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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 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 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 $ $ $ $ □ □ □ 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____________________________ By maturing bills held by---------------------------------------------Payment to be made by______________ (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)
@FedFRASER