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F ederal reser ve Bank o f 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 75222
Circular No. 73-12
Janu ary 9, 1973

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 t h e E leventh F e d e r a l R e serv e District:
Your a t t e n t i o n is in v ite d to th e f o llo w in g s t a t e m e n t g iving d e t a il s of t w o is s u e s of T re a s u ry bills:
T h e T r ea su ry D e p a r tm e n t, b y th is p u b lic notice, in v ite s tenders for tw o series o f T r ea su ry b ills to t h e ag grega te a m o u n t
o f $ 4 ,3 0 0 ,0 0 0 ,0 0 0 , or th ereab o u ts, for cash an d in ex ch a n g e for T r ea su ry b ills m a tu rin g J a n u ary 18, 19 73 , in th e a m o u n t o f
$ 4 ,0 8 0 ,5 9 0 ,0 0 0 , a s fo llow s:
9 1 - D A Y B I L L S (to m a tu rity d a te ) to b e issu ed Jan u ary 18, 19 73 , in t h e a m o u n t o f $ 2 ,4 0 0 ,0 0 0 ,0 0 0 , or th e re­
ab o u ts, rep resen tin g a n a d d itio n a l a m o u n t o f b ills d a ted O ctob er 19, 1972, an d to m a tu re A p ril 19, 1973
( C U S I P N o . 9 1 2 7 9 3 Q Q 2 ), o rig in a lly issu ed in th e am o u n t o f $ 1 ,8 0 0 ,3 0 0 ,0 0 0 , t h e ad d itio n a l and origin al b ills
t o b e fr e e ly in terch an g ea b le.
1 8 2 -D A Y B I L L S for $ 1 ,9 0 0 ,0 0 0 ,0 0 0 , or th e rea b o u ts to b e d a te d J a n u a ry 18, 197 3, a n d to m a tu re J u ly 19, 1973
( C U S I P N o . 9 1 2 7 9 3 R L 2 ).
T h e b ills o f b o th se ries w ill b e issu ed o n a d isco u n t b a sis un d er c o m p e titiv e an d n o n c o m p e titiv e b id d in g a s h erein after
p ro v id ed , an d a t m a tu rity th eir fa c e a m o u n t w ill b e p a y a b le w ith o u t in terest. T h e y w ill b e issu ed in bearer form o n ly , a n d in
d e n o m in a tio n s o f $ 1 0 ,0 0 0 , $ 15 ,0 0 0 , $ 5 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 an d $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a lu e ) .
T e n d e r s w ill b e re c e iv e d a t F ed era l R e s e r v e B a n k s an d B ranches u p to th e clo sin g hour, o n e-th irty p.m ., E a ste rn
S tan d ard tim e , M o n d a y , J a n u a ry 15, 1973. T e n d e r s w ill n o t b e re c e iv e d a t t h e T r ea su ry D e p a r tm e n t, W a sh in g ton , E a c h
ten d er m u s t b e for a m in im u m o f $ 10 ,0 0 0 . T e n d e r s o v er $ 1 0 ,0 0 0 m ust b e in m u ltip le s o f $ 5 ,00 0 . In t h e case o f c o m p e titiv e
tenders th e p rice o ffered m u st b e exp ressed o n th e b asis o f 100, w ith n o t m ore th a n th r ee d ecim a ls, e.g., 9 9 .9 2 5 . F ra ctio n s m a y
n ot b e used . It is u rged th a t ten d ers b e m a d e o n th e p rin ted fo rm s an d forw ard ed in t h e sp ec ia l e n v e lo p e s w h ich w ill b e
su p p lied b y F e d e r a l R e s e r v e B a n k s or B ra n c h e s o n a p p lica tio n therefor.
B a n k in g in stitu tio n s g en era lly m a y su b m it ten d ers fo r accou n t o f cu stom ers p ro v id ed th e n a m e s o f t h e cu sto m ers are
se t forth in su ch ten ders. O th er th a n b a n k in g in stitu tio n s w ill n ot b e p erm itte d to su b m it ten d e rs e x c e p t for th e ir o w n a c c o u n t
T e n d e r s w ill b e r e c e iv e d w ith o u t d e p o sit from in corp orated b a n k s and trust c o m p a n ie s an d from resp o n sib le an d recog n ized
d ea lers in in v e stm e n t secu rities. T e n d er s from o thers m ust b e acco m p a n ied b y p a y m e n t o f 2 p ercen t o f t h e fa ce a m o u n t o f
T r ea su ry b ills a p p lie d for, u n le ss th e ten d ers a re a cco m p a n ied b y a n ex p ress guaran ty o f p a y m e n t b y a n in corp orated b an k or
tru st co m p a n y .
I m m e d ia te ly a fter t h e clo sin g hour, ten d e rs w ill b e o p e n e d a t th e F ed era l R e s e r v e B a n k s a n d B ra n ch es, fo llo w in g w h ich
p u b lic a n n o u n c em en t w ill b e m a d e b y t h e T rea su ry D e p a r tm e n t o f th e a m o u n t a n d p rice ran ge o f a c c e p te d bids. O n ly th o se
su b m ittin g c o m p e titiv e tenders w ill b e a d v ise d o f t h e a ccep ta n ce or rejectio n th ereof. T h e S ecreta ry o f th e T rea su ry ex p ressly
reserves th e righ t t o a ccep t or reject a n y or a ll ten d ers, in w h o le or in part, a n d h is a ctio n in a n y such r e sp ect sh a ll b e final. S u b ­
je c t to th e s e reservations, n o n c o m p e titiv e ten d ers for ea ch issu e for $ 2 0 0 ,0 0 0 or less w ith o u t sta ted p rice from a n y o n e b id d er w ill
b e a cc e p te d in fu ll a t t h e av era g e p rice ( in th r ee d e c im a ls) o f a cc e p te d c o m p e titiv e b id s for th e r e s p e c tiv e issues. S e ttle m e n t for
a c c e p te d ten d e rs in accord a n ce w ith b id s m u s t b e m a d e or c o m p le te d a t t h e F ed e r a l R e s e r v e B a n k on J a n u ary 18, 1973,
in cash or o th e r im m e d ia te ly a v a ila b le fu n d s or in a lik e fa c e a m o u n t o f T r ea su ry b ills m a tu rin g Ja n u ary 18, 1973. Cash and
ex ch a n g e ten d e rs w ill r ece iv e eq u a l trea tm en t. C ash a d ju stm en ts w ill b e m a d e fo r d ifferen ces b e tw e e n t h e par v a lu e o f m aturing
b ills a c c e p te d in ex ch a n g e a n d t h e issu e p rice o f th e n ew b ills.
U n d e r S e c tio n s 4 5 4 ( b ) an d 1221 ( 5 ) o f the In tern al R e v e n u e C o d e o f 1 9 5 4 t h e a m o u n t o f d isco u n t a t w h ich b ills issu ed
h ereu n d er are sold is co n sid ered t o accru e w h en t h e b ills are sold , red eem ed or o th e rw ise d isp o sed o f, an d th e b ills are exclu d ed
from c o n sid er a tio n a s ca p ita l assets. A cco rd in g ly , t h e ow n er o f T reasu ry b ills ( o th e r th a n life in su ran ce c o m p a n ie s) issu ed h ere­
u n d er m u s t in clu d e in h is in c o m e ta x return, as ord inary gain or loss, t h e d ifferen ce b e tw e e n t h e p rice p aid for th e b ills, w h eth er
o n origin al issu e or o n su b seq u e n t p urchase, a n d th e a m o u n t a c tu a lly receiv ed e ith er u p o n sa le or r ed em p tio n a t m a tu rity during
th e ta x a b le y e a r for w h ich th e retu rn is m ad e.
T r ea su ry D e p a r tm e n t Circular N o . 4 1 8 (cu rren t r e v is io n ) an d th is n o tic e, p rescrib e t h e term s o f the T rea su ry b ills and
g ov ern t h e c o n d itio n s o f th e ir issue. C o p ies o f th e circu lar m a y b e o b ta in e d from a n y F ed e r a l R e s e r v e B a n k or B ranch.

In a c c o r d a n c e w ith t h 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 w ill b e r e 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 a s o ,
H o u sto n a n d S a n A n to n io u p 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 , J a n u a r y 15, 19 73. T e n d e rs m a y
h o t b e e n t e r e d b y te l e p h o n e .
Y ours v e r y truly,
P. E. C old w e ll
________________
P re s id e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m o u n t, R a n g e a n d A p p ro x im a te Y ie ld o f A c c e p te d T e n d er s
3 -M o n th B ills
6 -M o n th B ills
D u e A p ril 12, 19 7 3
D u e J u ly 12, 1973
$ 3 ,7 5 0 ,0 9 0 ,0 0 0
T o ta l A p p lie d F o r ___________________________________ $ 3 ,5 8 0 ,1 0 0 ,0 0 0
$ 2 ,4 0 0 ,4 4 0 ,0 0 0 ____________________________________ -T o ta l A cce p ted _______ _____________________________ $ 1 ,9 0 0 ,0 2 5 ,0 0 0
P r ic e
Y ie ld
P r ic e
Y ield
9 8 .7 0 5 --------------------- 5 .1 2 3 % -------------------------------.H ig h ____________
.9 7 .2 7 4 ______________5 .3 9 2 %
9 8 .6 9 3 --------------------- 5 .1 7 1 % -------------------------------------------- L o w _________________________ 9 7 .2 5 3 _____________ 5 .4 3 4 %
9 8 .6 9 7 ----------------------5 .1 5 5 % ( 1 ) -----------------------------------A v e r a g e _______________________ 9 7 .2 6 4 _____________ 5 .4 1 2 % ( 1 )
( 1 ) T h e se rates are on a b a n k
t h e 6 - m o n t h bills.

d iscount basis. T h e

eq u iv alen t coupon

issue y ield s a r e

(See reverse for tender form)

5 .3 0 %

for the

3-m onth

bills a n d

5 .6 4 %

for

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

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Dated January 18, 1973

Maturing July 1 9 ,1 9 7 3

To: Federal Reserve Bank, Station K, Dallas, T exas 75222
or —
T he-----------------------------------------Branch
El Paso 79999

Houston 77001

San Antonio 78295_____________________________________________________________
(D ate)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e
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 a t the rate indicated.

NONCOMPETITIVE T E N D E R $____________________________________________ NOT TO EXC E E D $200,000
Noncompetitive 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.
____________ 2_______________________

$
(ft)
$ --------------------------<?------------------ $_________________________
(fit
COMPETITIVE T E N D E R S ( $
7;
1$
(ft:
$
$

@

$

Prices should be
ex p ressed on th e
basis of 100, w ith
not more than th ree
decimal places, e.g.,
99.925. F ra c tio n s
m ust not be used.

' - v TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E
'
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
Number of
piec“

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

Maturity Value

.(6) $

10,000 $-

$

15,000 $-

% $

50,000 $-

□

B y m aturing bills
" held by----------------------------------------------*
□ P aym ent to be made by_

m $ 100,000 ?(S ? 500,000 *
(S $1 ,000,000 $-

□

Charge our reserve account on p a y m en t
date
| | D raft enclosed (Effectual delivery of enclosed d r a f t
shall be on la te st day which w ill p e rm it p re s e n tm e n t
in o r d e r to o b t a i n i r r e v o c a b l y c o lle c te d f u n d s o n p a y .
m e n t d ate)
^

D elivery Instructions:

(S u b scrib er's fu ll n a m e or c o rp o r a te title)

Hold in Custody Account— Member
banks fo r own account only
Pledge to secure T reasury T ax and
Loan Account

(A ddress)

By
( A u t h o r i z e d o f f i c ia l s i g n a t u r e a n d t i t l e )

Ship to-------------- ----------------------------( F o r t h e a c c o u n t o f , i f t e n d e r is f o r a n o t h e r s u b s c r i b e r )

(A ddress)

IMPORTANT
1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust be for an amount in multiples o f
$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 th e
United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes
received with this legend will not be opened until a fter 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 th i s
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 th e
tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t h e
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, w h 0
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 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 a n
incorporated bank or tru st company.
6. If the langauge of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury j s
m aterial, the tender may be disregarded.
(See reverse for announcement)

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