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F ed e r a l r e s e r v e Ba n k o f D a lla s FISCAL AGENT OF THE UNITED STATES DALLAS, TEXAS 7 5 2 2 2 C ircular No. 73-266 O ctober 16, 1973 OFFERING TREASURY BILL — TAX A NTICIPATION SERIES To A ll Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the fo llo w in g statem ent giving details o f an issue of Treasury bills: T he T reasury D epartm ent, by this public notice, invites tenders for $2,000,000,000, or thereabouts, of 169-day Treasury bills, to be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided. T h e bills of this series will be dated N ovem ber 1, 1973, and will m ature A pril 19, 1974 (C U S IP No. 912793 U C 8). T hey will be accepted a t face value in paym ent of income taxes due on April 15, 1974, and to the extent they are not presented for this purpose the face am ount of these bills will be payable w ithout interest a t m aturity. Taxpayers desiring to apply these bills in paym ent of April 15, 1974, income taxes m ay subm it th e bills to a Federal Reserve B ank or Branch or to the Office of the T reasurer of the U nited States, W ashington, not more than fifteen days before th a t date. In the case of bills subm itted in paym ent of income taxes of a corporation they shall be accom panied by a duly com pleted Form 503 and th e office receiving these items will effect the deposit on A pril 15, 1974. In th e case of bills subm itted in paym ent of income taxes of all other taxpayers, the office receiving the bills will issue receipts therefor, the original of which the taxpayer shall subm it on or before A pril 15, 1974, to th e Internal Revenue Service C enter D irector for th e D istrict in which such taxes are payable. T h e bills will be issued in bearer form only, and in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity v alue). T enders will be received a t F ederal R eserve B anks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Thursday, October 25, 1973. T enders will not be received a t th e T reasury D epartm ent, W ashington. Each tender m ust be for a m inim um of $10,000. T enders over $10,000 must be in m ultiples of $5,000. In th e case of com petitive tenders the price offered m ust be expressed on the basis of 100, w ith not more th an three decimals, e.g., 99.925. Fractions m ay not be used. It is urged th a t tenders be m ade on th e printed forms and forwarded in th e special envelopes which will be supplied by Federal Reserve B anks or Branches on application therefor. Banking institutions generally may subm it tenders for account of customers provided th e nam es of th e customers are set forth in such tenders. O thers than banking institutions will not be p erm itted to subm it tenders except for th e ir own account. T enders will be received w ithout deposit from incorporated banks and tru st com panies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of th e face am ount of T reasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or tru st company. All bidders are required to agree not to purchase or to sell, or to m ake any agreem ents w ith respect to th e purchase or sale or other disposition of any bills of this issue a t a specific rate or price, until after one-thirty p.m., E astern D aylight Saving Tim e, Thursday, October 25, 1973. Im m ediately after th e closing hour, tenders will be opened a t th e Federal R eserve Banks and Branches, following which public announcem ent will be m ade by th e T reasury D epartm ent of the am ount and price range of accepted bids. Only those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary of th e T reasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncom petitive tenders for $500,000 or less w ithout stated price from any one bidder will be accepted in full a t the average price (in three decim als) of accepted com petitive bids. Settlem ent for accepted tenders in accordance w ith th e bids m ust be m ade or com pleted a t the Federal R eserve B ank in cash or other im m ediately available funds on N ovem ber 1, 1973. Any qualified depositary will be p erm itted to m ake settlem ent by credit in its T reasury T ax and Loan account for T reasury bills allotted to it for itself and its customers. U nder Sections 454 (b ) and 1221 (5 ) of th e Internal R evenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other than life insurance com panies) issued here under m ust include in his income tax return, as ordinary gain or loss, th e difference between th e price p aid for the bills, w hether on original issue or on subsequent purchase, and th e am ount actually received either upon sale or redem ption a t m atu rity during the taxable year for which th e retu rn is made. T reasury D epartm ent C ircular No. 418 (cu rren t revision) and this notice, prescribe th e term s of th e T reasury bills and govern the conditions of th eir issue. Copies of th e circular m ay be obtained from any Federal R eserve B ank or Branch. In accordance w ith the a b o ve announcem ent, tenders w ill be received a t this b ank an d its branches a t El Paso, Houston a n d San Antonio, up to tw elve -th irty p.m., Central D aylight Saving Time, Thursday, October, 25, 1973. Tenders m a y not be entered by telephone. Yours very truly, P. E. C oldw ell President (S e e reverse side for tender form ) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) This issue of Treasury bills will be accepted at face value in payment of income taxes due on April 15,1974 TENDER FOR TREASURY BILLS TAX ANTICIPATION SERIES D a te d N o v e m b e r 1,1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The-----------------------------------------Branch El Paso 79999 Maturing April 19,1974 169 DAYS TO MATURITY Houston 77001 _______ San Antonio 78295 (Date) P u r su a n t to th e p ro v isio n s o f T r e a su r y D e p a r tm e n t Circular N o. 41 8 (cu rren t r e v isio n ) and to th e p ro visio n s o f t h e public a n n o u n cem en t, a s sh o w n on r e v e r se side, as issu e d b y t h e T r e a su r y D ep a rtm en t, th e un d ersign ed offers to p u rch a se T r e a su r y b ills in th e am o u n t sh ow n below, and a g r e e s to p a y fo r th e a m ou n t allotted, on or b e fo r e t h e is s u e date, b y t h e m eth o d and a t t h e r a te indicated. NONCOMPETITIVE TENDER $. NOT TO EXCEED $500,000 Noncompetitive tenders for $ 00,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. $ COMPETITIVE TENDERS - @ ? . _ $ <7h ? % @ $ $ ^ Prices should be e x p ressed on th e basis of 100, with not more than three decimal places, e.g., 99.925. F ra ctio n s must not be used. $ “TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b er o f P ie c " ' METHOD OF PAYMENT M atu rity V alues □ (a) $ 0 $ (ffl $ 50,000 * < $ 100,000 $ fl> < $ 500,000 5fi) By charge to our Treasury Tax and Loan Account □ 10,000 $ 15,000 $ Payment to be made by..................... ......................................(Name of Bank) □ By charge to our reserve account on payment date. □ By draft enclosed (effectual delivery of enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date). - $ l ,000,000 $ We certify that we, as well as our customers, if any, listed hereon have agreed not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other dis position of any bills on this issue at a specific rate or price, untii after one-thirty p.m., Eastern Daylight Saving Time, Thursday. October 25, 1973. D e liv e r y I n s t r u c t io n s : □ Hold in C u stod y — General A cco u n t □ Hold in C u stod y — In v e stm e n t A c count □ Hold in C u stod y — T r u st A ccou n t □ P led g e to secure T r e a su r y T a x and Loan A cco u n t □ Other.________________________________ (S u b scrib er’s fu ll nam e o r c o rp o rate title ) (A ddress) By. (A uthorized official s ig n a tu re a n d title) (F o r th e a cco u n t o f, if te n d e r is f o r a n o th e r su b scrib er) (A ddress) IMPORTANT 1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiples of $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes received with this legend will not be opened until after the closing time specified in the public announcement, communications relating to other matters should not be enclosed. Envelopes for submitting tenders may be requested from this bank or appropriate branch. 3. Any qualified or conditional tender will 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 signing of the form by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who should sign in the form “..............................................................., a copartnership, b y .............................................................................., a member of the firm”. 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an incorporated bank or trust company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. ( e r v r ef rannouncement) Se ees o