View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal Reserve b a n k o f Dallas

Circular No. 73-200
August 7, 1973

To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your a tte ntio n is invited to the following sta te m e n t giving details of tw o 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 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 $4,300,000,000, 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 A ugust 16, 1973, in th e a m o u n t of
$4,303,570,000, as follow s:
91-D A Y B IL L S (to m a tu rity d a te ) to b e issued A ug ust 16, 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 ad d itio n al a m o u n t of bills d a te d M ay 17, 1973, a n d to m atu re N o v em b er 15, 1973 (C U S IP
No. 912793 S D 9 ), o riginally issued in th e a m o u n t of $1,692,665,000, th e ad d itio n al a n d o riginal bills to be
fre ely in terchangeab le.
182-D A Y B IL L S for $1,800,000,000, or th ere ab o u ts, to be d a te d A ugust 16, 1973, a n d to m a tu re F e b ru a ry 14, 1974
( C U S IP No. 912793 S Y 3 ).
T h e bills of b o th series will b e issued on a d isco unt 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
pro vid 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 form 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 an 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 S aving T im e , M o nday, A ug ust 13, 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. 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 not 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 ad e on th e p rin te d form s a n d fo rw 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 o r B ra n ch e s on a p p lic atio 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 fo r a cco u n t of custo m ers p ro v id ed th e nam es of th e custom ers a re
set fo rth in such tenders. O th ers th a n b a n k in g in stitu tio n s will n o t be p e rm itte d to su b m it ten d e rs ex cep t 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 from in co rp o ra ted b a n k s and tru s t com panies an d from resp onsible a n d recognized
dealers in in v e stm e n t securities. T e n d e rs fro m o th ers m u st be a ccom 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 ten 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 b e o p en ed a t th e F e d e ra l R e se rv e B an 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 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 price range of acc ep te d bids. O nly th ose
su b m ittin g co m p e titiv e te n d e rs will b e adv ised of th e acc ep ta n ce o r rejectio n th ereof. T h e S e c retary of the T re a su ry expressly
reserves th e rig h t to a c c e p t o r re je c t a n y or a ll ten d ers, in w hole or in p a rt, and his actio n in a n y such re sp e ct shall be final. S u b­
je c t to these reservatio ns, n o n c o m p e titiv e ten 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 av erage 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 accordance w ith th e b ids 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 A ugu st 16, 1973,
in cash or o th e r im m e d ia tely av ailab le fund s or in a lik e face a m ou nt of T re a su ry bills m a tu rin g A ugust 16, 1973. Cash a n d
exchange te n d e rs w ill receive eq u al tre a tm e n t. Cash a d ju stm e n ts w ill be m ade 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 Sections 454 (b ) an 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 disco unt a t w hich bills issued
h e re u n d e r a re sold is con sidered to accrue w hen th e bills a re sold, red eem ed or otherw ise disposed of, an d th e bills are excluded
from c o n sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T rea su ry bills (o th e r th a n life insuran ce co 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 gain or loss, th e difference betw een th e price p a id for th e bills, w h e th er
on orig in al 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 pon sale or re d em p tio n a t m a tu rity d uring
th e ta x 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, p re sc rib 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 c irc u lar m ay be o b tain e d from a n y F e d e ra l R eserv e B a n k or 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, ten ders will b e received a t this b a n k a n d its branches a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o nd ay, August 13, 1973. Tenders m ay
not be en te re d by tele p h o n e .
Yours very truly,
P. E. Coldwell
A m oun t, 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 N o v e m b er 8, 1973
D u e F e b ru a ry 7, 1974
-T otal A p p lied F o r
$2,500,020,000__________________________________ T o ta l A c c ep ted -----------------------------------------------------$1,800,160,000
P ric e
Y ield
97.890____ ______ 8.347%JL-la_ioa3______________ H i g h - ____ __________ 95.684
97.830____________ 8 .5 8 5 % ________________
- L o w ___ r________2_______ L_ 95.608 _______
8 .687%
97.855____________ 8.4 86% ( 1 ) ______________________ A v e ra g e --------------------------------95.627 - 2 J & ______ 8.6 50% ( 1 )
( 1 ) T h ese rates are on a b ank d iscou nt basis. T h e eq u ivalen t coupon issue y ield s are 8 .7 9 % for th e 3-m on th b ills and 9 .1 7 % for
th e 6 -m o n th bills.

(S e e Federal Reserve Bank )
This publication was digitized and made available by the reverse for tender form of Dallas' Historical Library (


Dated August 16,1973

Maturing February 14, 1974

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The________________________ Branch
Ei 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.

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.

-- fa)
COMPETITIVE TENDERS < $----------------------------@ ------------------ ? -------------------------------------$


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

Denominations Desired
10 ,0 00 $

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.
_ _
, .

15,000 $---------------------50,000_$______________


Number of


@ $

_@ $

1 n M n t

M aturity V .lu e


100,000 $_

______ @ $ 500,000 $----------------------------------------@ $1,000,000 $______________


By maturing bills
held by_
Payment to be made by_

Charge our reserve account on payment
Draft enclosed (E ffectual delivery o f enclosed d r a ft
shall be on latest day which will permit presentm ent
in order to obtain irrevocably collected funds on

Delivery Instructions:

m data)

n Hold in Custody — General Account--------------- ----------------- (Subscriber's full---------------- —title)
— —-------- name or corporate —



Hold in Custody — Investment A
Hold in Custody — Trust Account
Pledge tO Secure Treasury Tax and
Loan Account





(A ddress)

(Authorized official signature and title)



(F or the 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 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 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 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 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

( 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