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fe d e r a l r eser ve b a n k o f Dallas 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 7 5 2 2 2 Circular No. 73-237 Septem ber 18, 1973 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions 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 e serv e District: Y o u r a t t e n t i o n is in v ited to t h e fo llo w in g s t a t e m e n t giv ing d e ta ils of tw o is s u e s o f 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 tw o series of T re a su ry b ills to th e ag g 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 for T re a su ry bills m a tu rin g S e p te m b e r 27, 1973, in th e a m o u n t of $4,309,795,000, as follows: 91-D A Y B IL L S (to m a tu rity d a te ) to b e issued S e p tem b e r 27, 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 a n a d d itio n al a m o u n t of bills d a te d J u n e 28, 1973, a n d to m a tu re D e c em b er 27, 1973 ( C U S I P No. 912793 S K 3 ), orig in ally issued in th e a m o u n t of $1,701,130,000, 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 b e d a te d S e p te m b e r 27, 1973, a n d to m a tu re M a rc h 28, 1974 ( C U S I P No. 912793 T E 6 ) . T h e b ills of b oth 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 bid 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 b e receiv ed a t F e d e ra l R e se rv 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 S aving T im e , M onday, S e p te m b e r 24, 1973. T e n d e rs will n o t b e received 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 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 no t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay no t b e 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 b e su p p lied by F e d e ra l R eserv e B an ks or B ranches 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 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 a re 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 cept for th e ir ow n account. T e n d e rs w ill be received w ith o ut 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 resp on sib le a n d recognized d e ale rs in in v e stm e n t securities. T e n d e rs from o th ers m u st be acco m p anied 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 ten d e rs a re a cco m p an ied by a n express g u a ra n 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 fte r th e closing hour, te n d e rs will b e o p ened a t th e F e d e ra l R e se rv 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 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 g e of acc ep te d bids. O n ly th o se su b m ittin g c o m p e titiv e te n d e rs will be ad v ised of th e acc 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 reserv es th e rig h t to a cc ep t or re je c t an y or all tend ers, in whole or in p a rt, a n d his action in a n y such re sp e ct shall b e final. S u b jec t to th ese reservations, no 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 e r w ill be acc ep te d in full a t th e av erag e p rice (in th re e d ecim als) of a cc ep te d c o m p e titiv e bids for th e re sp e ctiv e issues. S e ttle m e n t fo r 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 com 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 27, 1973, in cash or o th er im m e d ia tely av ailab le fu n ds or in a lik e face a m o u n t of T re a su ry bills m a tu rin g S e p te m b e r 27, 1973. C ash a n d exchange te n d e rs will receive equal tre a tm e n t. C ash a d ju stm e n ts w ill be m ad e for differences betw een th e p a r v a lu 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 S ectio ns 454 (b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e C ode of 1954 th e a m o u n t of d isco u nt a t w hich b ills issued h e re u n d e r are sold is considered to accru e w hen th e b ills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re excluded fro m co nsid eratio n 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 insurance co m p an ies) issued here u n d e r m u st in clu de 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 orig in al issue or on su b seq u en 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 o r re d e m p tio n a t m a tu rity d u rin g th e ta x a b le y e ar for 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, p rescrib e th e term s of th e T re a su ry b ills a n d govern th e c on d itio ns of th e ir issue. C opies of th e c ircu lar m ay be o b ta in e d fro m 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 , 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 San A n to n io u p to tw e lv e - th ir ty p.m ., C e n tral D ayligh t S av in g Time, M o n d a y , S e p t e m b e r 24, 1973. T ende rs may n o t b e e n t e r e d by te l e p h o n e . Yours very t u y rl, P. E. C oldw e ll Peiet rsdn LAST PREVIOUS OFFERING OF TREASURY BILLS A m ou n t, R a n g e a n d A p p ro x im ate Y ield of A ccep ted T e n d e rs 3 -M o n th B ills D u e D e c em b er 20, 1973 6 -M o n th B ills D u e M a rc h 21, 1974 $4,113,190,000 $2,500,865,000__________________________ P ric e 97.808 97.776 97.779 -T otal A p p lied F o r _______________________________ $5,375,225,000 T o ta l_A c c ep ted __________________________________1,802,375,000 Y ie ld P ric e Y ield 8.672%_________________ H ig h ______________95.548___________ 8.806% 8.798%_________________________ L ow ______________________ 95.532___________ 8.838% 8.786% ( 1 ) ____________________A v e ra g e ____________________ 95.535___________ 8.832% (1 ) ( 1 ) T h ese rates are on a b ank d iscount basis. T h e eq u ivalen t coupon issue y ield s are 9 .1 1 % for th e 3 -m onth bills an d 9 .3 7 % for th e 6 -m on th b ills. This publication was digitized and made available(Seethe Federal Reserve form ) of Dallas' Historical Library (FedHistory@dal.frb.org) by reverse for tender Bank TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Maturing December 27, 1973 Dated June 28,1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The.._______________________Branch El P aso 79999 Houston 77001 San Antonio 78295 (D ata) 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 epartm ent, 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. NONCOMPETITIVE TENDER $_____________________________________ NOT TO EXCEED $200,000 N oncom petitive tenders for $200,000 or less from any bidder, w ithout stated price, w ill be accepted in full at the average price (in three decim als) of accepted com petitive bids. .."fa) S fa ) $ @ $ COMPETITIVE TENDERS i$ 1$ . ....... ............... ....... P rices should be e x p r e s s e d on th e basis o f 100, w ith not more than three decimal places, e .g .f 99.925. F r a c tio n s m ust not be used. T E N D E R S MAY NOT B E ACCEPTED B Y TELEPH O NE. T E N D E R S BY W IR E, IF R ECEIVED B EFO RE TH E CLOSING HOUR ARE ACCEPTABLE. Paym ent fo r th is issue o f bills cannot be made by credit to T reasury T ax and Loan Account. D enom inations D esired Number of pieces M aturity Value @ $ METHOD OF PA Y M E N T 1 0 , 0 0 0 $ -------------------------- _@ $ 15,000 50,000 $_ _@ $ □ ?- 1 0 0 ,0 0 0 $_ □ □ Charge our reserve account on payment date | | Draft enclosed (Effectual delivery of enclosed draft _@$ 500,000 $_ _ @ $ 1 ,0 0 0 ,0 0 0 $_ 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_____________ 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 nam e or corporate title) (Address) By(Authorized official signature and title) (For the account of, if tender is for another subscriber) (Address) IM PO RTANT 1. No tender for le ss than $10,000 w ill be considered and each tender over $10,000 m ust be for an am ount 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 of 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, communi 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 the corporation authorized to m ake the tender and the signing 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 of th e firm.” 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in vest m ent securities w ill 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 fu ll paym ent by an incorporated bank or tru st company. 6. If tbe langu age 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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