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F ederal Reserve ban k of Dallas
FISCAL AGENT OF THE UNITED STATES
DALLAS, TEXAS 7 5 2 2 2

Circular No. 73-289
N ovem ber 8, 1973

N E W OFFERING — TREASURY BILLS

To A ll Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the follo w ing statem ent giving details of an issue of Treasury bills:
T he T reasury D epartm ent, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 364-day T reasury
bills for cash and in exchange for T reasury bills m aturing Novem ber 20, 1973, in th e am ount of $1,802,050,000. T he bills of this
series will be dated N ovem ber 20, 1973, and will m ature Novem ber 19, 1974 (C U SIP No. 912793 T Z 9 ).
T he bills will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and a t
m aturity their face am ount will be payable w ithout interest. T hey 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 valu e).
T enders will be received a t Federal R eserve B anks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, W ednesday, N ovem ber 14, 1973. T enders will not be received a t the 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 m ust be in m ultiples of $5,000. In the 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 may not
be used. It is urged th a t tenders be m ade on the prin ted forms and forwarded in th e special envelopes which will be supplied
by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the nam es of th e customers are
set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for th eir own account.
T enders will be received w ithout deposit from incorporated banks and tru st companies 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 the face am ount of
Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after th e closing hour, tenders will be opened a t the F ederal R eserve B anks and Branches, following which
public announcem ent will be m ade by the T reasury D epartm ent of the am ount and price range of accepted bids. Only those sub­
m itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the 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 $200,000 or less w ithout stated price from any one bidder will be
accepted in full a t the average price (in three decimals) of accepted com petitive bids. Settlem ent for accepted tenders in accor­
dance w ith the bids m ust be made or com pleted a t the F ederal Reserve B ank on November 20, 1973, in cash or other im m ediately
available funds or in a like face am ount of T reasury bills m aturing November 20, 1973. Cash and exchange tenders will receive
equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m aturing bills accepted in exchange
and the issue price of the new bills.
U nder Sections 454 (b ) and 1221 (5 ) of th e Intern al Revenue 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 Treasury bills (other th an life insurance com panies) issued here­
under m ust include in his income tax return, as ordinary gain or loss, the difference between the price paid for the bills, w hether
on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m atu rity during
the taxable year for which the return is made.
T reasury D epartm ent C ircular No. 418 (current revision) and this notice, prescribe the term s of th e T reasury bills and
govern the conditions of th e ir issue. Copies of the circular m ay be obtained from any F ederal R eserve B ank or Branch.
In accordance w ith the above announcem ent, tenders w ill be received a t this b ank an d its branches a t El Paso,
Houston and San Antonio up to tw elve-th irty p.m., Central Standard Time, W ed n esd ay, N ovem ber 14, 1973. Tenders
m ay not be entered by telephone.

Yours very truly,
P. E. Coldwell
President

(S e e 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

364 DAYS TO MATURITY
Maturing November 19,1974

Dated November 20, 1973
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The__________________________ Branch
E l Paso 79999

H ouston 77001

San Antonio 78295

(D a te )

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Department, 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

Noncompetitive tenders for $200,000 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.

/ $_____________ @ _________$_________________
“V
-

(a)

COMPETITIVE TENDERS/ $_

-Ca­

p rices should be
e x p r e s s e d on th e
b a s is o f 100, w ith
not more than three
decimal places, e.g.,
9 9.92 5. F r a c t io n s
m ust not be used.

mSgr5 T E N D E R S MAY NOT BE E N T E R E D BY TELEPHO NE. T E N D E R S BY WIRE, IF RECEIVED BEFO RE THE
CLOSING HOUR, A RE ACCEPTABLE.
P aym ent for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account

Denominations Desired
N um ber of
Pieces

@ $ 10,000
(a) $ 15,000
@ $ 50,000
(5) $ 100,000
@ $ 500,000
-(a) $1,,000,000

M a tu rity V a lu e

M ETH O D OF P A Y M E N T

$$*.
$$$.

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.
Charge our reserve account on payment
date
Draft enclosed ( E f f e c tu a l d e liv e ry o f e n c lo sed d r a f t
s h a ll b e o n la t e s t d a y w h ic h w ill p e r m i t p r e s e n t m e n t
in o r d e r to o b ta in ir r e v o c a b ly co lle c te d f u n d s o n p a y ­
m e n t d a te )

( S u b s c r ib e r 's f u ll n a m e o r c o r p o r a t e title )

(A d d ress)

By( A u th o r iz e d official s i g n a t u r e a n d title )

( F o r t h e a c c o u n t o f, i f t e n d e r is f o r a n o t h e r s u b s c r ib e r )

( A dd ress)

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 multiples of
$5,000 (m aturity value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gen t of the
United States, w ith notation on the envelope reading “T E N D E R FOR T R E A SU R Y O F F E R IN G ”. Since envelopes
received with this legend w ill not be opened until after the closing tim e specified in the public announcement, communi­
cations relating to other m atters should not be enclosed. Envelopes for subm itting tenders m ay be obtained from this
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 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, by........ ........................... ................... ........................... ,
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 o f the total amount (m aturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full paym ent 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 m ay be disregarded.

(See reverse for announcement)

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