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F ed e r a l R es er v e Ba n k o f D a lla s F ISCAL AGENT OF THE UNITED STATES D ALLAS. TEXAS 7 5 2 2 2 C ircu la r N o. 73-305 N o v e m b er 27, 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 e serv e District: Y our a t te n t io n is in v ite d to th e fo llo w in g s t a t e m e n t giv ing d e t a il s of tw 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 of $4 300,000,000, or th ere ab o u ts, for cash a n d in exchange fo r T re a su ry bills m a tu rin g D e c em b er 6, 1973, in th e a m o u n t of $4,309,715,000, as follow s: 91-D A Y B IL L S ( to m a tu rity d a te ) to b e issued D e c em b er 6, 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 al a m o u n t of bills d a te d S e p te m b e r 6, 1973, a n d to m a tu re M a rc h 7, 1974 ( C U S I P No. 912793 T B 2 ) , orig in ally issued in th e a m o u n t of $1,808,500,000, th e a d d itio n al a n d original b ills to be freely in terch an g eable. 182-D A Y B IL L S for $1,800,000,000, or th e re a b o u ts to b e d a te d D e c em b er 6, 1973, a n d to m a tu re J u n e 6, 1974 (C U S I P No. 912793 T Q 9 ) . T h e bills of b o th series will be issued on a disco 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 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 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 a re 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 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 S ta n d a rd T im e , M o nd ay, D e c em b er 3, 1973. T e n d e rs w ill n o t be 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. I n 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 ore th a n th ree decim als, e.g., 99.925. F ra c tio n s m ay n o t be used. I t is u rged th 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 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 ran ch es o n a p p lic atio n therefo r. B a n k in g in stitu tio n s g en 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 tend ers. O th ers th a n b a n k ing in stitu tio n s will no 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 w ill be received w ith o u t dep o sit from in co rp o ra ted b ank s and tru s t co m 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 from 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 ten d e rs are a cco m p anied by a n 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 t r u 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 p e n ed a t th e F e d e ra l R e serv e B an k s a n d B ran ch es, follow ing w hich p u b lic a n n o u n ce m en t will be m ad e 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 range of a ccep ted bids. O nly those su b m ittin g c o m p e titiv e te n d e rs will be adv ised of th e a cc 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 c t a n y or all tend ers, in w hole 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 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 p rice from 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 p rice (in th ree d ecim als) of accepted c o m p e titiv e bids for th e respective issues. S e ttle m e n t for acc ep te d ten d e rs in accordance w ith th e bids m u st be m ad e or com p leted a t th e F e d e ra l R eserv e B a n k on D e c em b er 6, 1973, in cash or o th e r im m e d ia tely av ailab le fun d s o r in a like face a m o u n t of T re a su ry bills m a tu rin g D e c em b er 6, 1973. C ash a n d exchange ten d e rs w ill receive eq ual 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 v alue of m a tu rin g bills a cc 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 Code of 1954 th e a m o u n t of d iscount a t w hich b ills issued h e re u n d e r are sold is considered to accru e w hen th e bills are sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re excluded fro m c o nsid 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 here 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 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 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 e m p tio n a t m a tu rity d u rin g th e tax a b le y ear 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 b ills a n d govern th e co nd itio n s 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 up to tw e lv e - th ir ty p .m ., C entral S t a n d a r d Time, M o n d a y , D e c e m b e r 3, 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 . Y ours v e r y truly, P. E. Coldw ell P re sid e n t LAST PREVIOUS OFFERING OF TREASURY BILLS A m o u nt, 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 F e b ru a ry 28, 1974 D u e M a y 30, 1974 $4,426,160,000 -T otal A p p lied F o r_________________________________ $3,617,715,000 $2,500,340,000__________________________________ T o ta l A c c ep ted___________________________________$1,800,015,000 P ric e Y ield P ric e Y ield 98.068_____________ 7 .6 4 3 % ___________________________ H ig h _______________________ 9 6.148____________ 7.619% 98.053_____________ 7 .7 0 2 % ------------------------------------------L ow _______________________ 9 6.106____________ 7.702% 9 8.055_____________ 7.695% ( 1 ) _____________________ A v erag e ______________________96.118____________ 7.679% ( 1 ) ( 1 ) T h ese rates are on a b ank d iscount basis. T h e eq u iv a le n t coupon issue yie ld s are 7 .9 6 % for th e 13-w eek b ills and 8 .1 0 % 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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated September 6,1973 Maturing March 7, 1974 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) Pu rsuan t to the provisions o f T reasury 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 'Treasury bills in the am ount 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 $200,000 or less from any bidder, without stated price, w ill be accepted in full at the average price (in three decim als) of accepted com petitive bids. * i$„ . COMPETITIVE TENDERS $ !$ t ? m @ (ri) @ @ * $ $I $ V--■ * — -- " ..- — ---- 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. figgr* T E N D E R S MAY 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 HO UR A R E A C C E P T A B L E . Denom inations D esired Number of pieces P aym ent for this issue of bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PA Y M E N T M aturity Value 10,000 $_ 15.000 $_ 50.000 $_ 1 0 0 ,0 0 0 □ □ $_ □ $ 500,000 $_ Charge our reserve account on payment date I I 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 will permit presentm ent in order to obtain irrevocably collected funds on pay m ent date) $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--------------------- (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 he 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 forw arded in an envelope clearly addressed to this bank or appropriate branch as F iscal A gen t o f 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 a fter 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. If a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to make the ’ 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, who --------------------------------------- , a copartnership, by---------------------------------------------------------------------- , should sign in the form 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 est ’ ment securities w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m atu rity valu e) of the T reasury 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 gu age of this form is changed in any respect, which, in the opinion of the Secretary of the T reasury is m aterial, the tender may be disregarded. (See reverse for announcement)
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