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F ed e r a l r e s e r v e Ba n k o f D a lla s 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. 73-223 Septem ber 4, 1973 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O th ers 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 te n t i o n is invited to th e fo llo w in g s t a t e m e n t giv ing d e t a il s of tw o iss u 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 v ites ten d e rs for two series of T re a su ry bills to th e agg regate a m o u n t of $4,300,000,000, or th ereab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g S e p te m b e r 13, 1973, in th e a m o u n t of $4,303,405,000, as follows: 91-D A Y B IL L S (to m a tu rity d a te ) to be issued S e p tem b e r 13, 1973, in th e a m o u n t of $2,500,000,000, or th e re a b outs, 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 Ju n e 14, 1973, a n d to m a tu re D e c em b er 13, 1973 ( C U S I P No. 912793 S H O ) , orig in ally issued in th e a m o u n t of $1,700,840,000, th e a d d itio n al a n d original bills to be freely interch ang eable. 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 S e p tem b e r 13, 1973, a n d to m a tu re M a rc h 14, 1974 ( C U S IP No. 912793 T C O ) . T h e bills of b o th series will be 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 vided , 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 will be issued in b e a re r fo rm only, a n d in d en o 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 w ill b e received a t F e d e ra l R e se rv e B a n k s a n d B ran ches 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 onday, S e p te m b e r 10, 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 a c h te n d e r m u st b e for a m in im u m of $10,000. T e n d e rs o ver $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 price 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 b e used. I t is u rg ed th a t ten d e rs b e 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 b e su p p lied by F e d e ra l R e se rv e B an k s or B ran ch es o n a p p lic a tio n therefor. B an k in g in stitu tio n s g enerally m ay su b m it ten d e rs fo r a cco u n t of cu sto m ers p ro v id ed th e n am es of th e cu stom ers a re set fo rth in such ten d ers. O thers 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 fo r th e ir own account. T e n d e rs will b e received w ith o u t dep osit 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 dealers in in v estm e n t securities. T e n d e rs from o th ers m u st be a ccom 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 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 f te r th e closing h our, ten d e rs will b e o pen ed a t th e F e d e ra l R e serv e B a n k s a n d B ranches, 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 a m o u n t a n d p rice range of acc ep te d bids. O nly those su b m ittin g c o m p e titiv e te n d e rs will be ad vised of th e a cc ep ta n ce o r 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 ct a n y or a ll ten d ers, in whole or in p a rt, a n d his actio n in a n y such re sp e ct shall be final. S u b je c t to these reserv atio ns, n o n c o m p e titiv e te n d e rs for each issue fo r $200,000 or less w ith o u t sta te d p rice fro m a n y one b id d e r w ill b e acc ep te d in full a t th e average p rice (in th re e decim als) of acc ep te d co m p e titiv e bid s for th e resp ectiv e issues. S e ttle m e n t for a cc ep te d ten d e rs in accordance w ith th e bids 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 S e p te m b e r 13, 1973, in cash or o th er im m e d ia te ly av ailab 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 S e p tem b e r 13, 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 will be m ad e fo r differences betw een th e p a r v alu e of m a tu rin g b ills 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 45 4 ( 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 u nt a t w hich b ills issued h e re u n d e r a re 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 bills a re excluded fro m c o nsid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life in su rance co m p anies) issued here 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 b etw een th e p rice p a id fo r th e bills, w h e th er on o rigin al issue or on su b seq u en t pu rch ase, a n d th e a m o u n t a ctu a lly receiv ed 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 ta x a b le y e a r 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, prescrib e th e term s of th e T re a su ry bills a n d g overn th e c on d itio ns 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 e se rv e B a n k or 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 , te 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 aso , Houston a n d San A n to n io u p to tw e lv e - th ir ty p.m ., C entral D aylight S a v in g Time, M o n d a y , S e p t e m b e r 10, 1973. T enders may n o t b e e n t e r e d b y te l e p h o n e . Y ours v e r y truly, P. i . C oldw e ll P re sid 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 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 D e c em b er 6, 1973 D u e M a rc h 7, 1974 $3,902,705,000 T o ta l A p p lied F o r _________________________________ $3,446,770,000 $2,500,635,000-----------------------------------------------------T o ta l A c c ep ted ___________________________________$1,807,095,000 P ric e Y ield P ric e Y ield 97.806 8 .6 8 0 % -----------------------------------------.H ig h ____________________ 95.617____________ 8 .670% 97.772 8 .8 1 4 % ------------------------------------------Low _______________________ 95.577_„________ 8 .749% 97.781 8.778% ( 1 ) ---------------------------------A verage-------------------------------- 95.584_____________ 8 .735% ( 1 ) ( 1 ) T h ese rates are on a bank d iscount basis. T h e eq u ivalen t coupon issue yie ld s are 9 .1 0 % for th e 3-m on th bills and 9 .2 7 % for th e 6-m onth 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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated June 14,1973 Maturing December 13,1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________ JBranch E l P aso 79999 Houston 77001 San A ntonio 78295 ------------------------- (Date) Pursuant to the provisions of Treasury D epartm ent Circular N o. 418 (current revision) and the provisions of th e public announcement issued by the Treasury D epartment, 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 a t the rate indicated. NONCOMPETITIVE TENDER $_____________________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. ^ i$» ^ P rices should be e x p r e s s e d on th e basis of 100, w ith $ .. . COMPETITIVE TENDERS <$t ------------------------------@ -------------------- $$------------------------------------------not m ore than th ree - --------decimal places, e.g., (a) v$ —O ? — — - $ (a) v--' @ 99.925. F r a c t io n s m ust not be used. ? 2 ® ^ T E N D E R S MAY NOT BE ACCEPTED BY TELEPH O NE. T EN D E R S BY W IRE, IF RECEIVED BEFO RE T H E CLOSING HOUR ARE ACCEPTABLE. Denom inations D esired Paym ent for th is issue of bills cannot be m ade by credit to Treasury Tax and Loan Account. METHOD OF P A Y M E N T Number of pIec" ^ . Matur,ty v,lM --------- @ $ $ $ $--------------------15,000 $--------------------50,000 $______________ _________ @ $ 1 0 0 , 0 0 0 $ ------------------------------- n By maturing bills held by_ □ Payment to be made by_ 1 0,000 _ @ $ 500,000 $-------------------------------------_____ )(a$1,000,000 $ ___________________________ □ O ~ 7 7 Charge our reserve account on payment date Draft enclosed (Effectual delivery o f enclosed draft shall be on latest day which w ill permit presentm ent in order to obtain irrevocably collected funds on pay- 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 , Other-------------------------------------- ■-------------------- -— ■ ment date) (Subscriber’s fu ll name or corporate title) (Address) By_ (Authorized official signature and title) ____________________________________ (For the account of, if tender is for another subscriber) --—-------------------------------------------------------------------------------- (Address) IM PORTANT 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 ultiples of $5,000 (m aturity valu e). 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 envelopes 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 makes the tender, the form should be signed by an officer of the corporation authorized to m ake the tender and the sign in g of the form by an officer of the corporation w ill be construed as a representation by him th at 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 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 gu age o f 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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