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F eder al R eser ve Ba n k o f 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 75222 Circular No. 73-206 August 16, 1973 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutio ns a n d O th e r s C o n c e r n e d in t h e E leventh F e d e r a l R eserve District: Y our a t t e n t i o n is in v ite d to th e f o llo w in g s t a t e m e n t giving d e t a il s of a n iss u e of T re asu ry bills: T h e T r ea su ry D e p a r tm e n t, b y th is p u b lic n o tic e, in v ite s ten d e rs for $ 1 ,8 0 0 ,0 0 0 ,0 0 0 , or therea b ou ts, o f 3 6 4 -d a y T rea su ry b ills for cash a n d in ex ch a n g e for T rea su ry b ills m a tu rin g A u g u st 28, 1973, in t h e a m o u n t o f $ 1 ,8 0 3 ,3 7 0 ,0 0 0 . T h e b ills o f th is se ries w ill b e d a te d A u g u st 28, 19 73 , a n d w ill m atu re A u g u st 27 , 1 9 7 4 ( C U S I P N o . 9 1 2 7 9 3 T W 6 ) . T h e b ills w ill b e issu ed o n a d isco u n t b a sis u n d er c o m p e titiv e an d n o n c o m p e titiv e b id d in g a s h erein a fter p rov id ed , a n d a t m a tu rity th eir fa ce a m o u n t w ill b e p a y a b le w ith o u t in terest. T h e y w ill b e issu ed in b earer form o n ly , a n d in d e n o m in a tio n s o f $ 1 0 ,0 0 0 , $ 1 5 ,0 0 0 , $ 5 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 a n d $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a l u e ) . T e n d e r s w ill b e rece iv ed a t F e d e r a l R e s e r v e B a n k s an d B ranches u p to t h e c lo sin g hour, o n e-th irty p .m ., E a ste rn D a y lig h t S a v in g T im e , W ed n esd a y , A u g u st 22 , 1973. T e n d e r s w ill n o t b e re c e iv e d a t th e T r ea su ry D e p a r tm e n t, W ash in gton . E a c h ten d e r m u st b e for a m in im u m o f $ 1 0 ,0 0 0 . T e n d e r s o v e r $ 1 0 ,0 0 0 m u st b e in m u ltip le s o f $ 5,0 00 . In t h e case o f c o m p e titiv e t e n d ers th e p rice offered m u s t b e exp ressed on th e b a sis o f 100, w ith n ot m o re th a n th r ee d ecim a ls, e.g., 9 9.9 25 . F ra ctio n s m a y n o t b e used . I t is urged th a t ten d e rs b e m a d e o n t h e p rin te d form s an d forw arded in th e sp ec ia l e n v e lo p e s w h ich w ill b e su p p lied b y F ed era l R e s e r v e B a n k s or B ra n ch es on a p p lic a tio n therefor. B a n k in g in stitu tio n s g en era lly m a y su b m it ten d e rs for a cco u n t o f cu stom ers p ro v id ed t h e n a m e s o f t h e cu sto m ers are se t forth in su ch tenders. O thers th a n b a n k in g in stitu tio n s w ill n ot b e p er m itte d to su b m it ten d e rs e x c e p t fo r th e ir o w n accou n t. T e n d er s w ill b e r e c e iv e d w ith o u t d e p o sit from in corp orated b an k s an d tru st co m p a n ie s an d from resp o n sib le and recog n ized dealers in in v e stm e n t secu rities. T e n d e r s from o th ers m u s t b e a cco m p a n ied b y p a y m e n t o f 2 p er c e n t o f th e fa ce a m o u n t o f T reasu ry b ills a p p lie d for, u n less t h e ten d e rs are a cco m p a n ied b y a n exp ress g u aran ty o f p a y m e n t b y a n in corp orated b a n k or tru st com p an y . I m m e d ia te ly a fter t h e clo sin g hour, ten d e rs w ill b e o p e n e d a t th e F e d e r a l R e s e r v e B a n k s a n d B ra n ch es, fo llo w in g w h ich p u b lic a n n o u n c em en t w ill b e m a d e b y t h e T rea su ry D e p a r tm e n t o f th e a m o u n t an d p rice ran ge o f a cc e p te d b id s. O n ly th o se su b m ittin g c o m p e titiv e ten d ers w ill b e a d v ise d o f t h e a cc e p ta n c e or rejection th ereof. T h e S ecreta ry o f t h e T r ea su ry ex p ressly reserves th e righ t to a c c e p t or reject a n y or a ll ten d ers, in w h o le or in part, a n d h is a ctio n in a n y su ch r e sp ect sh a ll b e final. S u b ject to th e se reserv atio n s, n o n c o m p e titiv e ten d e rs fo r $ 2 0 0 ,0 0 0 or less w ith o u t sta ted p rice from a n y o n e b id d er w ill b e a ccep ted in fu ll a t th e av era g e p rice ( i n th r ee d e cim a ls) o f a cc e p te d c o m p e titiv e bids. S e ttle m e n t for a cc e p te d ten d e rs in accor d an ce w ith th e b id s m u s t b e m a d e or c o m p le te d a t th e F e d e r a l R e s e r v e B a n k o n A u g u st 2 8, 1 9 73 , in cash or o th er im m e d ia te ly a v a ila b le fu n d s or in a lik e fa c e a m o u n t o f T r ea su ry b ills m a tu rin g A u g u st 28, 1973. C ash an d ex ch a n g e ten d e rs w ill r ece iv e eq u al trea tm en t. C ash a d ju stm en ts w ill b e m a d e fo r d ifferen ces b e tw e e n t h e par v a lu e o f m a tu rin g b ills a c c e p te d in ex ch a n g e an d th e issu e p r ice o f t h e n e w bills. U n d er S e c tio n s 4 5 4 ( b ) an d 1221 ( 5 ) o f t h e In tern al R e v e n u e C od e o f 1 95 4 th e a m o u n t o f d isco u n t a t w h ich b ills issu ed hereu n d er are so ld is co n sid ered to accru e w h en th e b ills are sold, red eem ed or o th e rw ise d isp o sed of, an d t h e b ills are ex clu d ed from co n sid er a tio n a s ca p ita l assets. A cco rd in g ly , th e o w n er o f T reasu ry b ills ( o th e r th a n lif e insu ran ce c o m p a n ie s) issu ed h ere un d er m u st in clu d e in h is in co m e ta x return, a s ord in ary g a in or loss, t h e d ifferen ce b e tw e e n th e p rice p aid for t h e b ills, w h eth er o n origin al issu e or on su b seq u e n t purch ase, a n d t h e a m o u n t a c tu a lly rece iv ed e ith er u p o n sa le or r ed em p tio n a t m a tu rity du rin g th e ta x a b le y ea r for w h ich th e retu rn is m ad e. T rea su ry D e p a r tm e n t C ircular N o . 4 1 8 (cu rren t r e v is io n ) a n d th is n o tic e, p rescrib e t h e term s o f t h e T r ea su ry b ills an d govern t h e c o n d itio n s o f th e ir issue. C o p ies o f th e circular m a y b e o b ta in ed from a n y F ed e r a l R e s e r v e B a n k or B ranch. In a c c o r d a n c e w ith t h e a b o v e a n n o u n c e m e n t , t e n d e r s v/il! b e r e c e iv e d a t this b a n k a n d its b r a n c h e s a t El P a so , Houston a n d S an A n to n io u p to tw e lv e - th ir ty p .m ., C e n tral D ay lig h t S a v in g Time, W e d n e s d a y , A u g u s t 2 2 , 1 973. T enders may n o t b e e n t e r e d fyy t e l e p h o n e . Y ours v e r y truly, P. E. C old w e ll P re s id e n t ( S e e rev erse for ten d e r fo r m ) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 364 DAYS TO MATURITY D a te d A u g u s t 28, 1973 M a tu rin g A u g u s t 27, 1974 T o : F ed era l R e se r v e B an k , S ta tio n K, D allas, T e x a s 75222 or — T h e _______________________________ B ran ch 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. N O N C O M P E T IT IV E T E N D E R $_ _NOT TO E X C E E D $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. (%■ " Prices should be ex p ressed on th e ! (a) $ b asis of 100, w ith C O M PE TITIV E T E N D E R S / $; (5) not more than three $ decimal places, e.g., (a) $ )$■; 99.925. F ra c tio n s must not be used. : @ t W TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Denominations Desired N um ber of Pieces M aturity Value $ _<® $ . @ $ METHOD OF PAYMENT 10,000 $■ 15,000 $. 50,000 $. $ 100,000 $. _@ $ 500,000 $. © $ 1 ,000,000 $- Hold in C u sto d y — General A ccou n t □ Hold in C u stod y — In v e s tm e n t A c count □ Hold in C u stod y — T r u st A ccou n t □ P le d g e to secu re T r e a su r y T a x and L oan A ccou n t □ O ther------------------------------------------------ B y m a tu r in g b ills held b y__________________________________ □ P a y m e n t to be m a d e b y ________________ □ C harge our r e se r v e acco u n t on p a y m e n t d a te I | D r a f t enclosed (E ffectual delivery o f enclosed d r a f t D e liv e r y I n s t r u c t io n s : □ □ 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 e r to o b ta in irrevocably collected fu n d s on p a y m e n t date) (S u b scriber’s fu ll n a m e o r co rp o ra te title) (A ddress) Tty (A u th orized official s ig n a tu re and title) (F o r the a cco un t of, if te n d e r is fo r a n o th e r subscriber) (A ddress) IMPORTANT No tender for less than $ 1 0 ,0 0 0 will be considered and each tender over $ 1 0 ,0 0 0 m ust be for an amount in multiples of $ 5 ,0 0 0 (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............. —.......................... f 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. 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. 1. (See reverse for announcement)