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F ederal Reserve Bank o f D allas
F I S C A L A G E N T O F T H E UN ITED S T A T E S

D ALLAS, TEXAS 7 5 2 2 2
C ircu lar No. 73-248
S e p te m b e r 28, 1973

NEW OFFERING — TREASURY BILLS
To A;3 B a n k in g Institutions a n d O th e r s C o n c e r n e d
in t h e E leventh F e d e ra l R e serve District:
Y our 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 g iving d e t a il s of tw o issues 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, invites 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 O ctob er 11, 1973, in th e a m o u n t of
$4,301,080,000, as follows:
91-D A Y B IL L S (to m a tu rity d a te ) to b e issued O cto b er 11, 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 12, 1973, a n d to m a tu re J a n u a r y 10, 1974
( C U S I P No. 912793 S T 4 ) , o rig in ally issued in th e a m o u n t of $1,701,710,000, th e a d d itio n al a n d original bills
to be freely in terchang eab le.
182-D A Y B IL L S fo r $1,800,000,000, or th ere ab o u ts, to be d a te d O cto b er 11, 1973, a n d to m a tu re A pril 11, 1974
( C U S I P No. 912793 T G I ) .
T h e bills of bo th series will b e issued on a d iscou n t 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
p ro v id ed, a n d a t m a tu rity th e ir face a m o u n t w ill 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
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 w ill be 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 , F rid a y , O cto ber 5, 1973. T e n d e rs will n o t b e 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 le s of $5,000. In 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 urg ed 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 en velopes w hich w ill be
su p p lied b y 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 th erefo r.
B a n k in g in stitu tio n s gen erally m ay su b m it te n d e rs for acco u n t of custo m ers p ro v id ed th e nam es of th e custo m ers are
set fo rth in such tenders. O th ers th a n b a 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 ex cep t for th e ir own account.
T e n d e rs w ill be received w ith o u t d e p o sit from in co rp o ra ted b an k s and tr u s t com p anies a n d from respo n sible a n d recognized
d ealers in in v e s tm 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 te n d e rs a re a cco m 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 w ill be o p en ed a t the F e d e ra l R e serv e 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 will be m ad e 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 ran ge of accep ted bids. O nly those
su b m ittin g c o m p e titiv e ten d e rs will be ad vised of th e a ccep tan ce or 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 c c e p t or re je c t a n y or all ten ders, 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 u b ­
je c t to th ese reserv atio n s, 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 a ccep ted in full a t th e av erage p rice (in th re e d ecim als) of a ccep ted c o 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 bid s m u st be m ad e or co m p leted a t th e F e d e ra l R e serv e B a n k on O cto b er 11, 1973,
in cash or o th e r im m e d ia tely av ailab le fu n ds or in a like face a m o u n t of T re a su ry bills m a tu rin g O cto b er 11, 1973. C ash 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 will be m ad e fo r differences b e tw ee n th e p a r valu e of m a tu rin g
b ills a cc ep te d 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 discount a t w hich b ills issued
h e re u n d e r are sold is considered to accrue w hen th e b ills are sold, re d ee m e d or otherw ise disposed of, a n d th e bills are excluded
from co n sid eratio 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 h e re ­
u n d e r m u st inclu d e 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 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 e m p tio n a t m a tu rity d u rin g
th e tax a b le y e ar 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 ircular No. 418 (c u rre n t rev isio n ) a n d th is notice, p re sc rib e th e te rm s of th e T re a su ry bills an d
govern th e conditions of th e ir issue. C opies of th e circu lar m ay be o b tain 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 , 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 l v e - th ir ty p .m ., Centra! D ay lig h t S avin g Time, Friday, O cto b e r 5, 1973. T en d e rs m a y
not 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 old w ell
P re sid e n t

Figures c o ncerning offering o f 9 1 -D ay Treasury Bills maturing J a n u a r y 3, 1 9 7 4 a n d 1 8 2 -D a y Treasury Bills maturing April 4 ,
1974, not a v a i l a b l e w hen this circular w a s pri nte d.

( 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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Maturing January 10,1974

Dated July 12,1973

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

H ouston 77001

San Antonio 78295

(Date)

P ursu ant to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions o f the
public announcement issued by the Treasury Departm ent, the undersigned offers to purchase T reasury 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

5, 1973

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) o f accepted com petitive bids.

(

^

OBSERVE

CLOSING DATE — FRIDAY, OCTOBER

$

PLEASE

1. .
$

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a

$

COMPETITIVE TENDERS

@

£

i

_

$
$
$

...
...

P rices should be
e x p r e s s e d on th e
basis of 100, w ith
not more than th ree
decimal places, e.g.,
9 9 .9 2 5 . F r a c t i o n s
m ust not be used.

T E N D E R S MAY NOT BE 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 BY W IR E, IF R E C E IV E D B E F O R E T H E
C LOSING H O UR A R E A C C E P T A B L E .
P aym ent for th is issue of bills cannot be made b y
credit to T reasury T ax and Loan Account
M ETH O D OF P A Y M E N T

Denominations Desired
Number of
pieces

M aturity Value

10,000 $_

$
$

□ By maturing b l s
il
held by.-----------------------□ Payment to be made by------------

15.000 $_
50.000 $_
1 0 0 , 0 0 0 $_

-@ $

□ Charge our reserve account on payment
date
I I Draft enclosed (Effectual delivery of enclosed d ra ft

500,000 $_
@ $ 1,000,000 $ _____________

_@ $

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)

Delivery Instructions:
□ Hold in Custody — General Account

(Subscriber’s fu ll nam e or corporate title)

□ Hold in Custody — Investment Ac­
count

(Address)

□ Hold in Custody — Trust Account
□ Pledge to secure Treasury Tax and
Loan Account

By_
(Authorized official signature and title)

(For the account of, if tender is for another subscriber)

□ Other_______________________

(Address)

IMPORTANT
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 atu rity v a lu e).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as F iscal A gent 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 relating to other m atters should not be enclosed. Envelopes 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 makes the tender, the form should be
signed by an officer of the corporation authorized to make 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. I f the tender is made by a partnership it should be signed by a member o f the firm, w ho
should sign in the form “-------------------------------------------- , a copartnership, by-----------------------------------------------------------------------,
a member of the firm.”
5. Tenders from those other th an incorporated banks and tru st companies or responsible and recognized dealers in in v e s t­
m ent 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 guaranty of full 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)

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