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F ederal Reserve b a n k of Dallas
F I S 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 N o. 73-208
A u g u st 21, 1973

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your a ttention is invited to the following s ta 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 te n d e rs for tw o series of T re a su ry bills to th e agg reg 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 fo r T re a su ry bills m a tu rin g A ugust 30, 1973, in th e a m o u n t of
$4,302,405,000, 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 30, 1973, in th e a m o u n t of $2,500,000,000, or th e re ­
ab outs, re p rese n tin g an a d d itio n al a m o u n t of bills d a te d M a y 31, 1973, a n d to m a tu re N o v em b er 29, 1973
( C U S IP No. 912793 S F 4 ), o riginally issued in th e a m o u n t of $1,702,030,000, th e ad d itio n al a n d original bills to
be fre ely in terch an geable.
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 ug ust 30, 1973, a n d to m a tu re F e b ru a ry 28, 1974
(C U S I P No. 912793 T A 4 ).
T h e bills of b o th series will be issued on a d isco u n t basis u n d e r co m p e titiv e a n d no n c o m p e titiv e b id d in g as h e re in a fte r
pro 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 in terest. T h e y will be issued in b e a re r form only, a n d in
den 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 e se rv 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 ugust 27, 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 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 n ot m ore th an th re e decim als, e.g., 99.925. F ra c tio n s m ay
no 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 envelopes 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 atio n th erefor.
B an k in g in stitu tio n s g en erally m ay su b m it te n d e rs for a cco u n t of custom ers p ro v id ed th e n am es of th e custom ers a re
se t 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 b e p e rm itte d to su b m it te n d e rs ex cept for th e ir own account.
T e n d e rs will be received w ith o u t d ep o sit from in co rp o ra ted b an k s and tr u s t com panies a n d from resp onsible a n d recognized
dealers in in v e stm e n t securities. T en d e rs from o th ers m u st be acco m p an ied 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 f te r th e closing hour, te n d e rs w ill b e op en ed a t th e F e d e ra l R eserv e B a n k s a n d B ran ches, follow ing w hich
p u b lic a n 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 am o u n t a n d p rice range of a ccep ted bids. O n ly those
su b m ittin g co m p e titiv e te n d e rs will be ad v ised of th e a cc ep tan ce or rejection 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 o r 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 ub ­
je c t to these reserv ations, n o n co m p etitiv e te n 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 e r will
be accep ted in full a t th e averag e p rice (in th re e d ecim als) of acc ep te d c o m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for
accep ted te n d e rs in accordance w ith th e bids 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 30, 1973,
in cash or o th e r im m e d ia tely av ailab le fu nds o r in a like face a m o u n t of T re a su ry b ills m a tu rin g A ug ust 30, 1973. C ash a n d
exchange ten d e rs will receive eq ual tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e fo r differences b etw een th e p a r v alu e 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 ection s 454 (b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e Code 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 are sold is considered to accrue w hen th e bills are sold, red eem ed or otherw ise disposed of, a n d th e b ills a re excluded
from c o nsideration 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 su ran ce co m p an ies) issued h ere­
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 betw een th e p rice p a id for th e bills, w h e th er
on o riginal issue or on su b seq u e n t purchase, a n d th e a m o u n t a c tu a lly received e ith e r upon sale or re d e m p tio n a t m a tu rity d u ring
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 re v isio n ) a n d th is notice, p rescrib e th e te rm s of th e T re a su ry bills a n d
govern th e c o n ditio ns of th e ir issue. C opies of th e c irc u lar m ay be o b ta in e d from a n y F e d e ra l R e se rv e B a n k or B ran ch.

In accordance 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 bran 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, A ugust 27, 1973. Tenders m ay
not be en te re d by te le p ho ne .
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m oun t, R an g e a n d A p p ro x im ate Y ie ld of A ccep ted T e n d e rs
3-M o n th B ills
6 -M on th B ills
D u e N o v e m b er 23, 1973
D u e F e b ru a ry 21, 1974
$3,594,790,000________________________________ .T o ta l A p p lied F o r _________________________________ $3,587,035,000
$2,500,490,000__________________________________ T o ta l A c c ep ted ___________________________________$1,800,010,000
P ric e
Y ie ld
P ric e
Y ield
97 .742 _____________ 8 .8 3 6 % __________________________ -H igh_______________________ 95.539____________ 8.824%
97.708_____________ 8 .9 6 9 % ___________________________ L ow ________________ _______ 95.516_____________8.869%
97.7 23 _____________ 8.9 10% ( 1 ) _____________________ A v e rag e _____________________ 95.523____________ 8.856% (1 )
( 1 ) T h ese 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 9 .2 4 % for th e 3-m on th b ills and 9 .4 0 % for
th e 6 -m on th b ills.
'

This publication was digitized and made available (S e e reverse forReserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
by the Federal tender form)

TENDER FOR ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Maturing November 29,1973

Dated May 31,1973
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 amount
shown belowr, 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.

$
$
T
r
$
$

K2
T7
(a)

1

COMPETITIVE TENDERS

i

-

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

~~

(a)

_
_

Cai
o

@

$
$
$
$

B g r TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH 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 $_
100,000

$_

□

Charge our reserve account on payment
date
I I Draft enclosed (E ffectual delivery o f enclosed d r a f t

500,000 $_
$1,00 0,0 00 $_

sh all be on la te st day w hich w ill p e rm it p re s e n tm e n t
in ord er to o b 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____________ _

Other-----------------------------------------

(S u b scrib er’s fu ll n am e o r co rp o rate title)

(A ddress)

By(A u th o rized official s ig n a tu re an d 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)

(A ddress)

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
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.
6. 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)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102