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R eserve

bank of




Circular No. 73-179
July 18, 1973


To All 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, b y this public notice, invites tenders for $1,800,000,000, or thereabouts, of 336-day Treasury
bills for cash and in exchange for Treasury bills maturing July 31, 1973, in the amount of $1,701,520,000. T h e bills of this
series will be dated July 31, 1973, and will mature July 2, 1974 (C U S IP No. 912793 T U 0 ) .
T h e bills will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at
m aturity their face am ount will be payable without interest. T h ey 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 a lu e ).
Tenders w ill 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, July 24, 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 will be supplied
by Federal R eserve Banks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the nam es 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 w ill be received without deposit from incorporated banks and trust com panies 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 accom panied 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, follow ing which
public announcem ent will be made by the Treasury Departm ent of the amount and price range of accepted bids. O nly those sub­
m itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e 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 made or com pleted at the Federal Reserve Bank on July 31, 1973, in cash or other im m ediately
available funds or in a like face am ount of Treasury bills maturing July 31, 1973. Cash and exchange tenders will receive
equal treatment. Cash adjustments will be m ade for differences betw een the par value o f 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 am ount 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 must include in his income tax return, as ordinary gain or loss, the difference betw een 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 maturity 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 a ccord a nce with the a b o v e a n n o u n c em en t, tenders will b e received a t this b ank a n d its branches a t El Paso,
Houston an d San Antonio up to tweSve-thirty p.m., Central Daylight Saving Time, Tuesday, July 24, 1973. Tenders m a y
not b e entered by te le p h o n e .
Yours very truly,
P. E. Coldwell

(S e e reverse for tender form )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated July 31,1973

Maturing July 2, 1974

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The__________________________ Branch

El Paso 79999 Houston 77001 San Antonio 78295


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.

N O N C O M P E T I T I V E T E N D E R $_

_ N O T T O E X C E E D $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
exp ressed on the
b a sis of 100, w ith
not more than three
decimal places, e.g.,
99.925. F ra ction s
must not be used.


Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

Denominations Desired
N u m b er o f

M a tu rity V alu e

<® $
(a) $


10,000 $
15,000 $


(a) $ 50,000 $
(a) $ 100,000 $


(5) % 500,000 $
db $1:,000,000 $


D elivery In stru ctio n s:

Hold in Custody — T rust Account


Pledge to secure Treasury T ax and
Loan A ccount


sh all be on la te s t day w hich w ill p e rm it p re se n tm e n t in
o rd e r to o b ta in irrevo cably collected fu n d s on p a y m e n t

Hold in Custody — In vestm ent A c­


Charge our reserve account on paym ent
D ra ft enclosed (E ffectual d elivery o f enclosed d ra ft

Hold in Custody — General Account


B y m aturing bills
held by------------------------------------------------P aym ent to be made by_______________


(S u b sc rib e r’s fu ll nam e o r c o rp o ra te title )
(A ddress)

By(A u th o rized official s ig n a tu re a n d title )
(F o r th e acco u n t of, if te n d e r is fo r a n o th e r su b scrib er)

(A ddress)

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 (maturity value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent 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 matters 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 that 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 trust 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 (maturity 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 trust 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)

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