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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
DALLAS, TEXAS 7 5 2 2 2

C ircular No. 73-266
O ctober 16, 1973


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

(S e e reverse side for tender form )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (

This issue of Treasury bills will be accepted at face value in payment of income taxes due
on April 15,1974

D a te d N o v e m b e r 1,1973

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

Maturing April 19,1974


Houston 77001


San Antonio 78295


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.


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.
















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.


Denominations Desired

N u m b er o f
P ie c " '


M atu rity V alues


(a) $


(ffl $ 50,000 *
< $ 100,000 $
< $ 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


$ 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 ­


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



(S u b scrib er’s fu ll nam e o r c o rp o rate title )

(A ddress)

(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)

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

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