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F e d e r a l R e s er v e Ba n k o f D a lla s FISCAL AGENT OF THE UNITED STATES DALLAS, TEXAS 75 2 2 2 C ircular No. 73-292 N o v e m b er 13, 1973 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O th e rs C o n c e r n e d in t h e E leventh F e d e r a l R eserve 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 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 two series of T re a su ry bills to th e ag gregate a m o u n t of $4,300,000,000, or th ere ab 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 e m b er 23, 1973, in th e a m o u n t of $4,202,090,000, as follows: 90-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 23, 1973, in th e a m o u n t of $2,500,000,000, or th e re abouts, 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 A ugust 23, 1973, a n d to m a tu re F e b ru a ry 21, 1974 ( C U S I P No. 912793 S Z 0 ), o rig inally issued in th e a m o u n t of $1,801,540,000, th e ad d itio n al a n d original b ills to be freely in terch an geab le. 181-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 23, 1973, a n d to m a tu re M a y 23, 1974 (C U S I P No. 912793 T N 6 ) . 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 rov 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 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 received a t F e d e ra l R eserve 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 19, 1973. T e n d e rs will n ot be receiv ed 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 ov er $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, w 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 ay n o t be used. I t is u rg ed th a t ten d e rs be m ade on th e p rin te d form s a n d forw 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 serv e B a n k s or B ranch es on a p p lic atio n th erefo r. B a n k in g in stitu tio n s g en erally m ay su b m it ten d e rs for acco u nt of custom ers p ro v id ed th e n am es of th e custo m ers a re set fo rth in such tenders. O th ers th a n ban 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 ex cep t for th e ir own account. T e n d e rs will be receiv ed w ith o u t dep osit from in co rp o ra ted b a n k s and tr u s t com panies a n d from responsible a n d recognized dealers in in v estm 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 a n 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 tru s t com pany. Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill b e o pen ed a t th e F e d e ra l R e se rv e B an ks 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 by 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 will be ad vised of th e a ccep tan ce o r 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 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 je c t to these reservations, n o n co m p etitiv e ten d e rs for each issue for $200,000 or less w ith o u t sta te d price from a n y one b id d er will b e accepted in full a t th e av erage p rice (in th re e decim als) of accep ted co m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for acc ep te d ten d e rs in accordance w ith th e bid s m u st be m ad e or co m pleted a t th e F e d e ra l R eserve B a n k on N o v e m b er 23, 1973, in cash or o th er im m e d ia tely av ailable funds or in a lik e face a m o u n t of T re a su ry b ills m a tu rin g N o v em b er 23, 1973. Cash a n d exchange ten d e rs will receive eq ual 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 v alue of m a tu rin g bills a ccep ted in exchange a n d th e issue price 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 which 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, re d ee m e d or otherw ise disposed of, a n d th e bills a re excluded from c on sid eration as c ap ital assets. A ccordingly, th e ow ner of T rea su ry bills (o th e r th a n life in surance com p an ies) issued here u n d e r m u st include in his incom e tax retu rn , as o rd in ary gain or loss, th e difference betw een th e p rice p a id for th e bills, w h e th er on original issue or on su b sequ ent purchase, 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 em p tio n a t m a tu rity d urin 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 rev 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 nditions of th e ir issue. C opies of th e circu lar m ay be o b tain 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 th 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 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 19, 1973. T en 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 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 ccepted T e n d e rs 13-W eek B ills 26-W eek B ills D u e F e b ru a ry 14, 1974 D u e M a y 16, 1974 $4,044,235,000 .T o ta l A p p lied F o r _________________________________ $4,340,035,000 $2,500,335,000__________________________________ T o ta l_A c c ep ted ___________________________________ $1,800,440,000 P ric e Y ield P ric e Y ield 97.865 8 .4 4 6 % __________________________ H ig h ________________________ 95.772____________ 8.363% 97.810 8 .6 6 4 % ----------------------------------------- L ow ________________________ 95.749____________ 8 .409% 97.817 8 .636% ( 1 ) -------------------------------- A v erag e______________________ 95.763____________ 8 .381% ( 1 ) ( 1 ) T h ese rates are on a b ank d iscou nt basis. T h e eq u iv a le n t coupon issue yie ld s are 8 .9 5 % for th e 13-w eek b ills and 8 .8 7 % for th e 2 6 -w eek 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 TREASURY BILLS 181 DAYS TO MATURITY Maturing May 23, 1974 Dated November 23, 1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________ Branch E l P aso 79999 H ouston 77001 San A ntonio 78295 (D ate) P ursuan t to the provisions of T reasury Departm ent Circular No. 418 (current revision) and the provisions o f the public announcement issued by the T reasury D epartment, 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 full at the a verage price (in three decim als) of accepted com petitive bids. COMPETITIVE TENDERS ^ ^ $ $ (ri) $ (o) $ m> ^ S @ * - P rices should be e x p r e s s e d on t h e basis of 100, w ith not more than th ree decimal places, e.g., 9 9 .9 2 5 . F r a c t io n s m ust not be used. d S f 5 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 BY 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 . Denom inations D esired Number of pieces _@ $ -@ $ _@ $ P aym ent fo r this issue o f bills cannot be made by credit to Treasury T ax and Loan Account METHOD OF PAY M E N T M aturity V alue 10,000 $_ □ 15.000 $_ 50.000 $_ □ 1 0 0 ,0 0 0 $_ □ 500,000 $.@ $ 1 ,0 0 0 ,0 0 0 Charge our reserve account on payment date [ [ D r a f t e n c l o s e d (Effectual delivery o f enclosed dra ft shall be on latest day which will permit presentm ent in order to obtain irrevocably collected funds on pay m ent date) $_ 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---------------------. (Subscriber’s fu ll name or corporate title) (Address) By- (Authorized official signature and title) (For the account of, if tender is for another subscriber) (Address) IM PORTANT 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 forwarded in an envelope clearly addressed to this bank or appropriate branch as F iscal A gent o f th e 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, com m uni cations relating 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. If 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 ing 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 hanks and tru st companies or responsible and recognized dealers in in v e s t ment securities will 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 gu aranty of full paym ent by a n incorporated bank or tru st company. 6. If the lan gu age of this form is changed in any respect, which, in the opinion of the Secretary of the T reasu ry i s m aterial, the tender may be disregarded. (See reverse for announcement)
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