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F ederal reserve ban k 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 Circular No. 73-209 August 21, 1973 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O th e rs C o n c e r n e d in th e E leventh F e d e ra l R eserve District: Y our a t te n t i o n is invited to th e f o llo w in g s t a t e m e n t givin g d e t a il s of tw o issu es of T re as u ry 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 vites ten d e rs for tw o series of T re a su ry b ills 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 u g ust 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 abouts, re p rese n tin g an ad 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 rigin ally issued in th e a m o u n t of $1,702,030,000, th e a d d itio n al a n d original bills to be fre ely interch an geab 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 u gu st 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 b e issued on a d isco un t basis u n d e r c o 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 p ro v id ed, a n d a t m a tu rity th e ir face a m o u n t w ill be p a y ab le w ith o u t interest. T h e y will b e issued in b e are r fo rm only, a n d in d eno m in atio n 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 receiv ed a t F e d e ra l R eserv e B a n 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 Sav ing T im e , M on d ay , A ugust 27, 1973. T e n d e rs will n o t be receiv ed 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 c o 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 urg ed 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 ard ed in th e special envelopes w hich w ill be su p p lied by F e d e ra l R e serv e B a n k s or B ran ch es on a p p lic atio n therefor. B a n k in g in stitu tio n s generally m a y su b m it te n d e rs fo r acco u n t of custom ers p ro v id ed th e n am es of th e cu sto m ers are 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 ow n account. T e n d e rs w ill be received w ith o u t dep o sit from in co rp o ra ted b an k s and tr u s t com p an ies a n d from responsible a n d recognized d ealers 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 anied 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 by a n in co rp o ra ted b a n k or tru s t com pany. Im m e d ia te ly a f te r th e closing h our, te n d e rs will b e o p en ed a t th e F e d e ra l R e serv e B an k s a n d B ranches, follow ing w hich p u b lic an n o u n ce m en t will 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 a ccep ted bids. O nly those su b m ittin g c o m p e titiv e te n d e rs will b e ad v ised of th e a cc ep ta n ce o r rejection thereof. T h e S ec retary of th e T re a su ry expressly reserves th e rig h t to a cc ep t or re je ct a n y or all ten d ers, in w hole o r in p a rt, a n d his action in a n y such re sp e ct shall be final. S u b jec t to these reservations, n o 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 av erage price (in th re e d e cim 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 accep ted ten d e rs in accordance w ith th e bids m u st be m ad e or com 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 availab le fu n ds or in a like face a m o u n t of T re a su ry bills m a tu rin g A ugust 30, 1973. C ash a n d exchange te n d e rs will receive eq u al tre a tm e n t. C ash 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 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 a m o u n t of d isco un t 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, re d ee m e d or otherw ise disposed of, a n d th e bills a re excluded from co 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 insurance co m p anies) issued h e re 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 original issue or on su b seq u e n t p urchase, 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 em p tio n a t m a tu rity du rin g th e tax a b le y ear fo r w hich th e re tu rn is m ade. Treasury 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, p rescrib e th e te rm s of th e T re a su ry bills a n d govern th e co n dition s of th e ir issue. C opies of th e circ u lar m ay be o b tain e d from a n y F e d e ra l R e serv e B a n k o r B ranch. In a c c o r d a n c e w ith th 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 will b e re 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 up to tw e lv e - th ir ty p.m ., C entral D aylight S av in g Time, M o n d a y , A u g u s t 27, 1973. T en de rs m a y not b e e n t e r e d by t e l e p h o n e . Y ours v e r y truly, P. E. C oldw e ll P re s id e n t LAST PREVIOUS OFFERING OF TREASURY BILLS A m o un t, R a n g e a n d A p p ro x im ate Y ie ld of A ccepted T e n 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 23, 1973 D u e F e b ru a ry 21, 1974 $3,594,790,000________________________________ -T otal 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 ig h _______________________ 95.539____________ 8.824% 97.708_____________8 .9 6 9 % ___________________________ X o w ------------------------------------ 95.516____________ 8.869% 97.723_____________ 8 .9 1 0 % ( 1 ) _____________________ A verage______________________ 95.523____________ 8 .856% ( 1 ) ( 1 ) T h ese rates are on a b ank discount basis. T h e eq u ivalen 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 bills. . (See tender Bank form) of Dallas' Historical Library (FedHistory@dal.frb.org) This publication was digitized and made available by thereverse FederalforReserve TENDER FOR TREASURY BILLS 182 DAYS TO MATURITY Dated August 30,1973 Maturing February 28, 1974 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 D epartm ent Circular No. 418 (current revision) and the provisions o f th e public announcement issued by the Treasury D epartm ent, 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 at the rate indicated. NONCOMPETITIVE TENDER $_________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any bidder, without stated price, w ill be accepted in full at the a verage price (in three decimals) of accepted com petitive bids. (^ 1$ x « Prices should be e x p r e s s e d on t h e basis of 100, w ith ------------------- fn) if COMPETITIVE TENDERS <$$ __________________ @-------------?---------------------------@ $ T Cn) $ @ not more than three decimal places, e.g., 99.925. F ractions must not be used. T E N D E R S MAY NOT BE ACCEPTED BY TELEPHO NE. T E N D E R S BY W IRE, IF RECEIVED B EFO RE T H E CLOSING HOUR ARE ACCEPTABLE. D enominations D esired Paym ent for this issue of bills cannot be m ade by credit to Treasury Tax and Loan Account. Number of Pi“ e' , » Mlturit,r VaIne METHOD OF PAY M ENT ® ’ _@ $ 15,000 $______________ $__ 50,000_$______________ □ □ _@ $ 100,000 $. □ _______@ $ _500,000_$______________ _______@_$1,000,000_$_______________ □ By maturing bills held by_ Payment to be made by. Charge our reserve account on payment date Draft enclosed (E ffectu a l d elivery o f e n clo se d d r a ft sh a ll be on la te st day w h ich w ill p erm it p r e s e n tm e n t in order to ob ta in irrev ocab ly co llected fu n d s o n p a y - Delivery Instructions: □ □ □ □ □ ment date) Hold in Custody - General Account S u b s c r ib e r 's f u ll n a m e or co rp o rate t it le ) ----------------Hold in Custody — Investment Ac count (A d d ress) Hold in Custody — Trust Account gy_ Pledge to secure Treasury Tax and (Authorized official signature and title) Loan Account____________________________ ____________________________________ ^ „ (For the account of, if tender is for another subscriber) Other_________________________ ------------------------------------------------- -------—— ----------------------------------------------------------- (Address) IMPORTANT 1. No tender for less than $10,000 w ill be considered and each tender over $10,000 m ust be for an amount in m u ltip les of $5,000 (m aturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as F iscal A gen t o f the U nited States, w ith notation on the envelope reading “T E N D E R FOR T R E A SU R Y O FFE R IN G ”. Since en velopes received w ith this legend w ill not be opened until after the closing tim e specified in the public announcement, com m uni cations relating to other m atters should not be enclosed. E nvelopes for subm itting tenders m ay be obtained from this bank or appropriate branch. 3. A ny qualified or conditional tender w ill be rejected. 4. If a corporation m akes the tender, the form should be signed by an officer of th e corporation authorized to m ake the tender and the sign ing of the form by an officer of the corporation w ill 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 o f the firm.” ^ ^ 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in v e st m ent securities w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity va lu e) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of fu ll paym ent b y an incorporated bank or trust company. ^^ 6. If the lan guage of this form is changed in any respect, which, in the opinion of the Secretary of the T reasury is material, the tender m ay be disregarded (See reverse for announcement)
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