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DALLAS, TEX A S 7 5 2 2 2
Circular N o. 73-33
February 9, 1973

To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your attentio n 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 Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $4,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing February 22, 1973, in the am ount of
$4,202,090,000, as follow s:
91-D A Y B IL L S (to m aturity d ate) to be issued February 22, 1973, in the am ount of $2,400,000,000, or there­
abouts representing an additional am ount of bills dated N ovem ber 24, 1972, and to mature M ay 24, 1973
(C U S IP N o. 912793 Q V 1 ), originally issued in th e am ount of $1,900,550,000, 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 22, 1973, and to m ature A ugust 23, 1973
(C U S IP N o. 912793 R R 9 ).
T h e 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 w ill be payable w ithout interest. T h ey w ill be issued in bearer form only, and in
denom inations o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e ).
Tenders 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, Friday, February 16, 1973. Tenders w ill not be received at the Treasury D epartm ent, W ashington. Each
tender m ust be for a m inim um of $10,000. Tenders over $10,000 m ust be in m ultiples of $5,000. In th e case of com petitive
tenders the price offered m ust be expressed on the basis of 100, w ith 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 form s 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 o f customers provided th e nam es of the custom ers are
set forth in such tenders. Other than banking institutions will not be perm itted to subm it tenders except for their own account.
Tenders w ill 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 b y an express guaranty of paym ent by an incorporated bank or
trust company.
Im m ediately after th e 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 th e Treasury D epartm ent of the am ount and price range of accepted bids. O nly those
subm itting com petitive tenders w ill be advised of the acceptance o f rejection thereof. T h e Secretary of the Treasury expressly
reserves the right to accept or reject any or all tenders, in w hole 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 an y one bidder w ill
be accepted in full a t the average price (in three decim als) of accepted com petitive bids for the respective issues. S ettlem ent for
accepted tenders in accordance with bids m ust be m ade or com pleted at the Federal R eserve Bank on February 22, 1973,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing February 22, 1973. Cash and
exchange tenders w ill receive equal treatment. Cash adjustm ents w ill be m ade for differences betw een the par value o f 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 o f 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 o f 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, the difference betw een the price paid for the bills, whether
on original issue or on subsequent purchase, and th e am ount actually received either upon sale or redem ption a t m aturity during
the 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 o f the circular m ay be obtained from any Federal R eserve B ank or Branch.

In acco rdan ce w ith the a b o v e a n n o u n c e m e n t, tend ers will be 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 twelve-thirty p.m., Central S ta n d a rd Time, Friday, February 16, 1973. Tenders m a y not
be entered by tele p h o n e .
Yours very truly,
P. E. Coldwell

Figures concerning offering of 91-Day Treasury Bills maturing May 17, 1973, and 182-Day Treasury Bills maturing August 16,
1973, not available when this circular was printed.

(See reverse for tender form)

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


Dated February 22,1973

Maturing August 23,1973

To: 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 o f 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




16, 1973

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





-- --<_
?---------------- $

Prices should be
e x pressed on t h e
basis of 100, w ith
not more than th re 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 made by
credit to Treasury Tax and Loan Account.

M aturity Value

(a ?
(a), ?

10,000 ?
15,000 $
.(a), $ 50,000 $
.(a), $ 100,000 $
M $ 500,000 $


Charge our reserve account on pay m en t
l~' D raft enclosed (Effectual delivery o f enclosed d r a ft

shall be on latest day which w ill permit p r esen tm en t
in order to obtain irrevocably collected funds o n p a y ­
ment date)

Delivery Instructions:
Hold in Custody Account—Member
banks for own account only


Pledge to secure Treasury Tax and
Loan Account




M $L,000,000 $


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

(Subscriber’s full name or corporate title)


By(Authorized official signature and title)

Ship to.---------------------------------------


(For the account of, i f 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 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 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, communi­
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 est­
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 reverse for announcement)

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