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F ederal R eserve Bank of Dallas
F I S 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 7S222

C ircular No. 73-230
S e p te m b e r 13, 1973

NEW OFFERING — TREASURY BILLS

To All B an k in g Institutions a n d O th e rs C o n c e r n e d
in th e E leventh F e d e ra l R eserve District:

Your a t te n t io n is in v ited to th e f o llo w in g s t a t e m e n t giv in g d e t a il s of a n iss u e of T re a s u ry bills:
T h e T re a su ry D e p a rtm e n t, by th is p u b lic notice, invites te n d e rs for $1,800,000,000, or th ere ab o u ts, of 364-day T re a su ry
bills for cash an d in exchange for T re a su ry bills m atu rin g S e p tem b e r 25, 1973, in th e a m o u n t of $1,800,510,000. T h e bills of th is
series will be d a te d S e p te m b e r 25, 1973, an d will m a tu re S e p tem b e r 24, 1974 ( C U S IP No. 912793 T X 4 ) .
T h e bills will be issued on a d iscount basis u n d e r c o m petitive 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 provided, a n d a t
m a tu rity th eir face a m o u n t will be p a y a b 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 en o 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 will be received a t F e d e ra l R eserv e B anks an d B ranches 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, W ednesday, S e p te m b e r 19, 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 price 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 a y n o t
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 be su p p lied
b y F e d e ra l R eserve B an k s or B ran ch es on a p p lic atio 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 for account of custom ers pro v id ed th e nam es of th e custom ers are
set fo rth in such tenders. O th ers th a n ba n 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 e xcept for th e ir own account.
T e n d e rs will be received w ith o u t deposit from inco rp o rated ba n k s a n d tru s t com panies an d from responsible a n d recognized
d ealers in in v estm e n t securities. T e n d e rs from others 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 re a su ry bills a p p lie d for, unless th e te n d e rs a re a ccom panied by a n express g u a ra n 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 hour, te n d e rs will be o pened 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
public a n 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 range of a cc ep te d bids. O nly those su b ­
m ittin g co m p e titiv e ten d e rs will be a d v ised of th e a ccep tan ce or rejection 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 tenders, in whole or in p a rt, a n d his a ction in a n y such re sp e ct shall be final.
S u b je ct to these reservations, n o n c o m p e titiv e ten d e rs for $200,000 or less w ith o u t sta te d price from a n y one b id d e r will be
a cc ep te d in full a t th e average price (in th ree decim als) of acc ep te d co m p e titiv e bids. S e ttle m e n t for a cc ep te d ten d e rs in accor­
dance w ith th e bids m u st be m ad e or co m p le te d a t th e F e d e ra l R eserve B a n k on S e p te m b e r 25, 1973, in cash or o th er im m e d ia tely
a v ailab le funds or in a like face a m o u n t of T re a su ry bills m atu rin g S e p te m b e r 25, 1973. Cash an d exchange te n d e rs w ill receive
e qual tre a tm e n t. C ash a d ju s tm e n ts will be m ad e for differences be tw ee n th e p a r va lu e of m atu rin g bills a cc ep te d in exchange
a nd th e issue price of th e new bills.
U n d e r Sections 454 ( b ) an d 1221 ( 5 ) of th e In te rn a l R e v en u e C ode of 1954 th e a m o u n t of d iscount a t w hich bills issued
h e re u 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, an d th e bills are excluded
from consideration as cap ital assets. Accordingly, th e ow ner of T rea su ry bills (o th e r th a n life insurance com panies) issued h e re ­
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 e tw ee n 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, an 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 e m p tio n a t m a tu rity d u ring
th e tax a b le y ear for which 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, pre sc rib e th e te rm s of th e T re a s u ry bills a n d
govern th e conditions of th e ir issue. C opies of th e c ircular 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 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 , t e 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,
H o u sto n a n d San A n to n io up to tw e lv e - th ir ty p.m ., Central D ay lig h t S av in g Time, W e d n e s d a y , S e p te m b e r 19, 1973.
T e n d e rs m a y n o t b e e n t e r e d b y te l e p h o n e .
Yours very truly,
P. E. Coldwell
P re s id e n t

(See r v r e f r tender form)
ees o

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

TENDER FOR TREASURY BILLS

364 DAYS TO MATURITY
Dated September 25, 1973

Maturing September 24, 1974

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The____________________________ Branch
E l Paso 79999

Houston 77001

San A ntonio 78295

(D ata)

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

N oncom petitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decim als) o f accepted com petitive bids.

1
?

(a)

COMPETITIVE TENDERS $

(a)
Cm

.

Prices should be
exp ressed on the
b a sis of 100, w ith
not more than three
decimal places, e.g.,
99.925. F raction s
must not be used.

$
$
$
$

TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

D enom inations D esired
N u m b er of
Pieces

Maturity Value

10,000
15,000
50,000
$
$ 100,000
$ 500,000
$1,000,000

(cb $
(cb *

. (a)
<>
2
(fib
(cb

METHOD OF PAYMENT

$
$
$
$

□
□

By maturing bills
held by---------------------------------------------Payment to be made by______________

□

Charge our reserve account on payment
date

|

| D r a f t e n c l o s e d (E ffectual delivery o f enclosed d ra ft
sh all be on la te st day w hich w ill p e rm it p re s e n tm e n t in
o rd e r to o b ta in irrevocably collected fun ds on p a y m e n t
date)

$

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____________________________

(S u b sc rib e r’s fu ll n am e o r c o rp o ra te title)
(A ddress)

By-

(A u th orized official s ig n a tu re a n d title)

(F o r th e a cco un t of, if te n d e r is fo r a n o th e r su bscriber)
(A ddress)

IM PORTANT

1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in m ultiples of
$5,000 (maturity 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 matters should not be enclosed. Envelopes for submitting tenders may be obtained from thia
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 that 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 trust 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 (maturity 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 trust company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
m aterial, the tender may be disregarded.

(See reverse for announcement)

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