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F ed er a l r e s e r v e Ba n k o f D a lla s
FISCAL AGENT OF THE UNITED STATES
DALLAS, TE X A S 7 5 2 2 2
O ctober 23, 1973
C ircular No. 73-271
N EW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llo w in g statem ent giving details o f tw o issues of Treasury bills:
T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to th e aggregate am ount
of $4,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing N ovem ber 1, 1973, in the am ount of
$4,301,340,000, as follows:
91-DAY B IL L S (to m atu rity d ate) to be issued Novem ber 1, 1973, in th e am ount of $2,500,000,000, or there
abouts, representing an additional am ount of bills dated A ugust 2, 1973, and to m ature Jan u ary 31, 1974
(C U S IP No. 912793 S W 7), originally issued in th e am ount of $1,700,980,000, the additional and original
bills to be freely interchangeable.
182-DAY B IL L S for $1,800,000,000, or thereabouts, to be dated N ovem ber 1, 1973, and to m ature M ay 2, 1974
(C U S IP No. 912793 T K 2 ).
T he bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and a t m aturity th e ir face am ount will be payable w ithout in te re s t 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 v alue).
T enders will be received a t Federal Reserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
Standard Tim e, M onday, O ctober 29, 1973. T enders will not be received a t th e T reasury D epartm ent, W ashington. Each
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 th e basis of 100, w ith not more th a n three decimals, e.g., 99.925. F ractions m ay not be
used. I t is urged th a t tenders be made on th e printed forms and forwarded in th e special envelopes which will be supplied by
Federal R eserve B anks or Branches on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided the nam es of the customers are
set forth in such tenders. O thers than 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 percent of th e face am ount of
T reasury bills applied for, unless the 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 Banks 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
subm itting com petitive tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of th e 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. Sub
ject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will
be accepted in full a t the average price (in three decim als) of accepted com petitive bids for the respective issues. S ettlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted a t th e F ederal R eserve B ank on N ovem ber 1, 1973,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Novem ber 1, 1973. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m aturing
bills accepted in exchange and the issue price of th e new bills.
U nder Sections 454 (b ) and 1221 (5 ) of th e Internal R evenue Code of 1954 th e am ount of discount a t which bills issued
hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and th e bills are excluded
from consideration as capital assets. Accordingly, th e owner of Treasury bills (o th er th an life insurance com panies) issued here
under m ust include in his income tax return, as ordinary gain or loss, the difference between 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
the taxable year for which the retu rn is made.
T reasury D epartm ent C ircular No. 418 (cu rren t revision) and this notice, prescribe th e term s of th e T reasury bills and
govern the conditions of th e ir issue. Copies of th e circular m ay be obtained from any Federal R eserve B ank or Branch.
In accordance w ith the a b 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 elv e-th irty p.m ., Central Standard Time, M o n d a y, October 29, 1973. Tenders
m ay not be entered by telephone.
Yours very truly,
P. E. C oldw ell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and A pproxim ate Yield of Accepted T enders
.
13-Week B ills
26-Week Bills
D ue Jan u ary 24, 1974
D ue A pril 25, 1974
$3,499,310,000______________________ _______ .T otal A pplied F o r__________ _______ ____________ $2,994,520,000
$2,500,120,000___________________ _____________T o tal A ccepted__________ _______ ______________ $1,800,135,000
Price
Y ield
P rice
Y ield
98.251.......
— 6.919% __ ______________________ H igh_______________ _______96.510______ ______6.903%
98.220........
7 .042% _________________ Low________________ _______ 96.461___________ 7.000%
98.241
............— 6.959% ( 1 ) ____________________Average_____________ ___-...... 96.486___ ___ ____ 6.951% (1 )
( 1 ) These ra te s a re on a b a n k discount basis. T h e equ iv alen t coupon issue yields are 7 .1 8 % foi' th e 13-w eek bills and 7 .3 0 % for
th e 26-w eek bills.
(S e e 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 TREASURY BILLS
182 DAYS TO MATURITY
Maturing May 2,1974
Dated November 1,1973
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The--------------------------------------- Branch
El Paso 79999
Houston 77001
San Antonio 78295
(D a te )
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 $200,000 or less from any bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
jl
-----------------------------_______________ ____
COMPETITIVE TENDERS <$-
I
$
t
Prices should be
exp ressed on the
basis of 100, with
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not b e used.
2 3 ^ TEN DERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
N um ber of
p ie ces
Payment for this issue of bills cannot .be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT
M atu rity V alue
(a), $
<d>, $
(a>. $
10,000 $
15,000 $
□
□
50,000 ¥
(a), $ 100,000 $
(al $ 500,000 $ -
@ $1 ,000,000 Su
Delivery Instructions:
By maturing bills
held by---------------------------------------------Payment to be made by-----------------------
□
Charge our reserve account on payment
date
|
[ D r a f t e n c l o s e d (E ffectual delivery' o f enclosed d ra ft
s h all be on la te st day w hich w ill p e rm it p re sen tm en t
in o rd er to o b tain irrevocably collected fu n d s on p ay
m en t date)
□
Hold in Custody — General Account
(S u b scrib er’s fu ll n am e o r c o rp o ra te title )
□
Hold in Custody — Investment Ac
count
(A ddress)
□
□
Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan Account
□
Other____________________________
By.
(A uthorized official s ig n a tu re a n d title )
(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 ddress)
IMPORTANT
1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust 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 is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.
(See reverse for announcement)
@FedFRASER