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F ederal Reserve

bank of



Circular No. 73-191
J uly 25, 1973


To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the f o llow in g sta tem ent giving d etails of an issue of Treasury bills:
T he Treasury Departm ent, by this public notice, invites tenders for $2,000,000,000, or thereabouts, of 35-day Treasury
bills, to be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided. T he bills of this
series will be dated August 15, 1973, and will mature Septem ber 19, 1973 (C U S IP No. 912793 T V 8 ). T h ey w ill be accepted at
face value in paym ent of income taxes due on Septem ber 15, 1973, and to the extent they are not presented for this purpose the
face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in paym ent of
Septem ber 15, 1973, income taxes m ay submit the bills to a Federal R eserve Bank or Branch or to the Office of the Treasurer of
the U n ited States, Washington, not more than fifteen days before that date. In the case of bills subm itted in paym ent of income
taxes of a corporation they shall be accompanied by a duly com pleted Form 503 and the office receiving these item s will effect the
deposit on Septem ber 15, 1973. In the case of bills subm itted in payment of income taxes of all other taxpayers, the office receiving
the bills will issue receipts therefor, the original of which the taxpayer shall submit on or before Septem ber 15, 1973, to the D istrict
Director of Internal R evenue for the D istrict in which such taxes are payable. T h e bills will be issued in bearer form only, and
in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving T im e, W ednesday, August 8, 1973. Tenders will not be received at the Treasury Departm ent, Washington. Each
tender m ust 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
tenders 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 made on the printed forms and forwarded in the special envelopes which w ill
be supplied by Federal R eserve Banks or Branches on application therefor.
Banking 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 submit 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 m ust be accompanied by paym ent of 2 percent of the face am ount 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.
All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase
or sale or other disposition of any bills of this issue at a specific rate or price, until after one-thirty p.m., Eastern D aylight
Saving T im e, W ednesday, August 8, 1973.
Im m ediately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, follow ing which
public announcem ent w ill be made by the Treasury Departm ent of the amount and price range of accepted bids. Only those
subm 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 $500,000 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
accordance with the bids m ust be made or com pleted at the Federal Reserve B ank in cash or other im m ediately available
funds on August 15, 1973. A ny qualified depositary will be permitted to make settlem ent by credit in its Treasury T ax and Loan
account for not more than 50 percent of the amount of Treasury bills allotted to it for itself and its customers.
U nder 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 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 amount actually received either upon sale or redem ption at maturity during
the taxable year for which the return is made.
Treasury Departm 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 bank a n d its branches at El Paso,
Houston a n d San Antonio, up to twelve-thirty p.m., Central Daylight Saving Time, W e d n e s d a y , August 8, 1973. Tenders
m a y not b e entered by t e le p h o n e .
Yours very truly,
P. E. Coldwell

(S e e reverse side for tender form)

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

This issue of Treasury bills will be accepted at face value in payment of income taxes due
on September 15,1973

Dated August 15, 1973

35 D A Y S T O M A T U R I T Y

Maturing September 19, 1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
T h e ________________________ Branch
El Paso 79999

Houston 77001


San Antonio 78295

P u r su a n t to th e p ro v isio n s o f T r e a su r y D ep a r tm en t C ircular No. 418 (cu rren t r e v isio n ) and to th e
p rovisio n s o f th e public a n n ou n cem en t, a s sh o w n on re v e r se side, as issu e d b y th e T rea su ry D ep a rtm en t,
th e u n d ersign ed offers to p u rch ase T rea su ry bills in th e a m o u n t sh ow n below , and a g r e e s to p ay fo r th e
a m ou n t a llo tted , on or b e fo re th e iss u e date, b y th e m eth od and a t th e r a te indicated.
__________________________________ N O T T O E X C E E D $500,000
N O N C O M P E T I T I V E T E N D E R $__________________________________
Noncompetitive tenders for $500,000 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 th e
basis of 100, with
not more than three
decimal places, e.g.,
99.S25. F raction s
must not be used.









Denominations Desired
N nm ber o f
P ieces


M atu rity V alues


(a) S
(a) $
...(a) $

By charge to our Treasury Tax and Loan Account
not to exceed 50% of cost of bills allotted (indicate be­
low remaining payment)


Payment to be made by................................................... .........


By charge to our reserve account on payment date.


By draft enclosed (effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment

10,000 $
15,000 *50,000 $

(Name of Bank)

(fib $ 100,000 $
< $ 500,000 $
() $1:,000,000 $

We certify that we, as well as our customers, if any, listed
hereon have agreed not to purchase or to sell, or to make any
agreements with respect to the purchase or sale or other dis­
position of any bills on this issue at a specific rate or price,
until after one-thirty p.m., Eastern Daylight Saving Time,
Wednesday, August 8, 1973.

D e liv e r y I n s tr u c tio n s :

H old in C ustody — G eneral A ccou n t


H old in C u stod y — In v e stm e n t A c ­
cou n t


H old in C u stod y — T r u st A ccou n t


P le d g e to secu re T rea su ry T a x and
Loan A ccou n t


O ther_______________________________

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

(A ddress)

By(A uthorized official s ig n a tu re a n d title )

(F o r th e acco u n t o f, if te n d e r ia fo r a n o th e r subscriber}

(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 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, communications
relating to other matters should not be enclosed. Envelopes for submitting tenders may be requested 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 finn, 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