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F ederal r eser v e bank of 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 Circular No. 73-144 June 20, 1973 NEW OFFERING — TREASURY BILLS To Ail Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the f o llo w in g state m e n t giving d etails of an issue of Treasury bills: T he Treasury Departm ent, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 339-day Treasury bills for cash and in exchange for Treasury bills maturing June 30, 1973, in the am ount of $1,701,130,000. T h e bills of this series will be dated June 30, 1973, and will mature June 4, 1974 (C U S IP No. 912793 S R 8 ). T h e bills will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at maturity their face am ount will be payable without interest. T h e y will be issued in bearer form only, and in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v alu e). Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving T im e, Tuesday, June 26, 1973. Tenders will not be received at the Treasury Departm ent, Washington. Each tender must be for a m inim um of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of com petitive ten ders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be m ade on the printed forms and forwarded in the special envelopes which w ill be supplied by Federal Reserve Banks or Branches on application therefor. B anking institutions generally m ay submit tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accompanied by paym ent of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or trust company. Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, following which public announcem ent will be made by the Treasury D epartm ent of the am ount and price range of accepted bids. Only those sub m itting com petitive tenders will be advised of the acceptance or rejection thereof. T he Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncom petitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted com petitive bids. Settlem ent for accepted tenders in accor dance with the bids m ust be m ade or com pleted at the Federal R eserve Bank on July 2, 1973, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing June 30, 1973. Cash and exchange tenders w ill receive equal treatment. Cash adjustments w ill be m ade for differences betw een the par value of maturing bills accepted in exchange and the issue price of the new bills. Under Sections 454 (b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the amount of discount at which bills issued hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued here under m ust include in his incom e tax return, as ordinary gain or loss, the difference between the price paid for the bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redemption at m aturity during the taxable year for which the return is made. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch. In accord ance with the a b o v e a n n o u n c em en t, tenders will b e received at this b ank an d its branches at El Paso, Houston an d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Tuesday, Ju ne 26, 1973. Tenders m a y not b e en tered b y te le p h o n e . Yours very truly, P. E. Coldwell President (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 FOR TREASURY BILLS 339 DAYS TO MATURITY Dated June 30, 1973 Maturing June 4,1974 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The____________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (D ate) P u rsu an t to th e provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of the public announcem ent issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasury bills in the am ount shown below, and agrees to pay for the am ount allotted, on or before the issue date, by the method and a t the ra te indicated. NONCOMPETITIVE TENDER $_ JNOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. Prices should be e x p re s s e d on th e () a $ 1$ b a s is of 100, w ith COMPETITIVE TENDERS^ $ () a not more th an three $ $ decimal places, e.g., () a % '$ 99.925. F r a c tio n s m ust not be used. $ $ @ 2 ^ T EN D ERS MAY NOT BE E N TE R E D BY TELEPH O N E. TEND ERS BY W IRE, IF RECEIVED BEFO RE THE CLOSING HOUR, ARE ACCEPTABLE. P aym ent fo r this issue of bills cannot be made by credit to T reasury T ax and Loan Account. Denominations Desired N u m b er of Pieces -(5) $ 10,000 (a) $ 15,000 (5) $ 50,000 (5) $ 100,000 (a) $ 500,000 (5) $1.,000,000 M atu rity V alue METHOD OF PAYM ENT $■ $- □ □ $$- □ Hold in Custody — General Account □ Hold in Custody — Investm ent A c count □ Hold in Custody — Trust Account □ Pledge to secure Treasury Tax and Loan Account □ Charge our reserve account on paym ent date ”| D r a f t e n c l o s e d (E ffectual delivery of enclosed d ra ft shall be on la te st day w hich will p e rm it p re s e n tm e n t in o rd e r to ob tain irrevocably collected fu n d s on p a y m e n t date) Delivery In stru ctio n s: □ B y m aturing bills held by----------------------------Paym ent to be made by_ Other______________________________ (S u b sc rib e r’s fu ll n am e o r c o rp o ra te title) (A ddress) By(A uth o rized official s ig n a tu re a n d title) (F o r th e acco u n t of, if ten d er is fo r a n o th e r su bscriber) (A ddress) IMPORTANT 1. No tend er fo r less th an $10,000 will be considered and each tender over $10,000 m ust be fo r an am ount in m ultiples of $5,000 (m atu rity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of the U nited States, with notation on the envelope reading “TEND ER FOR TREASURY O FF E R IN G ”. Since envelopes received w ith th is legend will not be opened until a fte r the closing tim e specified in the public announcement, communi cations relating to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank or appropriate branch. 3. Any qualified or conditional tender will be rejected. 4. If a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to m ake 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 mem ber of the firm, who should sign in the form “ ................ .................. ......................, a copartnership, by................................................................................, a m em ber of the firm”. 5. Tenders from those other th an incorporated banks and tr u s t companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m atu rity value) of the T reasu ry bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an incorporated bank or tr u s t company. 6. If the language of this form is changed in any respect, which, in th e opinion of the S ecretary of the T reasury is m aterial, the tender m ay be disregarded. (See reverse for announcement)