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F ed e r a l R es er v e Ba n k of D a lla s

Circular No. 73-27
January 30, 1973

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your atten tion is invited to the following s ta te m e n t giving details of tw o issues of Treasury bills:
T h e Treasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount
of $4,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing February 8, 1973, in the am ount of
$4,201,545,000, as follows:
91-D A Y B IL L S (to m aturity d ate) to be issued February 8, 1973, in the am ount of $2,400,000,000, or there­
abouts representing an additional am ount of bills dated N ovem ber 9, 1972, and to m ature M ay 10, 1973
(C U S IP No. 912793 Q T 6 ), originally issued in the am ount of $1,901,370,000, the additional and original bills
to be freely interchangeable.
182-D A Y B IL L S for $1,800,000,000, or thereabouts, to be dated February 8, 1973, and to mature August 9, 1973
(C U S IP 912793 R P 3 ).
T h e bills of both series will 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 in terest T h ey w ill 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 v a lu e).
T enders w ill be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard tim e, M onday, February 5, 1973. 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, w ith not more than three decim als, 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 w ill be
supplied by Federal R eserve Banks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the nam es of th e custom ers are
set forth in such tenders. Other than banking institutions w ill not be perm itted to subm it tenders except for their own account.
Tenders will be received w ithout 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 w ill be opened at the Federal R eserve Banks and Branches, follow ing which
public announcem ent w ill be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. O nly those
subm 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. Sub­
ject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout 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 m ade or com pleted at the Federal R eserve Bank on February 8, 1973,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing February 8, 1973. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences betw een the par value of maturing
b ills accepted in exchange and the issue price of the new bills.
U nder Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 th e 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 incom e tax return, as ordinary gain or loss, th e 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 redem ption a t m aturity uuring
th e taxable year for which the return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal R eserve Bank or Branch.

In acc o rd a n ce w ith the a b o v e a n n o u n c e m e n t, tenders will b e received a t this b a n k a n d its b ra n c h e s a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Sta n d ard Time, M o nd ay, February 5, 1973. Tenders may
not be e n te re d by te lep ho ne .
Yours very truly,
P. E. Coldwell
Amount, R ange and Approxim ate Y ield of A ccepted Tenders
3-M onth B ills
6-M onth B ills
D u e M ay 3, 1973
D ue August 2, 1973
$3,777,465,000_________________________________T otal A pplied For_________________________________ $4,644,745,000
T otal A ccepted
__________________________ $1,800,105,000
Y ield
Y ield
98.568____________ 5.665% ______
. . ______________ H ig h __________ _____________ 97.038_____________5.859%
98.558_____________ 5.705% ___________________________ Low___________
98.562_____________ 5.689% ( 1 ) _____________________ A verage_____________________ 97.032____________ 5.871% ( 1 )
( 1 ) T h e s e rates are o n a b ank d iscou nt basis. T h e eq u iv a le n t coupon issu e y ie ld s are 5 .8 5 % for th e 3-m on th b ills and 6 .1 3 % for
th e 6-m on th bills.

(See reverse for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated February 8,1973

Maturing August 9 1973

T o: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The________________________ Branch
El Paso 79999 Houston 77001

San Antonio 78295

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 am ount
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 TENDER $____________________________________

_NOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full a t the averag e
price (in three decimals) of accepted competitive bids.



---- $-----------------

Prices should be
exp ressed on t h e
basis of 100, w ith
not more than th r e e
decimal places, e.g.
99.925. F r a c tio n s
m ust not be used.

Denominations Desired
Number of

Payment for this issue of bills cannot be m ade by
credit to Treasury Tax and Loan Account.

Maturity Value

(ffi ¥
(5) ¥

10,000 ¥15,000 ¥-


50,000 ¥m ¥ 100,000 ¥.(a), ¥ 500,000 ¥
.(5) $1 ,000,000 ¥m ¥

Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account

By m aturing bills
held by________________________
Paym ent to be made by________ _


Charge our reserve account on p ay m en t
|~ | D raft enclosed (Effectual delivery o f enclosed d r a f t
shall be on latest day which will permit preaen tm e n t
in order to obtain irrevocably collected funds on p a y ­
m ent date)
(Subscriber’s full name or corporate title)

(Authorized official signature and title)


Ship to----------------------— -----------(For the account of. If tender is for another subscriber)


1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust be for an amount in m ultiples 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 o f 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 after the closing time specified in the public announcement, com m uni­
cations relating to other m atters should not be enclosed. Envelopes for submitting tenders may be obtained from th is
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 m ake 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 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 tru st companies or responsible and recognized dealers in in v e st­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity v alu e)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment b y ajj
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 T reasu ry is
material, the tender may be disregarded.

(See reverse for announcement)

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