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F ed er a l r e s e r v e Ba n k o f D a lla s
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. 73-258
October 9, 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 ra l R eserve District:
Y our a t te n t io n is in vited to th e fo llo w in g s t a t e m e n t g iving d e t a il s of tw o iss u es 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 two series of T re a su ry bills to th e ag g reg ate a m o u n t
o f $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 18, 1973, in th e a m o u n t of
$4,301,210,000, as follows:
91-D A Y B IL L S (to m a tu rity d a te ) to be issued O cto b er 18, 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 19, 1973, a n d to m a tu re J a n u a r y 17, 1974
( C U S I P No. 912793 S U 1 ), origin ally issued in th e a m o u n t of $1,700,715,000, th e a d d itio n al a n d orig inal 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 O ctob er 18, 1973, a n d to m a tu re A p ril 18, 1974
( C U S I P No. 912793 T H 9 ) .
T h e bills of b o th series w ill be issued on a discou n t basis u n d e r co m p etitiv e a n d n o nco m p etitiv e b id d in g as h e re in a fte r
p ro 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 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 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 Sav in g T im e , M onday, O ctob er 15, 1973. T e n d e rs w ill 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 b e 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 b e used. I t is u rg 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 ard ed in th e special en velopes w hich w ill b e
su p p lied b y F e d e ra l R e serv e B an ks or B ran ches on a p p lic a tio n therefo r.
B a n k in g in stitu tio n s g en erally 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 n am es of th e custo m ers a re
se t fo rth in such tend ers. 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 fo r th e ir own account.
T e n d e rs w ill b e receiv ed w ith o u t dep osit from in co rp o ra ted b an ks and tr u s t com panies 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 acco m p an 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 b e op ened a t th e 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 an n o u n ce m en t w ill 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 price ran g e of acc ep te d bids. O n ly th o se
su b m ittin g c o m p e titiv e te n d e rs w ill be adv ised of th e accep tan ce or rejection thereo f. 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 a ll 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 ­
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
b e a ccep ted in full a t th e average p rice ( in th re e d ecim als) of accep ted c o m p e titiv e bid s for th e respective issues. S e ttle m e n t for
a cc ep te d te n d e rs in accordance w ith th e bids m u st be m ad e or co m p le te d a t th e F e d e ra l R e serv e B a n k on O ctob er 18, 1973,
in cash o r o th e r im m e d ia tely av ailable funds or in a like face a m o u n t of T re a su ry b ills m a tu rin g O ctob er 18, 1973. Cash a n d
exchange ten d e rs w ill 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 alue of m a tu 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 ) 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 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 a re excluded
from co n sideratio n 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 in surance co m p an ies) issued h e re ­
u n d e r m u st in clu de in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference b etw een th e p rice p a id for th e bills, w h e th er
o n original issue or on su b seq u en 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 ring
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 rev isio n ) a n d th is notice, p rescrib e th e term s o f 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 circu lar m ay b e o b ta in e d from a n y F e d e ra l R eserve B a n k or B ranch.

In a c c o r d a n c e w ith t h 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 San A n to n io u p to tw e lv e - th ir ty p.m ., C entral D ay lig h t S aving Time, M o n d a y , O c to b e r 15, 1973. T en d e 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. C oldw e ll
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 J a n u a ry 10, 1974
D u e A p ril 11, 1974
$4,543,645,000________________________________ -T o tal A p p lied F o r_________________________________ $3,265,260,000
$2,501,175,000
#
T o ta l A c c ep ted _________________________ _ _______ 1,800,230,000
_
P ric e
Y ield
P ric e
Y ield
98.161™_________ - 7 .2 7 5 % ____ ™_______
H ig h _____________
96.345.________ i k i . 7.230%
98.145_____________ 7 .3 3 8 % _____
-L ow „
-9 6 .3 1 3 _____
.7.29 3 %
98.149_____________ 7.323% ( 1 ) -A v e rag e --------------v -96.330____________ 7.259% (1 )
( 1 ) These rates are on a bank discount basis. T h e equivalent coupon issue yields are 7 .5 6 % for th e 13-week bills and 7 .6 4 % for
th e 26-w eek bills.

This publication was digitized and made available(Seethe Federal Reserve form) of Dallas' Historical Library (FedHistory@dal.frb.org)
by reverse for tender Bank

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Maturing April 18,1974

Dated October 18,1973

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

Houston 77001

San Antonio 78295

(D ate)

P ursuan t to the provisions of Treasury D epartm ent Circular No. 418 (current revision) and the provisions of the
public announcement issued by the T reasury 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 $__________________________________

JNOT 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) o f accepted com petitive bids.

COMPETITIVE TENDERS

$
$

—
_

......

■ ■ ■

(a)

Prices should be
e x p r e s s e d on th e
basis o f 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.

$

(a) .........
o

$

fn)

$

@

$

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 B Y W IR E, IF R E C E IV E D B E F O R E T H E
CLOSING HO UR A R E A C C E P T A B L E .
P aym ent for th is issue o f bills cannot be made by
credit to T reasury T ax and Loan Account
M ETH O D OF P A Y M E N T

Denom inations Desired
Number of
pieces

M aturity V alue

_@ $

1 0 ,0 0 0 $_

_@$
$

15,000 $_
50,000 $_

$

1 0 0 ,0 0 0 $_

500,000

□
□
□
?_

Charge our reserve account on payment
date

I I D r a f t e n c l o s e d (Effectual delivery o f enclosed draft
shall be on latest day which w ill permit presentm ent
in order to obtain irrevocably collected funds on pay­
m ent date)

$ 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-------------------

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

(Address)

By-

(Authorized official signature and title)
(For the account o ff 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 o f
$5,000 (m atu rity 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, comm uni­
cations relatin g 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 m akes the tender, the form should be
signed by an officer
of the corporation authorized to make
tender and the sign in g of the form by an officer o f 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------------------------------------------------------------,
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 aturity va lu e)
of the T reasury bills applied for, or unless the tenders are accompanied by an express gu aran ty of fu ll paym ent b y an
incorporated bank or tru st company.
6. I f the lan guage of this form is changed in any respect, which, in the opinion of 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