View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F e d e r a l r e s e r v e Ba n k o f D a lla s
FISCA L AGENT OF THE UNITED STATES

DALLAS, TEXAS 75222
Circular 73-55
M arch 13, 1973

NEW OFFERING — TREASURY BILLS
To All B anking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your attentio n is invited to th e 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 th is public notice, invites tenders for two series o f Treasury bills to th e aggregate am ount
of $4,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing M arch 22, 1973, in the am ount of
$4,207,235,000, as follows:
91-D A Y B IL L S (to m aturity d ate) to be issued M arch 22, 1973, in the am ount of $2,400,000,000, or thereabouts,
representing an additional am ount of bills dated D ecem ber 21, 1972, and to m ature June 21, 1973 (C U S IP No.
912793 Q Y 5 ), originally issued in the am ount o f $1,905,870,000, 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 M arch 22, 1973, and to m ature Septem ber 20, 1973
(C U S IP N o. 912793 R V 0 ).
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 of $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 at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard tim e, M onday, M arch 19, 1973. Tenders w ill not be received a t the Treasury D epartm ent, W ashington. E ach
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 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 custom ers provided th e nam es o f 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.
T enders 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 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 the Treasury D epartm ent of the am ount and price range o f 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 any one bidder w ill
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 w ith the bids m ust be m ade or com pleted at the Federal R eserve Bank on M arch 22, 1973,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing M arch 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 of maturing
bills accepted in exchange and th e issue price of the new bills.
Under Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code o f 1954 th e am ount o f 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, 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 redem ption a t m aturity during
th e taxable year for which th e return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s o f the Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In a c co rd an ce w ith the a b o v e an n o u n c e m e n t, te n d e rs will b e received a t this b a n k a n d its bra n c h e s a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central S tan d a rd Time, M on day , March 19, 1973. Tenders m a y not
be en tered by te le p h o n e .
Yours very truly,
P. E. Coldwell
_______________

President

LAST PREVIOUS OFFERING OF TREASURY BILLS
Am ount, R ange and Approxim ate Y ield of A ccepted Tenders
3-M onth B ills
6-M onth B ills
D u e June 14, 1973
D u e Septem ber 13, 1973
$3,415,895,000
.Total A pplied For_________________________________ $2,801,450,000
$2,400,055,000__________________________________ .T otal Accepted___________________________________ $ 1,800,030,000
Price
Y ield
P rice
Y ield
98.509
5.898% ___________________________H igh_______________________ 96.778____________ 6.373%
98.468
6.061% ___________________________ Low-------------------------------------96.715____________ 6.498%
98.484
5.997% ( 1 ) _____________________-Average______________________96.744____________ 6.440% ( 1 )
( 1 ) T h e s e ra tes are on 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 6 .1 7 % for th e 3-m o n th b ills an d 6 .7 5 % for
th e 6 -m onth bills.

(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

182 DAYS TO MATURITY
Dated March 22, 1973

Maturing September 20,1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The________________________ Branch
E l Paso 79999 Houston 77001

San Antonio 78295
(Date)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of 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 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 at the average
price (in three decimals) of accepted competitive bids.
/»

®

fa )

Prices should be
e x pressed on th e
basis of 100, w ith
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.

?
?
$

IR
J

COMPETITIVE TENDERS

?
1$

I

(Ti)
@

mW* TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE

CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired

Number o f
pieces

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

Maturity Value

(Si ?
(a), ?

10,000 ?15,000 $-

□
□

(S ? 50,000 ?M $ 100,000 *

□

M $ 500,000
M $1,000,000

Hold in Custody Account—Member
banks for own account only

□

Pledge to secure Treasury Tax and
Loan Account
Ship to---------------------------------------

□

Charge our reserve account on paym ent
date

1 I D r a f t e n c l o s e d (Effectual delivery o f enclosed d raft
shall be on latest day which will permit presentment
in order to obtain irrevocably collected funds on pay­
m ent date)

Delivery Instructions:
□

By m aturing bills
held by-------------------------------------------Paym ent to be made by--------------------

(Subscriber’s fu ll name or corporate title)
(Address)

By-

(Authorized official signature and title)
(For the account of, if tender is for another subscriber)

(Address)

IMPORTANT
1. No tender for less than $10,000 will be considered and each tender over $10,000 must 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 the
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 this
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 the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him th at 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 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 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