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F ed e r a l R e s e r v e Ba n k o f D a lla s

Circular No. 73-178
July 17, 1973

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attentio n 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 vites ten d e rs for tw o series of T re a su ry bills to th e aggregate am 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 26, 1973, in th e a m o u n t of
$4,299,725,000, 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 26, 1973, in th e a m o u n t of $2,500,000,000, or thereab o u ts,
re p re se n tin g an a d d itio n al a m o u n t of bills d a te d A pril 26, 1973, a n d to m a tu re O cto b er 25, 1973 (C U S IP
No. 912793 S A 5 ), originally issued in th e a m o u n t of $1,799,345,000, th e ad d itio n al a n d original bills to be
fre ely in terch an geable.
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 26, 1973, a n d to m a tu re Ja n u a ry 24, 1974
(C U S IP No. 912793 S V 9 ).
T h e bills of b o th series will be issued on a discou nt basis u n d e r co m p e titiv e a n d n o n co m p etitiv e b id d in g as h e re in a fte r
pro v id ed , a n d a t m a tu rity th e ir face am o u n t will be 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
de n o m in a tio 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 ranches 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 ond ay, J u ly 23, 1973. T e n d e rs w ill 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 les of $5,000. In 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 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 urged 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 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 therefo r.
B an k in g in stitu tio n s generally m ay su b m it te n d e rs for a cco u n t of custom ers p ro v id ed th e nam es of th e custom ers are
se t fo rth in such tend ers. O th e rs th a n b an 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 except fo r th e ir own account.
T e n d e rs w ill be received w ith o u t d e posit from in co rp o ra ted b an ks and tru s t com panies a n d from responsible a n d recognized
d ealers in in v estm e n t securities. T en d e rs fro m o th ers m u st be accom panied by 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 ten d e rs a re a cco m panied 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
tru s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs will be o p en ed a t th e F e d e ra l R eserv e B anks a n d B ran ches, follow ing which
p u b lic a n 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 range of a ccep ted bids. O nly those
su b m ittin g c o m p e titiv e te n d e rs will be advised 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 action in an 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 for each issue for $200,000 or less w ith o u t sta te d price from a n y one b id d er will
be acc ep te d in full a t th e average price (in th ree decim als) of acc ep te d c o m p e titiv e bids for th e respective issues. S e ttle m e n t for
a cc ep te d te n d e rs in accordance 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 26, 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 a tu rin g J u ly 26, 1973. Cash a n d
exchange te n d e rs will receive e q u al tre a tm e n t. Cash a d ju s tm e n ts w ill be m ad e fo r differences betw een th e p a r value of m a tu rin g
bills a cc ep te d in exchange a n d th e issue p rice of th e new bills.
U n d e r S ections 45 4 (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 discou nt a t
w hich bills issued
h e re u n d e r a re sold is considered to accrue w hen th e bills a re 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 ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life in surance com p an ies) issued here­
u n d e r m u st in clud e in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference b etw 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 ctu a lly received e ith e r u p o n sale or re d em p tio n a t m a tu rity du rin g
th e ta x a b le y e a r fo r 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 re v isio n ) a n d th is notice, p rescribe th e te rm s of th e T re a su ry bills a n d
govern th e c ond 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 a ccordance with the a b o v e a n n o u n ce m e n t, tenders will b e received a t
b a n k a n d its
branches a t El
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M onday, July 23, 1973. Tenders m ay
not be e n te re d by te le p h o n e.
Yours very truly,
P. E. Coldwell
A m ount, R an g e a n d A p p ro x im ate Y ield of A ccep ted T e n d e rs
3 -M o n th B ills
6 -M on th B ills
D u e O cto b er 18, 1973
D u e Ja n u a ry 17, 1974
$4,273,005,000_________________________________ T o ta l A p p lied F o r_________________________________ $3,429,730,000
$2,500,275,000__________________________________ T o ta l A c c ep ted ___________________________________$1,700,820,000
P ric e
Y ield
P ric e
Y ield
98.003____________ 7 .9 0 0 % ____________________________H ig h _________________
95.983_____________ 7.946%
97.983____________ 7 .9 7 9 % ____________________________ Low _______________________ 95.940____________ 8.031%
97.986-------------------7.967% ( 1 ) --------------------------------- A verag e_____________________ 95.944____________ 8.023% ( 1 )
( 1 ) T h ese rates are on a b ank discount basis. T h e eq u iv a le n t cou p on issue y ield s are 8 .2 4 %
th e 6 -m on th bills.

for th e 3-m on th b ills and 8 .4 8 %


(S e Federal Reserve form
This publication was digitized and made available by ethereverse for tenderBank )of Dallas' Historical Library (


Dated July 26,1973

Maturing January 24, 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 am oun t
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 a v e rag e
price (in three decimals) of accepted competitive bids.

(a)___________ « ________________________
C O M PETITIV E T E N D E R S <$---------------------------- @------------------$----------------------------------|$
1r *



Prices should be
expressed on th e
basis of 100, w ith
not more than th re e
decimal places, e.g.,
99.925. F r a c tio n s
must not be used.

Denominations Desired

Payment for this issue of bills cannot be m ade by
credit to Treasury Tax and Loan Account.
. .


Number of

nnn „

@ $

^ v

10,000 $

“turitT V,1“

□ By maturing b l s
held by_
□ Payment to be made by_

15,000 $______________
50,000 $______________

100,000 $____________
______ @ $ 500,000 $______________
______ @$1,000,000 $______________


Charge our reserve account on payment
Draft enclosed (Effectual delivery of encloaal d r a ft
shall be on latest day which will permit P resen tm en t
in order to obtain irrevocably collected funds o n p&vm ent date)

Delivery Instructions:
Q Hold in Custody — General Account

(Subscriber’s full name or corporate title)

Hold in Custody — Investment Ac-__________ ___________________________


Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan Account


(Authorized official signature and title)


_ ,,

(F or tbe account of, if tender is for another subscriber)


------------------------------------------------------- —------------------------------------------------------------------


1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in m ultiples 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 o f 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, commujiications 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 m ake the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him t h 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, Wh0
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 in v e s t­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity v a lu e )
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment b y 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 T re a su ry 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