View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F e d e r a l R es er v e Ba n k o f D a lla s
F IS C A L A G E N T O F T H E U NITED S T A T E S

DALLAS, TEXAS 7 5 2 2 2
Circular No. 73-297
November 20, 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 r a l R e serv e District:
Y our 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 giv ing d e t a il s of t w o issu es of T re a s 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 e m b er 29, 1973, in th e a m o u n t of
$4,304,815,000, as follows:
91-D A Y B IL L S (to m a tu rity d a te ) to be issued N o vem b er 29, 1973, in th e a m o u n t of $2,500,000,000, o r th e re ­
abouts, re p rese n tin g a n ad d itio n al a m o u n t of bills d a te d A ugust 30, 1973, a n d to m a tu re F e b ru a ry 28, 1974
(C U S I P No. 912793 T A 4 ) , o rigin ally issued in th e a m o u n t of $1,800,280,000, th e a d d itio n al a n d original
b ills to b e fre ely in terchan g eab le.
182-D A Y B IL L S for $1,800,000,000, o r th ere ab o u ts, to be d a te d N o v e m b er 29, 1973, a n d to m a tu re M a y 30, 1974
(C U S I P No. 912793 T P 1 ) .
T h e bills of b o th series w ill be issued on a d iscou n t basis u n d e r c o m p e titiv e a n d no n co m p etitiv e b id d in g as h e re in a fte r
p ro v id ed, a n d a t m a tu rity th eir face a m o u n t will be p a y ab le w ith o u t in terest. T h e y will 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 rity 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 26, 1973. T e n d e rs will no t be receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington. E a c 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 be in m u ltip le s 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 a y n o t be
used. I t is u rg ed th a t ten d e rs be m ad e on th e p rin te d form s a n d forw 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 a n k s or B ran ches on a p p lic atio n therefo r.
B a n k in g in stitu tio n s g enerally m ay su b m it te n d e rs for acco un t of cu stom ers p ro v id ed th e nam es of th e custom ers are
set fo rth in such tenders. O thers th a n b a n k ing in stitu tio n s will n o t be p e rm itte d to su b m it ten d e rs ex cep t for th e ir own account.
T e n d e rs w ill be received w ith o u t d ep o sit from in co rp o ra ted b ank s and tr u s t com panies a n d from respo n sible a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs fro m o th ers m u st be accom pan ied b y 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 te n d e rs a re a ccom panied 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 ra ted b a n k or
tru s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill b e o pen ed a t the F e d e ra l R eserv e B an ks 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 ade b y 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 rang e of acc ep te d bids. O n ly those
su b m ittin g c o m p e titiv e ten d e rs will be ad vised of th e a ccep tan ce or rejectio n thereof. T h e S e c retary of th e T re a su ry expressly
reserves th e rig h t to acc ep t or re je c t a n y or all tend ers, in w hole o r in p a rt, a n d his actio n in a n y such re sp e ct shall be final. S u b ­
je c t to th ese reservations, n o n co m p etitiv e te n 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 a cc ep te d in full a t th e av erage p rice (in th re e d ecim als) of accep ted co m p etitiv e bids for th e resp ectiv e issues. S e ttle m e n t for
acc ep te d ten d e rs in accordance w ith th e bids m u st be m ad e or c om p leted a t th e F e d e ra l R e serv e B a n k on N o v e m b er 29, 1973,
in cash or o th e r im m e d ia tely a v ailab le fu n ds 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 e m b er 29, 1973. Cash a n d
exchange ten d e rs will receive equ al tre a tm e n t. C ash a d ju s tm e n ts will be m ad e for differences betw een th e p a r valu e of m a tu rin g
bills a cc 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 n d 1221 ( 5 ) of th e In te rn a l R e v en u e Code of 1954 th e am o u n t of d iscou n t 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, red eem ed or otherw ise disposed of, a n d th e b ills are excluded
from co n sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insuran ce c o m p an ies) issued h e re ­
u n d e r m u st in clud e in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference betw een th e p rice p a id for th e bills, w h e th er
on original issue or on su b seq u en t 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 e m p tio n a t m a tu rity d urin g
th e tax a b le y e a r 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 te rm s of th e T re a su ry bills a n d
govern th e con d itio ns of th e ir issue. C opies of th e circular m ay be o b ta in e d from a n y F e d e ra l R e serv e B a n k or B ranch.

In a c c o r d a n c e w ith t h e a b o v e a n n o u n c e m e n t , te n d e r s will b e rec 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 up to tw e lv e - th ir ty p.m., C entral S ta n d a rd Time, M o n d a y , N o v e m b e r 2 6 , 1973. T end 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 oldw e ll
P re sid e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m o u nt, R a n g e a n d A p p ro x im ate Y ield of A ccep ted 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 21, 1974
D u e M a y 23, 1974
$3,760,040,000_________________________________ T o ta l A p p lied F o r_________________________________ $4,026,525,000
$2,500,050,000__________________________________ T o ta l A c c ep ted ___________________________________ $1,800,295,000
P ric e
Y ield
P ric e
Y ield
98.092
7 .6 3 2 % _________________
H ig h _____________ 96.088____________ 7.781%
98.058
7 .7 6 8 % ___________________________ L ow ________________________ 96.056____________ 7.844%
98.074
7 .704% ( 1 ) -------------------------------- A v erag e______________________ 96.076____________ 7.805% ( 1 )
( 1 ) T h ese rates are on a b ank d iscou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 7 .9 6 % for th e 13-w eek bills an d 8 .2 4 % for
th e 2 6 -w eek bills.

(See reverse Reserve Bank of
This publication was digitized and made available by the Federal for tender form) Dallas' Historical Library (FedHistory@dal.frb.org)

TENDER FOR ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Maturing February 28,1974

Dated August 30,1973

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

Houston 77001

San A ntonio 78295

(D ate)

P ursu ant to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions o f the
public announcement issued by the Treasury Departm ent, the undersigned offers to purchase T reasury 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 $__________________________________

JNOT TO EXCEED $200,000

Noncom petitive tenders for $200,000 or less from any bidder, without stated price, w ill he accepted in full at the average
price (in three decim als) o f accepted com petitive bids.

COMPETITIVE TENDERS

1
?
$

$

_

—
Y - « ---- —---■

1
$

@
()
a
'C?

$

$

@

$

Y

.... .
.

Prices 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.,
9 9 .9 2 5 . F r a c t io n s
m ust not be used.

T E N D E R S M AY NOT B E A C C E P T E D BY 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 H O UR A R E A C C E P T A B L E .
D enom inations D esired
Number of
pieces

M aturity V alue

1 0 ,0 0 0
_@ $
_@ $

P aym ent for th is issu e of bills cannot be made by
credit to T reasury Tax and Loan Account
METHOD OF PA Y M E N T

$_

□

15.000 $_
50.000 $_

□

-@ $

1 0 0 ,0 0 0

$_

-@ ?

500,000 $_

□

Charge our reserve account on payment
date
[ | Draft enclosed (Effectual delivery of enclosed draft

_@ $ 1,000,000 $_

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---------------------

shall be on latest day which w ill permit presentm ent
in order to obtain irrevocably collected funds on pay­
m ent date)

(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. N o 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 of
$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 F iscal A gen t of the
U nited S tates, 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 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 th is
bank or appropriate branch.
3. A ny qualified or conditional tender w ill be rejected.
4. If a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to make the
tender and the sign in g of the form by an officer of the corporation w ill be construed as
a representation by him th at
has been so authorized. I f the tender is made by a partnership it should be signed by a member of the firm, w ho
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 in in v est­
m ent securities w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity valu e)
of the T reasury bills applied for, or unless the tenders are accompanied by an express gu aran ty of fu ll paym ent by an
incorporated bank or tru st company.
6. If the language of th is form is changed in any respect, which, in the opinion of the Secretary of the T reasury 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