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F e d e r a l R e s er v e Ba n k o f D a lla s 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 Circular No. 73-154 June 26, 1973 NEW OFFERING — TREASURY BILLS To Ail Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your a ttention is invited to the following sta te m e n t giving details of two issues of Treasury bills: T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, in v ites ten d e rs for tw o series of T re a su ry b ills to th e ag g reg ate a m o u n t of $4,200,000,000, or th ere ab o u ts, fo r cash a n d in exchange for T re a su ry bills m a tu rin g J u ly 5, 1973, in th e a m o u n t of $4,302,525,000, as follows: 91-D A Y B IL L S (to m a tu rity d a te ) to b e issued J u ly 5, 1973, in th e a m o u n t of $2,500,000,000, or th ere ab o u ts, re p rese n tin g a n ad d itio n al a m o u n t of b ills d a te d A pril 5, 1973, a n d to m a tu re O cto b er 4, 1973 (C U S IP No. 912793 R X 6 ) , originally issued in th e a m o u n t of $1,800,975,000, th e a d d itio n al a n d original bills to b e fre ely interchan geab le. 182-D A Y B IL L S for $1,700,000,000, or th ere ab o u ts, to be d a te d J u ly 5, 1973, a n d to m a tu re Ja n u a ry 3, 1974 ( C U S IP No. 912793 S S 6 ). T h e bills of b o th series w ill b e issued on a discou nt basis u nd er co m p e titiv 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 p ro v id ed , and a t m a tu rity th e ir face a m o u n t w ill be p a y ab le w ith o u t in terest. T h e y will be issued in b e a re 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 be received a t F e d e ra l R e se rv e B a n k s a n d B ran ch es u p to th e closing ho ur, o n e -th irty p.m ., E a s te rn D a y lig h t S aving T im e , M on day, J u ly 2, 1973. T e n d e rs w ill n o t b e received a t th e T re a su ry D e p a rtm e n t, W ash ington. E ach te n d e r m u st be fo r 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 les of $5,000. I n th e case of co m p e titiv e te n d e rs 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 ay n o t be used. I t is u rg ed th a t ten d e rs be m ad e on th e p rin te d form s and forw arded in th e special en velo pes w hich w ill be su p p lied by 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 atio n therefor. B a n k in g in stitu tio n s g enerally m ay su b m it te n d e rs for accoun t of custo m ers p ro v id ed th e n am es of th e custom ers are set fo rth in such ten ders. O th ers th a n b an k in g in stitu tio n s will no t b e p e rm itte d to su b m it te n d e rs e x cep t fo r th e ir ow n a c c o u n t T e n d e rs w ill be receiv ed w ith o u t d ep o sit fro m in co rp o ra ted b a n k s and tr u s t com panies a n d fro m responsible a n d recognized de ale rs in in v e stm e n t securities. T e n d e rs fro m o th ers m u st be acco m p anied 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, u nless th e te n d e rs a re acco m p anied b y a n express g u a ran ty of p a y m e n t b y a n in co rp o ra ted b a n k or tru s t com pany. Im m e d ia te ly a f te r th e closing hour, ten d e rs w ill b e o pen ed a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich p u b lic an n o u n ce m en t w ill 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 ran g e of acc ep te d bids. O nly th o se su b m ittin g co m p e titiv e te n d e rs w ill b e adv ised of th e accep tan ce or reje ctio n thereof. T h e S e c retary of th e T re a su ry expressly reserv es th e rig h t to a cc ep t o r re je c t a n y or all ten ders, in w hole or in p a rt, a n d his a ctio n in a n y such re sp e ct shall b e final. S u b je c t to th ese reservations, no n c o m p e titiv e te n d e rs for each issue for $200,000 or less w ith o u t sta te d p rice fro m a n y one b id d e r w ill be acc ep te d in full a t th e av erag e p rice (in th re e d ecim als) of a ccep ted co m p e titiv e b id s for th e resp ectiv e issues. S e ttle m e n t for a cc ep te d te n d e rs in acco rdan ce w ith th e b id s m u st b e m ad e or c o m p leted a t th e F e d e ra l R e se rv e B a n k on J u ly 5, 1973, in cash or o th e r im m e d ia tely av ailab le funds or in a like face a m o u n t of T re a su ry bills m a tu rin g J u ly 5, 1973. C ash a n d exchange ten d e rs will receive eq u al tr e a t m e n t C ash a d ju stm e n ts w ill be m ad e for differences b e tw ee n th e p a r v alu e of m atu rin g bills acc ep te d in exchange a n d th e issue price of th e new bills. U n d e r S ections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e C ode of 1954 th e a m o u n t of d isco unt a t w hich bills issued h e re u n d e r a re sold is consid ered to accrue w hen th e bills a re sold, re d ee m e d or o therw ise disposed of, a n d th e b ills a re excluded from co n sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry b ills (o th e r th a n life insuran ce c o m p an ies) issued h e re u n d e r m u st inclu de in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference betw een th e p rice p a id fo r th e bills, w h e th er on original issue or on su b seq u en t p u rch ase, 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 u rin 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 su ry D e p a rtm e n t C ircu la r No. 418 (c u rre n t rev isio n ) a n d th is notice, p re sc rib e th e te rm s of th e T re a su ry bills a n d govern th e cond ition s of th e ir issue. C opies of th e circ u lar m ay be o b ta in e d from a n y F e d e ra l R e se rv e B a n k o r B ranch. In a c co rd an ce with 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 Daylight Saving Time, M o n d a y , July 2, 1973. Tenders m ay not b e e n te re d by tele p h o n e . Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS A m ount, R a n g e a n d A p p ro x im ate Y ield of A ccep ted T en d e rs 3 -M o n th B ills 6-M o n th B ills D u e S e p te m b e r 27, 1973 D u e D e c em b er 27, 1973 $4,019,605,000________________________ ___ _____T o ta l A p p lied F o r _________________________________ $3,775,325,000 $2,500,645,000__________________________________ T o ta l A c c e p te d ___________________________________$ 1,700,12 5,000 P ric e Y ield P ric e Y ield 98.182_____________ 7 .1 9 2 % ---------------------------H ig h ...._ 96.320_ 7.279% 98.167-------------------- 7 .2 5 1 % ------------------------------------------ L ow _______________________ 96.304____________ 7.311% 98.173 7.228% ( 1 ) --------------------A v erag e _ _ 96.310_____________ 7.299% ( 1 ) ( 1 ) T h e s e rates are on a b ank discount basis. T h e eq u iv a le n t cou p on issue y ie ld s are 7 .4 6 % for th e 3 -m on th b ills and 7 .6 8 % for t h e 6 -m o n th bills. ’ ( S e e 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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Maturing October 4, 1973 Dated April 5,1973 To: Federal Reserve Bank, Station E, Dallas, Texas 75222 or — The________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (D ate) 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. N ON COMPETITIVE TENDER $_______________________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. £ ^ 1$ (a) % (a) 1$ COMPETITIVE TENDERS (a) ____ Prices should be expressed on the basis of 100, with not more than three decimal places, e.g., 99.925. F ra c tio n s must not be used. ' !% @ ? $ - TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR ARE ACCEPTABLE. Denominations Desired Number of pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT M atu rity V alue ® ? 10,000 $ @$ 15,000 $ @$ 50,000 $ □ □ By maturing bills held by____________________________ _ Payment to be made by_____________ @ $ 100,000 $ @ $ 500,000 $ □ Charge our reserve account on payment date @$1,000,000 $ | | Draft enclosed (Effectual delivery of enelossd draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on pay ment date) Delivery Instructions: □ Hold in Custody — General Account (Subscriber’s full name or corporate title) □ Hold in Custody — Investment Ac count (Address) □ □ Hold in Custody — Trust Account Pledge to secure Treasury Tax and Loan Account □ Other----------------------------------------- By- (A u th o rized official s ig n a tu re and title) (F or 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 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 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. fi. 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)