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F ederal r es er v e Bank o f Dallas
F IS C A L A G E N T O F T H E U N IT E D S T A T E S

DALLAS, TEXAS 75222
Circular No. 73-194
July 31, 1973

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your a tte ntio 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 te n 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 $4,300,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m atu rin g A ugust 9, 1973, in th e a m o u n t of
$4,305,425,000, as follow s:
91-D A Y B IL L S (to m a tu rity d a te ) to be issued A ug ust 9, 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 ad d itio n al a m o u n t of bills d a te d M a y 10, 1973, a n d to m a tu re N o v em b er 8, 1973 (C U S IP
No. 912793 S C I ) , originally issued in th e a m o u n t of $1,801,695,000, th e ad d itio n al a n d o riginal bills to be
fre ely in terchang eable.
182-D A Y B IL L S for $1,800,000,000, or th ere ab o u ts, to be d a te d A ugust 9, 1973, a n d to m a tu re F e b ru a ry 7, 1974
(C U S IP No. 912793 S X 5 ).
T h e bills of b oth series w ill b e 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 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 en 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 r ity 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 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 on day, A ugu st 6, 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 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. I n 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 o re 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 rg e d th a t ten d e rs be m ad e on th e p rin te d fo rm s a n d fo rw ard ed 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 generally m a y su b m it te n d e rs fo r a cco u n t of custo m ers p ro v id ed th e na m e s of th e custo m ers are
se t 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 ot be p e rm itte d to su b m it ten d e rs e x cep t fo r 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 a n d tr u s t com panies a n d fro m respo nsib le a n d recognized
dealers 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 an ied 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 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 fte r th e closing h our, te n d e rs will b e o p 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 will be m ade 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 a cc ep te d bids. O nly those
su b m ittin g c o m p e titiv e te n d e rs will be adv ised of th e acc ep ta n ce or re je ctio n th ereof. T h e S e c retary of th e T re a su ry expressly
reserv es the rig h t to a cc ep t or re je c t a n y or all ten d ers, in w hole or in p a rt, a n d his actio n in a n y such re sp e ct shall be final. S u b ­
je c t to th ese reserv ations, n o n co m p etitiv e te n d e rs fo r 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 er will
be acc ep te d in full a t th e av erage p rice (in th re e d ecim als) of a c c ep te d co m p e titiv e bids fo r th e resp ectiv e issues. S e ttle m e n t for
acc ep te d ten d e rs in accordance w ith th e bid 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 A ugust 9, 1973,
in cash or o th er im m e d ia tely av ailab le fu nds 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 A ugust 9, 1973. C ash a n d
exchange ten 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 v alu e of m a tu rin g
bills 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 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 are sold is consid ered to accrue w hen th e bills a re sold, re d eem ed or otherw ise disposed of, a n d th e bills a re excluded
from c o n sid era tio n 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 insurance co m p an ies) issued h ere­
un d er m u st inclu de 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 orig in al issue or on su b seq u e n t pu rchase, a n d th e a m o u n t a c tu 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 ta x a b le y e a r fo r 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 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 tain e d fro m a n y F e d e ra l R e se rv e B a n k or B ranch .

In acc o rd a n c e 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 branches a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M ond ay , August 6, 1973. Tenders m ay
not be e n te 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 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 N o v e m b er 1, 1973
D u e J a n u a ry 31, 1974
$3,795,545.000
T o ta l A p p lied F o r_________________________________ $3,385,715,000
$2,500,270,000__________________________________ -T otal_A c c ep ted ___________________________________$1,700,230,000
P ric e
Y ield
P ric e
Y ield
97.915____________ 8 .2 4 8 % _______________________ - . H i g h _______________________ 95.732_____________ 8.442%
97.888____
8 .3 5 5 % ____________________________ L ow ________________________ 95.708____________ 8.490%
97.897_____________ 8.320% ( 1 ) _____________________ A verage______________________ 95.715____________ 8.476% (1 )
( 1 ) T h ese rates are on a b ank discount basis. T h e eq u ivalen t coupon issue yie ld s are 8 .6 2 % for th e 3-m on th bills and 8 .9 8 % for
th e 6-m o n th bills.

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

TENDER FOR ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated May 10,1973

Maturing November 8,1973

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 at 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.

ft
(a)
_ $
|*r
—1
v✓
—
ft
(a)------------------ $------------------------COMPETITIVE TENDERS <$----------------------------@
$
T
|$
$

(n)

@

$
¥

Prices should be
ex pressed on th e
basis of 100, w ith
not more than th ree
decimal places, e.g.,
99.925. F r a c tio n s
must not be used.

H3P TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E
CLOSING HOUR ARE ACCEPTABLE.
~
Denominations Desired
Number o f
pieces

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

M aturity Value

_@ $

$
$

10,00 0 $_

□

15,000 $---------------------50,000 $

□

$ 100,000 $-------------------______ @ $ 500,000 $----------------------------------------______ @ $1,000,000 $______________

□
□

By maturing bills
held by_
Payment to be made by.
Charge our reserve account on payment
date
Draft enclosed (E ffectual delivery o f eneloeed d r a ft
shall be on latest day which will permit prescntm «nt
in order to obtain irrevocably collected funds on p ay m ent date)

Delivery Instructions:
□

Hold in Custody — General Account

□

Hold in Custody — Investment Ac-

(Subscriber’s full name or corporate title)

____________________________

COUnt

□
□
□

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

(A ddress)

gy_
(Authorized official signature and

title)

_____________________________________

,

( For 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 byan 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 by 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 reasury is
material, the tender may be disregarded

( e r v r ef ra n u c m n )
Se ees o n o n e e t

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