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F e d e r a l r e s e r v e Ba n k o f D a lla s
FISCA L AGENT OF THE UNITED STATES

DALLAS, TEXAS 7 5 2 2 2
C ircular No. 73-238
S e p te m b e r 18, 1973

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O th ers C o n c e r n e d
in t h e E leventh F e d e r a l R eserve District:
Y o u r a t te n t i o n is invited to th e f o llo w in g s t a t e m e n t g iving d e ta ils of tw o issu es of T re as u ry hills:
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, invites ten d e rs for tw o series of T re a su ry bills to th e aggregate a m o u n t
o f $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 atu rin g S e p tem b e r 27, 1973, in th e a m o u n t of
$4,309,795,000, as follows:
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 27, 1973, in th e a m o u n t of $2,500,000,000, or th e re ­
abouts, 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 Ju n e 28, 1973, a n d to m a tu re D e c em b er 27, 1973
( C U S I P No. 912793 S K 3 ), originally issued in th e a m o u n t of $1,701,130,000, th e ad d itio n al a n d original bills
to b e freely in terch an geab 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 27, 1973, a n d to m a tu re M a rc h 28, 1974
( C U S I P No. 912793 T E 6 ) .
T h e bills of bo th series will be issued on a d isco un t basis u n d er 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
p ro v id ed , 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 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 r ity v a lu e ).
T e n d e rs will be received a t F e d e ral R e serv e B an k s a n 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 Saving T im e, M onday, S e p te m b e r 24, 1973. T e n 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 a c 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 o ver $10,000 m u st be in m u ltip les of $5,000. I n th e case of co m p etitiv e
te n d e rs 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
n o t be used. I t is u rged th 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 b e
su p p lied by F e d e ra l R e serv e B anks 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 ay su b m it te n d e rs fo r accou n t of custom ers pro v id ed th e n am es of th e cu sto m ers are
s e t fo rth in such tend ers. O th ers th a n b an 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 except for th e ir own account.
T e n d e rs will be received w itho u t dep o sit from in co rp o rated b an ks and tru s t com panies a n d from 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 accom pan ied 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 su ry bills a p p lie d for, unless th e te n d e rs a re acco m p an 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
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 b e o p en ed a t th e F e d e ra l R eserv e B an ks an d B ranches, follow ing w hich
p u b lic a n n o u n ce m en t will be m ade 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 range of a ccep ted bids. O nly tho se
su b m ittin g c o m p e titiv e ten d e rs will b e ad v ised of th e a cc ep ta n 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 ten d ers, 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 ub ­
je c t to th ese reservations, n on 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 price from a n y one b id d er will
b e acc ep te d in full a t th e average p rice (in th ree decim als) of a ccep ted co m p e titiv e bid s for th e resp ectiv e issues. S e ttle m e n t for
a cc ep te d 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 27, 1973,
in cash or o th e r im m e d ia tely av ailab le funds 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 tem b e r 27, 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 will be m ad e for differences b etw een th e p a r v alu e of m atu 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 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 disco u nt a t which b ills issued
h e re u n d e r are sold is considered to accru e w hen th e bills are sold, red eem ed or otherw ise disposed of, a n d th e bills are excluded
from c o n sideration as c ap ital assets. A ccordingly, th e ow ner of T rea su ry bills ( o th e r th a n life insurance co m pan ies) issued h e re ­
u n d e r m u st in clud e in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference 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 en t purchase, 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 urin g
th e tax ab le y e ar for 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 rev ision ) a n d th is notice, p rescrib e th e term s of th e T re a su ry bills a n d
govern th e conditions of th e ir issue. C opies of th e c ircu lar m ay be o b ta in e d from a n y 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 , 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,
Houston a n d San A n to n io u p to tw e lv e - th ir ty p .m ., C entral D aylig ht S av ing Time, M o n d a y , S e p t e m b e r 24, 1973. T end ers
may n o t b e e n t e r e d b y t e l e p h o n e .
Y ours v e r y trulyf
P. E. C oldw 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 ccepted T en d e rs
3 -M o n th B ills
6 -M o n th B ills
D u e D e c em b er 20, 1973
D u e M a rc h 21, 1974
$4,113,190,000
T o ta l A p p lied For _________________________________ $5,375,225,000
$2,500,865,000__________________________________ T o ta l A c c ep ted ____________________________________ 1,802,375,000
P ric e
Y ield
P ric e
Y ield
97.808
8 .6 7 2 % __________________
H ig h __
95.548_____________ 8 .806%
9 7 .77 6
8 .7 9 8 % ___________________________ L ow ________________________ 95.532____________ 8 .838%
97.779
8.786% ( 1 ) _____________________ A v erag e______________________ 95.535____________ 8 .83 2 % ( 1 )
( 1 ) T h ese rates are on a bank discount basis. T h e eq u iv a le n t coupon issue y ie ld s are 9 .1 1 % for th e 3-m on th b ills and 9 .3 7 % for
th e 6 -m on th 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 28, 1974

Dated September 27, 1973

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

Houston 77001

San A ntonio 78295

(D ata)

Pursuant to the provisions of Treasury Departm ent Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury D epartm ent, 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 less 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.
^
1?

(a)

$

©

$

1$

COMPETITIVE TENDERS

fn)

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

$

©

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 R ECEIVED BEFO RE T H E
CLOSING HOUR ARE ACCEPTABLE.
D enominations D esired
Number of
pieces

P aym ent fo r th is issu e of bills cannot be made by
credit to Treasury T ax and Loan Account.

M aturity Value

_@ $
_@ $

METHOD OF PA Y M E N T

10,000 $_

15.000 $_
50.000 $_

-@ ?
-@ $

1 0 0 ,0 0 0

□
□

$_

□

Charge our reserve account on payment
date
| | Draft enclosed (Effectual delivery o f enclosed draft

500,000 $_
_ @ $ 1 ,0 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____________________ — ---- -

By maturing bills
held by-----------------------------------------Payment to be made by____________ .

shall be on latest day which w ill permit presentm ent
in order to obtain irrevocably collected funds on p a y­
m ent date)

(Subscriber’s fu ll name or corporate title)

(Address)

By-

(Authorized official signature and title)
(For tbe 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 of 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 time 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 this
bank or appropriate branch.
3. A ny qualified or conditional tender w ill be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to m ake 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 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 valu e)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of fu ll paym ent by an
incorporated bank or trust company.
6. If the language of this form is changed in any respect, which, in the opinion o f the Secretary of the T reasury is
m aterial, 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