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F ederal Reserve Bank o f Dallas F IS C A L A G E N T O F T H E U NITED S T A T E S DALLAS, TEXAS 7 5 2 2 2 C ircu lar No. 73-186 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 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 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 ere ab o u ts, for 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 ereab o u ts, re p rese n tin g a n a d 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 be fre ely in terchan geable. 182-D A Y B IL L S fo r $1,700,000,000, or th ere ab o u ts, to be d a te d A ug ust 2, 1973, a n d to m a tu re J a 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 be issued on a disco unt 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 p ro v id ed , 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 interest. 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 rity v a lu e ). T e n d e rs will be received a t F e d e ra l R eserv 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 aving T im e , M onday, J u ly 30, 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 u st 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 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 ten d e rs be m ade 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 b e su p p lied by F e d e ra l R e se rv e B an k s or B ran ch es on a p p lic a tio n th erefor. B a n k in g in stitu tio n s generally m ay su b m it te n d e rs fo r a cc o u n t of custo m ers p ro v id ed th e nam es of th e custo m ers a re set fo rth in such ten ders. 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 except for th e ir own account. T e n d e rs w ill be received w ith o u t d ep o sit fro m in co rp o ra ted b anks and tru s t com panies a n d from respo nsib le a n d recognized dealers in in v e stm e n t securities. T e n d e rs from o th ers m u st be accom 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 will be o pen ed a t th e F e d e ra l R eserv e B an k s a n d B ranches, follow ing w hich 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 ran ge of acc ep te d bids. O nly those su b m ittin g co m p e titiv e te n d e rs will b e ad vised of th e a ccep tan ce or reje ctio n thereo f. 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 a ll 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 je c t to th ese reserv atio ns, no n c o m p e titiv e ten d e rs for each issue fo r $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 will be acc ep te d 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 acc ep te d te n d e rs in accord ance 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 u gust 2, 1973, in cash or o th er 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 A ugu st 2, 1973. C ash a n d exchange te n d e rs will receive equal tre a tm e n t. C ash a d ju stm e n ts w ill be m ad e for differences b etw een th e p a r value 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 S ections 454 (b ) and 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 disco unt 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 a re sold, redeem ed or otherw ise disposed of, a n d th e bills a re excluded fro m 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 in surance c om panies) issued here 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 original issue or on su b seq u e n t pu rchase, 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 or re d e m p tio n a t m a tu rity during th e tax a b le y e ar 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 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 irc u lar m ay be o b ta in e d fro m an y F e d e ra l R e se rv e B a n k o r B ranch. In acco rdan ce with the a b o v e a n n o u n c e m e n t, ten ders will b e received a t this b a n k a n d its branch es a t El Paso, Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M ond ay , July 30, 1973. Tenders m ay not be e n te re d by tele p h o n e . Yours very truly, P. i . 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 6-M o n th B ills D u e O ctober, 25 1973 D u e J a n u a r y 24, 1974 $3,886,080,000 T o ta l A p p lied F o r_________________________________ $3,559,955,000 $2,500,205,000__________________________________ .T o ta l A c c ep ted ___________________________________$1,701,025,000 P ric e Y ie ld P ric e Y ield 97.977 8 .0 0 3 % ________________ H ig h _____________ 95.844____________ 8.221% 97.938_____________ 8 .1 5 7 % ___________________________ L ow ________________________ 95.810____________ 8.288% 97.949_____________ 8.1 14% ( 1 ) _____________________ A v erage______________________ 95.818____________ 8.272% ( 1 ) ( 1 ) T h e s e rates are on a b ank d iscount 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 and 8 .7 5 % for th e 6 -m onth bills. This publication was digitized and made available by(Sthe Reserve Bank e e Federal reverse for tender formof) Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 182 DAYS TO MATURITY Dated August 2,1973 Maturing January 31,1974 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 the 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 a t the rate indicated. NONCOMPETITIVE TENDER $___________________________________ JNOT 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 1v * ’ 1 $ 1$ ... $------------- $ ( a). O' @ . Prices should be e x pressed on th e basis of 100, w ith not more than three decimal places, e.g., 99.925. F ra c tio n s m ust not be used. $ ? ...s @ ---- $ m * 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 Maturity Value -@$ 10,000 $15,000 $- □ □ 50,000 $100,000 $- By maturing bills held by___________________ ________ Payment to be made by_ □ Charge our reserve account on payment date 1 I Draft enclosed (E ffectual delivery o f encloMd draft $ 500,000 $,000,000 $- ■hall be on latest day which will permit presentm ent in order to obtain irrevocably collected funds on d&vm 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 □ Other----------------------------------------- (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) (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 inv 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 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 T reasury is material, the tender may be disregarded ' (Seereverseforannouncement)
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