The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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. e e reverse tenderBank formof ) Dallas' Historical Library (FedHistory@dal.frb.org) This publication was digitized and made available by(S the Federalfor Reserve 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 (Seereverseforannouncement)