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F ed e r a l r e s e r v e 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 ITED S T A T E S DALLAS, TEXAS 7 5 2 2 2 Circular No. 73-334 D ecember 21, 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 ed era l R eserve District: Y our a t te n t io n is inv ited to th e fo llo w in g s t a t e m e n t giving d e t a il s of t w o issu es of T re a s u ry biils: 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 regate 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 b ills m a tu rin g Ja n u a r y 3, 1974, in th e a m o u n t of $4,302,330,000, as follow s: 91-D A Y B IL L S ( to m a tu rity d a te ) to b e issued J a n u a ry 3, 1974, in th e a m o u n t of $2,500,000,000, or th e re a b o u ts re p re se n tin g a n a d d itio n a l a m o u n t of bills d a te d O cto ber 4, 1973, an d to m a tu re A p ril 4, 1974 ( C U S IP No. 912793 T F 3 ) , origin ally issued in th e a m o u n t of $1,800,960,000, th e a d d itio n al a n d original bills to b e fre ely in terch an geab le. 183-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 J a n u a ry 3, 1974, a n d to m a tu re J u ly 5, 1974 ( C U S IP No. 912793 U D 6 ) . T h e b ills of b o th series will b e issued on a d isco un t 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 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 interest. T h e y will 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 will be received a t F e d e ra l R e se rv 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 , F rid a y , D e c em b er 28, 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 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. I n th e case of c o 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 a y no 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 which 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 ranch es o n a p p lic a tio n th erefo r. B a n k in g in stitu tio n s generally m ay su b m it ten d e rs for acco un t of custom ers p ro v id ed th e nam es of th e cu stom ers a re set fo rth in such ten d ers. O th e rs th a n b a nk in g in stitu tio n s will n o t be p e rm itte d to su b m it ten d e rs excep 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 fro m in co rp o ra ted b an k s and tr u s t co m p anies a n d from respo n sible 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 a re a cco m pan 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, ten d e rs w ill b e o p e n ed a t the F e d e ra l R eserv 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 ade 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 ran ge of a cc ep te d bids. O n ly th ose su b m ittin g c o m p e titiv e ten d e rs will be a d vised of th e a cc ep ta n ce or rejectio n thereof. T h e S ecretary 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 all tend ers, in whole o r 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, no 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 e r will b e accep ted in full a t th e average p rice (in th re e d ecim als) of accep ted co m p e titiv e bids for th e respective 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 com p leted a t th e F e d e ra l R eserve B a n k on J a n u a ry 3, 1974, in cash or o th e r 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 J a n u a ry 3, 1974. 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 w ill be m ad e for differences b etw een th e p a r v alu e of m atu 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 S ections 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 accrue w hen th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e b ills a re excluded fro m co n sid eratio n as cap ital 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 inclu d e 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 fo r th e bills, w h e th er on original issue or on su b seq u en t pu rch ase, 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 urin g th e tax a b le y e ar fo r 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 govern th e co n dition s of th e ir issue. C opies of th e circular m ay b e o b ta in 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 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 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 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, Friday, D e c e m b e r 28, 1973. T e n 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 very truly, P. E. C oldw ell P re sid en t Figures con cern in g offering of 9 1 -D ay Treasury Bills maturing M ar ch 2 8 , 1 9 7 4 a n d 1 8 2 -D a y Treasury Bills maturing Ju n e 27, 197 4 , not a v a i la b l e w h en 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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated October 4,1973 Maturing April 4,1974 T o: F ed eral R e se r v e B ank, S ta tio n K, D allas, T e x a s 75222 or — T h e____________________________ B ran ch El Paso 79999 Houston 77001 San Antonio 78295 (D »U ) 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 IT IV E T E N D E R $ ___ JNOT TO E X C E E D $200,000 ^ C O M PETITIV E T E N D E R S CLOSING OBSERVE $ $$ i _ _. <* @ _ (a) .. (n) kij . . $ *r .. V 1 @ " $ $ Prices should be exp ressed on the basis of 1 0 0 , with not more than three decimal places, e.g., 99.926. F ra c tio n s must not be used. iW 3 TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR ARE ACCEPTABLE. Denominations Desired N u m b e r of pieces DATE — FR ID AY , DECEMBER 28, 1973 Noncompetitive tenders for $2 0 0 , 0 0 0 or less from any bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. ‘ Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PAYMENT M a tu rity V alu e -@ $ 1 0 ,0 0 0 $_ _@ $ 15,000 $_ □ B y m a tu r in g b ills held by__________________________ _ 50,000 $_ □ P a y m e n t to b e m ad e b y _________________ $ 1 0 0 ,0 0 0 $_ □ _@ $ 50 0,0 00 $_ C h arge our r e se rv e accou n t on p a y m e n t d a te □ D r a f t enclosed _@ $1,000,000 $- (E ffectual delivery o f encloeed d ra ft shall be on la te st day which will p e rm it p re sen tm en t in ord er to o b tain irrevocably collected fu n d s on p a y m e n t date) D e liv e r y In stru ctio n s: □ H old in C ustody — G eneral A cco u n t (S u b scrib er’s fu ll n a m e o r co rp o ra te title) □ H old in C ustody — In v e s tm e n t A c c ou n t (A ddress) □ H old in C u sto d y — T r u st A ccou n t □ P le d g e to secu re T r ea su r y T a x and L oan A c c o u n t □ O ther_______________________________ B y(A u thorized official s ig n a tu re a n d title) PLEASE (F o r th s account oft if te n d e r is fo r a n o th e r su b scrib er) (A ddress) IMPORTANT 1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiples of $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes received with this legend will not be opened until after the closing time specified in the public announcement, communi cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank or appropriate branch. 3. Any qualified or conditional tender will be rejected. 4 . If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the tender and the signing of the form by an officer of the corporation will 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 will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an incorporated bank or trust company. 6 . If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is material, the tender may be disregarded. (See reverse for announcement)
@FedFRASER