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federal

Reserve Bank of Dallas

FISCAL AGENT OF THE UNITED STATES

D ALLAS, TEXAS 7 5 2 2 2
C ircu lar No. 73-298
N o v e m b er 20, 1973

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O th e rs C o n c e r n e d
in t h e Eleventh F e d e ra l R e serve District:
Your a t te n t io n is in v ited to th e f o llo w in g s t a t e m e n t giving 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 g reg ate a m o u n t
of $4,300,000,000, or th ere ab 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 b e issued N ov em 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 a d 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 IP 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
bills to be freely interch an geab le.
182-D A Y B IL L S fo r $1,800,000,000, or 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 IP No. 912793 T P 1 ) .
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 id d 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 in terest. T h e y w ill be issued in b e a re r form only, a n d in
de 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 b e received a t F e d e ra l R e serv e B an ks 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 o n day , N o v em b er 26, 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 be 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 urg 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 will be su p p lied b y
F e d e ra l R e serv e B an k s or B ranch es on a p p lic a tio n therefor.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs for acco u nt of custom ers p ro v id ed th e nam es of th e cu stom ers are
set fo rth in such ten ders. O thers th a n ban 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 e rs except fo r 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 rated b an k s and tr u s t com panies a n d from responsible a n d recognized
dealers in in v estm e n t securities. T e n d e rs from o th ers m u st be acco m p anied 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 b ills a p p lie d for, unless th e ten d e rs a re acco m p an ied b y an express g u a ran ty of p a y m e n t b y a n in co rp o ra ted h a n k or
tr u s t com pany.
Im m e d ia te ly a fte r th e closing hour, ten d e rs w ill be o p en ed a t th e F e d e ra l R eserv e B a n k s a n d B ranches, follow ing w hich
p u b lic a n n o u n ce m en t w ill b e m ad e 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 ran ge of a cc 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 accep tan ce o r rejection thereof. T h e S e cretary of th e T re a su ry expressly
reserves th e rig h t to a cc ep t or re je c t a n y or all tend ers, in w hole or 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 ­
jec 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 w ill
be acc 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 bid s m u st b e m ad e or com p leted a t th e F e d e ra l R eserv 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 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 e m b er 29, 1973. C ash a n d
exchange te n d e rs will receiv e eq u al tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e for differences b etw een th e p a r value 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 a m o u n t of d iscount a t w hich bills issued
h e re u n d e r are sold is considered to accrue w hen th e bills are sold, red eem ed or otherw ise disposed of, a n d th e bills are excluded
from c o n sideration 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 in su ran ce c o m p a n ies) issued h ere­
u n d e r m u st in clude in his incom e ta x 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 eth er
on original issue or on su b seq u e n t pu rch ase, a n d th e a m o u n t a ctu a lly received e ith e r u p o n sale or re d e m p tio n a t m a tu rity d u rin g
th e tax a b le y e a r for 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 bills a n d
govern th e co n dition s 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 e se rv e B a n k or 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 re 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 up 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 26 , 1973. T ende 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 old 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 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
$2,500,050,000__________________________________ T o ta l A ccep ted ___________________________________$ 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 % ----------------------------------------- X o w ________________________96.056____________ 7.844%
98.074
7.704% ( 1 ) -------------------------------- A verag e______________________ 96.076____________ 7 .805% ( 1 )
( 1 ) T h e s e rates are on a b ank discount basis. T h e eq u iv a le n t coupon issue yie ld s are 7 .9 6 % for th e 13-w eek b ills an d 8 .2 4 % for
th e 2 6 -w eek bills.

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

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Maturing May 30,1974

Dated November 29,1973

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

H ouston 77001

San Antonio 78295

(D ate)

P ursu ant to the provisions o f Treasury 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 am ount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and a t 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 fu ll at the average
price (in three decim als) o f accepted com petitive bids.
^
1
$

COMPETITIVE TENDERS

...

$
$
$

$
'"

1

@

$
$

P rices should be
e x p r e s s e d on t h 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.

flST* T E N D E R S M AY 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 H O UR A R E A C C E P T A B L E .
D enom inations D esired
Number of
pieces

P aym ent fo r th is issu e o f bills cannot be made by
credit to T reasury T ax and Loan Account
METHOD OF PAY M E N T

M aturity Value

$

_@$

10,000 $____________

15,000
50,000
$ 100,000
_@$ 500,000
$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--------------------Charge our reserve account on payment
date

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

(Subscriber's fu ll nam e 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 forw arded in an envelope clearly addressed to this bank or appropriate branch as F iscal A gen t o f th e
’ 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, com m uni­
cations relatin g 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 I f a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to make th e
tender and the sign in g of the form by an officer of the corporation will be construed as a representation by him th at he
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
ment securities w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity v a lu e)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaran ty of fu ll paym ent by an
incorporated bank or tru st company.
6. I f the lan gu age of this form is changed in any respect, which, in the opinion of the Secretary of the T reasury is
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