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Fe d e r a l R e s e r v e

Dallas

bank of

F IS C A L A G E N T O F T H E U N IT E D
D A L L A S .T E X A S

STATES

75222

Circular No. 73-207
August 16, 1973

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

Quoted below is the text of a statement issued by the Treasury
Department today concerning Circular No. 73-206.

TRANSITION TO 52-WEEK TREASURY BILL CYCLE COMPLETED
The Treasury said today that, except for one open maturity
date on July 30, 197^-? the issue of 52-week Treasury bills to
be auctioned Wednesday, August 22, 1973? completes the transition
from a monthly cycle of one-year bills maturing on the last day
of each month to a four-week cycle of 52 -week bills maturing on
every fourth Tuesday.
The Treasury expects to issue the July
maturity at some point in the future when appropriate in light
of its overall financing needs.

Additional copies of this letter are available on request.
are tenders for the 52-week bills to be auctioned on August 22.

Enclosed

Yours very truly,
P. E. Coldwell
President

Enclosures

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 A ugust 28, 1973

M aturing A u gust 27, 1974

To: Federal R eserve Bank, Station K, Dallas, T exas 75222
or —
T he_____________________________ Branch
El Paso 79999

H ouston 77001

San Antonio 78295

(D ate)

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 a t the rate indicated.

NONCOMPETITIVE T E N D E R $.

-NOT TO E X C E E D $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t the average
price (in three decimals) of accepted com petitive bids.
Prices should be
exp ressed on the
(a)
$
%
b a sis of 100, w ith
COMPETITIVE T E N D E R S / $
not more than three
%
$
@
decimal places, e.g.,
(a)
$
%
99.925. F ractio n s
must not be used.
..
$
$...........................
fcSF* TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

Denominations Desired
Number of
Pieces

@ $
10,000
...
@ $
15,000
---------@ $ 50,000
------------------- < >
g
$ 100,000
- - - - @ $ 500,000
---------- @ $1,,000,000
--------------------------

M a tu rity V alue

METHOD OF PAYMENT

$.

□

%

?$■

□

%
-

□

$

Hold in Custody ■— General Account

□

Hold in Custody — Investm ent A c­
count

□

Charge our reserve account on paym ent
date

| | D r a f t e n c l o s e d (Effectual delivery of enclosed draft
shall be on latest day which will perm it presentm ent in
order to obtain irrevocably collected funds on payment
date)

Delivery In stru ctio n s:
□

B y m aturing bills
held by----------------------------Paym ent to be made by_

Hold in Custody — Trust Account

□

Pledge to secure Treasury Tax and
Loan Account

□

(Subscriber’s full nam e or corporate title)
(Address)

By-

Other______________________________

(Authorized official signature and title)
(For the account of, if tender is for another subscriber)
(A ddress)

IM PORTANT
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 e m elope 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 th e opinion of th e S ecretary of th e T reasu ry is
m aterial, the tender m ay be disregarded.

(See reverse for announcement)

F

ederal

Reserve

bank of

Dallas

F I S C A L A G E N T O F TH E UN IT ED S T A T E S

DALLAS, TEXAS 75222

Circular No. 73-206
August 16, 1973

NEW OFFERiNG — TREASURY BILLS

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

Your attention is invited to the follo w in g statem ent giving details of an issue of Treasury bills:
T h e Treasury Departm 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 maturing August 28, 1973, in the amount of $1,803,370,000. T he bills of this
series w ill be dated August 28, 1973, and will mature August 27, 1974 (C U S IP No. 912793 T W 6 ).
T h e bills will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at
maturity their face amount will be payable without interest. T h ey will be issued in bearer form only, and in denominations of
$10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e ).
Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving T im e, W ednesday, August 22, 1973. Tenders will not be received at the Treasury Departm ent, Washington. Each
tender m ust be for a m inimum of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of com petitive ten­
ders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not
be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied
by Federal R eserve Banks or Branches on application therefor.
Banking institutions generally m ay submit 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 submit tenders except for their own account.
Tenders w ill be received without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investm ent securities. Tenders from others must be accompanied by paym ent of 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust company.
Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which
public announcement will be m ade by the Treasury Departm ent of the am ount and price range of accepted bids. Only those sub­
m itting com petitive tenders w ill be advised of the acceptance or rejection thereof. T he 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 will be
accepted in full at the average price (in three decimals) of accepted com petitive bids. Settlem ent for accepted tenders in accor­
dance with the bids must be made or com pleted at the Federal Reserve Bank on August 28, 1973, in cash or other im m ediately
available funds or in a like face amount of Treasury bills maturing August 28, 1973. Cash and exchange tenders will 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 amount 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 m ust 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 redemption 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 terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve Bank or Branch.

In accord a nce with the a b o v e a n n o u n c em en t, ten ders will b e received a t this bank a n d its branches at El Paso,
Houston an d San Antonio up to twe lve-thirty p.m., Central Daylight Saving Time, W e d n e s d a y , Augu st 22 , 1973. Tenders
m a y not b e entered by tele p h o n e .
Yours very truly,
P. E. Coldwell
President

(S e e reverse for tender form)