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F ederal R eser v e 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 75222 Circular No. 73-18 January 18, 1973 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the f o llo w in g statem ent giving details of an issue of Treasury bills: T h e Treasury Departm ent, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 349-day Treasury bills for cash in exchange for Treasury bills maturing January 31, 1973, in the am ount of $1,700,320,000. T h e bills of this series will be dated January 31, 1973, and w ill mature January 15, 1974 (C U S IP No. 912793 S L 1 ). T h e bills 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 w ill be payable without interest. T h ey will be issued in bearer form only, and in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v alu e). Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard T im e, Thursday, January 25, 1973. Tenders w ill not be received at the Treasury D epartm ent, Washington. 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 ten ders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay 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 nam es of the customers are set forth in such tenders. Others than banking institutions will not be perm itted to submit tenders except for their own account. T enders w ill be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accompanied b y paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or trust company. Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, following which public announcement will be made by the Treasury Departm ent of the am ount and price range of accepted bids. O nly those sub m itting com petitive tenders will 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. Subject to these reservations, noncom petitive tenders 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. Settlem ent for accepted tenders in accor dance with the bids m ust be m ade or com pleted at the Federal Reserve Bank on January 31, 1973, in cash or other im m ediately available funds or in a like face amount of Treasury bills maturing January 31, 1973. Cash and exchange tenders w ill 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 ) o f the Internal R evenue Code of 1954 the amount 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 must 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 am ount actually received either upon sale or redemption at maturity during the taxable year for which the 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 R eserve Bank or Branch. In accord ance with the a b o v e a n n o u n c em en t, tenders will b e received at this bank an d its branches at El Paso, Houston an d San Antonio up to twelve-thirty p.m., Central Standard Time, Thursday, January 25, 1973 . Tenders m ay not b e en tered b y t e le p h o n e . Yours very truly, P. E. Coldwell President (S e e 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 349 DAYS TO MATURITY Dated January 31,1973 Maturing January 15,1974 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The-----------------------------------------Branch El Paso 79999 Houston 77001 San A ntonio 78295 (Date) Pursuant to the provisions of Treasury Departm ent Circular No. 418 (current revision) and the provisions o f 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 N oncom petitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full at the average price (in three decim als) o f accepted com petitive bids. /f t ft P rices should be e x p r e s s e d on th e ra) basis o f 100, w ith $ not more than three COMPETITIVE TENDERS $ (a) $ ? decimal places, e. g., 9 9 .9 2 5 . F r a c tio n s (o') $ $ m ust n ot be used. .$ ... $ ............ T E N D E R S MAY NOT BE E N T E R E D BY TEL E PH O NE . T E N D E R S BY W IRE, IF RECEIVED BEFO RE THE CLOSING HOUR, A RE ACCEPTABLE. Denominations Desired Number o f Pieces P aym ent for this issue o f bills cannot be made by credit to Treasury T ax and Loan Account. Maturity Value (a) $ (5> $ (a) $ METHOD OF PAY M E N T 10,000 $15,000 $■ □ 50,000 $(3) $ 100,000 $. □ <> $ 500,000 $. S (a) $1:000,000 $ , By maturing bills held by__________________ Payment to be made by_ □ □ Charge our reserve account on payment date Draft enclosed (Effectual delivery of enclosed d r a f t shall be on la te st day which will p e rm it p re sen tm en t in o rd er to o b tain irrevocably collected funds on p ay m en t date) Delivery Instructions: □ Hold in Custody Account—Member banks for own account only (S ubscriber’s fu ll n am e o r corp o rate title) □ Pledge to secure Treasury Tax and Loan Account (Address) □ Ship to___________________________ By- (A uthorized official s ig n a tu re a n d title) (F o r th e account of, if ten d er is fo r a n o th e r subscriber) (A ddress) IMPORTANT 1. N o tender for le ss than $10,000 w ill be considered and each tender over $10,000 m ust 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 A gen t of the United States, with notation on the envelope reading “TEN DER FOR T R E A SU R Y OFFERING". Since envelopes received w ith th is legend w ill not be opened until after the closing time specified in the public announcement, communi cations relating to other m atters should not be enclosed. E nvelopes for subm itting tenders m ay be obtained from this bank or appropriate branch. 3. A ny qualified or conditional tender w ill be rejected. 4. I f 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 th e 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 o f the firm”. 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest m ent securities w ill be disregarded, unless accompanied by a deposit o f 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 fu ll paym ent by an incorporated bank or trust company. 6. If the language of this form is changed in any respect, which, in the opinion o f the Secretary of th e Treasury is material, the tender m ay be disregarded. (See reverse for announcement)