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F ederal Reserve b a n k o f Dallas F IS C A L A G E N T O F T H E U NIT ED S T A T E S DALLAS, TEXAS 7 5 2 2 2 C ircu la r No. 73-168 J u ly 10, 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 two issues of Treasury hills: 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 regate a m o u n t of $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 Ju ly 19, 1973, in th e a m o u n t of $4,304,315,000, as follows: 91-D A Y B IL L S (to m a tu rity d a te ) to b e issued J u ly 19, 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 p ril 19, 1973, a n d to m a tu re O ctober 18, 1973 (C U S IP No. 912793 R Z 1 ), orig in ally issued in th e a m o u n t of $1,800,340,000, th e ad d itio n al a n d original bills to be fre ely in terch an g eab le. 182-D A 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 ly 19, 1973, a n d to m a tu re Ja n u a ry 17, 1974 (C U S IP No. 912793 S U 1 ). T h e bills of b o th series will be issued on 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 as 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 w ill be p a y ab le w ith o u t interest. T h e y w ill be issued in b e a re r form 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 received a t F e d e ra l R e se rv e B an 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 avin g T im e , M o n d a y , J u ly 16, 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 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 le s of $5,000. In th e case of co m p e titiv e te n d e rs th e p rice offered m u st be 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 ten d e rs be m ad e on th e p rin te d form s a n d forw ard ed in th e special en velopes w hich w ill be su p p lied by F e d e ra l R e se rv e B an k s or B ran ch es on 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 ten d e rs for a cco u n t of custo m ers p ro v id ed th e n am es of th e custom ers a re se t fo rth in such ten ders. O th e rs 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 ten d e rs excep t for th e ir own account. T e n d e rs w ill be received w ith o u t d ep o sit from in co rp o ra ted b an k s and tru s t com panies a n d from respo nsib le a n d recognized d ealers in in v estm e n t securities. T e n d e rs from o th ers m u st be accom 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 su ry bills a p p lie d for, unless th e te n d e rs a re acco m p an ied by 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 fte r th e closing hour, te n d e rs will be o pen 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 will 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 ran ge of a ccep ted bids. O nly those su b m ittin g c o m p e titiv e ten d e rs will b e advised of th e a cc ep tan ce o r rejectio n thereof. T h e S e c retary of th e T re a su ry expressly reserves th e rig h t to a c c e p t o r re je c t a n y or a ll ten d e rs, in w hole or in p a rt, a n d his a ction in an y such re sp e ct shall be final. S u b je c t to th ese reserv ation s, no n c o m p e titiv e ten d e rs for each issue for $200,000 or less w ith o u t sta te d p rice from a n y one b id d er will be a cc ep te d in full a t th e averag e price (in th re e decim als) of acc ep te d co m p e titiv e bids for th e respective issues. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e b id s m u st be m ad e or co m p leted a t th e F e d e ra l R eserv e B a n k on J u ly 19, 1973, in cash or o th er im m ed iately av ailab le fund s or in a like face a m o u n t of T re a su ry b ills m a tu rin g J u ly 19, 1973. C ash a n d exchange te n d e rs will receive eq ual 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 etw een th e p a r value of m a tu rin g b ills a c c 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 disco unt a t w hich bills issued h e re u n d e r a re sold is considered to accrue w hen th e bills a re sold, red eem ed or otherw ise disposed of, a n d th e bills are excluded from co n sid eratio n as c a p ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insu rance co m p an ies) issued here u n d e r m u st include in h is incom e tax re tu rn , as o rd in ary gain or loss, th e d ifference 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 ctu a lly received 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 ear 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 ircu lar No. 418 (c u rre n t re v 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 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 eserv e B a n k or B ranch. In a c cordance 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 bran ch es a t El Paso, Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M onday, July 16, 1973. Tenders m ay hot be ente re d by tele p h o n 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 ie ld 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 O cto b er 11, 1973 D u e Ja n u a ry 10, 1974 $3,974,480,000 T o ta l A p p lied F o r _________________________________ $3,214,225,000 $2,500,115,000__________________________________ T o ta l A c c ep ted ___________________________________$1,700,585,000 P ric e Y ield P ric e Y ield 97.996-------------------- 7 .9 2 8 % ___________________________H ig h _______________________ 95.968____________ 7.975% 97.976 8 .0 0 7 % ___________________________ L ow ________________________ 95.937____________ 8.037% 97.980---------------------7.991% ( 1 ) -------------------------------- A v erag e______________________ 95.946____________ 8.019% ( 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 cou p on issue y ield s are 8 .2 7 % for th e 3-m on th b ills an d 8 .4 7 % for t h e 6 -m on th b ills. ( S ethe e reverse tenderBank form)of Dallas' Historical Library (FedHistory@dal.frb.org) This publication was digitized and made available by Federalfor Reserve TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated April 19,1973 Maturing October 18,1973 To: Federal Reserve Bank, Station E, Dallas, Texas 75222 or — The_______________ Branch El Paso 79999 Houston 77001 San Antonio 78295------------------------ ---------------- ------- (Date) 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 at the rate indicated. N O N C O M P E T IT IV E T E N D E R $__________ .___________________________________ N O T TO E X C E E D $ 2 0 0 ,0 0 0 Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. S 1$ . Iv ........... fn) $ (a)------------------$----------------------------------$ COMPETITIVE TENDERS < $----------------------------@ 1$ @ •$ $ @ % Prices should he ex p ressed on t h e basis of 100, w ith not more than th re e decimal places, e.g., 99.925. F ra ctio n s m ust 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 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 10,000 $_ $ ______ @ $ 15,000 $---------------------50,000 $______________ ______ @ $ 100,000-$--------------------- ______ @ $ 500,000-$--------------------- □ □ By maturing bills held by_ Payment to be made by--------------------- “ --------------------------------- 7----------- ----□ Charge our reserve account on payment date □ @ $ 1 ,0 0 0 ,0 0 0 $ __________________ Draft enclosed (Effectual deHvery of enclosed draft shall be on latest day which will permit Present**^^ in order to obtain irrevocably collected funda on p ^ y . 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 Other__________________________ □ □ □ ment date) ' (Subscriber’s full name or corporate title) (Address) By (Authorized official signature and title) (For the account of, if tender is for 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 m ultiples 0f $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 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-------------------------------------- -- --------------------a member of the firm.” 5. Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in in vest 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, inthe opinion of the Secretary of the T reasury is * m aterial, the tender may be disregarded (Seereverseforannouncement)
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