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F ederal Reserve Ba n k o f D allas 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. 73-241 Septem ber 25, 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 e d e r a l R eserv e 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 giving d e t a il s of tw o issues of T re a s 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 two series of T re a su ry bills to th e aggregate 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 O cto ber 4, 1973, in th e a m o u n t of $4,301,405,000, as follows: 91-D A Y B IL L S (to m a tu rity d a te ) to b e issued O ctob er 4, 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 J u ly 5, 1973, a n d to m a tu re J a n u a ry 3, 1974 ( C U S IP No. 912793 S S 6 ), orig in ally issued in th e a m o u n t of $1,700,985,000, th e ad d itio n al a n d original bills to b e freely interchang eab le. 182-D A Y B IL L S for $1,800,000,000, o r th ereab o u ts, to be d a te d O cto b er 4, 1973, a n d to m a tu re A pril 4, 1974 (C U S I P No. 912793 T F 3 ) . T h e bills of bo th series will be issued on a disco u nt basis u n d e r c o m p e titiv e a n d n o n co m p etitiv e b id d in g as h e re in a fte r pro vid 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 interest. T h e y w ill be issued in b e are r form only, a n d in d eno 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 b e received a t F e d e ra l R e serv e B a n 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 S aving T im e , M onday, O ctob er 1, 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 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 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 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 urg ed 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 arded in th e special envelopes w hich w ill be su p p lied b y F e d e ra l R eserv e 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 g enerally m a y su b m it ten d e rs for acco un t of custom ers p ro v id ed th e nam es of th e custom ers a re set fo rth in such ten ders. O th ers th a n ban k in g in stitu tio n s w ill no t be p e rm itte d to su b m it te n d e rs excep t for th e ir own account. T e n d e rs w ill be receiv ed w ith o u t dep o sit from in co rp o rated bank s and tr u s t co m p anies a n d from responsible a n d recognized d ealers in in v estm e n t securities. T e n d e rs from o th ers m u st be acco m p anied 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 ten d e rs a re accom pan ied b y 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 tr u 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 pen ed a t th e F e d e ra l R eserve 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 w ill b e 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 a ccep ted bids. O nly those su b m ittin g c o m p e titiv e te n d e rs will be ad vised 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 c t a n y or all tenders, in w hole or in p a rt, and his action in a n y such re sp e ct shall be final. S u b jec t to th ese 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 e r will be acc ep te d in full a t th e average p rice (in th re e d ecim als) of accep ted co m p etitiv e bids for th e respective 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 c om p leted a t th e F e d e ra l R eserv e B a n k on O cto ber 4, 1973, in cash or o th e r im m e d ia tely av ailab le fun d s or in a like face a m o u n t of T re a su ry bills m a tu rin g O ctob er 4, 1973. C ash a n d exchange ten d e rs w ill receive eq ual tre a tm e n t. C ash 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 atu rin g bills a ccep ted in exchange a n d 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 a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills are excluded from con sideration as c ap ital 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 com p an ies) 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 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 e n t p urchase, 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 a b 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 isio n ) a n d this notice, p rescrib e th e term s of th e T re a su ry bills a n d govern th e co nditions of th e ir issue. C opies of th e c ircu lar m a y be o b tain e d from a n y F e d e ral 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 S an A n to n io u p to tw e lv e - th ir ty p.m ., C e ntral D aylig ht S av in g Time, M o n d a y , O cto b e r 1, 1973. T en de rs may n o t b e e n t e r e d b y te l e p h o n e . Y ours v e r y truly, P. E. Coldw ell P re sid 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 e n d e rs 13-W eek B ills 26-W eek B ills D u e D e c em b er 27, 1973 D u e M a rc h 28, 1974 $4,133,820,000 -T otal A p p lied F o r _________________________________ $4,387,085,000 $2,500,345,000__________________________________ T o ta l A c c ep ted ___________________________________$1,801,030,000 P ric e Y ield P ric e Y ield 98.167 7 .2 5 1 % __________________________ H ig h _______________________ 96.147____________ 7.621% 98.141 7 .3 5 4 % ----------------------------------------- L ow ________________________96.123____________ 7.669% 98.147 7.331% ( 1 ) -------------------------------- A verag e--------------------------------- 96.127____________ 7.661% (1 ) ( 1 ) T h ese rates are o n a b ank d iscount basis. T h e eq u ivalen t coupon issue yie ld s are 7 .5 7 % for th e 13-w eek bills and 8 .0 8 % for th e 2 6 -w eek 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 April 4, 1974 Dated October 4,1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) P ursu ant to the provisions of Treasury D epartm ent Circular No. 418 (current revision) and the provisions of th e public announcement issued by the T reasury 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 at the rate indicated. NONCOMPETITIVE __________________________________ TENDER $ _NOT TO EXCEED $200,000 N oncom petitive tenders for $200,000 or less from any bidder, without stated price, w ill be accepted in full at the average price (in three decim als) of accepted com petitive bids. Ii$ t $1 ----- ■' 1$ T— ' $ COMPETITIVE TENDERS * VA- $ ..... ..—fn) $ $ $ . @ Prices should be e x p r e s s e d on t h e basis of 100, w ith not more than th ree decimal places, e.g., 99 .9 2 5 . F r a c t i o n s m ust not be used. T E N D E R S M AY NOT B E A C C E P T E D B Y T E L E P H O N E . T E N D E R S B Y W IR E, IF R E C E IV E D B E F O R E T H E CLOSING H O UR A R E A C C E P T A B L E . P aym ent for th is issu e of bills cannot be made b y credit to T reasury T ax and Loan Account M ETH OD OF P A Y M E N T Denom inations D esired Number of pieces M aturity V alue _@ $ 1 0 ,0 0 0 $_ J@$ _@$ 15,000 $_ 50,000 $_ _@ $ 1 0 0 , 0 0 0 $_ 500,000 □ □ By maturing bills held by----------------------------------------Payment to be made by------------------- _ □ Charge our reserve account on payment date I I Draft enclosed (Effectual delivery of enclosed d r a ft $_ _@ $ 1,000,000 $_ 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-------------------------------------- shall be on latest day which w ill permit p resentm 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 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 u ltiples of $5,000 (m aturity v a lu 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 th e U nited States, w ith notation on the envelope reading “T E N D E R FOR T R E A S U R Y O F F E 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 relatin g to other m atters should not be enclosed. Envelopes for subm itting tenders may be obtained from th is bank or appropriate branch. 8. A ny qualified or conditional tender w ill be rejected. 4. I f a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make th e tender and the sign ing 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. I f the tender is made by a partnership it should be signed by a member of the firm, w ho should sign in the form “_____________________________ , a copartnership, by----------------------------------------------------------------7 a member of 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 ment securities w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m atu rity v a lu e ) of the T reasury bills applied for, or unless the tenders are accompanied by an express g uaranty of fu ll paym ent b y an incorporated bank or tru st company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the T reasu ry is m aterial, the tender m ay be disregarded. (See reverse for announcement)
@FedFRASER