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F ederal r eser ve Bank o f Dallas FISCAL AGENT OF THE UNITED STATES D ALLAS. TEXAS 75 2 2 2 C ircu lar No. 73-312 D e c em b er 4, 1973 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 ra l R eserve District: Y our 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 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 ten d e rs for two series of T re a su ry bills to th e a gg 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 13, 1973, in th e a m o u n t of $4,292,305,000, as follows: 91-D A Y B IL L S (to m a tu rity d a te ) to be issued D e c em b er 13, 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 an ad d itio n al a m o u n t of bills d a te d S e p te m b e r 13, 1973, a n d to m a tu re M a rc h 14, 1974 ( C U S I P No. 912793 T C 0 ) , o rig inally issued in th e a m o u n t of $1,802,275,000, th e a d d itio n al a n d o riginal bills to be freely interch ang eable. 182-D A Y B IL L S fo r $1,800,000,000, or th ere ab o u ts to be d a te d D e c em b er 13, 1973, a n d to m a tu re J u n e 13, 1974 ( C U S IP No. 912793 T R 7 ) . T h e bills of b o th series will b e issued on a d iscount basis u n d e r c o m p e titiv e a n d n o 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 in terest. T h e y w ill be issued in b e a re r fo rm 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 b e received a t F e d e ra l R eserv e B a n k s a n d B ranches u p to th e closing h our, 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 10, 1973. T e n d e rs w ill n ot b e 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 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 urged 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 arded in th e special envelopes w hich w ill be su p p lied b y F e d e r a l R eserv e B an k s or B ran ch es on a p p lic atio n th erefo r. B a n k in g in stitu tio n s generally m a y su b m it te n d e rs for accou n t of cu stom ers p ro v id ed th e nam es of th e custo m ers are se t fo rth in such ten ders. O th ers th a n b a n k ing 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 w ill be receiv ed w ith o u t d ep o sit from in co rp o ra ted b an k s and tr u s t com panies a n d from responsible a n d recognized d e ale rs in in v estm e n t securities. T en d e rs from o thers m u st be acco 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 ten 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 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 fte r th e closing hour, te n d e rs will b e o p en ed a t th e F e d e ra l R e se rv e B an 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 w ill be 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 p rice ran ge of a cc ep te d bids. O nly those s u b m ittin g c o m p e titiv e ten d e rs w ill be ad v 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 tenders, 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 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 fro m a n y one b id d e r will b e a ccep ted in full a t th e average price (in th re e decim als) of a ccep 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 cc ep te d 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 e serv e B a n k on D e c em b er 13, 1973, in cash or o th er im m e d ia tely av ailab le funds or 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 13, 1973. C ash 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 will be m ad e for differences b etw een th e p a r valu e of m a tu rin g b ills acc ep te d in exchange a n d th e issue price 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 e n u e Code 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 hen th e b ills are sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re excluded fro m co nsid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T rea su ry bills (o th e r th a n life in su ran ce c o m p an ies) issued h ere u n d e r m u st in clude in his incom e tax re tu 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 o n 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 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 ircular No. 418 (c u rre n t rev isio n ) a n d this notice, p rescribe th e te rm s o f th e T re a su ry bills a n d g overn th e conditions of th e ir issue. C opies of th e circu lar m ay be o b ta in e d from a ny F e d e ra l R e serv 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 r e 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 nto n io up to tw e lv e - th ir ty p.m ., C e n tral S t a n d a r d Time, M o n d a y , D e c e m b e r 10, 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 very t u y rl, P. E. Cold w ell P re sid en t Figures co n cern in g offering o f 9 1 -D ay Treasury Bills maturing Mar ch 7, 1 9 7 4 a n d 1 8 2 -D a y Treasury Bills maturing Ju n e 6, 1974, not a v a i la b l e w h en this circular w a s printe d. (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 13,1973 Maturing March 14,1974 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 ursuant to the provisions o f T reasury D epartm ent Circular No. 418 (current revision) and the provisions o f th e public announcement issued by the T reasury Departm ent, the undersigned offers to purchase T reasury 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 a t 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) o f accepted com petitive bids. ^ q. $ fn) s i $ ' $ T fn) V i' fn) O $ $ COMPETITIVE TENDERS @ $ ... P rices should be e x p r e s s e d on t h e basis of 100, w ith not more th an th ree decimal places, e.g., 9 9 .9 2 5 . F r a c t i o n s m ust not be used. 2 ® ^ T E N D E R S MAY 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 . D enom inations D esired Number of pieces Paym ent for this issue o f bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PAY M ENT M aturity Value @$ @$ @$ 10,000 15,000 50,000 @ $ 100,000 @$ 500,000 @ $ i ,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--------------------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 draft shall be on latest day which w ill permit presentm ent in order to obtain irrevocably collected funds on p ay 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 gen t 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 tim e specified in the public announcement, com m uni 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 m akes the tender, th e form should be signed by an officer of the corporation authorized to make th e tender and the sign in g 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 o f the firm, w ho 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 v e s t ment securities w ill be disregarded, unless accompanied by a deposit of 2 percent o f the total amount (m atu rity v a lu 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. I f the lan guage o f this form is changed in any respect, which, in the opinion of the Secretary o f the T reasu ry i s m aterial, the tender m ay be disregarded. (See reverse for announcement)
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