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F ed e r a l R e s er v e Ba n k o f D a lla s
F IS C A L A G E N T O F T H E U NITED S T A T E S

DALLAS, TEXAS 7 5 2 2 2
Circular No. 73-224
Septem ber 4, 1973

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O th e rs C o n c e r n e d
in t h e E leventh F ed era l R eserv e District:
»

Your a t t e n t i o n is invited to th e fo llo w in g s t a t e m e n t g iving d e t a il s of tw o issu es of T re as u 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, inv ites ten d e rs for tw o series of T re a su ry bills to th e agg reg ate 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 13, 1973, in th e a m o u n t of
$4,303,405,000, as follows:
91-D A Y B IL L S (to m a tu rity d a te ) to be issued S e p tem b e r 13, 1973, in th e a m o u n t of $2,500,000,000, or th e re ­
ab outs, re p rese n tin g a n ad d itio n al a m o u n t of bills d a te d J u n e 14, 1973, a n d to m a tu re D e c em b er 13, 1973
(C U S I P No. 912793 S H O ) , o rig inally issued in th e a m o u n t of $1,700,840,000, th e ad d itio n al a n d original bills
to b e freely interchang eab le.
182-DA 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 tem b e r 13, 1973, a n d to m a tu re M a rc h 14, 1974
( C U S I P No. 912793 T C O ) .
T h e b ills of b o th series will be issued on a d iscou n t basis u n d er c o m p e titiv e a n d no n c o m p e titiv e b id din 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 a re r form only, a n d in
deno m in atio 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 w ill be receiv ed a t F e d e ra l R eserv 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 Saving T im e, M o nday, S e p tem b e r 10, 1973. T en d e rs will 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 en d e rs over $10,000 m u st be in m u ltip les of $5,000. In th e case of com petitive
ten d e rs th e p rice offered m u st be expressed on th e basis of 100, w ith no t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay
no t be used. I t is urged t h a t ten d e rs be m ad e on th e p rin te d form s a n d fo rw ard ed in th e special envelopes w hich w ill be
su p plied by F e d e ra l R e serv e B an 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 ay su b m it te n d e rs for acco u n t of custom ers p ro v id ed th e n am es of th e custom ers are
set fo rth in such tenders. O th ers th a n ban 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 ex cep t for th e ir own account.
T en d e rs will be received w ith o u t d ep o sit from in co rp o rated b an k s and tr u s t co m pan ies a n d from responsible a n d recognized
dealers in in v estm e n t securities. T en d e rs from o th ers m u st be a cco m p an ied b y p a y m e n t of 2 p e rce 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 are acco m panied 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
tru st com pany.
Im m e d ia te ly a f te r th e closing hour, te n d e rs will be 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 ran ch es, follow ing which
p ub lic an n o u n ce m en t will be m ad e 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 price 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 w ill be ad vised of th e a ccep tan ce o r rejectio 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 or re je ct a n y or all tend 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 these reservations, n o n co m p etitiv e ten 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
be accep ted in full a t th e average p rice (in th ree d ecim 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 S e p te m b e r 13, 1973,
in cash or o th e r im m e d ia tely availab le funds or in a like 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 13, 1973. Cash a n d
exchange ten d e rs will receive equal tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e fo r differences betw een th e p a r value of m a tu rin g
bills a ccep ted in exchange a n d th e issue p rice of th e new bills.
U n d e r Sections 45 4 (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 disco u nt a t w hich b ills 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 co n sideratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills ( o th e r th a n life in su ran ce co m p an ies) issued here­
u n d e r m u st in clude 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 o riginal issue o r on su b seq u en t p u rchase, a n d th e a m o u n t a ctu a lly received e ith e r u p o n sale or re d em p tio n a t m a tu rity d u rin g
th e tax ab 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 revisio n ) a n d th is notice, prescribe th e term 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 a y be o b tain e d fro m a n y F e d e ra l R e serv e B a n k o r 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 S an A n to n io u p to tw e lv e - th ir ty p.m ., C entral D aylig ht S av in g Time, M o n d a y , S e p t e m b e r 10, 1973. T enders
may n o t b e e n t e r e d b y te l e p h o n e .
Yours v e r y truly,
P. E. C o ld w e ll
P re s id e n t
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 en d e rs
3 -M o n th B ills
6 -M o nth B ills
D u e D e c em b er 6, 1973
D u e M arch 7, 1974
$3,902,705,000
.T o ta l A p p lied F o r _________________________________ $3,446,770,000
$2,500,635,000_________________________
T o ta l A c c ep ted ___________________________________$1,807,095,000
P ric e
Y ield
P ric e
Y ield
97.806------------------- 8.680%__ls> J ______________________ H ig h _______________________ 95.617____________ 8.670%
97.772
8 .8 1 4 % ____________________________L ow ________________
lu.___95.577____________ 8 .749%
97.781
8.778% ( 1 ) _____________________ A v erag e _____________________ 95.584____________ 8.735% ( 1 )
( 1 ) T hese rates are on a bank discount basis. T h e equivalent coupon issue yields are 9 .1 0 % for th e 3-m onth bills and 9 .2 7 % for
th e 6 -m onth bills.

(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
Maturing March 14,1974

Dated September 13,1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_______________________ Branch
El Paso 79999

H ouston 77001

San Antonio 78295

(D ate)

Pursuant to the provisions of T reasury Departm ent 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
Noncom petitive tenders for $200,000 or le ss from any bidder, without stated price, w ill be accepted in full at the average
price (in three decim als) of accepted com petitive bids.

$
$
COMPETITIVE TENDERS
$
$
1

IV

-

-

--- --

(a)
(n)
o
<n)

@

Prices should be
e x p r e s s e d on th e
basis of 100, w ith
not more than three
decimal places, e.g.,
99.925. F r a c t io n s
m ust not be used.

$
$
?

B F * T E N D E R S MAY NOT BE ACCEPTED BY TELEPHO NE. T E N D E R S BY W IRE, IF RECEIVED BEFO RE T H E
CLOSING HOUR ARE ACCEPTABLE.
Paym ent for th is issue of bills cannot be m ade by
credit to Treasury Tax and Loan Account.

D enom inations D esired
Number of
pieces

M aturity Value

_@ $

METHOD OF PAY M ENT

10,000 $_

□

15.000
50.000 $_
_@ $

1 0 0 ,0 0 0

□

$_

□

$_

Delivery Instructions:
□ Hold in Custody — General Account
□ Hold in Custody — Investment Ac­
count
□ Hold in Custody — Trust Account
□ Pledge to secure Treasury Tax and
Loan Account
□ Other--------------------------------------

Charge our reserve account on payment
date

|

_@$ 500,000 $_
$ 1 ,0 0 0 ,0 0 0

By maturing bills
held by____________________________
Payment to be made by___________ _

| D r a f t e n c l o s e d (Effectual delivery o f enclosed draft
shall be on latest day which w ill permit presentm ent
in order to obtain irrevocably collected funds on p ay­
m ent date)

(Subscriber’s fu ll name or corporate title)

(Address)

By-

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

(Address)

IM PORTANT
1. No tender for less than $10,000 w ill be considered and each tender over $10,000 m ust be for an amount in m ultiples 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 E N 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 uni­
cations relating to other m atters should not be enclosed. E nvelopes for subm itting tenders m ay be obtained from th is
bank or appropriate branch.
3. A ny qualified or conditional tender w ill be rejected.
4. If a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to m ake the
tender and the sign in g of the form by an officer of the corporation w ill 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 th e firm.”
5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in v est­
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 full paym ent b y an
incorporated bank or trust 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 m ay be disregarded

(See reverse for announcement)

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