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F ederal 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. 73-262 October 12,1973 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 th e E leventh F e d e r a l R e serv e District: Y our a t te n t io n is in v 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 t w o iss u es of T re a s 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 te n d e rs for two series of T re a su ry b ills to th e ag g reg ate a m o u n t o f $4,300,000,000, o r th ere ab o u ts, fo r cash a n d in exchange fo r T re a su ry bills m a tu rin g O cto b er 25, 1973, in th e a m o u n t of $4,300,790,000, 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 b er 25, 1973, in th e a m o u n t of $2,500,000,000, or th e re ab ou ts, re p rese n tin g a n a d d itio n a l a m o u n t of bills d a te d J u ly 26, 1973, a n d to m a tu re J a n u a r y 24, 1974 ( C U S I P No. 912793 S V 9 ), o rigin ally issued in th e a m o u n t of $1,701,950,000, th e a d d itio n a l a n d o riginal bills to be fre ely in terch an geab le. 182-D A Y B IL L S fo r $1,800,000,000, o r th ere ab o u ts, to b e d a te d O cto b er 25, 1973, a n d to m a tu re A p ril 25, 1974 ( C U S I P No. 912793 T J 5 ) . T h e b ills of b o th series w ill b e issued on a d iscou n 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 b id d in g as h e re in a fte r p ro vided , 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 ab le w ith o u t in terest. T h e y w ill be issued in b e are r fo rm 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 will be receiv ed 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 avin g T im e , F rid a y , O cto b er 19, 1973. T e n d e rs will n o t b e 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 ov er $10,000 m u st be in m u ltip le s of $5,000. I n 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 o re 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 t h a t te n d e rs b e m ad e on th e p rin te d form s a n d fo rw ard ed in th e special en velo p es 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 ra n ch e s o n a p p lic atio n therefor. B a n k in g in stitu tio n s gen erally m a y su b m it te n d e rs for acco u nt of custom ers p ro v id ed th e n am es of th e cu stom ers a re se t fo rth in such ten ders. O th ers th a n b a n k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it te n d e rs ex cep t fo r th e ir ow n account. T e n d e rs w ill 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 co m p anies a n d from resp o nsib le a n d recognized d e ale rs in in v e stm e n t securities. T e n d e rs fro m o th ers m u st be accom pan 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 bills a p p lie d for, unless th e te n d e rs are acco m p an ied b y an 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 f te r th e closing hour, te n d e rs w ill b e o p e n ed 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 ge 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 w ill 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 c c e p t or re je c t a n y o r all tend ers, in whole or in p a rt, a n d his a ctio n in a n y such re sp e ct shall b e final. S u b je c t to th ese reservations, no n c o m p e titiv e ten d e rs for each issue fo r $200,000 or less w ith o u t sta te d p rice fro m a n y one b id d e r will b e acc ep te d in full a t th e av erag e price ( in th re e d ecim als) of acc ep te d c o m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for ac c e p te d te n d e rs in accordance w ith th e bid s m u st b e m ad e o r co m p le te d a t th e F e d e ra l R e se rv e B a n k on O cto b er 25, 1973, in cash or o th e r im m e d ia tely av ailab le fu n d s o r in a lik e face a m o u n t of T re a su ry b ills m a tu rin g O cto b er 25, 1973. C ash a n d exchange ten d e rs will receive e q u al tre a tm e n t. Cash a d ju s tm e n ts w ill be m ad e fo r differences b e tw ee n th e p a r va 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 Sections 454 ( b ) a n d 1221 ( 5 ) of th e I n te rn a l R e v en u e C ode 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 b ills a re sold, re d ee m e d or otherw ise disposed of, a n d th e b ills a re excluded from c o n sid eration as cap ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insurance c o m p an ies) issued h e re u n d e r m u st in clu de in his incom e ta x re tu rn , as o rd in a ry 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 o riginal issue o r on su b seq u e n t pu rch 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 urin 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 s u ry D e p a rtm e n t C ircu lar No. 418 (c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e te rm s of th e T re a su ry b ills a n d govern th e con d itio ns of th e ir issue. C opies of th e c ircu lar m a y 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 o r B ran ch . In a c c o r d a n c e w ith t h 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 aso, H ouston a n d S a n A n to n io u p to tw e l v e - th ir ty p .m ., C e ntral D a y lig h t S av in g Time, Friday, O c to b e r 19, 1 973. T e n d e rs m a y n o t b e e n t e r e d b y te l e p h o n e . Yours v e r y truly, P. E. C old w e ll P re sid e n t Figures c o n c e rn in g off ering o f 9 1 -D ay Treasury Bills maturing J a n u a r y 17, 1 9 7 4 a n d 1 8 2 - D a y Treasury Bills matu ri ng April 18, 1 9 7 4 , n ot a v a i l a b l e w h en this circular w a s printe d. (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 24,1974 Dated July 26,1973 To: Federal Reserve Bank, Station E, Dallas, Texas 75222 or — The_______________________ Branch E l Paso 79999 Houston 77001 San A ntonio 78295 (D ate) P u rsuan t to the provisions o f T reasury D epartm ent Circular No. 418 (current revision) and the provisions o f th e public announcement issued by the T reasury Departm ent, the undersigned offers to purchase T reasury bills in the am ount 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 N oncom petitive tenders for $200,000 or less from any bidder, without stated price, w ill be accepted in fu ll at the averag e price (in three decim als) of accepted com petitive bids. PLEASE OBSERVE CLOSING DATE — FRIDAY, OCTOBER 19, 1973 ^ 1* IT COMPETITIVE TENDERS $ 1 $ $ ........ (ft) O " " @ @ @ T $ $ T $ P rices should be e x p r e s s e d on t h e b asis of 100, w ith not more th an th ree decimal places, e.g., 9 9 .9 2 5 . F r a c t i o n s m u st not be used. EST’ T E N D E R S M AY 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 B Y W IR E , IF R E C E IV E D B E F O R E T H E CLOSING H O U R A R E A C C E P T A B L E . D enom inations D esired Number of pieces P aym ent for this issue of bills cannot be made by credit to Treasury T ax and Loan Account METHOD OF PA Y M ENT M aturity V alue 10,000 ? 15,000 ? @$ 50,000 $ @ $ 100,000 $ @ $ 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 Draft enclosed (Effectual delivery o f enclosed d ra ft shall be on latest day which w ill permit p resentm ent in order to obtain irrevocably collected funds on p a y ment 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 PORTANT 1. N o 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 of $5,000 (m atu rity v a lu e). 2. Tenders should be forw arded in an envelope clearly addressed to th is 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 FO R T R E A S U R Y O F F E R IN G ”. Since envelopes received w ith th is legend w ill not be opened u ntil a fter the closing tim e specified in the public announcement, com m uni 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 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 sign in g 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. 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 ment 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 guaranty of fu ll paym ent b y an incorporated bank or tru st company. 6. I f the lan guage o f this form is changed in any respect, which, in the opinion of the S ecretary of the T rea su ry is m aterial, the tender m ay be disregarded. (See reverse for announcement)
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