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federal Reserve b a n k o f Dallas F I S C A L A G E N T O F T H E U NIT ED S T A T E S D A LLAS, TEXAS 7 5 2 2 2 C ircu lar No. 73-216 A u g ust 24, 1973 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O th e r s C o n c e r n e d in th e E leventh F e d e r a l R eserve District: Your a t t e n t i o n is in vited to th e f o llo w in g s t a t e m e n t g iv in g d e ta ils of tw o issu es of T re asu ry 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 vites ten d e rs for two series of T re a su ry bills to th e agg regate a m o u n t of $4,300,000,000, or th ereab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g S e p tem b e r 6, 1973, in th e a m o u n t of $4,301,495,000, as follow s: 91-D A Y B IL L S (to m a tu rity d a te ) to b e issued S e p tem b e r 6, 1973, in th e a m o u n t of $2,500,000,000, or th e re abouts, re p rese n tn g a n a d d itio n al a m o u n t of bills d a te d J u n e 7, 1973, a n d to m a tu re D e c em b er 6, 1973 ( C U S IP No. 912793 S G 2 ), orig in ally issued in th e a m o u n t of $1,707,440,000, th e a d d itio n al a n d original bills to be freely interchang eab le. 182-D A Y B IL L S for $1,800,000,000, or th ereab o u ts, to be d a te d S e p te m b e r 6, 1973, a n d to m a tu re M a rc h 7, 1974 ( C U S I P No. 912793 T B 2 ) . T h e bills of b o th series will be issued on a d isco un t basis u n der co m p e titiv e a n d no n co m p etitiv e b idd in g as h e re in a fte r provided, 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 are r form only, a n d in d e no m in ation 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 en d e rs will be received a t F e d e ra l R eserv e B an k s a n d B ranches up to th e closing hour, o n e -th irty p.m., E a s te rn D a y lig h t Savin g T im e, F rid a y , A u gu st 31, 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 ten d er 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 c o m p e titiv e ten ders 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 not be used. I t is urged 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 will b e su p plied by F e d e ra l R e serv e B ank s or B ran ch es on a p p lic atio n th erefor. B an kin g in stitu tio n s generally m ay su b m it te n d e rs for acco u n t of custom ers p rov id ed th e nam es of th e cu sto m ers a re set fo rth in such ten d ers. O thers th a n b a n k in g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs ex cept for th e ir own account. T en d e rs will be received w ith o u t dep osit from in co rp o ra ted b ank s and tru s t com panies a n d fro m responsible a n d recognized d ealers in in v estm e n t securities. T en d e rs from o th ers m u st be a ccom 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 rea su ry bills a p p lie d for, unless th e ten d e rs a re accom pan ied by a n express g u a ran ty of p a y m e n t by a n in co rp o ra ted b a n k or trust com pany. Im m e d ia te ly a fte r th e closing hour, ten d e rs will be op ened a t th e F e d e ra l R e serv 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 ad e b y th e T rea 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 acc ep te d bids. O nly those su b m ittin g c o m p e titiv e ten d e rs will be adv ised of th e a ccep tan ce o r rejection thereof. T h e S ec retary of th e T re a su ry expressly reserves th e rig h t to a cc ep t or re je ct a n y or all ten ders, in whole 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 jec t to these reservations, n o nco m p etitive te n d e rs for 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 er will b e accepted in full a t th e av erage price (in th ree decim als) of acc ep te d c o m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for accep ted te n 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 S e p te m b e r 6, 1973, in cash or o th er im m e d ia tely av ailab le fu nd s or in a lik e face a m o u n t of T re a su ry bills m a tu rin g S e p te m b e r 6, 1973. C ash a n d exchange ten d e rs will receive equal tre a tm e n t. Cash a d ju stm e n ts w ill be m ad e for differences b etw een th e p a r v alue of m a tu rin g bills accep ted in exchange a n d th e issue price of th e new bills. U n d e r Sections 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 isco un t a t w hich bills issued h e reu n d e r are sold is considered to accrue w hen th e bills are sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re excluded from c on sid eration as cap ital assets. A ccordingly, th e ow ner of T rea su ry bills ( o th e r th a n life in surance co m p anies) issued h e re u n d e r m u st in clu 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 eth er on original issue or on su b sequ ent p urchase, and th e a m o u n t a ctu a lly received e ith e r upon sale or re d em p tio n a t m a tu rity du rin g th e tax a b le y ear for w hich th e r e tu rn is m ade. T rea 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, p rescrib e th e te rm s of th e T re a su ry bills a n d govern th e co n dition s of th e ir issue. C opies of th e c ircu lar m ay be o b tain e d from a ny F e d e ra l R eserv e B a n k or B ranch. In a c c o r d a n c e w ith th e a b o v e a n n o u n c e m e n t , te n d e r s will b e re c e iv e d a t this b a n k a n d its b r a n c h e s a t El P aso, Houston a n d San A n to n io up to tw e lv e - th ir ty p.m., C entral D aylig ht S avin g Time, Friday, A u g u s t 31, 1973. T en d e rs m a y not b e e n t e r e d b y te l e p h o n e . Y ours very truly, P. E. C oldw ell P re sid e n t Figures c o ncerning offering of 9 1 -Day Treasury Bills maturi ng N o v e m b e r 29 , 1 9 7 3 , a n d 1 8 2 -D a y Treasury Bills maturing February 2 8 , 1 9 7 4 , not a v a i la b l e w hen this circular w as printed. (See reverse for tender form) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 182 DAYS TO MATURITY Dated September 6,1973 Maturing March 7,1974 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________ Branch El Paso 78999 Houston 77001 San Antonio 78295--------------------------- ------------------------- (D ate) P ursuant to the provisions of Treasury D epartm ent Circular No. 418 (current revision) and the provisions of th e public announcement issued by the Treasury Departm ent, 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 a t th e rate indicated. N O N C O M P E T IT IV E T E N D E R $____________ N O T TO E X C E E D $200,000 PLEASE OBSERVE CLOSING BATE — FRIDAY, AUGUST !$ I*r C O M P E T IT IV E T E N D E R S ( $ $ 1 $ v $ - 31, 1973 Noncompetitive tenders for $200,000 or less from any bidder, without stated price, w ill be accepted in full at the a v era g e price (in three decimals) of accepted com petitive bids. ---------- (a) $ $ $ ........ @ — —. P rices should be exp ressed on th e basis of 100, w ith ? (a) ( n) © ? decimal places, e.g., 99.925. F ractions must not be used. B 9 P T E N D E R S MAY NOT BE ACCEPTED BY TELEPHO NE. T EN D E R S BY W IRE, IF R ECEIVED BEFO RE CLOSING HOUR ARE ACCEPTABLE. Denom inations D esired Number of pieces Paym ent for this issue o f bills cannot be m ad e b y credit to Treasury Tax and Loan Account. METHOD OF PAY M E N T □ By m a t u r i n g bills M aturity Value _@ $ _@ $ $ $ 15,000 $--------------------50,000_$______________ 10,000 □ $ 100,000 $---------------------@ $ THE □ 50 0,0 00 $ --------------------- _______ (g) $ 1,000,000 $_________________ O held by. Payment to be made by Charge our reserve account on payment date Draft enclosed (Effectual delivery o f enclosed d r a ft shall be on latest day which w ill permit presen tm en t in order to obtain irrevocably collected funds on pay- Delivery Instructions: m date) ent n Hold in^Custody — General Account------------------------------- (Subscriber s fu ll„--------------- — --.---------------— — —r ~ . name or corporate title) I —I J □ Hold in Custody — Investment Ac-_________ _____________________________________________ (Address) COUnt □ □ □ Hold in Custody — Trust Account Pledge to secure Treasury Tax and Loan Account - .. Other_________________________ (Authorized official signature and title) _________________________________ (For the account of, if tender is for another subscriber) ---------------------------------------------------------------------------------- — (Address) IMPORTANT 1. No tender for less than $10,000 w ill be considered and each tender over $10,000 m u st be for an amount in m u ltip les of $5,000 (m aturity valu e). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as F iscal A gen t o f the United States, w ith notation on the envelope reading “T EN D E R FOR T R E A SU R Y O FFE R IN G ”. Since envelopes received w ith this legend w ill not be opened until after the closing tim e specified in the public announcement, com m u ni cations relating to other m atters should not be enclosed. Envelopes for subm itting tenders m ay be obtained from this bank or appropriate branch. 3. A ny qualified or conditional tender w ill be rejected. 4. I f a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to m a k e 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 o f the firm.” 5. Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in in v e s t m ent securities w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity v alu e) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of fu ll paym ent b y an incorporated bank or tru st company. 6. If the langu age of this form is changed in any respect, wrhich, in the opinion of the Secretary of the T rea su ry is materia], the tender m ay be disregarded (See reverse for announcement)
@FedFRASER