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F ederal Reserve b a n k o f Dallas
FISCAL AGENT OF THE UNITED STATES

DALLAS, TEXAS 75222
C ircu la r No. 72-259
N o v e m b er 10, 1972

OFFERING
TREASURY BILL— TAX ANTICIPATION SERIES

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following s ta te m e n t giving details of a n issue of Treasury 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, in v ite s ten d e rs fo r $2,000,000,000, o r th ere ab o u ts, o f 147-day T re a su ry
bills, to b e issued on a d isco u n t basis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r p ro vid ed. T h e bills of th is
series w ill be d a te d N o v e m b er 24, 1972, a n d will m a tu re A p ril 20, 1973 (C U S IP No. 912793 R G 3 ) . T h e y w ill be a cc ep te d a t
face v a lu e in p a y m e n t of incom e tax es due o n A p ril 15, 1973, a n d to th e e x te n t th e y a re n o t p re se n te d fo r th is pu rp o se th e
face a m o u n t of th ese b ills w ill be p a y a b le w ith o u t in te re st a t m atu rity . T a x p a y e rs d esiring to a p p ly th e se b ills in p a y m e n t of
A p ril 15, 1973, incom e tax es m ay su b m it th e b ills to a F e d e ra l R e se rv e B a n k o r B ra n ch or to th e Office of th e T re a su re r of
th e U n ite d S tates, W ashing ton , n o t m o re th a n fifteen days b efore t h a t date. In th e case of bills su b m itte d in p a y m e n t of incom e
tax es of a c o rp o ratio n th e y shall be a cc o m p an ied b y a d u ly c o m p leted F o rm 503 a n d th e office receiv in g th ese ite m s w ill effect th e
d e p o sit on A p ril 15, 1973. I n th e case of bills su b m itte d in p a y m e n t of incom e tax es of all o th e r tax p ay ers, th e office receivin g
th e b ills w ill issue re ce ip ts th ere fo r, th e o rig in al of w hich th e ta x p a y e r shall su b m it on or b efore A p ril 15, 1973, to th e D istric t
D ire c to r of In te rn a l R e v e n u e fo r th e D is tric t in w hich such taxes a re pay ab le. T h e bills will b e issued in b e a re r fo rm only, a n d
in d e n o m in atio 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 receiv ed 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 , N o v e m b er 17, 1972. T e n d e rs will n o t b e re ce iv e d a t th e T re a su ry D e p a rtm e n t, W ashing ton . E ac h
te n d e r m u st b e fo r a m in im u m of $10,000. T e n d e rs o v er $10,000 m u st b e in m u ltip le s of $5,000. In th e case of co m p e titiv e
te n d e rs th e p rice offered m u st be expressed on th e b asis of 100, w ith n o t m o re th a n th re e decim als, e.g., 99.925. F ra c tio n s
m a y n o t b e used. I t is u rg e d th a t te n d e rs b e m ad e on th e p rin te d form s a n d forw ard ed in th e special en v elo p es w hich will
be su p p lied b y F e d e ra l R e se rv e B a n k s o r B ra n ch e s on a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s g en erally m a y su b m it te n d e rs fo r a cc o u n t of custo m ers p ro v id ed th e n am es of th e c usto m ers a re
se t fo rth in such ten d ers. O th e rs th a n b an k in g in stitu tio n s will n o t b e p e rm itte d to su b m it te n d e rs e x ce p t fo r th e ir ow n account.
T e n d e rs w ill be receiv ed w ith o u t de p o sit fro m in co rp o ra ted b a n k s a n d tr u s t c o m panies a n d fro m resp onsible a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs fro m 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 b ills a p p lie d for, un less th e te n 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.
A ll b id d ers a re re q u ire d to agree n o t to p u rc h ase o r to sell, or to m ak e a n y ag ree m e n ts w ith re sp e c t to th e p u rch ase
or sale o r o th e r d isp osition of a n y b ills of th is issue a t a specific ra te o r p rice, u n til a fte r 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 , N o v e m b er 17, 1972.
Im m e d ia te ly a fte r th e closing hou r, te n d e rs w ill b e o p en ed a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich
p u b lic an n o u n ce m en t w ill be m ad e b y th e T re a s u 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 o f a cc ep te d bids. O n ly those
su b m ittin g c o m p e titiv e te n d e rs w ill be a d v ised of th e acc ep ta n ce or reje ctio n th ereo f. T h e S e c retary of th e T re a su ry expressly
reserves th e rig h t to a c c e p t or re je c t a n y o r a ll ten d e rs, in w hole 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 reservation s, n o n c o m p e titiv e te n d e rs fo r $300,000 or less w ith o u t sta te d p rice fro m a n y one b id d e r w ill be
a cc ep te d in fu ll a t th e av erag e p rice (in th re e d e cim als) of accep ted c o m p e titiv e bids. S e ttle m e n t fo r a cc ep te d te n d e rs in
accordance w ith th e b id s m u st be m ad e or c o m p le te d a t th e F e d e ra l R e se rv e B a n k in cash o r o th e r im m e d ia te ly a v ailab le
fu n d s on N o v e m b er 24, 1972. A n y qualified d e p o sita ry w ill be p e rm itte d to m ak e se ttle m e n t b y c re d it in its T re a su ry T a x a n d
L oan a cc o u n t for T re a su ry b ills a llo tte d to i t for itself a n d its custom ers.
U n d e r Sectio ns 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 isco u n t a t w hich b ills issued
h e re u n d e r a re sold is considered to accru e w h en th e b ills a re sold, re d ee m e d or oth erw ise disposed of, a n d th e b ills a re excluded
from co n sid eratio n as c a p ita l assets. A ccordingly, th e o w ner of T re a su ry b ills ( o th e r th a n life in su ran ce c o m p a n ies) issued h e re ­
u n d e r m u st includ e in his incom e ta x re tu rn , as o rd in ary g ain or loss, th e difference b e tw ee n th e p rice p a id for th e bills, w h e th er
on o riginal issue or o n su b seq u e n t p u rch ase, a n d th e a m o u n t a c tu 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 a r fo r w hich th e r e tu rn is m ade.
T re a s u ry D e p a rtm e n t C ircu la r No. 418 ( c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e te rm s of th e T re a su ry b ills a n d
govern th e c o n ditions of th e ir issue. C opies of th e c irc u lar m ay b e o b tain e d fro m a n y F e d e ra l R e se rv e B a n k o r B ran ch.

In a ccordance with the a b o v e a n n o u n c e m e n t, tend ers will b e received a t this b a n k a n d its b ran c he s a t El Paso,
Houston a n d San Antonio, up to tw elve-thirty p.m., Central S ta n d a rd Time, Friday, N ov e m be r 17, 1972. Tenders m ay
not be entered by tele p h o n e .
Yours very truly,
P. E. Coldwell
President

(S e e rev erse side fo r te n d e r fo rm )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

This issue of Treasury bills will be accepted at face value in payment of income taxes due
on April 15,1973

TENDER FOR TREASURY BILLS
TAX ANTICIPATION SERIES
147 DAYS TO MATURITY

Dated November 24,1972

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The-------------------------------------Branch
El Paso 79999

Houston 77001

Maturing April 20, 1973

______

San Antonio 78295

(Date)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the
provisions of the public announcement, as shown on reverse side, as 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.
NONCOMPETITIVE TENDER $.
NOT TO EXCEED $300,000
Noncompetitive tenders for $300,000 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.

COMPETITIVE TENDERS

;
;
;
;

$
■■$
$
$

(n)
@

.

—

Prices should be
ex p ressed on th e
basis of 100, with
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.

1

—

(n)

E X T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b er of
P ie c e s

METHOD OF PAYMENT

M a t u r i t y V a lu e s

□

$

By charge to our Treasury Tax and Loan Account

□

Payment to be made by.............................................

□

By charge to our reserve account on payment date.

□

By draft enclosed (effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment
date).

10,000 $_

$ 15,000
$ 50,000
$ 100,000
$ 500,000
$1,000,000

$L
$$_
$_
$_

(Name of Bank)

We certify that we, as well as our customers, if any, listed
hereon have agreed not to purchase or to sell, or to make any
agreements with respect to the purchase or sale or other dis­
position of any bills on this issue at a specific rate or price,
until after one-thirty p.m., Eastern Standard Time, Friday,
November 17, 1972.

Delivery Instructions:
□

(Subscriber’B full nam e o r corporate title)

Hold in Custody Account — Member
banks for own account only

□

Pledge to Secure Treasury Tax and
Loan Account

□

(Address)

By-

Ship to___________________________

(Authorized official sisn atu re and title)
(For the account of, if tender ia fo r another subscriber)
(Address)

IMPORTANT
1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust be for an amount in multiples of
$5,000 (m aturity 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, communications
relating to other m atters should not be enclosed. Envelopes for submitting tenders may be requested 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 th a t 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 tru st 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 (m aturity 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 tru st 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)

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