills a n d govern th e c o nditions of th e ir issue. C o pies o f th e c irc u lar m a y b e 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 c cord ance 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 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 , J u n e 25, 1973. Tenders m ay 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 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 tal A p p lied F o r_________________________________ $3,773,035,000 $2,500,400,000-----------------------------------------------------T o ta l_A c c ep ted ___________________________________$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 % ------------------------------------------ L ow ----------------------------------- 96.3 2 8 _____________7.263% 98.164 7.263% ( 1 ) -------------------------------- A verag e.------------------------------- 96.332 _____________7.255% ( 1 ) ( 1 ) T h e s e rates are o n 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 .5 0 % for th e 3-m on th b ills an d 7 .6 4 % for th e 6 -m o n th bills. e reverse for tender form ) This publication was digitized and made available (byS ethe Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 182 DAYS TO MATURITY Maturing December 27, 1973 Bated June 28,1973 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 $200,000 or less from any bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. (9 ^ (j, Prices should be expressed on the fn) 1$ $ basis of 100, with not more than three fn) $ COMPETITIVE TENDERS ¥ decimal places, e.g., K fn) ¥ 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. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT Denominations Desired Number of pieces Maturity Value $ 10,000 $______________ $ 15,000 $______________ _@ $ 50,000 $______________ _@$ 100,000 $______________ J u .% 500,000 $______________ □ □ □ 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 □ □ □ Charge our reserve account on payment date |~ | D r a f t e n c l o s e d (Effectual delivery of enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on pay m ent date) J o $1,000,000 $______________ □ By maturing bills held by-------------------------------------------Payment to be made by_____________ (Subscriber’s full name or corporate title) (Address) 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 m ust 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