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R eser ve Ba n k o f D allas

F IS C A L A G E N T O F T H E U N ITED S T A T E S

DALLAS, TEXAS 7 5 2 2 2
O cto b er 30, 1973
C ircu lar No. 73-279

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 R e serve 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 giving d e t a il s of tw o issu es of T re as u ry hills:
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 agg regate a m o u n t
of $4,300,000,000, or th ereab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g N o v em b er 8, 1973, in th e a m o u n t of
$4,303,280,000, as follow s:
91-D A Y B IL L S ( to m a tu rity d a te ) to b e issued N o v e m b er 8, 1973, in th e a m o u n t of $2,500,000,000, or th e r e ­
a b o uts, re p rese n tin g a n a d d itio n al a m o u n t of bills d a te d A ugust 9, 1973, a n d to m ajture F e b ru a ry 7, 1974
( C U S I P No. 912793 S X 5 ) , o rig inally issued in th e a m o u n t of $1,801,615,000, th e a d d itio n al a n d original
b ills to be fre ely interch an geab le.
182-D A Y B IL L S for $1,800,000,000, or th ere ab o u ts, to be d a te d N o v e m b er 8, 1973, a n d to m a tu re M a y 9, 1974
( C U S I P No. 912793 T L 0 ) .
T h e bills of bo th series will be issued on a d isco u nt basis u n d e r c o m p e titiv e a n d n o nco m p etitiv e bid d in g as h e re in a fte r
p ro vid 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 ab le w ith o u t in terest. T h e y will be issued in b e are r form only, a n d in
d e n o m in a tio 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 se rv 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
S ta n d a rd T im e , M o n day , N o v em b er 5, 1973. T e n d e rs will no 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 over $10,000 m u st be in m u ltip les of $5,000. In th e case of co m p e titiv e ten d e rs
th e price offered m u st be expressed on th e basis of 100, v/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 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 se rv e B an k s or B ran ch es o n a p p lic a tio n therefo r.
B a n k in g in stitu tio n s gen erally m ay su b m it te n d e rs fo r acco un t of cu stom ers p ro v id ed th e nam es of th e cu stom ers are
set fo rth in such ten ders. O thers 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 ten d e rs except for th e ir own account.
T e n d e rs will be receiv ed w ith o u t dep o sit from in co rp o rated b an ks and tr u s t com p anies 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 fro m o th ers m u st be a cco m p anied 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 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 en ed a t th e F e d e ra l R e serv 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 b e 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 price rang e of a ccep ted bids. O n ly those
s u b m ittin g c o m p e titiv e te n d e rs will be ad v ised 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 ten ders, in whole or in p a rt, a n d his action in a n y such re sp e ct shall be final. S u b ­
je c t to th ese reservatio ns, n o n c o m p e titiv 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 er will
be accep ted in full a t th e average p rice (in th re e d ecim als) of accep ted c o m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for
a ccep ted ten d e rs in accordance w ith th e bids m u st be m ad e or co m p leted a t th e F e d e ra l R eserv e B a n k on N o v e m b er 8, 1973,
in cash or o th e r im m e d ia tely av ailab le fu nd s or in a like face a m o u n t of T re a su ry bills m a tu rin g N o v em b er 8, 1973. Cash a n d
exchange ten d e rs will receive equal tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e for differences b etw een th e p a r valu e of m atu rin g
bills 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 In 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 bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re excluded
from c on sid eratio n 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 in su ran ce co m p an ies) issued h e re ­
u n d e r m u st include in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference betw een th e price p a id for th e bills, w h e th er
on original issue or on su b seq u en t p u rchase, 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 durin 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 re sc rib e th e term s of th e T re a su ry bills a n d
govern th e co n dition s of th e ir issue. C opies of th e circu lar m ay b e o b ta in e d from a n y F e d e ra l R eserv e B a n k or B ranch.

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 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 l v e - th ir ty p.m ., C e ntral S t a n d a r d Time, M o n d a y , N o v e m b e r 5, 1973. T e n d e rs m a y
not b e e n t e r e d b y t e l e p h o n e .
Yours v e r y truly,
P. E. C oldw e ll
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 ie ld of A ccep ted T e n d e rs
13-W eek B ills
26-W eek B ills
D u e J a u n a r y 31, 1974
D u e M a y 2, 1974
$3,938,200,000
.T o ta l A p p lied F o r _________________________________ $3,473,550,000
$2,500,470,000__________________________________ T o ta l A c c ep ted ___________________________________ $1,800,165,000
P ric e
Y ield
P ric e
Y ield
98.190
7 .1 6 0 % ___________________________ H ig h ________________________96.344_______ __lV„.7.232%
98.169
7 .2 4 4 % ___________________________ L ow ________________________ 96.317____________ 7.285%
98.181
7.196% ( 1 ) ---------------------------------A verag e______________________ 96.328_____________7.263% ( 1 )
( 1 ) T h e s e rates are on a b ank d iscou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 7 .4 3 % for th e 13-w eek b ills an d 7 .6 4 % for
th e 2 6 -w e e k 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
Dated August 9,1973

Maturing February 7,1974

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

Houston 77001

San Antonio 78295

(D ate)

P ursuan t to the provisions of Treasury D epartm ent Circular No. 418 (current revision) and the provisions o f the
public announcement issued by the Treasury Departm ent, the undersigned offers to purchase T reasury bills in the amount
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 full at the average
price (in three decim als) o f accepted com petitive bids.
^

$
$

(a)

COMPETITIVE TENDERS $ ...
%

$

r

(n)
Ca)

- .......-

-

@

■

-

%

$

Prices should be
e x p r e s s e d on th e
basis of 100, w ith
not more than three
decimal places, e.g.,
9 9 .9 2 5 . F r a c t io n s
m ust not be used.

265^ T E N D E R S M AY NOT B E 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 UR A R E A C C E P T A B L E .

Denominations Desired
Number of
pieces

P aym ent for this issu e o f bills cannot be made by
credit to Treasury T ax and Loan Account
METHOD OF PAY M E N T

M aturity Value

10,000

$
@$ 15,000 $
@ $ 50,000 $
@ $ 100,000 $
@$ 500,000 $
@ $ i ,0 00,000 $
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

1 | D r a f t e n c l o s e d (Effectual delivery o f enclosed draft
shall be on latest day which w ill permit presentm ent
in order to obtain irrevocably collected funds on pay­
m ent 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)

IMPORTANT
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 ultiples of
$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 gent of the
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 envelopes
received w ith this legend w ill not be opened until after the closing time specified in the public announcement, communi­
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 make the
tender and the signing of the form by an officer of the corporation w ill be construed as a representation by him th at 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 tru st companies or responsible and recognized dealers in in vest­
’ ment securities w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of fu ll paym ent by an
incorporated bank or tru st company.
6. If the lan guage of this form is changed in any respect, which, in the opinion of the Secretary of the T reasury is
m aterial, the tender m ay be disregarded.

(See reverse for announcement)

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