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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
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 ctob er 30, 1973
C ircu lar No. 73-280

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O thers C o n c e r n e d
in th e E leventh F e d e r a l R eserve District:
Y o ur a t te n t io n is in v ited to th e f o llo w in g s t a t e m e n t giving d e t a il s of tw o issues of T re as 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 ten d e rs for tw o series of T re a su ry bills to th e ag g 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 be issued N o v em b er 8, 1973, in th e a m o u n t of $2,500,000,000, o r th e re ­
abouts, 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 a tu re F e b ru a ry 7, 1974
(C U S I P No. 912793 S X 5 ) , o rigin ally issued in th e a m o u n t of $1,801,615,000, th e ad d itio n al a n d original
b ills to be freely interchang eab le.
182-D A Y B IL L S for $1,800,000,000, or th ere ab o u ts, to b e 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 b o th series w ill be issued on a discou n t basis u n d e r c o m p e titiv e a n d no n co m p etitiv e b id d in g as h e re in a fte r
p ro v id ed, a n d a t m a tu rity th e ir face a m o u n t will be p a y ab le w ith o u t interest. T h e y will be issued in b e are r form only, a n d in
den 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 rity v a lu e ).
T e n d e rs w ill be received 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
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 not 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 les of $5,000. In th e case of co m p etitiv 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 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 be m ad e on th e p rin te d form s a n d forw ard ed in th e special envelopes w hich will be su p p lied b y
F e d e ra l R e se rv e B a n k s or B ranch es on a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs for acco un t of custom ers p ro v id ed th e nam es of th e custom ers are
set fo rth in such ten ders. O th ers th a n ban k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it ten d e rs except for th e ir ow n account.
T e n d e rs will be received w ith o u t d e p o sit fro m in co rp o ra ted b an k s and tr u s t co m pan ies 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 from o th ers m u st be acco m p an 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 a re acco m p an ied b y an express g u a ran ty of p a y m e n t by 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 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 eserv e B an k s a n d B ranches, follow ing w hich
p u b lic an n o u n ce m en t will be m ade 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 ran g e of a ccep ted bids. O nly those
su b m ittin g c o m p e titiv e ten d e rs w ill be adv ised of th e accep tan ce or 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 cc ep t or re je c t a n y or all ten ders, in w hole or 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 ­
jec t to these reservations, no n co m p etitiv e ten d e rs for each issue fo r $200,000 or less w ith o u t sta te d price from a n y one b id d er will
be accepted 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 respective issues. S e ttle m e n t for
a cc ep te d te n d e rs in accordance w ith th e bid s m u st b e 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 ailable funds 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. Cash a d ju s tm e n ts w ill be m ad e for differences b etw een th e p a r value 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 S ections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e Code of 1954 th e a m o u n t of discount a t w hich b ills issued
h e re u n d e r are sold is considered to accrue w hen th e bills a re sold, red eem ed or otherw ise disposed of, a n d th e bills are excluded
from c o n 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 ere­
u n d e r m u st in clu de in his incom e tax 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 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 d u rin g
th e tax a b le y e ar 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 re v isio n ) a n d th is notice, p rescrib e th e term s of th e T re a su ry bills a n d
govern th e co nd itio n s of th e ir issue. C opies of th e circular m ay b e o b ta in e d from a n y F e d e ra l R eserve B a n k or B ran ch .

In a c c o r d a n c e w ith th e a b o v e a n n o u n c e m e n t , te 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 San A n to n io u p to tw e l v e - th ir ty p.m ., C entral 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 en d e rs m a y
not b e e n t e r e d b y te l e p h o n e .
Y ours v e r y truly,
P. E. C oldw ell
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 ield 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 ie ld
P ric e
Y ield
98.190
7 .1 6 0 % ----------------------------------------- H ig h _______________________ 96.344____________ 7.232%
98.169
7 .2 4 4 % ___________________________ Low ________________________ 96.317____________ 7.285%
98.181
7.196% ( 1 ) -------------------------------- A v erag e ______________________ 96.328____________ 7.263% ( 1 )
( 1 ) T h e s e rates are on a bank 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 eek bills.

This publication was digitized and made available (See reverse forReserve form) of Dallas' Historical Library (FedHistory@dal.frb.org)
by the Federal tender Bank

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Dated November 8,1973

Maturing May 9, 1974

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

Houston 77001

San Antonio 78295

(Date)

P ursu an 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 T reasury Departm ent, the undersigned offers to purchase T reasury 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

N oncom petitive tenders for $200,000 or less from any bidder, without stated price, w ill be accepted in fu ll at the average
price (in three decim als) of accepted com petitive bids.

COMPETITIVE TENDERS

,$
$
T
1$
”

i

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 tio n s
m ust not be used.

$
O
fn) ----

—

$
$
$

B S P 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
CLO SING HO 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 T reasury T ax and Loan Account
METHOD OF P A Y M E N T

M aturity V alue

_@ $

1 0 ,0 0 0 $_

□

_@$
j@ $

15,000 $_
50,000 $_

□

_@ $

1 0 0 ,0 0 0 $_

□

Charge our reserve account on payment
date
| | Draft enclosed (Effectual delivery o f enclosed draft

_@$ 500,000 $_
_@ $ 1 ,0 0 0 ,0 0 0 $_

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---------------------

shall be on latest day which will 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. No 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 o f
$5,000 (m aturity v a lu e).
2. Tenders should be forw arded 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 tim e specified in the public announcement, communi­
cations relating to other m atters should not be enclosed. Envelopes for subm itting tenders may be obtained from th is
bank or appropriate branch.
3. A ny qualified or conditional tender w ill 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 sig n in g of the form by an officer of the corporation will be construed as a representation by him th at he
has been so authorized. I f 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 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 language 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