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F ederal Reser ve Ba n k 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. 73-195
July 31, 1973

NEW OFFERING — TREASURY BILLS
To All B anking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your atten tion 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 two series of T re a su ry bills to th e aggregate am 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 a tu 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 b e issued A ugust 9, 1973, in th e a m o u n t of $2,500,000,000, or th ereab o u ts,
re p rese n tin g a n a d d itio n al a m o u n t of bills d a te d M ay 10, 1973, a n d to m a tu re N o vem ber 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 original bills to be
fre ely in terch an g eab le.
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 o th series w ill be issued on a disco unt basis u n d e r co m p e titiv e a n d n o n co m p etitiv 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 interest. T h e y w ill be issued in b e a re r fo rm only, a n d in
d e n 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 rity v a lu e ).
T e n d e rs will be receiv ed a t F e d e ra l R e se rv e B ank s a n d B ran ches 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 Saving T im e , M o nday, A ugust 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 ac h
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
n o t be used. I t is u rg ed th a t ten d e rs be m ad e on th e p rin te d form s and forw 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 an k s or B ran ch es o n a p p lic a tio n th erefor.
B an k in g in stitu tio n s generally m ay su b m it te n d e rs fo r a cc o u n t of custom ers p ro v id ed th e n am es of th e cu stom ers a re
set fo rth in such tenders. O th ers th a n b an k in g in stitu tio n s will 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 received w ith o u t d ep o sit from in co rp o ra ted b an k s and tru st com panies a n d from resp onsible 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 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 ten d e rs a re acco m p an ied b y a n express g u a ra n ty of p a y m e n t by 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 hour, ten d e rs w ill be o p en ed a t th e F e d e ra l R eserv e B a n 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 a ccep ted bids. O nly those
su b m ittin g c o 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 all ten d ers, in w hole or in p a rt, a n d his action in a n y such re sp e ct shall be final. S u b­
jec t to th ese reservations, 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 p rice fro m a n y one b id d er w ill
be acc ep te d in full a t th e av erage price (in th re e decim als) of acc ep te d co m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for
accep ted ten d e rs in accordance w ith th e bids 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 a v ailab le fu nds or 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 an d
exchange te n d e rs w ill receive e q u al tre a tm e n t. Cash a d ju s tm e n ts w ill be m ad e for differences b etw een th e p a r valu 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 45 4 (b ) a n d 1221 ( 5 ) of th e In te rn a l R ev en u e C ode of 1954 th e a m o u n t of discou nt a t w hich bills issued
h e reu n d e r are sold is considered to accrue w hen th e bills a re sold, re d eem ed or otherw ise disposed of, a n d th e b ills a re excluded
from co n sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T rea su ry bills (o th e r th a n life insu rance c om p anies) 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 b etw 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 u p o n sale or re d e m p tio n a t m a tu rity d u ring
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 ircular No. 418 (c u rre n t re v isio n ) a n d th is notice, p rescrib e th e term s of th e T re a su ry bills a n d
govern th e co nditions of th e ir issue. C opies of th e circ 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 acco rd an ce with the a b o v e a n n o u n c e m e n t, tenders will be received a t this b a n k a n d its b ran ch es a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M onday, 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 c c ep ted T e n d e rs
3 -M onth B ills
6 -M onth B ills
D u e N o v e m b er 1, 1973
D u e Ja 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
$1,700,230,000
$2,500,270,000__________________________________ .T o ta l_A c c ep ted _______________________________
P ric e
Y ie ld
P ric e
Y ield
97.915_____________ 8 .2 4 8 % ___________________________ H ig h _______________________ 95.732_____________8.442%
97.888_____________ 8 .3 5 5 % ___________________________ L o w _______________________ 95.708_____________8.490%
97.897_____________ 8.320 % ( 1 ) _____________________ A verage_____________________ 95.715_____________8.476% (1 )
( 1 ) T h e s e 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 .6 2 % for th e 3-m on th bills and 8 .9 8 % for
th e 6-m on th bills.

This publication was digitized and made available (S e e re v erse fo rReserver Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
by the Federal te n d e fo rm )

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Maturing February 7, 1974

Dated August 9,1973
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 $_______________________________ ___

JNOT 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.

H
P
1$

-

~'

(ri)

---<->

$
1$
¥

COMPETITIVE TENDERS

(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 r a c tio n s
must not be used.

¥
¥
¥
¥

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 OF PAYMENT

Denominations Desired
Number of
pieces

Maturity Value

@¥
@¥

10,000 ¥
15,000 $
50,000 ¥

□
□

@ ¥ 100,000 $
@ ¥ 500,000 $

□

,000,000 ¥

□

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

(Subscriber’s full nam e or corporate title)

Hold in Custody — Investment Ac­
count

□
□
□

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

Delivery Instructions:
□ Hold in Custody — General Account
□

By maturing bills
held by_
Payment to be made by_

(A ddress)

By(Authorized official signature and title)
(F or the account of, if tender is for another subscriber)

-----------------------------------------------------------------------------—

(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 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
(See reverse for announcement)

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