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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 75222

C ircu la r No. 72-287
D e c e m b e r 18, 1972

NEW OFFERING —- TREASURY BILLS

To All B a n k in g Institutions a n d O th e r s C o n c e r n e d
in th e E leventh F e d e ra l R e serv e District:

Y our a t te n t io n is invited to th e f o llo w in g s t a t e m e n t g iv in g d e t a il s of a n issu e of T re a s u ry bills:
T h e T re a s u ry D e p a rtm e n t, b y th is p u b lic notice, invites tenders for $1,800,000,000, or th ere ab o u ts, of 352-day T re a su ry
bills for cash a n d in exchange for T re a su ry bills m atu rin g D e c em b er 31, 1972, in th e a m o u n t of $1,701,030,000. T h e bills of th is
series will be d a te d D e c em b er 31, 1972, a n d will m a tu re D e c em b er 18, 1973 ( C U S IP No. 912793 R F 5 ) .
T h e bills w ill be issued on a discount basis u n d e r co m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r p r o v id e d , a n d a t
m a tu rity th e ir face a m o u n t will be p a y a b le w ith o u t interest. T h e y will 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 w ill b e received a t F e d e ra l R e se rv e B a n k s a n d B ran ch es 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 , T u esd ay , D e c em b er 26, 1972. 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 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 les of $5,000. In th e case of co m p e titiv e te n ­
ders th e price 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 t h a t ten d e rs be m ad e on th e p rin te d form s an d forw arded in th e special envelopes w hich w ill be su p p lied
b y F e d e ra l R e se rv e B a n k s o r B ra n ch e s on a p p lic a tio n therefor.
B a n k in g in stitu tio n s generally m a y su b m it te n d e rs fo r a cc o u n t of custom ers p ro v id ed th e nam es of th e custom ers are
se t fo rth in such tenders. O th e rs th a n b a n k in g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs e xcept for th e ir ow n account.
T e n d e rs will be received w ith o u t d ep o sit from in co rp o ra ted b a n k s a n d tru s t com panies a nd from responsible a n d recognized
dealers in in v e s tm e n t securities. T e n d e rs from oth ers m u st b e a cc o m p an ied by 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 cc o m p an ied by 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
tr u s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs will b e o p en ed a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing which
p u b lic a n n o u n c e m e n t will be m ad e by th e T re a su ry D e p a rtm e n t of th e a m o u n t and price range of acc ep te d bids. O nly those sub­
m ittin g co m p e titiv e ten d e rs will be a d v ised of th e a cc ep ta n ce or re je ctio 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 a c c e p t or re je ct a n y or all tenders, in w hole or in p a rt, an d his a ctio n in a n y such resp ect shall b e final.
S u b je c t to these reservations, n o n co m p e titiv e ten d e rs for $200,000 o r less w ith o u t sta te d p rice from a n y one b id d e r will be
acc ep te d in full a t th e a verage price (in th re e decim als) of a ccep ted co m p e titiv e bids. S e ttle m e n t for a cc ep te d te n d e rs in accor­
dance w ith th e bids m u st be m ad e or c o m p le te d a t th e F e d e ra l R e se rv e B a n k on J a n u a r y 2, 1973, in cash or o th e r im m e d ia tely
a v ailab le fun d s or in a like face a m o u n t of T re a su ry bills m atu rin g D e c e m b e r 31, 1972. C ash a n d exchange te n d e rs will re ­
ceive equal 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 S ections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e C ode of 1954 th e a m o u n t of d iscount a t w hich bills issued
he re u n d e r a re sold is considered to accrue w hen th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re excluded
fro m c o n sid era tio 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 insurance co m p an ies) issued here­
u n d e r m u st include in his incom e ta x re tu rn , as o rd in ary gain o r loss, th e difference be tw ee n 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 e n t purchase, a n d th e a m o u n t a c tu a lly received e ith e r u p o n sale o r re d e m p tio n a t m a tu rity d u ring
th e tax a b le y e a r for w hich th e re tu rn is m ade.
T re a s u ry D e p a rtm e n t C ircu la r No. 418 (c u rre n t re v isio n ) a n d th is notice, pre sc rib e th e te rm s of th e T re a su ry bills an d
govern th e conditions of th e ir issue. C opies of th e c irc u lar m a y 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 ,
H o u sto n a n d S an A n to n io u p to tw e lv e - th ir ty p.m ., C e n tral S t a n d a r d Time, T u e s d a y , D e c e m b e r 26, 1972. T en d e rs m a y
not b e en tered by te lep h o n e .
Yours very truly,
P. E. C oldw ell
President

(See reverse for tender form )

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

TENDER FOR TREASURY BILLS

352 DAYS TO MATURITY
Dated December 31,1972

Maturing December 18,1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The________________________ ___Branch
E l Paso 79999

Houston 77001

San Antonio 78295

(D ate)

P u rsu a n t to th e provisions of T reasu ry D epartm ent Circular No. 418 (cu rren t revision) and the provisions of the
public announcem ent issued by the T reasury D epartm ent, th e undersigned offers to purchase T reasury bills in the am ount
shown below, and agrees to pay for the am ount allotted, on or before the issue date, by the method and a t the ra te indicated.

NONCOMPETITIVE TENDER $

_NOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, w ithout sta te d price, will be accepted in full a t the average
price (in three decimals) of accepted com petitive bids.
/$
/7
}\
<
5
Prices should be
e x p re s s e d on th e
()
a
basis of 100 , w ith
$
1
?
not m ore th an three
COMPETITIVE TENDERS
()
a
?
decimal places, e. g.,
99.925. F r a c tio n s
@
$
$
m ust not be used.

@

..

.

TEN D ERS MAY NOT BE EN TE R E D BY TE L EPH O N E . TEN D ERS BY W IRE, IF RECEIV ED BEFO RE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations D esired
Num ber of
Pieces

P aym ent fo r this issue of bills cannot be made
by credit to T reasury T ax and Loan Account.

M atu rity V alue

(5) $
<> $
£

METHOD O F PAYM ENT

10,000 $

15,000 $
50,000 $

□

(5) $
(5) $ 100,000 $
$ 500,000 $

□
□

$1 ,000,000 $

Charge our reserve account on payment
date

I 1 D r a f t e n c l o s e d (E ffectual delivery o f enclosed d r a f t
sh all be on la te st day w hich will p e rm it p re sen tm en t in
o rd e r to o b tain irrevocably collected fu n d s on p ay m en t
d ate)

Delivery Instructions:
□

By maturing bills
held by____________________________ __
Payment to be made by______________

Hold in Custody Account— Member
banks for own account only

(S u b scrib er’s fu ll nam e o r co rp o rate title)

□

Pledge to secure Treasury Tax and
Loan Account

(A ddress)

□

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

By-

(A u thorized official s ig n a tu re an d title )

(F o r th e acco u n t of, If te n d e r is fo r a n o th e r su b scrib er)
(A ddress)

IMPORTANT
1. No tender fo r less th an $10,000 will be considered and each tender over $10,000 m ust be fo r an am ount in m ultiples of
$5,000 (m atu rity value).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of the
United S tates, w ith notation on the envelope reading “TENDER FOR TREASURY O FF E R IN G ”. Since envelopes
received w ith this legend will not be opened until a fte r the closing tim e specified in the public announcement, communi­
cations relatin g to other m a tte rs should no t be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this
bank or appro p riate branch.
3. A ny 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 m ake th e
tender and th e signing of th e form by an officer of th e corporation will be construed as a representation by him th a t he
has been so authorized. If the tender is made by a partnership it should be signed by a m ember of th e firm, who
should sign in the form “.................................................... ........f a copartnership, by........................................................................... .....,
a m em ber of th e firm”.
5. Tenders from those other th an incorporated banks and tr u s t companies or responsible and recognized dealers in invest­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity value)
of the T reasu ry bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an
incorporated bank or tr u s t company.
6 . If the language of th is form is changed in any respect, which, in th e opinion of th e S ecretary of th e T reasury is
m aterial, th e tend er m ay be disregarded.

(See reverse for announcement)

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