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F ederal r es er v e Ba nk of 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 7 5 2 2 2 C ircu la r No. 73-185 J u ly 24, 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 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, inv ites te n 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, fo r cash a n d in exchange for T re a su ry bills m a tu rin g A ugust 2, 1973, in th e a m o u n t of $4,301,885,000, as follow s: 91-D A Y B IL L S (to m a tu rity d a te ) to b e issued A ugust 2, 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 M ay 3, 1973, a n d to m a tu re N o v em b er 1, 1973 ( C U S IP No. 912793 S B 3 ), originally issued in th e a m o u n t of $1,800,645,000, th e ad d itio n al a n d original bills to b e fre ely in terch an g eab le. 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 A ugust 2, 1973, a n d to m a tu re Ja n u a ry 31, 1974 ( C U S IP No. 912793 S W 7 ). T h e bills of b o th series will b e issued o n a d iscoun t basis u n d e r 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 , a n d a t m a tu rity th e ir face am o u n t will be p ay ab le w ith o u t in terest. T h e y w ill be issued in b e a re r fo rm only, a n d in d e 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 r ity 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 ranch es 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 S av ing T im e , M o nday, J u ly 30, 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 a c 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 ov er $10,000 m u st be in m u ltip le s 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 rged th a t ten d e rs be m ad e on th e p rin te d form s a n d forw ard ed in th e special en velopes w hich w ill be su p p lied by F e d e ra l R eserv e B an k s or B ran ch es on a p p lic a tio n therefor. B an k in g in stitu tio n s gen erally m ay su b m it te n d e rs fo r acc o u n t of custom ers p ro v id ed th e nam es of th e cu stom ers a re set fo rth in such tend ers. 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 ex cept for th e ir ow n account. T e n d e rs w ill be received w ith o u t d ep o sit from in co rp o ra ted ban k s and tru s t co m panies a n d fro m resp onsible a n d recognized d ealers in in v e stm 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, unless th e ten d e rs a re a cco m p an ied 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 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 will b e o p en ed a t th e F e d e ra l R eserv e B a n k s a n d B ranch es, follow ing w hich p u b lic a n n o u n ce m en t w ill be m ade by 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 ge of a ccep ted bids. O n ly tho se su b m ittin g co m p e titiv e ten d e rs will be a d v ised of th e acc ep ta n ce or reje 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 c c e p t or re je c t a n y or a ll ten d e rs, 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 be final. S u b je c t to th ese reserv atio ns, n o n co m p etitiv e ten 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 er 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 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 a cc ep te d te n d e rs in accordance w ith th e b id s m u st be m ad e or c o m p leted a t th e F e d e ra l R eserv e B a n k on A ugust 2, 1973, in cash or o th e r im m e d ia tely av ailab le fu nds or in a lik e face a m o u n t of T re a su ry bills m a tu rin g A ug ust 2, 1973. C ash a n d exchange te n d e rs will receive eq 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 a cc ep te d in exchange a n d th e issue p ric e 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 discou nt a t w hich bills issued h e re u n d e r a re sold is co nsid ered to accru e w hen th e bills are sold, red 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 re a su ry bills (o th e r th a n life insu rance c o m 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 g ain 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 original issue or on su b seq u e n t purch ase, 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 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 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 rescrib e th e term s of th e T re a su ry b ills a n d govern th e c o n ditions of th e ir issue. C opies of th e circ u lar m ay be o b ta in e d fro m a n y F e d e ra l R eserv e B a n k o r B ranch. In accord 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 ran ches a t El Paso, Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M on day , July 30, 1973. Tenders m ay not be e n te re d by te le p hon 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 e n d e rs 3-M o n th B ills D u e O ctober, 25 1973 $3,886,080,000_________________ $2,500,205,000_________________ P ric e Y ield 97.977____________ 8 .0 0 3 % _____ 97.938____________ 8 .1 5 7 % _____ 97.949____________ 8 .114 % (1).. ..T o tal A p p lied F o r.. T o ta l A c c ep ted __ ..High.. Low . ..Average.. 6 -M on th B ills D u e J a n u a ry 24, 1974 ..$3,559,955,000 ..$1,701,025,000 P ric e Y ie ld -9 5 .8 4 4 - 8 .2 2 1 % -9 5 .8 1 0 .8.288% -9 5 .8 1 8 ________8.272% ( 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 coupon issue yie ld s are 8 .4 0 % for th e 3-m on th b ills an d 8 .7 5 % for t h e 6-m o n th bills. This publication was digitized and made available by( S the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) e e rp vp n tft f n r t e n r i p r f n r m l TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Maturing November 1,1973 Dated May 3,1973 To: Federal Reserve Bank, Station K, 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 th e public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount 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 $_______________________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. COMPETITIVE TENDERS l$ I'r $ ---- (a) o ....... <n) IS T $ --- ' (fT) C/ @ ... Prices should be exp ressed 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 m ust not be used. % % $ $ SSP TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E CLOSING HOUR ARE ACCEPTABLE. * Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT Denominations Desired Number of pieces M aturity Value _@ $ 10,000 $_ _@ $ 15.000 $_ □ □ 50.000 $_ _@ $ 10 0,000 $_ □ 500,000 $_ □ .@ $ 1 ,0 0 0 ,0 0 0 $_ By maturing bills held by______________________ Payment to be made by_________ _ Charge our reserve account on payment date ~ Draft enclosed (Effectual delivery o f enclosed drmft shall be on latest day which will permit p resen tm en t in order to obtain irrevocably collected funds o n Daw. 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 or the account of, if tender is for another subscriber) Other----------------------------------------- (Address) IMPORTANT 1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust 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, 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 byan 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 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, wLo should sign in the form “----------------------------------------, a copartnership, by--------------------------------------------------------J 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 est 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 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 reasury is material, the tender may be disregarded (Seereverseforannouncement)
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