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F ederal R eserve Bank o f Dallas
FISCAL AGENT OF THE UNITED STATES
D ALLAS, TEXAS 7 5 2 2 2
C ircu lar No. 73-328
D e c em b er 14, 1973
NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O th e r s C o n c e r n e d
in th 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 f o llo w in g s t a t e m e n t giv in g d e t a il s of tw o issues of T re as u ry hills:
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 ereab o u ts, fo r cash a n d in exchange for T re a su ry bills m a tu rin g D e c em b er 27, 1973, in th e a m o u n t of
$4,304,230,000, as follow s:
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 27, 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 ad d itio n al a m o u n t of bills d a te d S e p tem b e r 27, 1973, an d to m a tu re M a rc h 28, 1974
( C U S IP No. 912793 T E 6 ) , o rig inally issued in th e a m o u n t of $1,802,535,000, th e a d d itio n al a n d original
b ills to be freely interchang eab le.
182-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 D e c em b er 27, 1973, a n d to m a tu re Ju n e 27, 1974
(C U S I P No. 912793 T T 3 ) .
T h e bills of b o th series w ill b e issued on a d iscou n t basis u n d e r co m p e titiv e a n d n on 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 eir face a m o u n t will be p ay ab le w ith o u t interest. T h e y will be issued in b e are 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 will b e received a t F e d e ra l R e serv e B an 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 , F rid a y , D e c em b er 21, 1973. T e n d e rs w ill n o t 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 c o 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 urg ed th a t ten 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 will 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 therefo r.
B a n k in g in stitu tio n s gen erally m a y su b m it te n d e rs for acco u nt of custom ers p ro v id ed th e nam es of th e custo m ers a re
se t fo rth in such ten ders. O thers th a n b a n kin g in stitu tio n s will n ot be p e rm itte d to su b m it te n d e rs ex cep t for th e ir own account.
T e n d e rs will be received w ith o u t d epo sit from in co rp o ra ted b an k s and tru s t com panies 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 acco m p an ied by 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 b ills a p p lie d for, unless th e ten d e rs a re a ccom 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 rated 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 w ill be o p en ed a t th e F e d e ra l R e serv e B an k s an d B ranches, follow ing w hich
p u b lic a n n o u n ce m en t will b e 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 price rang e of a ccep ted bids. O n ly those
su b m ittin g c o m p e titiv e ten d e rs w ill be a dv ised of th e a ccep tan ce o r rejectio n thereof. T h e S ecretary of th e T re a su ry expressly
reserv es th e rig h t to a cc ep t or re je ct a n y or a ll tenders, 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 from a n y one b id d er will
b e acc ep te d 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 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 27, 1973,
in cash or o th er im m e d ia tely a v ailab le fun d s 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 27, 1973, C ash a n d
exchange ten d e rs w ill receiv e equal tre a tm e n t. C ash a d ju s tm e n ts will be m ad e for differences b etw 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 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 C ode 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 accrue w hen th e bills a re sold, red eem ed or otherw ise disposed of, a n d th e bills a re excluded
fro m c o nsideratio n as cap ital 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 co m p an ies) issued h e re
u n d e r m u st in clu de in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference betw een th e price p a id for th e bills, w h e th er
on original issue or on su b seq u e n 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 em 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 ircu lar No. 418 (c u rre n t re v isio n ) a n d this notice, p re sc rib e th e term s of th e T re a su ry b ills a n d
govern th e co n dition s of th e ir issue. C opies of th e circular m ay be o b tain e d from a n y F e d e ral 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 S an A n to n io u p to tw e lv e - th ir ty p.m ., Centra! S t a n d a r d Time, Friday, D e c e m b e r 21, 1973. T en d e rs m a y
not b e e n t e r e d b y te l e p h o n e .
Yours v e r y truly,
P. E. Cold w ell
P re sid en t
Figures con cern in g offering of 9 1 -D ay Treasury Bills maturing M arch 2 1 , 1 9 7 4 a n d 1 8 2 -D a y Treasury Bills m aturi ng Ju n e 20,
197 4, not a v a i la b l e w hen this circular w as 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 TREASURY BILLS
182 DAYS TO MATURITY
Dated December 27,1973
Maturing June 27,1974
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The----------------------------------- Branch
El Paso 79999
Houston 77001
San Antonio 78295
(Date)
P ursu an t to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Departm ent, 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.
NONCOMPETITIVE TENDER $__________________________________
JSTOT TO EXCEED $200,000
PLEASE OBSERVE CLOSING DATE — FRIDAY, DECEMBER 21, 1973
N oncom petitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the average
price (in three decim als) of accepted com petitive bids.
($
COMPETITIVE TENDERS
i
(a)
$
@
%
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.
- @.
{USP T E N D E R S MAY NOT BE A C C E P T E D BY 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 Desired
Number of
pieces
P aym 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 $_
□
□
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 of 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 name or corporate title)
(Address)
By(Authorized official signature and title)
(For the account of, if tender is for another subscriber)
(Address)
IMPORTANT
l
2.
3.
4.
5.
6.
N o 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 of
$5,000 (m aturity va lu e).
Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of 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 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.
A ny qualified or conditional tender w ill be rejected.
If a corporation makes 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 at 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
should sign in the form “--------------------------------------------- , a copartnership, by------------------------------------------------------------------ s
a member of the firm.”
Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in in vest
ment securities w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m atu rity value)
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 trust company.
If the language of th is form is changed in any respect, which, in the opinion of the Secretary of the T reasury is
m aterial, the tender m ay be disregarded.
(See reverse for announcement)
@FedFRASER