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federal Reserve Bank of Dallas F IS C A L A G EN T O F TH E UN ITED S T A T E S DALLAS. TEXAS 7 5 2 2 2 Circular N o . 73 -30 1 N o v e m b e r 2 3, 1973 OFFERING TREASURY BILL — TAX ANTICIPATION SERIES To All B a n k in g Institutions a n d O th e rs C o n c e r n e d in t h e E leventh F e d e ra l R eserv e District: Y o u r a t te n t io n is inv ited to th e f o llo w in g s t a t e m e n t g iv in g d e t a il s o f tw o issu es of T re as u ry bills: T h e T rea su ry D ep a rtm e n t, b y th is p u b lic n o tic e, in v ite s ten d ers for tw o series o f T reasu ry b ills to th e a ggregate a m o u n t o f $ 3 ,0 0 0 ,0 0 0 ,0 0 0 or th ereab o u ts, as follo w s: 1 3 7 -D A Y B I L L S ( to m a tu rity d a te ) to b e issu ed D e c e m b e r 3, 1973, in th e a m o u n t o f $ 1 ,0 0 0 ,0 0 0 ,0 0 0 , or th ere ab ou ts, rep resen tin g an ad d itio n a l a m o u n t o f b ills d ated N o v e m b e r 1, 1973, and to m atu re A pril 19, 1974 ( C U S I P N o . 9 1 2 7 9 3 U C 8 ) , o rigin a lly issu ed in th e a m o u n t o f $ 2 ,0 0 6 ,6 8 5 ,0 0 0 , th e a d d ition a l a n d original b ills to b e fr e e ly in terch an g eab le. T h e b ills w ill b e a ccep ted a t fa ce va lu e in p a y m e n t o f in co m e ta x es d u e on A p ril 15, 1974. 2 0 0 -D A Y B I L L S , for $ 2 ,0 0 0 ,0 0 0 ,0 0 0 , or therea b ou ts, to b e d a ted D e c e m b e r 3, 19 73 and to m a tu re J u n e 21, 1974 ( C U S I P N o . 9 1 2 7 9 3 V N 3 ) . T h e b ills w ill b e a ccep ted a t face v a lu e in p a y m e n t o f in co m e ta x es d u e on J u n e 15, 1974. T h e b ills o f b o th series w ill b e issu ed o n a d isco u n t b asis under 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 a s h erein after p ro vid ed , and a t m atu rity , to th e e x te n t th e y are n ot p resen ted in p a y m e n t o f in co m e tax es, th e ir fa ce a m o u n t w ill be p a y a b le w ith o u t interest. T h e y w ill b e issu ed in bearer form on ly , and in d e n o m in a tio n s o f $ 1 0 ,0 0 0 , $ 15 ,0 0 0 , $ 5 0 ,0 0 0 , $ 10 0 ,0 0 0, $ 5 0 0 ,0 0 0 an d $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a lu e ) . T a x p a y er s d esirin g to a p p ly th e se b ills in p a y m e n t o f in co m e taxes m a y su b m it th e b ills to a F ed era l R e s e r v e B a n k or B ran ch or to th e Office o f th e T reasu rer o f th e U n ite d S ta tes, W ash in gto n , n o t m ore th a n fifteen d a ys b efore th e app rop riate in co m e ta x p a y m e n t d ate. In th e case o f b ills su b m itted in p a y m e n t of in co m e ta x es o f a corp oration th e y shall b e a cco m p an ied b y a d u ly c o m p le te d F o rm 50 3 and t h e office rece iv in g th e se ite m s w ill effe ct th e d ep o sit on th e d a te th e ta x es are due. In t h e ca se o f b ills su b m itted in p a y m e n t o f in co m e ta x es o f all oth er taxpayers, th e office rece iv in g t h e b ills w ill issu e receip ts therefor, th e origin al o f w h ich th e ta x p a y e r sh all su b m it on or b efore th e d a te th e ta x es are d u e, to t h e In tern al R e v e n u e S e r v ic e C en ter D irecto r for th e D istr ic t in w h ich su ch ta x e s are p a yab le. T e n d e r s w ill b e r e ce iv ed a t F ed era l R e s e r v e B a n k s and B ra n ch es u p to th e clo sin g hour, o n e-th irty p.m .,, E a ste rn Stan d ard T im e , W ed n esd a y , N o v e m b e r 28, 1973. T e n d er s w ill n o t b e rece iv ed a t th e T r ea su ry D e p a r tm e n t, W ash in gton . E a ch ten d e r m u s t b e for a m in im u m o f $1 0,0 0 0 . T e n d e r s over $ 1 0 ,0 0 0 m u s t b e in m u ltip le s o f $ 5,000. In th e case o f c o m p e titiv e te n d e r s th e p rice offered m u st b e exp ressed on t h e b asis o f 100, w ith n o t m ore th a n th ree d ecim a ls, e.g., 9 9.9 25 . F raction s m a y n o t b e used. I t is u rged th a t ten d ers b e m a d e on th e p rin ted form s a n d forw ard ed in th e sp ec ia l e n v e lo p e s w h ich w ill b e su p p lied b y F ed e r a l R e s e r v e B a n k s or B ra n c h e s o n a p p lica tio n therefor. B a n k in g in stitu tio n s g en era lly m a y su b m it ten d e rs for acco u n t o f cu sto m ers p ro vid ed t h e n a m e s o f t h e cu sto m ers are se t forth in su ch ten ders. O thers th a n b a n k in g in stitu tio n s w ill n o t b e p erm itted to su b m it ten d ers ex c e p t for th e ir ow n account. T e n d e r s w ill b e re c e iv e d w ith o u t d ep o sit from incorp orated b an k s an d tru st co m p a n ie s and from resp o n sib le an d recogn ized d ea lers in in v e stm e n t secu rities. T e n d er s from o thers m u s t b e a cco m p a n ied b y p a y m e n t o f 2 p ercen t o f t h e fa c e am ou n t o f T r ea su ry b ills a p p lie d for, u n le ss th e ten d ers are a cco m p a n ied b y an ex p ress gu aran ty o f p a y m e n t b y an in corp orated b an k or tru st com p a n y. A ll b id ders are req u ired to a gree n o t to p u rch ase or to sell, or t o m a k e a n y a g reem en ts w ith resp ect to th e purch ase or sa le or oth e r d isp o sitio n o f a n y b ills b id for u n d er th is offering a t a sp ecific rate or price, u n til a fter o n e-th irty p.m., E astern S ta n d a rd T im e , W ed n esd a y , N o v e m b e r 28 , 1973. I m m e d ia te ly a fter th e clo sin g hour, ten d e rs w ill b e o p en ed a t th e F ed era l R e s e r v e B a n k s and B ra n ch es, follo w in g w hich p u b lic a n n o u n c em en t w ill b e m a d e b y th e T rea su ry D e p a r tm e n t o f th e a m o u n t an d p rice range o f a ccep ted bids. O n ly th o se su b m ittin g c o m p e titiv e ten d ers w ill b e a d v ised o f th e a ccep ta n ce or rejectio n thereof. T h e S ecretary o f t h e T r ea su ry ex p ressly reserves th e right to a c c e p t or reject a n y or a ll ten ders, in w h o le or in part, an d h is a ctio n in a n y such resp ect shall b e final. S u b ject to th e se reservations, n o n c o m p e titiv e ten d e rs for $ 2 5 0 ,0 0 0 or less for th e 1 3 7-d a y b ill an d $ 5 0 0 ,0 0 0 or less for th e 2 0 0 -d a y b ills, w ith o u t sta ted price from a n y o n e b id d er w ill b e a ccep ted in fu ll a t th e a verag e p rice ( in th r ee d e c im a ls) o f accep ted c o m p e titiv e b id s for th e r e s p ectiv e issues. S e t tle m e n t for a cc e p te d ten d ers in accord an ce w ith th e b id s m u st b e m a d e or c o m p le te d a t th e F ed era l R e s e r v e B a n k in ca sh or o th er im m e d ia te ly a v a ila b le fun d s on D e c e m b e r 3, 1973. A n y q u alified d ep o sitary w ill b e p er m itte d to m a k e se ttle m e n t b y c red it in its T rea su ry T a x an d L oa n a cco u n t for n o t m o re th a n 50 p ercen t o f th e a m o u n t o f T reasu ry b ills a llo tted to it for itse lf and its custom ers. U n d er S e c tio n s 4 5 4 ( b ) and 1221 ( 5 ) o f t h e In tern al R e v e n u e C od e o f 19 54 th e a m o u n t o f d isco u n t a t w h ich b ills issued hereu n d er are sold is co n sid ered to accru e w h en t h e b ills are sold, red eem ed or o th erw ise d isp osed of, and th e b ills are ex clu d ed from co n sid eratio n as cap ita l assets. A ccord in gly, th e ow n er o f T reasu ry b ills (o th e r th a n life insu ran ce c o m p a n ie s) issu ed h ere under m u s t in clu d e in h is in co m e tax return, as ord in ary gain or loss, t h e d ifferen ce b e tw e e n th e p rice p a id for th e b ills, w h eth er on origin al issu e or o n su b seq u e n t purchase, an d t h e a m o u n t a c tu a lly receiv ed e ith er u p o n sale or red em p tio n a t m a tu rity during th e ta x a b le yea r for w h ich t h e return is m ade. T rea su ry D e p a r tm e n t Circular N o . 4 1 8 (cu rren t r e v is io n ) an d th is n o tic e, prescrib e th e term s o f t h e T rea su ry b ills and g overn th e co n d itio n s o f th eir issue. C o p ies o f th e circular m a y b e o b ta in ed from a n y F ed era l R e s e r v e B a n k or Branch. 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 a 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, H o u sto n a n d S an A n to n io , u p to tw e lv e - th ir ty p .m ., C e ntral S t a n d a r d Time, W e d n e s d a y , N o v e m b e r 28 , 1973. T en d e rs may n o t b e en tered by te lep h o n e. Yours v e ry truly, P. E. Coldw ell P re s id e n t ( S e e reverse sid e for ten der 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 15,1974 TENDER FOR ADDITION TO TREASURY BILLS T A X ANTICIPATION SER IES Dated Novem ber 1,1973 137 D A Y S TO MATURITY Maturing April 19,1974 To: Federal Reserve Bank, Station K, Dallas, T exas 75222 or — T he------------------------------------------ Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) P u rsu a n t to th e provision s o f T rea su ry D e p a r tm en t Circular N o. 418 (cu rren t rev isio n ) and to the p rovisions o f th e public announcem ent, a s sh ow n on re v e r se side, a s issu ed b y th e T r ea su ry Departm ent, th e u ndersigned offers to p u rch a se T reasu ry bills in th e am ou n t sh o w n below, and a g r ee s to p a y fo r the am ou n t allotted, on o r b efo re th e issu e d ate, b y t h e m eth o d and a t th e ra te indicated. NONCOMPETITIVE T E N D E R $__________________________ ________________ NOT TO EXCEED $ 2 5 0 ,0 0 0 Noncompetitive tenders for $250,000 or less from any one bidder, without stated price, will be accepted in full at the aver age price (in three decimals) of accepted competitive bids. (7b COMPETITIVE T EN D E R S Prices should he expressed on the basis of 100, with not more than three decimal places, e.g-> 99.925. F ra ction s must not be used. * If—(7b vir — 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 um ber of Pieces METHOD OF PAYMENT M a tu r ity V alues $ 10,000 $- <?*> ? 15,000 * 50,000 $- m @ $ □ Hold in C ustody — General A ccou n t □ Hold in C ustody — In v e stm e n t A c count □ Hold in C u stod y — T ru st A ccount □ P led g e to secure T reasu ry T a x and L oan A ccou n t □ O ther_______________________________ By charge to our Treasury Tax and Loan Account not to exceed 50% of cost of bills allotted (indicate beu>w remaining payment) □ Payment to be made by .................................. ............. (Name of Bank) (ft) $ 100,000 ?(cb $ 500,000 $@ $ i ,000,000 $- D e liv e r y In s tr u c tio n s : □ □ By charge to our reserve account on payment date. □ By draft enclosed (effectual delivery of enclosed shall be on latest day which will permit presentment order to obtain irrevocably collected funds on paymeP date). We certify that we, as well as our customers, if any,_ ji£ ^ hereon have agreed not to purchase or to sell, or to m akejm> agreements with respect to the purchase or sale or other jhgZ position of any bills on this issue at a specific rate or PT1S^until after one-thirty p.m., Eastern Standard Time. Wednesday November 28, 1973. ( S u h a c r i h e r ’B f u l l n a m e op c o r p o r a t e t i t l e ) (A ddress) B y( A u t h o r i z e d o f fi c ia l s i g n a t u r e a n d t i t l e ) ( F o r t h e a c c o u n t o f , i f t e n d e r is f o r a j i o t h e r s u b s c r i b e r ) ---------------------------------------------------------------------------------------------------------------------------------------------------- (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 0 $5,000 (m aturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent oi ■ United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes rec» with this legend will not be opened until after the closing time specified in the public announcement, communicat-i ^ relating to other m atters should not be enclosed. Envelopes for submitting tenders may be requested from this banaappropriate 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 m ake tjj® tender and the signing of the form by an officer of the corporation will be construe^ as a representation by him tnRt,u 0 has been so authorized. If the tender is made by a partnership it should be signed by a member of the fin11' , 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 ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity va‘ ' of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by 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 m aterial the tender may be disregarded. (S ee rev e rse f o r anno u n cem en t)
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