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F ederal Reserve b a n k of D allas
F I S C A L A G E N T O F T H E UNIT ED S T A T E S

D ALLAS, TEXAS 7 5 2 2 2
C ircular No. 73-249
S e p te m b e r 28, 1973

NEW OFFERING — TREASURY BILLS
To AH B a n 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 r a l R eserv e District:
Y our a t te n t io n is inv ited to th e fo 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 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 two series of T re a su ry bills to th e ag greg ate a m o u n t
of $4,300,000,000, or th ere ab 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 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 ctober 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 ) , orig in ally issued in th e a m o u n t of $1,701,710,000, 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, or th ere ab o u ts, to be d a te d O cto ber 11, 1973, a n d to m a tu re A p ril 11, 1974
(C U S I P No. 912793 T G I ) .
T h e bills of bo th series w ill be issued on a d iscou n t basis u n d e r c o m p e titiv e a n d n on co m p etitiv e bid d in g as h e re in a fte r
prov ided, 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 w ill be issued in b e a re r fo rm 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 rity v a lu e ).
T e n d e rs w ill be received a t F e d e ra l R e se rv e B a n k s and 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, F rid a y , O cto b er 5, 1973. T e n d e rs will n o t b e receiv ed 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 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 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 arded in th e special envelopes w hich will 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 a tio n th erefo r.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs for accou n 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 tenders. 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 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 fro m in co rp o ra ted b an k s and tr u s t com panies a n d from resp o nsib le a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs from o thers m u st be acco m p anied 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 acco m p anied 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
t r 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 th e F e d e ra l R e serv e B an k s a n d B ran ch es, follow ing w hich
p u b lic an n o u n ce m en t w ill b e 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 ran g e of a ccep ted bids. O nly those
su b m ittin g co m p e titiv e ten d e rs will be adv ised of th e accep 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 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 u b ­
je c t to th ese reservatio ns, n o n co m p etitiv e te n d e rs fo r 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
b e acc ep te d in full a t th e average p rice ( in th re e decim als) of a ccep ted c o m p e titiv 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 co m p leted a t th e F e d e ra l R eserve B a n k on O cto b er 11, 1973,
in cash or o th er im m e d ia tely av ailab le fu n 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 cto b er 11, 1973. C ash a n d
exchange ten d e rs w ill receive equal tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e for differences betw een th e p a r value of m a tu rin g
bills a cc ep te d in exchange a n d the issue p rice of th e new bills.

i

U n d e r Sections 454 ( b ) and 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 discount a t w hich bills issued
h e reu 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, a n d th e bills are excluded
from c o n sid eration as cap 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 co m p an ies) issued hereu n d e r m u st in clude in his incom e ta x 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 u rchase, 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 u rin g
th e tax a b le y e a r 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 re v isio n ) a n d this notice, prescrib 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 a y 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 , t e n d e r s will b e r e 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 up to tw e l v e - th ir ty p.m ., C entral D ay lig h t S aving Time, Friday, O c to 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 .
Y ours v e r y truly,
P. E. C oldw ell
P re sid e n t

Figures concerning offering of 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,
^974, no t a v a i la b l e w h en this circular w a s printe 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 TREASURY BILLS

182 DAYS TO MATURITY
Maturing April 11, 1974

Dated October 11,1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The---------- --- -------------------- Branch
E! Paso 79999

Houston 77001

San Antonio 78295

(Date)

P u rsuan t to the provisions of Treasury D epartm ent Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Departm 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

5, 1973

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.

(

COMPETITIVE TENDERS

<
s
t

«P
------------------------------- v s ---------- --------------------------------------------------i$
(n) -------It
£
KSs

DATE — FRIDAY, OCTOBER
CLOSING
OBSERVE
PLEASE

$

(ci)

$

1
$

(n)

$

$

@

$

P rices should be
e x p r e s s e d on t h e
basis of 100, w ith
not more than three
decimal places, e.g.,
9 9 .9 2 5 . F r a c t io 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
CLO SING H O U R 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 by
credit to T reasury Tax and Loan Account
M ETH OD OF P A Y M E N T

Denominations Desired
Number of
pieces

M aturity Value

10,000 $_

$
_@ $

□

15,000 $_
50,000 $_

□

_@ $ 100,000 $_

□

_@$ 500,000 $_
□

_@ $ 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
□ O ther_-----------------------------------

By maturing bills
held by----------------------------------------Payment to be made by------------------Charge our reserve account on payment
date
Draft enclosed (Effectual delivery of enclosed dra ft
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 nam e or corporate title)

(Address)

By-

(Authorized official signature and title)
(For the account of, if tender is for another subscriber)

(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 ultiples of
$5,000 (m aturity v a lu e).
2. Tenders should be forw arded in an envelope clearly addressed to th is 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 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.
8. 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 th e
tender and the signing of the form by an officer of th e 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
a member of the firm.”
5. Tenders from those other than incorporated banks and trust 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 fu ll paym ent b y an
incorporated bank or tru st company.
6. If the lan guage 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