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F ederal R eserve 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 C ircular No. 73-84 A p ril 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 follow in g sta tem ent giving details of an issue of Treasury bills: T h e T re a s u ry D e p a rtm e n t, b y th is pu b lic notice, invites ten d e rs for $1,800,000,000, or th ereab o u ts, of 344-day T re a su ry bills for cash a n d in exchange for T re a s u ry bills m a tu rin g A pril 30, 1973, in th e a m o u n t of $1,700,030,000. T h e bills of th is series will be d a te d A pril 30, 1973, a n d will m a tu re A p ril 9, 1974 ( C U S I P No. 912793 S P 2 ) . T h e bills w ill b e issued on a discou nt basis u n d e r c o m p etitiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r prov ided, an d a t m a tu r ity th e ir face a m o u n t will b e p a y ab le w ith o u t interest. T h e y will be issued in b e are r form only, a n d in d en o m in atio n s of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu rity v a lu e ). T e n d e rs will b e receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ranch es u p to th e closing hour, o n e -th irty p.m., E a s te rn S ta n d a rd T im e , T u esd ay , A pril 24, 1973. T e n d e rs will n o t be received a t th e T re a su ry D e p a rtm e n t, W ashington. E ac h te n d e r m u st be for a m in im u m of $10,000. T e n d e rs over $10,000 m ust be in m u ltip le s of $5,000. I n th e case of c o m p e titiv e te n ders th e p rice offered m u st be expressed on th e basis of 100, w ith n o t m o re th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t be used. I t is urg ed th a t ten d e rs be m ad e on th e p rin te d form s a n d forw arded in th e special en velopes w hich will be sup p lied b y F e d e ra l R e se rv e B a n k s or B ran ch es on a p p lic a tio n therefor. B a n k in g in stitu tio n s generally m a y su b m it ten d e rs for accou nt of custom ers p ro v id ed th e n am es of th e custom ers are set forth in such tenders. O th ers th a n b a n k in g in stitu tio n s w ill n o t b e p e rm itte d to su b m it ten d e rs ex cept for th e ir own account. T e n d e rs will be receiv ed w ith o u t d ep o sit from in co rp o ra ted b an k s a n d tru s t com p anies a n d fro m responsible a n d recognized d ealers in in v estm e n t securities. T e n d e rs fro m oth ers m u st be acco m p an ied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of T re a su ry bills a p p lie d for, unless th e te n d e rs a re acco m p an ied by a n express g u a ran ty of p a y m e n t b y an in co rp o ra ted b a n k or t r u s t com pany. I m m e d ia te ly a fte r th e closing hour, ten d e rs w ill b e o pened a t th e F e d e ra l R eserv e B a n k s a n d B ranches, follow ing w hich p ub lic a n n o u n ce m en t will be m ad e b y th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d p rice range of acc ep te d bids. O nly those sub m ittin g co m p e titiv e ten d e rs will be adv ised of th e acc ep ta n ce o r rejectio n thereof. T h e S e c retary of th e T re a s u ry expressly reserves th e rig h t to a c c e p t or re je ct a n y or all tenders, in w hole or in p a rt, a n d his actio n in a n y such re sp e ct shall be final. S u b je c t to th ese reservations, n o n c o m p e titiv e te n d e rs fo r $200,000 or less w ith o u t sta te d price from a n y one b id d e r will be acc ep te d in full a t th e average price (in th re e decim als) of acc ep te d co m p e titiv e bids. S e ttle m e n t for a c c ep te d ten d e rs in accor dance w ith th e bids m u st be m ad e or co m p le te d a t th e F e d e ra l R e se rv e B a n k on A pril 30, 1973, in cash or o th e r im m e d ia tely av ailab le fu nds or in a like face a m o u n t of T re a su ry bills m atu rin g A p ril 30, 1973. C ash a nd exchange te n d e rs w ill receive equal tre a tm e n t. Cash a d ju s tm e n ts w ill be m ad e for differences be tw ee n th e p a r v a lu e of m a tu rin g bills a c c ep te d in exchange a n d th e issue p rice of th e new bills. U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) of th e I n te rn a l R e v en u e Code of 1954 th e a m o u n t of disco unt a t which bills issued h e re u n d e r are sold is considered to accrue w hen th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re excluded fro m c o nsid eratio n as c ap ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insurance co m p an ies) issued h e re u n d e r m u st include in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference b e tw een th e price p a id for th e bills, w h e th er on original issue or on su b seq u e n t purchase, a n d th e a m o u n t a c tu a lly receiv ed e ith e r u p o n sale or re d e m p tio n a t m a tu rity d urin g th e tax a b le y e a r for w hich th e re tu rn is m ade. T re a s u ry D e p a rtm e n t C ircu lar No. 418 (c u rre n t rev isio n ) a n d th is notice, pre sc rib e th e te rm s of th e T re a su ry bills a n d govern th e co nditions of th e ir issue. C opies of th e c ircular m a y be o b ta in e d fro m a n y F e d e ra l R e se rv e B a n k or B ranch. 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 a n d its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, Tues day, April 24, 1973. Tenders m ay not b e entered by tele p h o n e . Yours very truly, P. E. Coldwell President (S e e reverse for te n d e r fo rm ) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 344 DAYS TO MATURITY Maturing April 9, 1974 Dated April 30,1973 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 at the rate indicated. JNOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $_ Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) o f accepted com petitive bids. (%________________________ @ --%-------------- * COMPETITIVE TENDERS( $_ M'— . $ Prices should be exp ressed on the basis of 100, with not more than three decimal places, e.g., 99.925. F ra ction s must not be used. 13?“ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Denominations Desired Number of Pieces M aturity Valna (a) (a) <e> METHOD OF PAYMENT 1 0 <® $ 10,000 $ 15,000 $ 50,000 $ 100,000 $ 500,000 $1,,000,000 □ $ $ $ $ $ □ □ □ Delivery Instructions: □ Hold in Custody — General Account □ Hold in Custody — Investment Ac count □ Hold in Custody — Trust Account □ Pledge to secure Treasury Tax and Loan Account □ Other____________________________ By maturing bills held by---------------------------Payment to be made by_ Charge our reserve account on payment date Draft enclosed (Effectual delivery of enclosed d ra ft shall be on la te st day w hich will p e rm it p re s e n tm e n t in o rd e r to obtain irrevocably collected funds on p a y m e n t date) (S u b scriber’s fu ll n am e o r corp o ra te title) (A ddress) By. (A uthorized official s ig n a tu re and title) (F o r th e account of, if te n d e r is fo r a n o th e r subscriber) (A ddress) 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 (maturity 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 matters 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 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, b y.-...................- ................................................... a member of the firm”. 5. Tenders from those other than incorporated banks and trust 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 (maturity 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 trust 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)
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