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F ed er a l R eser ve Ba n k o f D a lla s
F IS C A L A G E N T O F TH E U N IT E D S T A T E S

DALLAS, TEXAS 75222
Circular No. 73-169
July 10, 1973

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attentio n 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, invites ten d e rs for tw o series of T re a su ry bills to th e aggregate 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 be issued J u ly 19, 1973, in th e a m o u n t of $2,500,000,000, or th ereab o u ts,
re p re se n tin g a n a d 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 ), originally 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 terchang eable.
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 J a 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 iscou nt 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 vid ed, a n d a t m a tu rity th e ir face a m o u n t will be p ay 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 en o m in atio 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 ., G astern
D a y lig h t Saving T im e , M o n d ay , 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. G ach
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
ten 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
no t be used. I t is urged th a t ten 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
su p p lied by F e d e ra l R eserv e B a n k s or B ran ch es on a p p lic a tio n therefor.
B a n k in g in stitu tio n s gen erally m ay su b m it ten d e rs fo r acco u n t of custo m ers p ro v id ed th e n am es of th e custom ers are
set fo rth in such tenders. 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 except for th e ir own account.
T e n d e rs w ill be receiv ed w ith o u t d e p 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
dealers in in v e stm e n t securities. T e n d e rs from o th ers m u st be accom panied by 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 an 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, ten d e rs will b e op ened a t th e F e d e ra l R e se rv 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 ade by 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 v ised of th e a ccep tan ce or re je ctio 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 cc ep t o r re je c t a n y or a ll ten d ers, 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 ub­
je c t to th ese reservation s, n o 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 price from a n y one b id d er will
be accep ted 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
acc 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 e r im m ed iately av ailab le funds or 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 19, 1973. C ash a n d
exchange ten d e rs will receive eq u al t r e 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
bills acc 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 d iscoun t a t w hich bills issued
h e reu n d e r a re sold is considered to accru e w hen th e bills a re sold, red eem ed or otherw ise disposed of, and th e bills a re excluded
fro m c o nsid eration as c ap 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 surance com 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 betw 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 received e ith e r upo 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 ar 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 te rm s of th e T re a su ry bills and
govern th e c o nditions of th e ir issue. C opies of th e c irc u lar m ay be o b tain e d from a n y F e d e ra l R e se rv e B a n k or B ranch.

In accordance with the a b o v e ann o u n c e m e n t, tenders will b e received a t this b a n k a n d its branch es a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M onday, July 16, 1973. Tenders m ay
not be entered by tele p h o n e .
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R an g e a n d A p p ro x im ate Y ield 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 c to b er 11, 1973
D u e J a n u a ry 10, 1974
$3,974,480,000________________________________ .T o tal 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 % ____
..Low..
.95.937_____________8.037%
97.980_____________ 7.991% ( 1 ) .
-A verage..
-9 5.9 46_____________ 8.019% ( 1 )
( 1 ) T h ese 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 bills and 8 .4 7 % for
th e 6 -m o n th bills.

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

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Maturing January 17,1974

Dated July 19,1973
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 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.

COMPETITIVE TENDERS

$
$
1
$
$

(a)

Prices should be
exp ressed on th e
basis of 100, w ith
not more than th re e
decimal places, e.g.,
99.925. F raction s
must not be used.

....
...

(a)

.

*

(a)

@

$

fiSP TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E
CLOSING HOUR ARE ACCEPTABLE.
Payment for this issue of bills cannot be m ade by
credit to Treasury Tax and Loan Account.
METHOD OP PAYMENT

Denominations Desired
Number of
pieces

M aturity Value

@$
@?

10,000 ?
15,000 $
50,000 $

□

By maturing bills
held by_
Payment to be made by_

□

@?
@ $ 100,000 $
@ $ 500,000 $

□

,000,000 $
@ $1;

I I

Charge our reserve account on payment
date
Draft enclosed (Effectual delivery o f enclow d d r a ft
shall be on latest day which will permit Presentm ent
in order to obtain irrevocably collected funds on r^-=m ent date)

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

□
□
□

(Subscriber’s full name or corporate title)

(A ddress)

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 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 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 inv est­
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 b y 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 T reasu ry is
material, the tender may be disregarded
’
(See reverse for announcement)

___________

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