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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)