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FE D E R AL RESERVE B A N K OF D A LLA S
F IS C A L A G E N T O F T H E U NITED ST A T E S

DALLAS, TEXAS 7 5 2 2 2
C ircu la r No. 73-163
J u ly 3, 1973

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your atten tion is invited to the following sta 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 vites ten d e rs for 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 bills m a tu rin g J u ly 12, 1973, in th e a m o u n t of
$4,302,580,000, 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 ly 12, 1973, in th e a m o u n t of $2,500,000,000, or th ere ab o u ts,
re p re se n tin g a n ad d itio n al a m o u n t of bills d a te d A pril 12, 1973, a n d to m a tu re O ctob er 11, 1973 (C U S IP
No. 912793 R Y 4 ), o rig in ally issued in th e a m o u n t of $1,800,695,000, th e a d d itio n al a n d original bills to b e
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 be d a te d J u ly 12, 1973, a n d to m a tu re J a n u a ry 10, 1974
(C U S IP No. 912793 S T 4 ).
T h e bills of b o th series w ill be issued on a d isco u n 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 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 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
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 rity v a lu e ).
T e n d e rs will be receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ran ch es 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 aving T im e , M ond ay , J u ly 9, 1973. T e n d e rs w ill n o t be receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington. E ac 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 be in m u ltip les of $5,000. In th e case of co m p e titiv e
te n d e rs th e price offered m u st b e 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 rged th a t te n d e rs be m ad e on th e p rin te d form s a n d forw arded in th e special envelopes w hich w ill be
s u p p lied by F e d e ra l R eserv e B a n k s or B ra n ch e s o n a p p lic a tio n therefo r.
B an k in g in stitu tio n s g en erally m a y su b m it ten d e rs fo r acco u n t of cu stom ers p ro v id ed th e n am es of th e custom ers are
se t fo rth in such tend ers. O th e rs th a n b a n 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 own account.
T e n d e rs w ill be receiv ed w ith o u t d ep o sit from in co rp o ra ted b a n k s and tr u s t com p an ies a n d from responsible 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 st be acco m p anied 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, u nless th e te n d e rs a re a ccom 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 hour, 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 an 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 w ill be 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 range of acc ep te d bids. O nly those
su b m ittin g co m p e titiv e te n d e rs will be ad vised of th e a cc ep ta n ce or re je ctio n thereof. T h e S e c retary of th e T re a su ry expressly
reserv es th e rig h t to a cc ep t or re je c t a n y or all ten d e rs, in w hole or in p a rt, a n d his a ctio n in a n y such re sp e ct shall be final. S ub­
je c t to th ese reservatio ns, n o n co m p etitiv e ten 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 one b id d e r will
be a c c e p te d in full a t th e av erag e price (in th re e d ecim als) of a cc ep te d co m p e titiv e b ids for th e resp ectiv e issues. S e ttle m e n t for
a cc ep te d ten d e rs in accord ance w ith th e b ids m u st be m ad e or c o m p leted a t th e F e d e ra l R eserv e B a n k on J u ly 12, 1973,
in cash o r o th e r im m e d ia tely av ailab le fun ds 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 ly 12, 1973. C ash a n d
exchange ten d e rs will receive e q u al tre a tm e n t. C ash a d ju stm e n ts w ill be m ad e for differences b etw een th e p a r value of m a tu rin g
b ills a cc 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 Code of 1954 th e a m o u n t of discou nt a t w hich bills issued
h e re u n d e r are sold is considered to accru e w hen th e bills are sold, re d eem ed or otherw ise disposed of, a n d th e bills a re excluded
from c o n sid eratio n as c ap ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life in suran ce co 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 b etw een th e p rice p a id for th e bills, w h e th er
on original issue or on su b seq u e n t purchase, 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 or re d e m p tio n a t m a tu rity d u rin g
th e tax 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 ircular No. 418 (c u rre n t rev isio n ) a n d th is notice, p rescrib e th e term s of th e T re a su ry bills a n d
govern th e co nditions of th e ir issue. C opies of th e circu lar m ay be o b tain e d from a n y F e d e ra l R eserv e B a n k o r B ranch.

In ac c orda n ce with the a b o v e a n n o u n c e m e n t, tend ers will b e received a t this b a n k a n d its bra nc he s a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M onday, July 9, 1973. Tenders m a y
not be e n te re d by te leph on e.
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 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 O cto b er 4, 1973
D u e J a n u a ry 3, 1974
$3,348,310,000
-T otal A p p lied _F o r _________________________________ $3,544,625,000
$2,500,055,000__________________________________ T o ta l A c c e p t e d - _ ______________________________ $1,700,090,000
_
P ric e
Y ield
P ric e
Y ie ld
98.028
7 .8 0 1 % ___________________________ H ig h _______________________ 95.980________
7.952%
97.952
8 .1 0 2 % ___________________________ L ow ________________________95.933____________ 8.045%
97.981
7.987% ( 1 ) ______________________A verage ______________________ 95.950____________ 8.011% ( 1 )
( 1 ) T h e s e rates are on a b ank discount basis. T h e eq u iv a le n t coupon issue yie ld s are 8 .2 7 % for th e 3-m on th b ills and 8 .4 7 % for
th e 6 -m o n th bills.

( S e Federal Reserve form
This publication was digitized and made available byethereverse for tenderBank) of Dallas' Historical Library (FedHistory@dal.frb.org)

TENDER FOR ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated April 12,1973

Maturing October 11,1973

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 th e
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount
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.
$
......
IS
T
$
COMPETITIVE TENDERS <$_______________
|S
1I-- ---- ------ -'
$

(a)
V
>

?
$
O
@--------------- $____________________
$
(a)

...

@

s
?

Prices should be
ex p ressed on th e
basis of 100, w ith
not more than th re e
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.

2 ^ TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E
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
M aturity Value

@$

10,000 $

@$

—

15,000 $

□
□

@ $ 50,000 $
@ $ 100,000 $
500,000 $

□

Charge our reserve account on payment
date
| | Draft enclosed (E ffectual delivery o f enclosed d r a ft

@$1,000,000 $

shall be on latest day which will permit presentm ent
in order to obtain irrevocably collected funds on p a y .

Delivery Instructions:
□

Hold in Custody — Investment Ac­
count
Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan Account

m date)
ent

Hold in Custody — General Account

□
□
□
□

By maturing bills
held by__________
Payment to be made by_

(Subscriber’s full name or corporate title)

(A ddress)

Bv
(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 th e
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 th is
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 th e
' 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--------------------------------------------------------------f
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.
ft. 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
( e rpyprse for a n n o u n c e m e n t ) ---------------------------------------- ^
Se


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102