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F ederal R eserv e ba n k o f Dallas
DALLAS, TE X A S 7 5 2 2 2

Circular N o. 73-260
O ctober 11, 1973


To A ll Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the fo llo w ing statem ent giving details of an issue of Treasury bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 364-day T reasury
bills for cash and in exchange for T reasury bills m aturing October 23, 1973, in th e am ount of $1,802,480,000. T h e bills of this
series will be dated October 23, 1973, and will m ature October 22, 1974 (C U S IP No. 912793 T Y 2 ).
T he bills will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and a t
m aturity their face am ount will be payable w ithout interest. T hey will be issued in bearer form only, and in denom inations of
$10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity valu e).
T enders will be received a t F ederal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, W ednesday, O ctober 17, 1973. T enders will not be received a t the T reasury D epartm ent, W ashington.
E ach tender m ust be for a m inim um of $10,000. T enders over $10,000 m ust be in m ultiples of $5,000. In th e case of com petitive
tenders the price offered m ust be expressed on the basis of 100, w ith not more th an three decimals, e.g., 99.925. F ractions m ay not
be used. I t is urged th a t tenders be m ade on the p rinted forms and forwarded in th e special envelopes which will be supplied
by Federal R eserve B anks or B ranches on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided th e nam es of th e customers are
set forth in such tenders. O thers th an banking institutions will not be p erm itted to subm it tenders except for th e ir own account.
T enders will be received w ithout deposit from incorporated banks and tru st com panies and from responsible and recognized
dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 p ercent of th e face am ount of
T reasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately afte r th e closing hour, tenders will be opened a t the Federal R eserve B anks and Branches, following which
public announcem ent will be m ade by th e T reasury D epartm ent of th e am ount and price range of accepted bids. Only those sub­
m itting com petitive tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of the T reasury expressly
reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final.
Subject to these reservations, noncom petitive tenders for $200,000 or less w ithout stated price from any one bidder will be
accepted in full a t th e average price (in three decimals) of accepted com petitive bids. S ettlem ent for accepted tenders in accor­
dance w ith the bids m ust be m ade or com pleted a t the Federal Reserve B ank on O ctober 23, 1973, in cash or other im m ediately
available funds or in a like face am ount of T reasury bills m aturing October 23, 1973. Cash and exchange tenders will receive
equal treatm ent. Cash adjustm ents will be m ade for differences betw een th e p ar value of m aturing bills accepted in exchange
and the issue price of the new bills.
U nder Sections 454 (b ) and 1221 (5 ) of th e In tern al Revenue Code of 1954 the am ount of discount a t which bills issued
hereunder are sold is considered to accrue when th e bills are sold, redeem ed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner of T reasury bills (other th an life insurance com panies) issued here­
under m ust include in his income tax return, as ordinary gain or loss, th e difference betw een the price paid for th e bills, w hether
on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m atu rity during
th e taxable year for which th e retu rn is made.
T reasury D ep artm en t C ircular No. 418 (current revision) and this notice, prescribe th e term s of th e T reasury bills and
govern th e conditions of th e ir issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.
In accordance w ith the ab o ve announcem ent, tenders w ill be received a t this b a n k an d its branches a t El Paso,
Houston an d San Antonio up to tw e lve -th irty p.m ., Central D aylight Saving Time, W ed n esd ay, October 17, 1973.
Tenders m a y not be entered by telephone.

Yours very truly,
P. E. C oldw ell

(S e e reverse for tender form )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated October 23,1973

Maturing October 22,1974

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The__________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295


_ 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.

NONCOMPETITIVE TENDER $___________________________________ NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.





$___________________ (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.

Denominations Desired
N u m b er o f
P ieces

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account

M atu rity V alue

$ 50,000
$ 100,000
$ 500,000

(a) $
(a) $




Hold in Custody — General Account


Hold in C ustody----Investment Account


Hold in Custody — Trust Account

□ Pledge to secure Treasury Tax and
Loan Account

Charge our reserve account on payment

I I D r a f t e n c l o s e d (E ffectual delivery of enclosed d ra ft
sha11 be on la te st day w hich w ill p e rm it p re sen tm en t
jn o rd e r to o b ta in irrevocably collected fu n d s on paym e n t date)

" n a l i \ 70T*-i7 T n a t r n p t m n a •
J - 'c l l V c l,y x i i o i / l U C tiU IlB .


By maturing bills
held by__________
Payment to be made by_

(S u b sc rib e r’s fu ll nam e o r co rp o ra te title)
(A ddress)

(A uthorized official s ig n a tu re a n d titla)
(F o r th e acco u n t of, if te n d e r is fo r a n o th e r subscriber)


(A d d ra ss)

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
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 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.
6. If the language of this form i9 changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.

(See HTttM ft* announcement)

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102