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F ederal r es er v e Bank o f Dallas F IS C A L A G E N T O F T H E U N ITED S T A T E S DALLAS, TEXAS 7 5 2 2 2 Circular No. 73-228 Septem ber 11, 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 t h e E leventh F e d e r a l R e serv e District: Y our a t t e n t i o n is inv ited to th e fo llo w in g s t a t e m e n t givin g 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, inv 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 tem b e r 20, 1973, in th e a m o u n t of $4,302,420,000, 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 20, 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 Ju n e 21, 1973, a n d to m a tu re D e c em b er 20, 1973 (C U S I P No. 912793 S J 6 ) , o rigin ally issued in th e a m o u n t of $1,700,870,000, th e a d d itio n al a n d original bills to b e freely 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 S e p te m b e r 20, 1973, a n d to m a tu re M a rc h 21, 1974 (C U S I P No. 912793 T D 8 ) . T h e b ills 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 no 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 will be p a y ab le w ith o u t in terest. T h e y w ill be issued in b e a re r fo rm only, a n d in d e n 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 r ity v a lu e ). T e n d e rs will be received a t F e d e ra l R e serv e B a n k s a n d B ran ch es 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, S e p te m b e r 17, 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 be 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 ten 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 u rg ed 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 env elo pes w hich w ill b© s u p p lie d by F e d e ra l R e se rv e B an 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 ay su b m it te n d e rs for a cc o u n t of custom ers p ro v id ed th e n am es of th e cu sto m ers a re set fo rth in such ten ders. 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 except for th e ir own account. T e n d e rs will 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 panies a n d from responsible a n d recognized d e a le rs in in v e stm e n t securities. T e n d e rs from o thers m u st be acco m p an ied 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 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 b y 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 fte r th e closing hour, te n d e rs will b e op ened 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 a n n o u n ce m en t w ill 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 g e 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 ad v 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 reserv es th e rig h t to a cc ep t or re je c t a n y or all ten d e rs, in w hole or in p a rt, a n d his action in a n y such re sp e ct shall be final. Su b je c t to th ese reservations, n o n c o m p e titiv e ten 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 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 te n 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 e serv e B a n k on S e p te m b e r 20, 1973, in cash or o th e r im m e d ia tely 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 atu rin g S e p te m b e r 20, 1973. C ash a n d exchange ten d e rs w ill 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 for differences b etw een th e p a r value 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 Sections 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 d isco un t a t w hich b ills issued h e re u 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 bills a re excluded from co n sid eratio n as cap ital assets. A ccordingly, th e ow ner of T rea su ry bills ( o th e r th a n life insuran ce co m p an ies) issued here u n d e r m u st in clude in his incom e tax re tu rn , as o rd in ary gain or loss, th e 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 e n t p u rchase, 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 d u rin g th e ta x a b le year for which 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, p rescrib e th e term s of th e T re a su ry bills a n d g overn th e c o nd itio n s of th e ir issue. C opies of th e c irc u lar m ay be o b tain e d fro m a n y F e d e ra l R e se rv 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 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 entral D ay light S a v in g Time, M o n d a y , S e p t e m b e r 17, 1973. T en de rs 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. 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 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 13, 1973 D u e M a rc h 14, 1974 $3,951,080,000__________________ -_______T o ta l A p p lied F o r_________________________________ $4,226,210,000 $2,500,250,000__________________________ _______ T o ta l A c c ep ted $1,800,315,000 P ric e Y ie ld P ric e Y ield 97.786 8 .7 5 9 % ___________________________ .H ig h _______________________9 5.503____________ 8 .895% 97.714 9 .0 4 4 % __________________ L o w _______________ 95.485____________ 8.931% 97.721 9 .0 16 % ( 1 ) _____________________ A verage_____________________ 95.490____________ 8.9 2 1% (1 ) ( 1 ) T h e s e rates are on a b ank d iscou nt basis. T h e eq u iv a le n t coupon issue yie ld s are 9 .3 5 % for th e 3 -m on th b ills and 9 .4 7 % for th e 6 -m on th b ills. * This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Maturing December 20, 1973 Dated June 21,1973 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 Departm ent Circular No. 418 (current revision) and the provisions of the public announcement issued by the Treasury D epartment, the undersigned offers to purchase Treasury bills in the amount shown below, and agrees to pay for the am ount allotted, on or before the issue date, by the method and at the rate indicated. NONCOMPETITIVE TENDER $_____________________________________ NOT TO EXCEED $200,000 Noncom petitive tenders for $200,000 or less from any bidder, without stated price, w ill be accepted in full at the average price (in three decim als) of accepted com petitive bids. 1 —$ I' ■ V t$ COMPETITIVE TENDERS $ $ - .. () a T ___ O () a $ ? S ? . Prices should be e x p r e s s e d on th e basis of 100, w ith not more than three decimal places, e.g., 99.925. F r a c tio n s m ust not be used. j g p T E N D E R S MAY NOT BE ACCEPTED BY TELEPH O NE. T E N D E R S BY W IRE, IF REC EIVED BEFO RE T H E CLOSING HOUR A R E A CC EPTABLE. Paym ent for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Denom inations D esired Number of pieces _@ $ Maturity Value METHOD OF PA Y M ENT 10,000 $_ -@ $ -@ $ □ 15.000 $_ 50.000 $_ 1 0 0 ,0 0 0 $_ -@ $ □ □ -@ $ 500,000 $_ _@ $1,000,000 $_ 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-------------------------------------- By maturing bills held by : --------------------Payment to be made by_____________ Charge our reserve account on payment date I I D r a f t e n c l o s e d (Effectual delivery o f enclosed d ra ft shall be on latest day which w ill permit presentm ent in order to obtain irrevocably collected funds on p ay m ent date) (Subscriber’s fu ll name or corporate title) (Address) By- (Authorized official signature and title) (For tbe account of, if tender is for another subscriber) (Address) IMPORTANT l 2. 3. 4. 5. 6. No tender for le ss 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 value). Tenders should be forwarded in an envelope clearly addressed to th is bank or appropriate branch as F iscal A gen t o f th e United 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. Envelopes for subm itting tenders m ay be obtained from th is bank or appropriate branch. A ny qualified or conditional tender w ill be rejected. I f a corporation makes the tender, the form should be signed by an officer of the corporation authorized to m ake th e 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, w ho should sign in the form “_____________________________ , a copartnership, by ----------------------- a member of the firm.” Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in in v e s t m ent securities w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity v a 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. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the T reasury is m aterial, the tender m ay be disregarded fSpp reverse for announcement)
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