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F ederal Reserve b a n k of Dallas F I S 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 75222 C ircu la r N o. 73-251 S e p te m b e r 28, 1973 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned PLEASE OBSERVE CLOSING DATE — W EDNESDAY, OCTOBER 3, 1 9 7 3 in the Eleventh Federal Reserve District: Your attention is invited to the fo llo w in g state m e n t giving d etails of an issue of Treasury 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 tenders for $1,800,000,000, o r th ere ab o u ts, of 294-day T re a su ry bills, to be issued on a discount 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 provided. T h e bills of th is series will be d a te d O c to b er 9, 1973, a n d w ill m a tu re J u ly 30, 1974 (C U S IP No. 912793 U B 0 ) w hen th e face a m o u n t will be p a y ab le w ith o u t interest. T h e y w ill be issued in b e a re r form only, a n d in d e n om inations of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu rity v a lu e ). T e n d e rs will be received a t F e d e ra l R e se rv e B anks 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 Saving tim e, W ednesday, O c to b er 3, 1973. T e n d e rs will n o t be received 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 le s of $5,000. In th e case of c o 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 a y n o t be used. I t is u rged t h a t ten d e rs be m ad e on th e p rin te d form s a n d fo rw arded in th e special envelopes w hich w ill b e su p p lied b y F e d e ra l R e se rv e B a n k s o r B ran ch es on a p p lic a tio n therefor. B a n k in g in stitu tio n s generally m a y su b m it ten d e rs for a cc o u n t of custom ers p ro v id ed th e n a m e s of th e custom ers are se t fo rth in such tenders. 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 e xcept for th e ir own account. T e n d e rs will be received w ith o u t d e p o sit from in co rp o ra ted b a n k s a n d tru s t com panies a n d from responsible a n d recognized dealers in in v e s tm e n t securities. T e n d e rs from o th ers m u st b e accom panied 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 a ccom panied b y a n express g u a ra n ty of p a y m e n t b y a n in co rp o ra ted b a n k or tru s t com pany. All b id d ers a re re q u ire d to ag ree n o t to p u rc h ase or to sell, or to m ak e a n y a g ree m e n ts w ith re sp e ct to th e p u rc h ase or sale o r o th e r disposition of a n y bills of th is issue a t a specific r a te o r price, u n til a fte r o n e -th irty p.m., E a s te rn D a y lig h t S aving tim e, W ednesday, O c to b er 3, 1973. Im m e d ia te ly a fte r th e closing hour, ten d e rs w ill b e o p en ed a t th e F e d e ra l R e se rv e B an k s a n d B ranches, follow ing w hich pu b lic a n n o u n c e m e n t w ill be m a d e b y th e T re a s u ry D e p a rtm e n t of th e a m o u n t a n d price range of a cc ep te d bids. O nly those su b m ittin g co m p e titiv e te n d e rs w ill b e advised of th e a cc ep ta n ce or rejectio n thereof. T h e S e c re ta ry of th e T re a su ry expressly reserves th e rig h t to a c c e p t or re je c t a n y or all ten d ers, in w hole o r 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 th ese reservations, n o n c o m p e titiv e te n d e rs 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 a cc ep te d in full a t th e a verage p rice ( in th re e d ecim als) of acc ep te d c o m p e titiv e bids. S e ttle m e n t for acc ep te d te n d e rs in accor dance w ith th e bids m u st be m ad e or co m p le te d a t th e F e d e ra l R eserve B a n k in cash or o th er im m e d ia tely a v ailab le fun d s on O ctober 9, 1973. A ny qualified d e p o sita ry w ill be p e rm itte d to m a k e se ttle m e n t b y c re d it in its T re a su ry tax a n d loan a ccount for n o t m ore th a n 50 p e r c e n t of th e a m o u n t of T re a s u ry bills a llo tte d to it for itself a n d its custom ers. U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e Code of 1954 th e a m o u n t of d iscount a t w hich bills issued h e re u n d e r a re sold is considered to accrue w h en th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills are excluded from con 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 insurance co m p an ies) issued h e re u n d e r m u st include in his incom e ta x 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 e r on original issue or on su b seq u e n t purchase, and th e a m o u n t a c tu 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 ar for w hich th e re tu r n is m ade. T re a s u ry D e p a rtm e n t C ircu la r No. 418 ( c u rre n t re v isio n ) a n d th is notice, pre sc rib e th e te rm s of th e T re a su ry bills an d govern th e conditions of th e ir issue. Copies of th e c ircular m a y 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 accord ance with the a b o v e a n n o u n c em en t, tenders will b e received at this b an k an d its branches a t El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Savin g Time, W e d n e s d a y , October 3, 1973. Tenders m a y not b e entered b y te le p h o n e . Yours very truly, P. E. Coldwell President (See re e s f r tender form) vre o This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 294 DAYS TO MATURITY Maturing J l 3 ,1 7 uy 0 94 Dated October 9,1973 To: Federal Reserve Bank, Station E , Dallas, Texas 75222 or — The____________________________ Branch E l Paso 79999 H ouston 77001 San Antonio 78295 (D ata) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the public announcement issued by the Treasury Department, 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. _NOT TO EXCEED $200,000 PLEASE OBSERVE CLOSING DATE — WEDNESDAY, OCTOBER 3, 1973 NONCOMPETITIVE TENDER $ Noncom petitive tenders for $200,000 or le ss from any one bidder, w ithout stated price, will be accepted in full at the average price (in three decim als) o f accepted com petitive bids. $ (a) COMPETITIVE TENDERS $ (a) $ (a) $ $ $ $ $ Prices should be exp ressed on the b a sis of 100, w ith not more than three decimal places, e.g., 99.925. F raction s must not be used. ...... (E X T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. METHOD OF PAYMENT Denom inations Desired N u m b er of Pieces □ M atu rity V alue <® ? (fib $ (3) $ <® $ (3) $ (fib 10,000 15,000 50,000 100,000 500,000 ,000,000 $$$- □ By charge to our Treasury Tax and Loan Account not to exceed 50% of cost of bills allotted (indicate below remaining payment) Payment to be made by--------------------- * $- □ D r a f t e n c l o s e d (E ffectual delivery o f enclosed d r a f t sh all be on la te st day w hich w ill p e rm it p re s e n tm e n t in o rd e r to o b ta in irrevocably collected fu n d s on pa y m e n t d ate) Delivery Instructions: □ Hold in Custody — General Account □ Hold in Custody — Investment Ac count □ Charge our reserve account on payment date Hold in Custody — Trust Account □ Pledge to secure Treasury Tax and Loan Account □ (S u b sc rib e r’s fu ll nam e o r c o rp o ra te title ) (Address) By- Other------------------------------------------- (A u tho rized official s ig n a tu re a n d title) (F o r th e a cco un t of, if te n d e r is fo r a n o th e r su bscrib er) (A ddress) IM PORTANT 1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiples of $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes received with this legend will not be opened until after the closing time specified in the public announcement, communi cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank or appropriate branch. 3. Any qualified or conditional tender will be rejected. 4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the tender and the signing of the form by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who .................................................. ........, a copartnership, by.............................. -.....................-............. ............ , should sign in the form a member of the firm”. 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by 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 Treasury is m aterial, the tender may be disregarded. (See reverse for announcement)
@FedFRASER