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F ed er a l r e s e r v e Ba n k o f D allas
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. 73-162
July 3, 1973

NEW OFFERING — TREASURY BILLS
To All 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 bills to th e aggregate a m o u n t
of $4,200,000,000, or th ereab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g J u ly 12, 1973, in th e a m o u n t of
$4,302,580,000, as follow s:
91-D A Y B IL L S (to m a tu rity d a te ) to be issued J u ly 12, 1973, in th e a m o u n t of $2,500,000,000, or th ere ab o u ts,
re p re se n tin g a n ad d itio n al a m o u n t of bills d a te d A pril 12, 1973, an d to m a tu re O ctob er 11, 1973 (C U S IP
No. 912793 R Y 4 ) , originally issued in th e a m o u n t of $1,800,695,000, th e ad d itio n al a n d original bills to be
freely interch an geable.
182-D A Y B IL L S for $1,700,000,000, o r th ere ab o u ts, to be d a te d J u ly 12, 1973, a n d to m a tu re J a n u a ry 10, 1974
(C U S IP No. 912793 S T 4 ).
T h e bills of b o th series will be issued on a d iscou nt basis u n d 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
prov ided , a n d a t m a tu rity th e ir face a m o u n t will be p a y ab le w ith o u t in terest. T h e y will be issued in b e are r fo rm 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 an k s a n d B ran ches u p to th e closing hour, o n e -th irty p.m ., E a s te rn
D a y lig h t Saving T im e, M onday, J u ly 9, 1973. T e n d e rs w ill n o t be receiv ed 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 u st be in m u ltip les of $5,000. In th e case of co m p e titiv e
ten 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 ore 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 rged th a t te n d e rs be m ad e on th e p rin te d form s a n d fo rw ard ed in th e special envelopes w hich w ill be
su p p lied by F e d e ra l R eserv e B a n k s or B ran ch es on a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s generally m ay su b m it ten d e rs for acco u n t of custom ers p ro v id ed th e nam es of th e custo m ers are
set fo rth in such tenders. O th e rs th a n b a n k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it ten d e rs e x cep t for th e ir own account.
T e n d e rs w ill be received w ith o u t d e po sit from in co rp o ra ted b an ks and tru s t com panies a n d from respon sible an d recognized
dealers in in v estm e n t securities. T en d e rs from o th ers m u st be acco m panied 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 a n in co rp o ra ted b a n k or
tr u s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill be o p en ed a t th e F e d e ra l R eserve B an ks a n d B ranch es, follow ing w hich
p u b lic an n o u n ce m en t will be m ade 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 a cc ep te d bids. O n ly those
su b m ittin g co m p e titiv e ten d e rs will be adv ised of th e a cc ep tan ce or re je ctio n thereof. T h e S e c retary of th e T re a su ry expressly
reserves th e rig h t to a cc ep t or re je c t a n y or all ten d ers, in w hole or in p a rt, a n d his a ction in a n y such re sp e ct shall be final. S u b­
jec t to th ese reservations, n o 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 from a n y one b id d e r w ill
be a ccep ted in full a t th e average p rice (in th re e decim als) of acc ep te d co m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for
accep ted ten d e rs in acco rdan ce w ith th e bids m u st be m ad e or co m p leted a t th e F e d e ra l R eserv e B a n k on J u ly 12, 1973,
in cash o r o th e r im m e d ia tely av ailab le fun ds 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 12, 1973. C ash a n d
exchange ten d e rs will receive e q u al tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e for differences b etw een th e p a r v alu e of m a tu rin g
bills acc 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 In te rn a l R e v en u e Code of 1954 th e
a m o u n t of d iscoun t a t
w hich bills issued
h e reu n d e r a re sold is considered to accrue w hen th e bills are sold, re d eem ed or otherw ise disposed of, a n d th e bills a re excluded
from co n sid eratio n as c ap ital assets. A ccordingly, th e ow ner of T rea su ry bills (o th e r th a n life insu ran ce c o m pan ies) issued h ere­
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 etw een th e p rice p a id for th e bills, w h e th er
on o riginal issue or on su b seq u en t purchase, a n d th e a m o u n t a c tu a lly received e ith e r u p o n sale o r re d e m p tio n a t m a tu rity during
th e tax a b le y e ar 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 lar No. 418 (c u rre n t rev isio n ) and th is notice, p re sc rib e th e term 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 c irc u lar m ay be o b tain e d from 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 e m en t, ten ders will b e received a t
this
b a n k a n d its
branches a t El P
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M onday, July 9, 1973. Tenders m ay
h o t be en tered by te leph one.
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 ccepted T en d e rs
3 -M on th B ills
6 -M o n th B ills
D u e O cto ber 4, 1973
D u e J a n u a ry 3, 1974
$3,348,310,000
T o ta l A p p lied F o r ______ __________________________ $3,544,625,000
$2,500,055,000__________________________________ T o ta l A c c e p t e d - _________________________________ $1,700,090,000
P ric e
Y ield
P ric e
Y ie ld
98.028____________ 7 .8 0 1 % -1 _________________________ H ig h _______________________ 95.980____________ 7.952%
97.952
8 .1 0 2 % ____________________________L ow _______________________ 95.933____________ 8.045%
97.981____________ 7.987% ( 1 ) ______________________A v erage_____________________ ,95.950____________ 8.011% ( 1 )
( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t basis. T h e e q u i v a le n t c o u p o n issu e y ie ld s a r e 8 . 2 7 % fo r th e 3 - m o n th b ills a n d 8 . 4 7 % fo r
t h e 6 - m o n th bills.

This publication was digitized and made available byS the reverse for tenderBank )of Dallas' Historical Library (FedHistory@dal.frb.org)
( e e Federal Reserve form

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Dated July 12, 1973

Maturing January 10,1974

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(D a te)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e
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.

NONCOMPETITIVE TENDER $___________________________________

JNfOT 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.
^

$

COMPETITIVE TENDERS

$

()
n

?-

?
@
$
<
5?
$------------- @ ----

Prices should be
exp ressed on th e
basis of 100, with
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.

$
$

VW* TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H F

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

Maturity Value

■@ ?
■@$
-@$

10,000 $15,000 $-

□
□

50,000 ?■
100,000 $500,000 $-

By maturing bills
held by______________________________
Payment to be made by__________ _

□

Charge our reserve account on payment
date
I I Draft enclosed (E ffectual delivery o f enclosed d r a ft

@ $1,,000,000 $.

shall be on latest day which will permit presentm ent
in order to obtain irrevocably collected funds on p a y ­
m ent date)

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

(Subscriber’s full name or corporate title)

(A ddress)

By(Authorized official signature and title)
(F o r the account of, if tender is for another subscriber)

Other__________________________

-----------------------------------------------------------------------------------------------------------------------------

(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 (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 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
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 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 js
material, the tender may be disregarded

( e r v r ef ra n u c m n )
Se ees o n o n e e t

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