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F e d e ra l Re se r v e b an k o f D a lla s F IS C A L A G E N T O F T H E U NIT ED S T A T E S DALLAS, TEXAS 7 5 2 2 2 C ircu lar No. 73-204 A ugu st 14, 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, by 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 ag greg ate a m o u n t of $4,300,000,000, 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 23, 1973, in th e a m o u n t of $4,302,280,000, as follow s: 92-D A Y B IL L S (to m a tu rity d a te ) to be issued A ugust 23, 1973, in th e a m o u n t of $2,500,000,000, or th ere ab 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 24, 1973, and to m a tu re N ov em ber 23, 1973 (C U S IP No. 912793 S E 7 ) , originally issued in th e a m o u n t of $1,700,955,000, th e ad d itio n al a n d o riginal bills to be fre ely in terch angeable. 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 23, 1973, a n d to m a tu re F e b ru a ry 21, 1974 ( C U S I P No. 912793 S Z 0 ). T h e bills of b o th series w ill be issued on a discou nt basis u nder co m p e titiv e a n d n o n co m p etitiv e b idding as h e re in a fte r provided, 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 ey will be issued in b e are r fo rm only, a n d in d en om in ation 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 ral R eserve 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 Saving T im e , M onday, A u gust 20, 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 ten d er m u st be for a m in im u m of $10,000. T en 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 ot m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay not be used. I t is u rged th a t ten d ers 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 supp lied by F e d e ra l R eserv e B anks or B ran ches on a p p lic a tio n therefor. B a n k in g in stitu tio n s generally m ay su b m it ten d e rs for a ccou nt of custom ers p ro v id ed th e nam es of th e custom ers a re set fo rth in such ten ders. O th ers th a n b a n king in stitu tio n s will n o t be p e rm itte d to su b m it ten d e rs excep t for th e ir own account. T en d e rs will be receiv ed w ith o u t d epo sit from in co rp o ra ted b ank s and tru s t com panies a n d from responsible a n d recognized dealers in in v estm e n t securities. T e n d e rs from 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 rea 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 by a n in co rp o ra ted b a n k or tru st com pany. Im m e d ia te ly a fte r th e closing hour, ten d e rs will b e opened 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 pu blic an n o u n ce m en t w ill be m ad e 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 price range of acc ep te d bids. O n ly those su b m ittin g c o m p e titiv e ten d e rs will be adv ised of th e a cc ep ta n ce or rejectio 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 a ll ten d ers, in w hole or in p a rt, a n d his actio n in a n y such re sp e ct shall be final. Sub jec t to these reservation s, no 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 price from a n y one b id d er will be accep ted in full a t th e average price (in th re e d ecim als) of acc ep te d co m p e titiv e b ids for th e resp ectiv e issues. S e ttle m e n t for accep ted ten d e rs in accordance w ith th e bid s 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 ugust 23, 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 ugust 23, 1973. C ash a n d exchange ten d e rs will receive equ al 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 a ccep ted 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 C ode of 1954 th e am 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 b ills are sold, re d eem ed or otherw ise disposed of, a n d th e bills a re excluded from consideratio 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 com p an ies) issued h e re u n d er m u st in clude in his incom e tax re tu rn , as o rd in ary gain or toss, the 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 en 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 e m p tio n a t m a tu rity during th e taxab le y e a r 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 ircular 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 cond ition s of th e ir issue. C opies of th e c ircu 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 accordance 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 bran ch es a t Ei Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o nd ay, A ugust 20, 1973. Tenders may not be e n te re d by tele p h o n 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 en d e rs 3 -M o n th B ills 6-M onth B ills D u e N o v em b er 15, 1973 D u e F e b ru a ry 14, 1974 $3,752,205,000________________________________ -T otal A p p lied F o r_________________________________ $3,685,525,000 $2,500,205,000______________________ _________ .T o tal A c c ep ted __________________________________ $1,805,380,000 P ric e Y ie ld P ric e Y ield 97.763_____________ 8 .8 5 0 % ____________________ H ig h ___ 95.527_____________8.848% 97.720_____________ 9 .0 2 0 % __________________ L ow _______________95.473____________ 8.955% 97.731_____________ 8.976% ( 1 ) --------------------------------.A verage_____________________ 95.479____________ 8.943% ( 1 ) ( 1 ) T h e s e rates are on a b ank d iscount basis. T h e eq u ivalen t coupon issue yie ld s are 9 .3 1 % for th e 3 -m on th bills and 9 .5 0 % for th e 6-m on th bills. This publication was digitized and made available by FederalforReserve (S ethe e reverse tenderBank form )of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 182 DAYS TO MATURITY Maturing February 21, 1974 Dated August 23, 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 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 at the rate indicated. NONCOMPETITIVE TENDER $_______________________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less fromany bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. - @. _@_ COMPETITIVE TENDERS Prices should be ^ expressed on th e ---------- $----------------------------------- basis of 100, with _______$_______________________ not more than three _______<j»___________ decimal places, e.g., 99.925. F ra c tio n s ^ must not be used. 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 OP PAYMENT Maturity Value $ 10,000 $_ $ 15.000 $_ -@ ¥ 50.000 $_ _@ $ 100,000 $ □ □ □ Charge our reserve account on payment date | | Draft enclosed (E ffectual delivery of enclosed d r a f t 500,000 $_ _@ $1,000,000 $_ sh all be on la te st day w hich will p e rm it p re s e n tm e n t in o rd er to ob tain irrevocably collected fu n d s o n p a y m e n t 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 By maturing bills held by---------------------------------------------Payment to be made by_____________ (S u b scrib er’s fu ll nam e o r c o rp o rate title) (A ddress) By- (A u thorized official s ig n a tu re and title) (F o r th e acco u n t of, if te n d e r is fo r a n o th e r subscriber) Other---------------------------------------- (A ddress) IMPORTANT l. 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 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. 8. 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 tom 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 by an incorporated bank or tru st company. f’> If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is material, the tender may be disregarded (See reverse for announcement)
@FedFRASER