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F ederal Reserve Bank o f Dallas
F IS C A L A G E N T O F T H E UNIT ED S T A T E S

DALLAS, TEXAS 7 5 2 2 2
C ircu lar No. 73-199
A ugu st 7, 1973

NEW OFFERING — TREASURY BILLS
To All B anking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your a tte n tio n is invited to the following sta te m e n t giving details of tw o 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, in v ites ten d e rs for tw o series of T re a su ry bills to th e ag greg ate 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 a tu rin g A ugust 16, 1973, in th e a m o u n t of
$4,303,570,000, as follow s:
91-D A Y B IL L S (to m a tu rity d a te ) to b e issued A u gust 16, 1973, in th e a m o u n t of $2,500,000,000, or th ere ab 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 17, 1973, a n d to m a tu re N o v em b er 15, 1973 (C U S IP
No. 912793 S D 9 ), originally issued in th e a m o u n t of $1,692,665,000, 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 ug ust 16, 1973, a n d to m a tu re F e b ru a ry 14, 1974
( C U S IP No. 912793 S Y 3 ).
'
T h e bills of b o th series will b e issued on a d iscoun t 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
p ro v id e d , a n d a t m a tu rity th e ir face a m o u n t w ill be p ay ab le w ith o u t interest. T h e y will be issued in b e a re r form 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 eserv e B a n k 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 S avin g T im e , M ond ay, A ugust 13, 1973. T e n d e rs will n o t be receiv ed 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
te n d e rs th e p ric e 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 urg ed th a t ten d e rs be m ad e on th e p rin te d form s a n d forw arded in th e special envelopes w hich w ill be
su p p lie d b y F e d e ra l R e se rv e B an k s or B ran ch es on a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s g en erally m ay su b m it te n d e rs fo r acc o u n t of cu stom ers p ro v id ed th e n am es of th e cu stom ers a re
se t fo rth in such ten ders. O th e rs th a n b a n k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it ten d e rs excep t for th e ir own account.
T e n d e rs w ill b e receiv ed w ith o u t d e p o sit fro m in co rp o ra ted b a n k s and tr u s t com panies a n d from respon sible a n d recognized
d e a le rs in in v e stm e n t securities. T e n d e rs from o th ers m u st be accom panied 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 s u ry bills a p p lie d for, unless th e te n d e rs a re a cco m p an ied by 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
tr u 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 pen ed a t th e F e d e ra l R eserv e B a n k s a n d B ranch es, follow ing w hich
p u b lic a n n o u n ce m en t w ill be m ad e 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 rang e of accep ted bids. O nly those
su b m ittin g c o m p e titiv e te n d e rs will be a d v ised of th e a cc ep tan ce or rejectio n thereof. T h e S e c retary of th e T re a su ry expressly
reserv es th e rig h t to a c c e p 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 b e final. S ub ­
je c t to th ese reservations, n o n c o m p e titiv e ten d e rs fo r each issue for $200,000 or less w ith o u t sta te d p rice from a n y one b id d e r w ill
be a c c e p te d in full a t th e averag e p rice (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
a c c e p te d ten d e rs in accordance w ith th e bids m u st be m ad e or c o m p leted a t th e F e d e ra l R eserv e B a n k on A ugust 16, 1973,
in cash or o th e r im m e d ia tely a v ailab le fu nds or in a lik e face a m ou nt of T re a su ry bills m a tu rin g A ugust 16, 1973. C ash a n d
exchange te n d e rs will receive eq u al 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 value of m a tu rin g
bills a c c e p 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 ev en u e C ode of 1954 th e a m o u n t of d isco unt a t w hich bills issued
h e re u n d e r a re sold is con sidered to accrue w hen th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re excluded
fro m c o n sid era tio 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 insurance co m p an ies) issued here­
u n d e r m u st inclu de in h is incom e tax re tu rn , as o rd in ary gain or loss, th e d ifference betw 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 p urchase, 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 rev isio n ) a n d th is notice, pre sc rib e th e term s of th e T re a su ry bills a n d
govern th e co n d itio n s of th e ir issue. C opies of th e c irc u lar m ay be o b ta in e d fro m a n y F e d e ra l R eserv e B a n k o r B ranch.

In a c c o rd a n ce with the a b o v e a n n o u n c e m e n t, tend ers will be received a t this b a n k a n d its branch es a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o nd ay , August 13, 1973. Tenders m ay
not be e n te r e d by te le 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 onth B ills
D u e N o v e m b er 8, 1973
D u e F e b ru a ry 7, 1974
$3,421,140,000_________________________________ T o ta l A p p lied F o r ---------------------------------------------------$3,109,160,000
$2,500,020,000__________________________________ .T o ta l A c c ep ted ___________________________________$1,800,160,000
P ric e
Y ie ld
P ric e
Y ield
97.890_____________ 8 .3 4 7 % __________________________ -H igh------------------------------------ 95.684____________ 8.537%
97.830 _____________ 8 .5 8 5 % __________________________ L o w ________________________95.6 08____________ 8.687%
97.855_____________ 8.486% ( 1 ) ____________________ .A verage______________________ 95.627____________ 8.650% ( 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 .7 9 % for th e 3-m on th bills and 9 .1 7 % for
th e 6 -m o n th bills.

This publication was digitized and made available by ethereverse for tenderBank )of Dallas' Historical Library (FedHistory@dal.frb.org)
( S e Federal Reserve form

TENDER FOR ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Maturing November 15, 1973

Dated May 17,1973
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 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.

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.
(*

(a)

...

\$

Prices should be
exp ressed on th e
basis of 100, w ith
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.

$
$

COMPETITIVE TENDERS <$■
-(a )-@ -

|J3^= TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING HOUR ARE ACCEPTABLE.
Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan A c c o u n t.
METHOD OF PAYMENT

Denominations Desired
Number of
pieces

Maturity Value

$

10,000 $------------------

$

15.000 $------------------

-@ ?

50.000 $------------------

-@ ?
$

100,000

□
□

$_

□

500,000 $_

$1,00 0,0 00 $_

□
□
□

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

Charge our reserve account on payment
date

I 1 D r a f t e n c l o s e d (Effectual delivery of e n c lo s e d d r a ft
shall be on latest day which will permit presentm 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_____________ _

(Subscriber’s full name or corporate title)

(A ddress)

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

Other----------------------------------------

----------------------------------------------------------------------------------------------------------------------------

(A ddress)

IMPORTANT
1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust 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 officerof 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 invest­
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