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F ed er a l r e s e r v e Ba n k o f D a llas 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 No. 73-240 S e p te m b e r 25, 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 Reserve District: Y our a t te n t io n is in v ited to th e f o llo w in g s t a t e m e n t giving d e t a il s of t w 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, invites ten d e rs for tw o series of T re a su ry bills 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 O cto b er 4, 1973, in th e a m o u n t of $4,301,405,000, as follow s: 91-D A Y B IL L S (to m a tu rity d a te ) to b e issued O cto ber 4, 1973, in th e a m o u n t of $2,500,000,000, or th e re abouts, re p re se n tin g an a d d itio n al a m o u n t of bills d a te d J u ly 5, 1973, a n d to m a tu re J a n u a r y 3, 1974 ( C U S I P No. 912793 S S 6 ), o rig inally issued in th e a m o u n t of $1,700,985,000, th e a d d itio n al a n d original bills to b e freely in terch an g 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 O cto b er 4, 1973, a n d to m a tu re A p ril 4, 1974 ( C U S I P No. 912793 T F 3 ) . T h e b ills 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 co m p etitiv 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 a b 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 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 be received a t F e d e ra l R e serv 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, O ctob er 1, 1973. T en 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 v er $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 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 fo rw ard ed in th e special envelopes w hich w ill be su p p lied b y F e d e ra l R e serv e B an ks or B ran ch es on a p p lic a tio n th erefor. B a n k in g in stitu tio n s g en erally m ay su b m it te n d e rs for accou n t of custom ers p ro v id ed th e nam es of th e custom ers a re set fo rth in such ten ders. O th e rs 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 te n d e rs ex cep t 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 ban ks 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 e n d e rs from o thers m u st b e a cco 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 b ills a p p lie d for, unless th e ten d e rs are acco m p anied 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 w ill be o p en ed a t th e F e d e ra l R eserv e B an k s a n d B ranches, follow ing w hich p u b lic a n n o u n c e m e n 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 ge of a cc ep te d bids. O n ly those s u b m ittin g c o m p e titiv e ten d e rs will be ad vised of th e acc ep ta n ce or 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 all tend 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 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 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 a ccep ted co m p e titiv e bid s for th e respective 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 o r c o m p leted a t th e F e d e ra l R eserv e B a n k on O cto b er 4, 1973, in cash or o th e r im m e d ia tely availab le fun d s or in a like face a m o u n t of T re a su ry bills m a tu rin g O cto b er 4, 1973. C ash a n d exchange ten d e rs w ill receive equal tre a tm e n t. C ash a d ju stm e n ts will be m ad e for differences b etw een th e p a r v alue of m a tu rin g bills a cc 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 ) and 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 discount a t w hich b ills issued h e reu n d e r are sold is considered to accrue w hen th e bills a re sold, red eem ed or otherw ise disposed of, a n d th e bills are excluded from co n sid eratio n as c ap ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insuran ce co m pan ies) issued h ere 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 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 urch ase, 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 tax a b le y e a r 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 te rm s of th e T re a su ry bills a n d govern th e con d itio ns of th e ir issue. C opies of th e c ircu lar m ay b e o b tain e d from a n y F e d e ral R eserv 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 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 S an A n to n io u p to tw e lv e - th ir ty p .m ., C e ntral D ay lig h t S av in g Time, M o n d a y , O c to b e r 1, 1973. T en d e rs 'flay 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 o ldw ell P re sid e n t LAST PREVIOUS OFFERING OF TREASURY BILLS A m ount, 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 13-W eek B ills 26-W eek B ills D u e D e c em b er 27, 1973 D u e M a rc h 28, 1974 $4,133,820,000 T o ta l A p p lied F o r _________________________________ $4,387,085,000 $2,500,345,000__________________________________ T o ta l A c c ep ted ___________________________________ $1,801,030,000 P ric e Y ie ld P ric e Y ield 98.167____________ 7.251 % ------------------------------------------- H ig h ________________________96.147____________ 7.621 % 98.141____________ 7 .3 5 4 % ____________________________ L ow ________________________ 96.123____________ 7.669% 98.147------------------ 7 .331% ( 1 ) --------------------------------- A v erage ______________________ 96.127_____________7.661% (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 7 .5 7 % for th e 13-w eek bills and 8 .0 8 % for th e 2 6 -w eek bills. (See reverse for tender form) 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 January 3,1974 Dated July 5,1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) Pursuant to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions o f th e public announcement issued by the Treasury Departm ent, the undersigned offers to purchase T reasury 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 N oncom 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) o f accepted com petitive bids. COMPETITIVE TENDERS $ (a) $ $ (a) $ $ (a) $ $ @ * t P rices should b e e x p r e s s e d on t h e basis o f 100, w ith not more than th ree decimal places, e.g ., 9 9 .9 2 5 . F r a c t i o n s m ust not be used. 2 ^ T E N D E R S MAY NOT BE A C C E P T E D B Y T E L E P H O N E . T E N D E R S BY W IR E, IF R E C E IV E D B E F O R E T H E CLOSING H O UR A R E A C C E P T A B L E . P aym ent for th is issu e o f bills cannot be made b y credit to T reasury T ax and Loan Account M ETH O D OF P A Y M E N T Denom inations D esired Number of pieces M aturity Value _@ $ 10,000 $_ _@$ _@$ 15,000 $_ 50,000 $_ □ By maturing bills held by-------------------- - □ Payment to be made by------------ _@ $ 100,000 $_ □ Charge our reserve account on payment date _@$ 500,000 $_ $ 1,000,000 $_ I I D r a f t e n c l o s e d (Effectual delivery of enclosed d r a ft shall be on latest day which w ill permit presentm ent in order to obtain irrevocably collected funds on p a y m ent date) Delivery Instructions: □ Hold in Custody — General Account (Subscriber’s fu ll nam e or corporate title) □ Hold in Custody — Investment Ac count (Address) □ Hold in Custody — Trust Account □ Pledge to secure Treasury Tax and Loan Account By(Authorized official signature and title) (For the account of, if tender is for another subscriber) □ Other----------------------- (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 u ltiples o f $5,000 (m aturity v a lu 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 th e U nited States, w ith notation on the envelope reading “T E N D E R FOR T R E A S U R Y O F F E R IN G ”. Since en velopes received w ith this legend w ill not be opened until after the closing time specified in the public announcement, com m un i cations relatin g to other m atters should not be enclosed. Envelopes for subm itting tenders m ay be obtained from th is 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 th e tender and the sign ing of the form by an officer of the corporation w ill be construed as a representation by him t h a t he has been so authorized. I f 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.” 5. 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 T reasury bills applied for, or unless the tenders are accompanied by an express gu aran ty of fu ll paym ent b y an incorporated bank or tru st company. 6. If the langu age of this form is changed in any respect, which, in the opinion of the Secretary of the T rea su ry is m aterial, the tender m ay be disregarded. (See reverse for announcement)
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