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federal

R eserve b a n k of Dallas

F IS C A L A G E N T O F T H E U N ITED S T A T E S

DALLAS, TEXAS 7 5 2 2 2
Circular No. 73-291
November 13, 1973

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O th ers C o n c e r n e d
in t h e E leventh F e d e ra l R eserv e District:
Y o u r a t te n t io n is in v ited to th e fo llo w in g s t a t e m e n t giving d e t a il s of tw o issues 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 tw o series of T re a su ry bills to th e ag gregate a m o u n t
of $4,300,000,000, or th ereab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g N o v em b er 23, 1973, in th e a m o u n t of
$4,202,090,000, as follow s:
9 0-D A Y B IL L S ( to m a tu rity d a te ) to b e issued N o v e m b er 23, 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 A ugust 23, 1973, a n d to m a tu re F e b ru a ry 21, 1974
( C U S I P No. 912793 S Z 0 ), orig inally issued in th e a m o u n t of $1,801,540,000, th e a d d itio n al a n d original
b ills to be fre ely in terch an g eable.
181-D A Y B IL L S for $1,800,000,000, or th ere ab o u ts, to be d a te d N o v em b er 23, 1973, a n d to m a tu re M a y 23, 1974
(C U S I P No. 912793 T N 6 ) .
T h e bills of b o th series will be issued on a d iscount basis u n d e r c o m p e titiv e a n d n o n co m p etitiv e b idd in g as h e re in a fte r
p rov id 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 interest. T h e y w ill be issued in b e a re r fo rm 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 will be received a t F e d e ra l R eserv 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
S ta n d a rd T im e , M on d ay, N o v em b er 19, 1973. T e n d e rs will 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 ac 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 b e in m u ltip les of $5,000. In th e case of c o m p e titiv e ten d e rs
th e p rice offered m u st be 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 be
used. I t is urged 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 envelopes w hich w ill be su p p lied b y
F e d e ra l R e serv e B an ks or B ran ch es on a p p lic a tio n th erefor.
B a n k in g in stitu tio n s generally m ay su b m it ten d e rs for acco un t of custom ers p rov id ed th e n am es of th e custo m ers a re
set fo rth in such tenders. O th ers th a n b an 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 ers excep t for th e ir own account.
T e n d e rs will be received w ith o u t d ep osit from in co rp o rated ban ks and tru s t com panies a n d from responsible a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs from o th ers m u st be a cco m p an ied by 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 are a ccom p an ied b y a n express g u a ran ty of p a y m e n t by a n in co rp o rated 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 will be op ened a t th e F e d e ra l R e serv e B ank s a n d B ranches, follow ing w hich
p u b lic a n n o u n c e m e n t w ill be m ad e by 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 p rice range of a ccep ted bids. O nly those
su b m ittin g c o m p e titiv e ten d e rs will be ad v ised of th e a ccep tan ce or rejection thereof. 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 ct a n y or all ten ders, in whole or in p a rt, an d his actio n in a n y such resp ect shall be final. S u b ­
je c t to th ese reservations, no 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 acc ep te d in full a t th e average p rice ( in th re e decim als) of a ccep ted co m p etitiv e bid s for th e resp ectiv e 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 leted a t th e F e d e ral R eserv e B a n k on N o v e m b er 23, 1973,
in cash or o th er im m e d ia tely av ailab le fu nd s or in a like face a m o u n t of T re a su ry bills m a tu rin g N o v em b er 23, 1973. C ash a n d
exchange ten d e rs w ill receive equ al tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e fo r differences b etw een th e p a r value of m a tu rin g
b ills acc ep te d in exchange a n d th e issue p rice of th e new bills.
U n d e r Sections 454 ( b ) a nd 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 a re 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 are excluded
fro m c o nsideratio n as c ap ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life in su ran ce co m pan ies) issued h ere­
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 price p a id for th e bills, w h e th er
on original issue or on su b sequ ent purchase, a n d th e a m o u n t a ctu a lly received e ith e r up o n sale or re d em p tio n a t m a tu rity d u rin g
th e tax a b le y e ar fo r 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 of th e T re a su ry b ills a n d
govern th e c on d itio ns of th e ir issue. C opies of th e circu lar m ay be o b tain e d from a n y F e d e ra l R eserv e B a n k o r B ranch.

In a c c o r d a n c e w ith th e a b o v e a n n o u n c e m e n t , t e n d e r s will b e r e 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 S an A n to n io u p to tw e lv e - th ir ty p .m ., C entral S t a n d a r d Time, M o n d a y , N o v e m b e r 19, 1973. T en d e rs m a y
not b e e n t e r e d b y t e l e p h o n e .
Yours v e r y truly,
P. E. C a ld w ell
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 ccepted T e n d e rs
13-W eek B ills
26-W eek B ills
D u e F e b ru a ry 14, 1974
D u e M a y 16, 1974
$4,044,235,000_________________________________ T o ta l A p p lied F o r _________________________________ $4,340,035,000
$2,500,335,000__________________________________ T o ta l A c c ep ted ___________________________________ $1,800,440,000
P ric e
Y ie ld
P ric e
Y ield
97.865
8 .4 4 6 % ___________________________H ig h _______________________ 95.772____________ 8 .363%
97.810
8 .6 6 4 % ----------------------------------------- L ow ________________________ 95.749____________ 8.409%
97.817
8 .636% ( 1 ) -------------------------------- A verag e______________________ 95.763____________ 8 .381% ( 1 )
( 1 ) T h ese rates are on a b ank d iscount basis. T h e eq u iv a le n t coupon issue yie ld s are 8 .9 5 % for th e 13-w eek bills and 8 .8 7 % for
th e 2 6 -w eek bills.

(See 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 ADDITION TO TREASURY BILLS

90 DAYS TO MATURITY
Maturing February 21,1974

Dated August 23,1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_______________________ Branch
E l Paso 79999

Houston 77001

San Antonio 78295

(D ate)

P u rsuan t to the provisions of T reasury 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 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

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) of accepted com petitive bids.
^
(a)

1$

COMPETITIVE TENDERS

t

$

..... ..

$

(a)

?

$

@

-

$

Cn).....- - —
'—
'
........ .

$

*

-

P rices 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.,
99 .9 2 5 . F r a c t io n s
m u st not be used.

JEW3 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 .
Denom inations D esired
Number of
pieces

P aym ent fo r this issue o f bills cannot be made by
credit to T reasury Tax and Loan Account
METHOD OF PAY M E N T

M aturity V alue

_@ $

10,000 $_

□

15.000 $_
50.000 $_

_@ $

□

1 0 0 ,0 0 0

$_

□

500,000 $_
_ @ $ 1 ,0 0 0 ,0 0 0

Charge our reserve account on payment
date

I 1 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 will permit presentm ent
in order to obtain irrevocably collected funds on pay­
m ent date)

$_

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 name or corporate title)

(Address)

By-

(Authorized official signature and title)
(For the account of, 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 forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of the
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 relating 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 makes the tender, the form should be signed by an officer o f the corporation authorized to make the
tender and the signin g of the form by an officer of the corporation will be construed as a representation by him th a t 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 tru st companies or responsible and recognized dealers m in v e s t­
ment securities w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m atu rity v a lu e )
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of fu ll paym ent by a n
incorporated bank or tru st company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary o f the T reasury i s
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