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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)