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FEDERAL RESERVE BANK OF DALLAS F IS C A L A G E N T O F T H E U N IT E D S T A T E S Dallas, Texas, May 6, 1943 To All Banking Institutions, and Others Concerned, in the Eleventh Federal Reserve District: There is quoted below press statement issued today by the Secretary of the Treasury announcing certain changes in the procedure to be followed in bidding for Treasury Bills: “ Secretary of the Treasury Morgenthau today announced a change in procedure with respect to bidding for the weekly issues of Treasury Bills, in the interest of wider distribution of these securi ties. The offering of Treasury Bills to be dated May 12, and future weekly offerings until further notice, will include a provision for the receipt of tenders for $100,000 or less from any one bidder at a fixed price of 99.905, in addition to the conventional bidding on a competitive basis. The decision to accept bids on a fixed-price basis was made in recognition of the fact that many of the smaller banks and other investors who have not been interested in competitive bidding for Treasury Bills will submit tenders at a fixed price, which assures them a return of about three-eighths of one percent on an annual basis. Subject to the usual reservation with respect to the acceptance or rejection of tenders, the Secretary plans to accept in full all tenders entered on a fixed-price basis. “ For a number of years the Treasury has ordinarily opened bids on Treasury Bills on Monday of each week, with payment the follow ing Wednesday. It has been found that with the increasing conges tion in communication facilities the two-day period is hardly suffi cient in which to notify successful bidders and obtain payment. To meet this difficulty, the Secretary announced that for thirteen weeks 92-day Treasury Bills will be offered. At the end of this cycle, Treas ury Bills will be maturing on Thursdays, and an additional day will have been provided between the opening of tenders and the payment date.” In this connection, we invite your attention to Treasury Bill Circular issued by this bank today, a copy of which is enclosed. Yours very truly, R. R. GILBERT President FCE^ICTORY iU BUY tw iTI* tT «T f» WAR &ONDS STAMPS This This publication was digitized and made available by the Federal Reserve Bank o f D allas' H istorical U brary (FedH istory@dal.frb.org) . publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Cash Tender Form for Fixed-Price Tenders at 99.905 92-DAY TREASURY BILLS To the Federal Reserve Bank of Dallas Fiscal Agent of the United States Station “ K” Dallas, Texas F o r use o f Federal Reserve Bank Number - ________________ IMPORTANT Subject to reservations contained in Treasury Department Circular No. 418, as amended, tenders for $100,000 or less from any one bid der at 99.905 entered on a fixedprice basis will be accepted in full. A m ount - • $________________ Discount - - ________________ Net Cost - - $________________ Premium Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public announcement on May 7, 1943, issued by the Secretary of the Treasury the undersigned agrees to pay 99.905 for a total amount of $... . ----(maturity value) of the Treasury bills therein described on a fixed-price basis, payment therefor to be made at your bank in cash or other immediately available funds on the date stated in the public announcement. Treasury bills for which tender is hereby made are to be dated May 12, 1943, and are to mature August 12, 1943. They are to be issued in the following denominations: DO N O T USE THIS COLUM N N U M B ER OF PIECES OF T R E A S U R Y B IL L S D E N O M IN A TIO N (M aturity V alue) T O T A L AM OU N TS $ 1 ,0 0 0 5,000 1 0 ,0 0 0 1 0 0 ,0 0 0 T O TA L----------- - \ Treasury bills allotted to us under this tender will be paid for in the following manner: By debit to our reserve account hereby authorized ........ Otherwise (describe) — .......... .................................................... ............. ....................................... ..... ............... ................................................ $ It is requested that delivery o f the Treasury Bills allotted to the undersigned be made as follow s: □ Hold in Custody Account □ Pledge to Secure War Loan Deposits By..... . .. (N am e o f Subscriber or Bank) □ Ship t o ............ -............ - .............................. *............................... .............................................................................. (President-C ashier) (A ddress) Date....... ............ .................................. .........., 1943 IMPORTANT INSTRUCTIONS: 1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity value). 2. If the person making the tender is a corporation, the form should be signed by an officer of the corporation authorized to make the tender, and 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.” 3. Tenders from persons other than incorporated banks and trust companies or responsible and recognized dealers in investment 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 guarantee of full payment by an incor porated bank or trust company. 4. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, l^je tender may be disregarded. (See reverse side) L LIST O F BIDDERS TO TREASURY BILLS A T A FIXED-PRICE O F 99.905 Total bids - - - - - - - $_ If this space is not sufficient to enter the names and addresses of bidders, use a sheet in similar form a 4 ft attach hereto. Cash Tender Form for Bidding on a Competitive Basis 92-DAY TREASURY BILLS To the Federal Reserve Bank of Dallas Fiscal Agent of the United States Station “ K” Dallas, Texas For use of Federal Reserve Bank Number IMPORTANT Subject to reservations contained in Treasury Department Circular No. 418, as amended, tenders on this form will be accepted only on a competitive bid basis subject to allotment. Amount - - Premium - - Discount - - Net Coat - - i --------------------------------- i --------------------------------- Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public announcement on May 7, 1943, issued by the Secretary of the Treasury the undersigned agrees to pay..................................... * (on a competitive bid basis) for a total amount of $................. ...............................(maturity value) of the Treasury bills therein described or for any less amount that may be allotted, payment therefor to be made at your bank in cash or other immediately available funds on the date stated in the public announcement. Treasury bills for which tender is hereby made are to be dated May 12, 1943, and are to mature August 12, 1943. They are to be issued in the following denominations: NUMBER OF PIECES OF TREASURY BILLS DO NOT USE THIS COLUMN DENOMINATION (M ituritr Value) * TOTAL AMOUNTS 1,000 5,000 10,000 100,000 500,000 1,000,000 TOTAL ..................... Any Treasury bills that may be allotted to us under this tender will be paid for in the following manner: By debit to our reserve account hereby authorized..................................................................................................... I..... Otherwise (describe)................................................. ........................ ............................................................................. $..... It is requested that delivery of the Treasury Bills allotted to the undersigned be made as follows: □ Hold in Custody Account □ Pledge to Secure War Loan Deposits ................................................................................ (N u n a o f Subscriber or Bank) □ Ship to . ................ ...... ................................. . By.......................................................................... (Proddent-Casbler) (A ddress) Date ............................................................... , 1948 IMPORTANT INSTRUCTIONS: 1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity value). Also, if more than one price is offered, a separate form must be executed at each price. 2. If the person making the tender is a corporation, the form should be signed by an officer of the corporation authorized to make the tender, and 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.” 3. Tenders from persons other than incorporated banks and trust companies or responsible and recognized dealers in investment 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 guarantee of full payment by an incor porated bank or trust company. 4. If the language o f this form is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, ^he tender may be disregarded. •Prioo iheuld be uprooted on the ba*i! o f 100 with not moro than throe decimal pieces, e.g., 99.925. Fraction! must not bo used. (S ee reverse side) BIO PRICES ON THE BASIS OF 100 CALCULATED TO YIELD RATES SHOWN IN FIRST AND LAST COLUMNS— 360 DAY BASIS Digcount Rates 89 day* 90 day* 91 days 92 days 93 days Dis count Rates .01 .02 .03 .04 .05 99.998 99.996 99.993 99.990 99.988 99.998 99.995 99.993 99.990 99.988 99.997 99.995 99.992 99.990 99.987 99.997 99.995 99.992 99.990 99.987 99.997 99.995 99.992 99.990 99.987 .01 .02 .03 .04 .05 .04 .07 .08 .09 .10 99.985 99.983 99.980 99.978 99.975 99.985 99.983 99.980 99.978 99.975 99.985 99.982 99.980 99.977 99.975 99.985 99.982 99.980 99.977 99.974 99.985 99.982 99.979 99.977 99.974 .04 .07 .08 .09 .10 .11 .12 .13 .14 .15 99.973 99.970 99.968 99.965 99.963 99.973 99.970 99.968 99.965 99.963 99.972 99.970 99.967 99.965 99.962 99.972 99.969 99.967 99.964 99.962 99.972 99.969 99.966 99.964 99.961 .11 .12 .13 .14 .15 .15 .17 .18 .19 .20 99.960 99.958 99.956 99.953 99.951 99.960 99.958 99.955 99.953 99.950 99.960 99.957 99.955 99.952 99.949 99.959 99.957 99.954 99.951 99.949 99.959 99.956 99.954 99.951 99.948 .14 .17 .IB .19 .20 .21 .22 .23 M 3S . 99.948 99.946 99.943 99.941 99.938 99.948 99.945 99.943 99.940 99.938 99.947 99.944 99.942 99.939 99.937 99.946 99.944 99.941 99.939 99.936 99.946 99.943 99.941 99.938 99.935 .21 22 .23 .24 21 .24 .27 .28 .29 30 99.936 99.933 99.931 99.928 99.926 99.935 99.933 99.930 99.928 99.925 99.934 99.932 99.929 99.927 99.924 99.934 99.931 99.928 99.926 99.923 99.933 99.930 99.928 99.925 99.923 .24 31 .28 .29 JO .31 .32 .33 .34 .35 99.923 99.921 99.918 99.916 99.913 99.923 99.920 99.918 99.915 99.913 99.922 99.919 99.917 99.914 99.912 99.921 99.918 99.916 99.913 99.911 99.920 99.917 99.915 99.912 99.910 .31 .32 .33 .34 21 .34 .37 .38 .39 .40 99.911 99.909 99.906 99.904 99.901 99.910 99.908 99.905 99.903 99.900 99.909 99.906 99.904 99.901 99.899 99.908 99.905 99.903 99.900 99.898 99.907 99.904 99.902 99.899 99.897 .34 .37 .38 J9 .40 .41 .42 .43 .44 .45 99.899 99.896 99.894 99.991 99.889 99.898 99.895 99.893 99.890 99.888 99.896 99.894 99.891 99.889 99.886 99.895 99.893 99.890 99.888 99.885 99.894 99.892 99.889 99.886 99.884 .41 .42 .43 .44 .45 .44 .47 .48 .49 .50 99.886 99.884 99.881 99.879 99.876 99.885 99.883 99.880 99.878 99.875 99.884 99.881 99.879 99.876 99.874 99.882 99.880 99.877 99.875 99.872 99.881 99.879 99.876 99.873 99.871 .44 .47 .48 .49 .50 Dis count Rates 89 day* 90 days 91 day* 92 days 93 days Dis count Rates LAST PREVIOUS OFFERING OF TREASURY BILLS 91 days Bated May 5, 1943 Due August 4, 1943 Total applied f o r ........................................................................$1,388,528,000 Total a c c e p t e d ................................................................................. 901,706,000 Range of accepted bids: High . . . . 99.935 Low . . . . 99.905 Average . . . 99.906 Equivalent rate approximately 0.257 percent ” ” ” 0.376 ” ” ” ” 0.373 (49 percent of the amount bid for at the low price was accepted) FEDERAL RESERVE BANK OF DALLAS Fiscal Agent of the United States