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F ederal reserve b a n k o f Dallas FISCAL AGENT OF THE UNITED STATES DALLAS, TEXAS 75222 C ircular No. 73-313 D e c em b er 4 ,1 9 7 3 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 Eleventh F e d e r a l R e serv e 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 giv ing d e t a il s of t w o iss u es 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 agg 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 for 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 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 13, 1973, in th e a m o u n t of $2,500,000,000, or th e re abouts, re p re se n tin g a n 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 ) , orig 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 original b ills to be freely interch an geab le. 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 Ju n e 13, 1974 ( C U S IP No. 912793 T R 7 ) . T h e b ills of bo th series will be 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 rity v a lu e ). T e n d e rs w ill b e receiv ed 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 hour, o n e -th irty p.m ., E a s te rn S ta n d a rd T im e , M on d ay , D e c em b er 10, 1973. T e n d e rs will n ot 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 e titiv 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 b e used. I t is u rg ed th a t te n 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 by F e d e ra l R e serv e B a n k s or B ran ches 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 accou n t of custom ers p ro v id ed th e nam es of th e cu sto m ers a re set fo rth in such tend ers. O th e rs th a n b a n 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 ex cep t for th e ir ow n account. T e n d e rs will be received w ith o u t d ep o sit from in co rp o rated b an ks and tr u s t com panies a n d fro m respo n sible a n d recognized d ealers in in v estm e n t securities. T e n d e rs from o th ers m u st be a cco 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 a ccom panied by 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 t r u s t com pany. Im m e d ia te ly a fte r th e closing hour, ten d e rs will be o p en ed a t the F e d e ra l R eserve B an k s a n d B ran ch es, follow ing which 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 rang e of acc ep te d bids. O nly those su b m ittin g c o m p e titiv e te n d e rs will be ad v ised of th e a ccep tan ce or rejection th ereof. 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 a ll tend ers, in whole 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 th ese reservations, n o 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 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 d ecim als) of a ccep ted co 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 te n 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 D e c em b er 13, 1973, in cash or o th e r im m e d ia tely av ailab le fu nd s or in a lik e 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. C ash a d ju s tm e n ts will be m ad e for differences betw een th e p a r v alue of m a tu rin g b ills 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 e n u e Code of 1954 th e a m o u n t of discount a t w hich bills issued h e re u n d e r are sold is co nsidered to accrue w hen th e b ills are sold, red eem ed or otherw ise disposed of, a n d th e bills a re excluded fro m co n sid eratio n as c a p ita l 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 c o m p an ies) issued h e re u n d e r m u st in clude in his incom e ta x re tu rn , as o rd in ary gain or loss, th e difference b e tw ee n th e price p a id fo r th e bills, w h e th er on origin al issue or on su b seq u e n t pu rch ase, a n d th e a m o u n t a ctu a lly received e ith e r up o n sale or re d e m p tio n a t m a tu rity d urin 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 rescrib e th e te rm s of th e T re a su ry bills a n d g overn th e con d itio ns of th e ir issue. C opies of th e circu lar m ay be o b ta in e d from a n y 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 t h 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 S an 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 , D e c e m b e r 10, 1973. T en de 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. Cold w ell P re sid e n t Figures c o n cern in g offering o f 9 1 -D ay Treasury Bills ma turing M ar 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 e n this circular w a s printe d. (S ee 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 182 DAYS TO MATURITY Dated December 13,1973 Maturing June 13,1974 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________JBranch E l Paso 79999 Houston 77001 San A ntonio 78295 (D ate) P ursuant to the provisions o f 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 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 $__________________________________ JNOT 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. ^ ^ ------ $ $t _________ $• ..... _ ..... <2? .......... fn) ...... ... ' ------- $ $I $ @ $ $ ......... COMPETITIVE TENDERS “ --- --- - ...... ... 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., 99 .9 2 5 . F r a c t i o n s m ust not be used. 237° 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 BY 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 . D enom inations Desired Number of pieces P aym ent for this issue of bills cannot be made by credit to Treasury T ax and Loan Account M aturity V alue METHOD OF PAY M E N T 10,000 $_ 15.000 $_ 50.000 $_ 1 0 0 ,0 0 0 □ □ $_ □ 500,000 $_ □ _@ $ 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--------------------Charge our reserve account on payment date Draft enclosed (Effectual delivery erf 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 fo r an amount in m ultiples o f $5,000 (m atu rity v a lu e). 2. Tenders should be forwarded 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 th is 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. E nvelopes 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 mak tender and the signing o f 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 ___________________________ a copartnership, by------------------------------------------------------------------ — , should sign in the form a member of the firm.” 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in v est m ent securities w ill 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 g uaranty 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 material, the tender m ay be disregarded. (See reverse for announcement)
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