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federal Reserve bank F IS C A L A G E N T O F T H E D A L L A S ,T E X A S of U N IT E D Dallas STATES 75222 Circular No. 73-10^May 8, 1973 To A l l B a nkin g Institutions and Oth ers C o n c e r n e d in the El e v e n t h F e d e r a l Re s e r v e District: Quoted b e l o w is the text of a statement issued b y the T r e a s u r y De part m e n t y e s t e r d a y p e r t a i n i n g to the w e e k l y offer ing of T r e a s u r y bills: T R E A S U R Y A NNOUNCES R E D U C T I O N IN W E E K L Y ISSUE OF BILLS The Treasury announced today that the amount of its weekly auction of 182 -day bills will be lower by $100 million in coming weeks. In recent weeks the amount auctioned has been $1.8 billion each week. Beginning with the auction to be held on Monday, May 1^, the amount auctioned will be $1.7 billion. This change has b e e n m a d e in re c o g n i t i o n of the T r e a s u r y ’s strong cash position. A d d i t i o n a l copies of this lett e r are ava ilable on request. are tenders for the w e e k l y b i lls to b e auct ione d on M a y lb. E n cl osed Yours very truly, P. E. C o l d w e l l President Enclo sures This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) F e d e r a l R e s e r v e Ba n k o f D a l l a s F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEXAS 75222 Circular No. 73-106 M ay 8, 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 follow in g statem en t giving details of tw o issues of Treasury bills: T h e Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $4,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing M ay 17, 1973, in the am ount of $4,304,335,000, as follows: 91-D A Y B IL L S (to m aturity date) to be issued M ay 17, 1973, in the am ount of $2,500,000,000, or thereabouts, representing an additional am ount of bills dated February 15, 1973, and to mature August 16, 1973 (C U S IP No. 912793 R Q 1 ), originally issued in the am ount of $1,802,910,000, the additional and original bills to be freely interchangeable. 182-D A Y B IL L S for $1,700,000,000, or thereabouts, to be dated M ay 17, 1973, and to mature Novem ber 15, 1973 (C U S IP No. 912793 S D 9 ). T he bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face amount w ill be payable without interest. T h ey w ill 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 will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving time, M onday, M ay 14, 1973. Tenders will not be received at the Treasury D epartm ent, Washington. Each tender m ust be for a m inim um of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of com petitive tenders 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 m ade on the printed forms and forwarded in the special envelopes which w ill be supplied by Federal R eserve Banks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent b y an incorporated bank or trust company. Im m ediately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, follow ing which public announcem ent will be m ade by the Treasury D epartm ent of the amount and price range of accepted bids. O nly those subm itting com petitive tenders will 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. Sub ject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids must be m ade or com pleted at the Federal R eserve B ank on M ay 17, 1973, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing M ay 17, 1973. Cash and exchange tenders will receive equal treatment. Cash adjustm ents w ill be m ade 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 between 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 maturity 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 R eserve Bank or Branch. In accord ance with the a b o v e an n o u n c em en t, tenders will b e received a t this b an k a n d its branches at El P aso, Houston a n d San Antonio up to twelve-thirty p.m., Central 3 a y !ig h t Saving Time, M o n d ay, M a y 14, 1973. Tenders m ay not b e entered b y t e le p h o n e . Yours very truly, P. E. C old well President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approximate Y ield of A ccepted Tenders 3-M onth B ills 6-M onth B ills D u e August 9, 1973 D u e N ovem ber 8, 1973 $4,375,140,000_________________________________ .Total A pplied F or_________________________________ $3,618,850,000 $2,503,650,000__________________________________ .Total A ccepted___________________________________$1,801,475,000 Price Y ield Price Y ield .96.758___________ 6.413% 98.455_____________ 6.112% ___________________________ H igh — 96.741_____________ 6.446% 98.44 8 _____________________________________________ 6 .140% _______«... Low_ 96.749___________ 6.431% (1 ) 98.44 9 _________ 6.136% ( 1 ) ___________________________________ ___ _________ Average... (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 6 .32% for the 3-month bills and 6 .74% for the 6-month bills. (See reverse for tender form) TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated February 15,1973 Maturing August 16,1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The__________________________Branch El P aso 79999 H ouston 77001 San A ntonio 78295 -------------------------- (D a te ) 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. NONCOMPETITIVE TENDER $_________________________________________ NOT TO EXCEED $200,000 N oncom petitive tenders for $200,000 or less from any bidder, w ithout stated price, will be accepted in full at the average price (in three decim als) o f accepted com petitive bids. _ * _ . (n ------------------ ^ ----------------------------- @ ------------------ $-------------------------------------- COMPETITIVE TENDERS ( $ ___________________@ ____________ $__________________ ______ ($ $ $ @ Prices should be exp ressed on the basis of 100, with not more than three decimal places, e.g., 99.925. F raction s must not be used. TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR ARE ACCEPTABLE. Denominations Desired N um b er o f pieces 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 alue @$ (5) $ 10,000 $ □ 15,000 $ □ @ $ 50,000 $ @ $ 100,000 $ @ $ 500,000 $ @$1,000,000 $ Delivery Instructions: □ Hold in Custody — General Account □ □ □ .__. □ ------------ By maturing bills held by__________ Payment to be made by. □ Charge our reserve account on payment date | | D r a f t e n c l o s e d (E ffe c tu a l delivery o f enclosed d r a f t shall be on la te st day w hich will p e rm it p re s e n tm e n t in o rd e r to o b ta in irrevocably collected fu n d s on paym e n td a te ) ( S u b scrib er’s fu ll n am e o r c o rp o ra te title ) Hold in Custody — Investment Ac count (A d d ress) Hold in Custody — Trust Account Pledge to secure Treasury Tax and Loan Account Other_____________________________ (A u th o rized official s ig n a tu re a n d title) ( F o r th e a cc o u n t of, if te n d e r is f o r a n o th e r su b scrib er) -------------------------------------------------------------------------------------- (A d d ress) 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 officerof 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 fo r announcement) F e d 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 IT E D S T A T E S DALLAS, TEXAS 7 5 2 2 2 ■ ■ ’. t Circular No. 73-107 M ay 8» 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 tw o issues of Treasury bills: T he Treasury D epartm ent, by this public no Lice, invites tenders for two series of Treasury bills to the aggregate amount of $4,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing M ay 17, 1973, in the am ount of $4,304,335,000, as follows: ■ ... j»‘VOl - 91-D A Y B IL L S (to maturity date) to be issued M ay 17, 1973, in the amount of $2,500,000,000, or thereabouts, representing an additional amount of bills dated February 15, 1973, and to mature August 16, 1973 (C U S IP No. 912793 R Q 1 ), originally issued in the amount of $1,802,910,000. the additional and original bills to be freely interchangeable. 182-D A Y B IL L S for $1,700,000,000, or thereabouts, to be dated M ay 17, 1973, and to mature Novem ber 15, 1973 (C U S IP No. 912793 S D 9 ). . T he bills of both series will be issued on a discount besis 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 denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v alu e). Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving tim e, M onday, M ay 14, 1973. Tenders w ill not be received at the Treasury D epartm ent, Washington. Each tender m ust be for a m inim um of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of com petitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be m ade on the printed forms and forwarded in the special envelopes which w ill be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or trust company. Im m ediately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, following which public announcem ent will be m ade by the Treasury D epartm ent of the amount and price range of accepted bids. O nly those subm itting com petitive tenders will be rdvised 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 rospect shall b e finai. Sub ject to these reservations, noncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted at the Federal Reserve Bank on M ay 17, 1973, in cash or other im m ediately available funds or in a like face amount of Treasury bills maturing M ay 17, 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) issu&d here under must include in his incom e tax return, as ordinary grin or loss, the difference between the price paid for the bills, whether on original issue or on subsequent purchase, and the amount actually r3ceived either upon sale or redemption at maturity during the taxable year for which the return is made. Treasury Departm 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 R eserve B ank or Branch. In accord ance with the a b o v e an n o u n c em en t, tenders will b e received at this b an k a n d its branches at El Paso, Houston an d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d ay, M ay 14, 1973. Tenders m ay not b e entered by t e le p h o n e . Yours v e : y truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approximate Y ield of Accepted Tenders 3-M onth B ills . 6-M onth B ills D u e August 9, 1973 D u e N ovem ber 8, 1973 $4,375,140,000_________________________ _____ __ T otal A pplied For_________________________________ $3,618,850,000 $2,503,650,000__________________________________ .Total A ccepted_________________________________ .1,801,475,000 Price Y ield Price Yield 98.455_______ ___ 6.112% ___________________________ High-4-*____________________ 9 6 .7 5 8 ____________ 6.413% 98.448____________ 6.140% _________________________ Low_________________ - ____ 95.741 ... _________ 6.446% 98.449____ ___ ____ 6.136% ( 1 ) ______ ____________ Average______________________ 96.749____________J-6.431% (1 ) ( 1 ) These rates are on a bank d.scaum. basis. The equivalent coupon issue yields are 6.32% for the 3-month bills and 6.74% for the 6-month bills. . ,■ • (See reverse for tender form) TENDER FOR TREASURY BILLS 182 DAYS TO MATURITY Dated May 17,1973 Maturing November 15,1973 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The__________________________Branch El P aso 79999 Houston 77001 San A ntonio 78295 -------------------------- (D a te ) 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. NONCOMPETITIVE TENDER $_________________________________________ NOT TO EXCEED $200,000 N oncom petitive tenders for $200,000 or le ss from any bidder, w ithout stated price, w ill be accepted in full at the average price (in three decim als) o f accepted com petitive bids. ^ COMPETITIVE TENDERS e 1$ (a) '$ 1$ (7T____________ $________________________ @ $ fa) $ $ ^$ $ Prices should be exp ressed on the basis of 100, with not more than three decimal places, e.g., 99.925. F ra ction s must not be used. 0 ^ = TENDERS MAY NOT BE ACCEPTED 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. METHOD OF PAYMENT D enom inations D esired N u m ber o f pieces M atu rity V alue @$ @$ 10.000 $ 15,000 $ □ □ 50,000 $ @ $ 100,000 $ @ $ 500,000 $ By maturing bills held by__________ Payment to be made by_ □ Charge our reserve account on payment date |_j Draft enclosed (E ffectu al delivery o f enclosed d r a f t @ $1.,000,000 $ shall be on la te st day w hich will p e rm it p re s e n tm e n t in o rd e r to o b ta in irrevocably collected fu n d s on pay- Delivery Instructions: □ Hold in Custody — General Account Hold in Custody — Investment Ac count □ Hold in Custody — Trust Account □ Pledge to secure Treasury Tax and Loan Account mentdate) ------------ ( S u b scriber’s fu ll n am e o r c o rp o ra te title ) □ ___, /-k. t n O ther_______________________________ (A d d re ss) By. (A u th o rized official s ig n a tu re a n d title ) ( F o r th e acc o u n t of, if te n d e r is fo r a n o th e r su bscriber) -------------------------------------------------------------------------------------- (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. S. 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 t 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 si.rpi 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