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F ederal Reserve Bank




Circular No. 73-321
December 11, 1973

To All Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llo w ing statem ent giving details of tw o issues o f Treasury bills:
T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount
of $4,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing D ecem ber 20, 1973, in the am ount of
$4,303,185,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued Decem ber 20, 1973, in the am ount of $2,500,000,000, or there­
abouts. representing an additional am ount of bills dated Septem ber 20, 1973, and to m ature M arch 21, 1974
(C U S IP No. 912793 T D 8 ), originally issued in the am ount of $1,803,300,000, the additional and original
bills to be freely interchangeable.
182-DAY B IL L S for $1,800,000,000, or thereabouts to be dated D ecem ber 20, 1973, and to m ature Ju n e 20, 1974
(C U S IP No. 912793 T S 5 ).
T he bills of both series 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 aturity value).
T enders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
S tandard Tim e, M onday, D ecem ber 17, 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, witn not more than three decimals, e.g., 99.925. Fractions may not be
used. It is urged th at tenders be m ade on the printed forms and forwarded in the special envelopes which will be supplied by
F ederal Reserve Banks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for th eir own account.
Tenders will be received w ithout deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve Banks 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
subm 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. Sub­
ject to these reservations, noncom petitive tenders for each issue 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 for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal Reserve B ank on Decem ber 20, 1973,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Decem ber 20, 1973, Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the 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 the Internal R evenue Code of 1954 the 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 T reasury bills (other than 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, whether
on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m aturity during
the taxable year for which the return is made.
T reasury D epartm ent Circular No. 418 (curren t revision) and this notice, prescribe the term s of the T reasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any F ederal Reserve B ank or Branch.
In accordance w ith the a b ove announcem ent, tenders w ill be received a t this b a n k an d its branches a t El Paso,
Houston and San Antonio up to tw elv e-th irty p.m ., Central Standard Time, M o n d a y , December 17, 1973. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell

Amount, R ange and A pproxim ate Yield of Accepted Tenders
13-Week Bills
26-Week Bills
Due M arch 14, 1974
D ue Ju n e 13, 1974
$3,632,750,000____ ___ ___________ __________ T o tal Applied F o r...................................................... ....... $3,554,090,000
$2,500,545,000____ _____________ ______________ T otal Accepted__________ ____________________...$1,800,605,000
7.335% ___ ___ ____________ ___.H igh_______________
96.211____ _____ 7.495%
98 123________ ___ 7.425% ___________ ______________ Low________________ ___ 96.184................. ...... 7.548%
7.386% (1 )
______________ A v erage_______________
7.530% (1 )
( 1 ) These rates are on a b a n k discount basis. T h e e q u ivalen t coupon issue yield s are 7 .6 3 %
th e 2 6 -w e e k bills.

fo r the 13-w eek bills and 7 .9 4 %


(See reverse for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated December 20, 1973

Maturing June 20, 1974

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The------------------------ Branch

El Paso 79999 Houston 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.

N O N C O M P E T I T I V E T E N D E R $____ _ _____________________________

_ N O T T O E X C E E D $200,000

Nonet .npetitivf1 tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.







^ ^ Prices shouldbe
exp ressed on the
basis of 100, with
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.


De nominations Desired
N u m b er of

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account

M a t u r it y V a lu e

@ $

10,000 $


B y maturing bills
held by----------------------------

50,000 $


Payment to be made by.

t 100,000 $


Charge our reserve account on payment

15,000 $


@ $ 500,000 $

@$1,000,000 $
Delivery Instructions:

D r a f t e n c l o s e d (E ffe c tu a l d e liv e ry o f enclosed d r a f t
s h a ll be on la te s t day w h ic h w ill p e rm it p re s e n tm e n t
in o rd er to o b ta in irre v o c a b ly collected fu n d s on p a y ­
m e n t d ate)


Hold in Custody — General Account

(S u b s c rib e r’s f u ll n a m e o r co rp o ra te t it le )


Hold in Custody — Investment Ac­

(A d d res s)


Hold in Custody — Trust Account


Pledge to secure Treasury Tax and
Loan Account



By(A u th o riz e d official s ig n a tu re a n d t it le )

( F o r th e account o f, i f te n d e r is f o r a n o th e r sub scriber)

(A d d res s)

1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiples of
$5,000 (maturity value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes
received with this legend will not be opened until after the closing time specified in the public announcement, communi­
cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this
bank or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be signed by anofficerof 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 of the total amount (maturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment 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 may be disregarded.

(See reverse for announcement)

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