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F ederal reser ve Bank o f Dallas


Circular No. 72-278
D ecem ber 5, 1972

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the following statement giving details of two issues of Treasury bills:
T he Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount
of $4,300,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing Decem ber 14, 1972, in the am ount of
$4,103,795,000, as follows:
91-D A Y B IL L S (to m aturity date) to be issued Decem ber 14, 1972, in the am ount of $2,400,000,000, or there­
abouts, representing an additional amount of bills dated Septem ber 14, 1972, and to mature March 15, 1973
(C U S IP No. 912793 Q K 5 ), originally issued in the am ount of $1,800,810,000, the additional and original bills
to be freely interchangeable.
182-D A Y B IL L S for $1,900,000,000, or thereabouts, to be dated Decem ber 14, 1972, and to mature June 14, 1973
(C U S IP No. 912793 Q X 7 ).
T he bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face am ount will be payable without 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 va lu e).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard T im e, M onday, Decem ber 11, 1972. Tenders w ill not be received at the Treasury Departm ent, W ashington. Each
tender m ust be for a m inim um of $10,000. Tenders over $10,000 must 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, with not more than three decimals, e.g., 99.925. Fractions may
not be used. It is urged that tenders be m ade on the printed forms and forwarded in the special envelopes which will be
supplied by Federal 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. Other than banking institutions will not be perm itted to subm it tenders except for their own account.
T enders will be received without deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of the face am ount of
Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust company.
Im m ediately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, follow ing which
public announcem ent will be made by the Treasury Departm ent of the am ount and price range of accepted bids. Only those
subm itting com petitive tenders w ill be advised of the acceptance or rejection thereof. T he Secretary of the Treasury 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 without stated price from any one bidder will
be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with bids m ust be made or com pleted at the Federal R eserve Bank on D ecem ber 14, 1972,
in cash or other im m ediately available funds or in a like face amount of Treasury bills m aturing D ecem ber 14, 1972. Cash and
exchange tenders will receive equal treatment. Cash adjustm ents will be made for differences betw een the par value of maturing
bills accepted in exchange and the issue price of the new bills.
Under Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount of discount at 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 Treasury 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 betw een the price paid for the bills, whether
on original issue or on subsequent purchase, and the amount actually received either upon sale or redem ption at m aturity during
the taxable year for which tbe return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve Bank or Branch.

In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, December 11, 1972. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell
Am ount, R ange and Approxim ate Y ield of A ccepted Tenders
3-M onth B ills
D u e March 8, 1973
Y ield
98.762__________ _4.898% ____
98.743__________ „4.973% ____
98.750__________ _4.945% (1)_

T otal A pplied For~
-Total A ccepted__
Average -

6-M onth B ills
D u e June 7, 1973
------------------------------------------ $3,366,870,000
------------------------------------------ $1,900,425,000
Y ield
---------------- 9 7.378--------------------5.186%
---------------- 97.349--------------------5.244%
- --------97.356---------------5.230% ( 1 )

( 1 ) These rates are on a b ank discount basis. T h e eq uiv alent coupon issue yields are 5 .0 8 % for th e 3-m onth bills a n d 5 4 5 % for
th e 6-m onth bills.

This publication was digitized and made available by(S e e Federal Reserve Bank of) Dallas' Historical Library (
the reverse for tender form


Dated September 14,1972

M aturing March 15,1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
El Paso 79999

Houston 77001

San Antonio 78295

( Date)

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.

NONCOMPETITIVE TENDER $________________________________________NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.







' w




T -----------------







Prices should be
ex pressed on th e
basis of 100, with
not more than three
decimal places, e.g.,
99.925, F ra c tio n s
must not be used.

Payment for this issue of bills cannot be made by
Denominations Desired
credit to Treasury Tax and Loan Account.
N um ber of
M a tu rity V alue

10,000 $


@ $ 15,000 $
@ $ 50,000 $
@ $ 100,000 $.



- .. -


--------- @ $ 500,000 $

$1,000,000 $.

Pledge to secure Treasury Tax and
Loan Account


(S u b sc rib e r’s full n am e or c o rp o ra te title)

Hold in Custody Account—Member
banks for own account only


Charge our reserve account on paym ent

I j D r a f t e n c l o s e d (E ffectu al delivery of enclosed d r a f t
shall be on la te st day w hich will p e rm it p re s e n tm e n t in
o rd e r to ob tain irrevocably collected fun d s on p a y m e n t
d a te )

Delivery Instructions:

By m aturing bills
held by------------------------------------------Payment to be made by---------------------

Ship to---------------------------------------

(A d dress)


(A u th orized official sig n a tu re a n d title )
(F o r the acc o u n t of, if te n d e r is f o r a n o th e r su bscriber)

(A d dress)

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 (m aturity 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 m atters 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 an officer of 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 th at 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 (m aturity 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 tru st 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 rev e r se for announcement)

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