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federal Reserve Bank of Dallas FISCAL AGENT OF THE UNITED STATES DALLAS,TEXAS 75222 C i r c u l a r No. 7 3 -2 7 5 O c to b e r 2b, 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 November refinancing plans: TREASURY ANNOUNCES NOVEMBER REFINANCING The Treasury announced today that it will auction to the public up to $ 1 .5 billion of 2 -year 1 -1 /2 month notes, up to $ 2 .0 billion of 6 -year notes and up to $300 million of 19 -year 9 -month 7 -1/ 2% bonds to provide funds for refunding the $ 3 .6 billion of publicly held bonds maturing on November 15. The coupon rates for the two issues of notes will be announced on Monday, October 29. The securities to be auctioned will be: Treasury Notes of Series H-1975 dated November 15? 1973, due December 31, 1975 (CUSIP NO. 912827 DN 9) with interest payable on June 30 and December 31, 197^, and June 30 and December 31, 1975, Treasury Notes of Series C-1979 dated November 15, 1973, due November 15, 1979 (CUSIP NO. 912827 DPU) with interest payable on May 15 and November 15, and an additional amount of the 7-l/2$> Treasury Bonds of 1988 -9 3 , dated August 15, 1973, due August 15, 1993, callable at the option of the United States on any interest payment date on and after August 15, 19^8 (CUSIP NO. 912810 BQ0) with interest payable on February 15 and August 15. Additional amounts of the notes and bonds will be allotted to Government accounts and the Federal Reserve Banks in exchange for their holdings of the maturing bonds, which total $0 .7 billion. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2 - The notes and bonds -will be issued in registered and bearer form in denominations of $ 1 ,000 , $ 5 ,000 , $ 10 ,000 , $ 100,000 and $1 ,000 ,000 . Tenders for the notes of Series C-1979 will be received up to 1:30 p.m., Eastern Standard time, Tuesday, October 30, 1973, and tenders for the notes of Series H-1975 and the bonds will be received up to 1:30 p.m., EST, Wednesday, October 31, 1973, at any Federal Reserve Bank or Branch, and at the Office of the Treasurer of the United States, Securities Division, Washington, D. C. 20222; pro vided, however, that noncompetitive tenders will be considered timely received if they are mailed to any such agency under a postmark no later than October 29 for the notes of Series C-1979? and October 30 for the notes of Series H-1975 and the bonds. Each tender must be in the amount of $ 1,000 or a multiple thereof, and must state the price offered, if it is a competitive tender, or the term "noncom petitive", if it is a noncompetitive tender. The price on competitive tenders for the notes must be expressed on the basis of 100, with two decimals, e.g., 100.00. Tenders at a price less than 99*51 for the notes of Series H-1975 and 98*51 the notes of Series C-1979 will not be accepted. Tenders at the highest prices will be accepted to the extent required to attain the amount offered. Successful competitive bidders for the notes will be required to pay the average price of all accepted competitive tenders for the issue. The price on competitive tenders for the bonds, must be expressed on the basis of 100 , with two decimals in a multiple of .0 5 , e.g., 100.10, 100.05, 100.00, 9 9 .9 5 , etc. Tenders for the bonds at a price less than 95.30 will not be accepted. Tenders at the highest prices will be accepted to the extent required to attain the amount offered. All accepted tenders for the bonds will be awarded at the price of the lowest accepted bid. Fractions may not be used in tenders. The notation "TENDER FOR TREASURY NOTES SERIES (H-1975 or C-1979)" or "TENDER FOR TREASURY BONDS" should be printed at the bottom of the envelopes in which tenders are submitted. The 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 noncompetitive tenders for $ 500,000 or less for each issue of notes will be accepted in full at the average price of accepted competitive tenders and noncompetitive tenders for $ 250,000 or less for the bonds will be accepted in full at the same price as accepted competitive tenders. The prices may be 100.00, or more or less than 100 .00 . - 3 - Commercial banks, -which for this purpose are defined as banks accepting demand deposits, may submit tenders for account of cus tomers provided the names of the customers are set forth in such tenders. Others than commercial banks will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from commercial and other banks for their own account, Federally-insured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds, inter national organizations in which the United States holds membership, foreign central banks and foreign States, dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank of New York their positions with respect to Government securities and borrowings thereon, Federal Reserve Banks, and Government accounts. Tenders from others must be accompanied by payment of 5 percent of the face amount of securities applied for. Payment for accepted tenders, including accrued interest from August 15 to November 15, 1973, on the bonds ($18.75 Pe^ $1,000), must be completed on or before Thursday, November 15, 1973, at the Federal Reserve Bank or Branch or at the Office of the Treasurer of the United States in cash, U-l/ 8 $ Treasury Bonds of 1973, which will be accepted at par, or other funds immediately available to the Treasury by that date. Where full payment is not completed in funds available by the payment date, the allotment will be can celed and the deposit with the tender up to 5 percent of the amount of securities allotted will be subject to forfeiture to the United States. The Treasury will construe as timely payment any check drawn to the order of the Federal Reserve Bank or the Treasurer of the United States that is received at such bank or office by Tuesday, November 13, 1973, provided the check is drawn on a bank in the Federal Reserve District of the bank or office to which the tender is submitted. Other checks will constitute payment only if they are fully and finally collected by the payment date Thursday, November 15, 1973. Checks not so collected will subject the inves tor deposit to forfeiture as set forth in the preceding paragraph. A check payable other than at a Federal Reserve Bank received on the payment date will not constitute immediately available funds on that date. Commercial banks are prohibited from making unsecured loans, or loans collateralized in whole or in part by the securities bid for, to cover the deposits required to be paid when tenders are entered, and they will be required to make the usual certification to that effect. Other lenders are requested to refrain from making such loans. - b - All bidders are required to agree not to purchase or to make any agreements with respect to the purchase other disposition of the securities bid for under this a specific rate or price, until after the closing hour of tenders for each particular issue. or to sell, or sale or offering at for the receipt Tender forms and official circulars will be mailed on Thursday, October 25, 1973. Yours very truly, P. E. Coldwell President
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