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F ed er a l R eser ve 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 IT E D S T A T E S

DALLAS, TEXAS 75222

Circular N o. 73-315
D ecem ber 6, 1973

NEW OFFERING — TREASURY BILLS

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statement giving details of an issue of Treasury bills:
T h e Treasury D epartm ent, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 364-day Treasury
bills for cash and in exchange for Treasury bills m aturing D ecem ber 18, 1973, in the am ount of $1,800,470,000. Th® bills of
this series w ill be dated D ecem ber 18, 1973, and w ill mature D ecem ber 17, 1974 (C U S IP No. 912793 U A 2 ).
T he bills w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at
m aturity their face am ount will be payable w ithout interest. T h ey will be issued in bearer form only, and in denom inations of
$10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e).
Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard T im e, W ednesday, D ecem ber 12, 1973. Tenders will not be received at the Treasury Departm ent, Washington.
Each tender m ust be for a m inim um of $10,000. Tenders over $10,000 m ust be in m ultiples of $5,000. In the case of com petitive
tenders the price offered m ust be expressed on the basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions m ay not
be used. It is urged that tenders be m ade on the printed forms and forwarded in the special envelopes which w ill be supplied
by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the nam es of the customers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account.
Tenders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of the face am ount of
Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust com pany.
Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which
public announcem ent w ill be made by the Treasury D epartm ent of the am ount and price range of accepted bids. O nly those sub­
m itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury expressly
reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final.
Subject to these reservations, noncom petitive tenders for $200,000 or less without stated price from any one bidder w ill be
accepted in full at the average price (in three decim als) of accepted com petitive bids. Settlem ent for accepted tenders in accor­
dance with the bids m ust be m ade or com pleted at the Federal R eserve B ank on D ecem ber 18, 1973, in cash or other im m ediately
available funds or in a like face am ount of Treasury bills maturing D ecem ber 18, 1973. Cash and exchange tenders w ill receive
equal treatment. Cash adjustm ents will be made for differences betw een the par value of maturing bills accepted in exchange
and the issue price of the new bills.
Under Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount of discount at which bills issued
hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued here­
under must include in his income tax return, as ordinary gain or loss, the difference betw een the price paid for the bills, whether
on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during
the taxable year for which the return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Wednesday, December 12, 1973. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
President

(S e e 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

364 DAYS TO MATURITY
Dated December 18, 1973

Maturing December 17,1974

T o :Federal Reserve Bank, Station E, Dallas, Texas 75222
or —
The__________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

( D a te )

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury 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.

N O N C O M P E T I T I V E T E N D E R $__________________________________ N O T T O E X C E E D $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
$------------------------------- @ -------------------- $ ---------------------------------------

(cb
(cb
(cb

1
COMPETITIVE TENDERS/ $

h

L

...
$
$

_

.. . _
.

Prices should be
e x p r e s s e d on th e
b a s i s o f 100, w ith
not more than three
decimal places, e.g.,
99.9 2 5 . F r a c t io n s
m ust not be used.

T EN D E R S MAY NOT BE E N T E R E D BY TELEPHO NE. T E N D E R S BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.

Denominations Desired

Paym ent for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
M ETH OD OF P A Y M E N T

N um ber of
Pieces

M a tu rity V a lu e

() $
5
<> $
S
<> $
a

10,000 *
15,000 $
50,000 $
-

□
□

0 ? 100,000 $
(® $ 500,000 $
( ) *1,,000,000 $
5
-

□

Charge our reserve account on payment
date
I I Draft enclosed ( E f f e c tu a l d e liv e ry o f en c lo sed d r a f t

T lo lii7 f l T n a f r n n H n n o •
J J c I l V e r y J JlS L iU C L lU IlS .

□
□

Hold in Custody — Trust Account

□

Pledge to secure Treasury Tax and
Loan Account

s h a ll b e o n l a te s t d a y w h ic h w ill p e r m i t p r e s e n t m e n t
iu o r d e r to o b ta in ir r e v o c a b ly c o llec ted f u n d s o n p a y m e n t d a te )

Hold in Custody — General Account
Hold in Custody — Investment AcCustody
Ac
count

□

j— j

By maturing bills
held by____________________________
Payment to be made by.

( S u b s c r ib e r ’s f u ll n a m e o r c o r p o r a t e ti tle )

(A d d re ss)

By_
( A u th o r iz e d official s i g n a t u r e a n d ti tle )

( F o r t h e a c c o u n t o f, i f te n d e r is f o r a n o t h e r s u b s c r ib e r )

( A dd ress)

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 multiples of
$5,000 (m aturity v alu e).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as F iscal A gen t of the
United States, w ith notation on the envelope reading “T E N D E R FOR T R E A SU R Y O F F E R IN G ”. Since envelopes
received w ith this legend will 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 m ay be obtained from this
bank or appropriate branch.
3. A ny qualified or conditional tender w ill be rejected.
4. I f a corporation makes the tender, the form should be signed by an
officer
of the corporation authorized to make the
tender and the sign in g of the form by an officer of the corporation w ill be construed as a representation by him that he
has been so authorized. If 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 invest­
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. I f the language of this form is changed in any respect, which, in the opinion of the Secretary o f the Treasury is
material, th e tender m a y be disregarded.
(See reverse fo r announcement)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102