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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 PLEASE OBSERVE CLOSING DATE — FRIDAY, OCTOBER 5, 1973 Noncom petitive tenders for $200,000 or less from any bidder, without stated price, w ill be accepted in full at the average price (in three decim als) o f accepted com petitive bids. ( ^ 1$. . COMPETITIVE TENDERS < jl $ (a) fn) (a) $ @ £ 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 $_ $ 15.000 $_ 50.000 $_ $ 1 0 0 , 0 0 0 $_ -@ $ □ 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 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)
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