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federal

Reser ve Ba n k

of

Dallas

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
D A L L A S ,T E X A S

75222

Circular No. 73-285
November 5? 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:

TREASURY BILL AUCTIONS
The Treasury plans to raise $1.2 billion of new cash by
selling a short strip of bills totaling $1.1 billion and by
raising $100 million through an addition to the amount of bills
auctioned on Monday, November 12, 1973* The strip of bills will
be auctioned on Friday, November 9> 1973? for payment on November lU,
1973. It will consist of $100 million additions to bills maturing
each week from November 23, 1973} through January 31? 1 7 *
9 * . This
auction, combined with the addition of $100 million to the regular
auction on Monday, November 12, will bring all weekly bill maturities
to $U.3 billion. None of the bills may be paid for by credit to
Treasury tax and loan accounts.
This limited short-term financing is a by-product of the
recent welcome improvement in the international payments posi­
tion of the United States. This improved payments position has
been reflected in reduced holdings of Treasury debt by some foreign
monetary authorities. A portion of this reduction, which is in
itself desirable, may give rise to some redemptions of special
U. S. Treasury securities held by those monetary authorities. In
the absence of an ability to borrow directly from the Federal
Reserve Banks (the authority for which expired on October 31 and
has not yet been extended by the Congress), a limited addition to
Treasury cash balances is now required to prudently prepare for
this eventuality.

enclosed.

Copies of the official circular/tender for the strip offering are
Additional copies are available upon request.
Yours very truly,
P. E. Coldwell
President

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 lla s
FISCAL AGENT OF THE UNITED STATES
DALLAS, T EX A S 7 5 2 2 2
Circular No. 73-284
November 5 1973
,

TREASURY OFFERS $1.1 BILLION STRIP OF WEEKLY BILLS
To A ll Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follo w ing statem ent giving details of a strip of outstanding Treasury bills:
T he T reasury D epartm ent, by this public notice, invites tenders for additional am ounts of eleven series of T reasury bills
to the aggregate am ount of $1,100,000,000, or thereabouts, for cash. T h e additional bills will be issued N ovem ber 14, 1973, will
be in the am ounts and will be in addition to th e bills originally issued and m aturing as follows:
Amount of
Additional
Issue

Original
Issue Dates

$ 100,000,000
100,000,000
100,000,000
100,000,000
100,000,000
100,000,000
100,000,000
100,000,000
100,000,000
100,000,000
100,000,000
$1,100,000,000

M ay 24, 1973
M ay 31, 1973
Ju n e 7, 1973
Ju n e 14, 1973
Ju n e 21, 1973
Ju n e 28, 1973
Ju ly 5, 1973
Ju ly 12, 1973
Ju ly 19, 1973
Ju ly 26, 1973
Aug. 2, 1973

Maturity
Dates

Nov. 23, 1973
Nov. 29, 1973
Dec. 6, 1973
Dec. 13, 1973
Dec. 20, 1973
Dec. 27, 1973
Jan. 3, 1974
Jan. 10, 1974
Jan. 17, 1974
Jan. 24, 1974
Jan. 31, 1974

'

Days from
November 1 4 ,1 9 7 3
to Maturity

9
15
22
29
36
43
50
57
64
71
78

CUSIP
Nos.

912793
912793
912793
912793
912793
912793
912793
912793
912793
912793
912793

Amount
Currently
Outstanding
(in millions)

$4,202
4,205
4,210
4,192
4,203
4,204
4,202
4,204
4,203
4,201
4,212

SE7
SF4
SG2
SH0
S J6
SK3
SS6
ST4
SU1
SV9
SW7
A verage.

.. _

.

.

.

43.1

T h e additional an d original bills will be freely interchangeable.
E ach tender sub m itted m ust be in th e m inim um am ount of $ 110,000. T enders over $ 110,000 m ust be in m ultiples of $55,000.
O ne-eleventh of th e am ount tendered will be applied to each of the above series of bills.
T he bills offered hereunder will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and a t m a tu rity th e ir face am ount will be payable w ithout interest. T hey 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 atu rity v alu e).
T enders will be received a t F ederal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern Standard
Tim e, Friday, N ovem ber 9, 1973, T enders will n o t be received a t th e T reasury D epartm ent, W ashington. In th e case of
com petitive tenders th e price offered m ust be expressed on th e basis of 100, w ith not m ore th an th ree decimals, e.g., 99.925.
F ractions m ay not be used. A single price m ust be subm itted for each tender. I t is urged th a t tenders be m ade on th e printed forms
and forwarded in th e special envelopes which will be supplied by Federal R eserve B anks or Branches-on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided th e nam es of th e customers are set
forth in such tenders. O thers th an banking institutions will not be p erm itted to subm it tenders except for th e ir own acco u n t
T enders will be received w ithout deposit from incorporated banks and tru st com panies and from responsible and recognized
dealers in investm ent securities. T enders from others m ust be accom panied by p aym ent of 2 p ercent of th e face am ount of
T reasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by a n incorporated bank or
tru st company.
All bidders are required to agree not to purchase or to sell, or to m ake any agreem ents w ith respect to th e purchase or
sale or other disposition of any bills of these additional issues at a specific rate or price, u ntil a fter one-thirty p.m., E astern
S tandard T im e, Friday, N ovem ber 9, 1973.
Im m ediately after the closing hour, tenders will be opened a t th e Federal R eserve B anks and Branches, following which
public announcem ent will be m ade by th e T reasury D ep artm en t of th e am ount and price range of accepted bids. Only those sub­
m itting com petitive tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of th e T reasury expressly
reserves the right to accept or reject any or all tenders, in whole or in p art, and his action in any such respect shall be final. Subject
to these reservations, noncom petitive tenders for $220,000 or less (in am ounts as set forth in the second p aragaph) w ithout stated
price from any one bidder will be accepted in full a t th e average price (in three decim als) of accepted com petitive bids. Settle­
m ent for accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t th e F ed eral R eserve B ank in cash or other
im m ediately available funds on N ovem ber 14, 1973.
U nder Sections 454 (b ) and 1221 (5 ) of th e In tern al R evenue Code of 1954 th e am ount of discount a t which bills issued
hereunder are sold is considered to accrue when th e bills are sold, redeem ed or otherwise disposed of, an d th e bills are excluded
from consideration as capital assets. Accordingly, th e owner of T reasury bills (o th er th a n life insurance com panies) issued here­
under m ust include in his income tax return, as ordinary gain or loss, th e difference betw een th e price p aid for th e bills, w hether
on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m a tu rity during
the taxable year for which th e retu rn is m ade. Purchasers of a strip of the bills offered hereunder should, for tax purposes, take
such bills onto th eir books on th e basis of th e ir purchase price prorated to each of th e eleven outstanding issues using as a basis
for proration the closing m ark et prices for each of th e issues on N ovem ber 14, 1973. (F ed eral R eserve B anks will have available
a list of these m arket prices, based on th e m ean betw een th e bid and asked quotations furnished by th e F ederal R eserve B ank
of New Y ork.)
T reasury D ep artm en t C ircular No. 418 (cu rren t revision) and this notice, prescribe the term s of the T reasury bills and
govern th e conditions of th eir issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank or Branch.
In accordance w ith the ab o v e announcem ent, tenders w ill be received a t this b a n k a n d its branches a t El Paso,
Houston a n d San A ntonio, up to tw elv e-th irty p.m ., Centra! Standard Time, Friday, N ovem ber 9, 1973. Tenders m ay
not be entered b y telephone.

Yours very truly,
P. E. Coldwell
President

TENDER FOR ADDITION TO TREASURY BILLS
Maturing: 1973 — November 23, November 29, December 6, December 13, December 20, and December 27
1974 — January 3, January 10, January 17, January 24, and January 31
To:

Federal Reserve Bank, Station K, Dallas, Texas 75222
or—
The-------------------------------------------------------- Branch
E l Paso 79999

Houston 77001

___________________________
(D ate)

San Antonio 78295

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 $220,000
(Minimum $110,000 — over that m ultiples o f $55,000, for each subscriber)
N oncompetitive tenders for $220,000 or less (in multiples o f $55,000 over $110,000 minimum) without stated price from any
one bidder w ill be accepted in fu ll a t th e average price (in three decimals) of accepted com petitive bids.

COMPETITIVE TENDERS
(m inimum $110,000 — over th at
n ultiplea of $55.000, f or each
subscriber)

fc---k-----$ --- I ----?
$-----

Prices should be
e x p r e s s e d on th e
basis of 100, w ith
not more than three
decimal places, e.g.,
9 9 .9 2 5 . Fractions
m ust not be used.

-@ -

A single price must be submitted for each tender.
T E N D E R S MAY NOT BE E N T E R E D BY T ELEPH O NE. T E N D E R S BY W IRE, IF RECEIVED BEFO RE THE
CLOSING HOUR, A R E ACCEPTABLE.
METHOD OF P A Y M E N T
□

B y charge to our reserve account on paym ent date.

□

By draft enclosed (effectual delivery of enclosed draft
shall be on la test day which w ill permit presentm ent in
order to obtain irrevocably collected funds on paym ent
d ate).

□

P aym ent to be made b y............................................................

Delivery Instructions:
Treasury Bills allotted w ill be delivered in convenient
denominations.
Describe by issue, if more than one o f the follow ing
methods o f delivery is desired.

□

Hold in Custody — General Account

□

Hold in Custody — Investment Account

□

Hold in Custody — Trust Account

□

Pledge to secure Treasury Tax and
Loan Account

W e certify that we, as well as our customers, i f any, listed
hereon have agreed not to purchase or to sell, or to make any
agreem ents with respect to the purchase or sale or other dis­
position of any bills o f these additional issues at a specific rate
or price, until after one-thirty p.m., E astern Standard Time,
Friday, November 9. 1973.
(S u s b c rib e r’s f u ll n a m e o r c o rp o ra te t it le )

(A d d re s s )

B y.
(A u th o riz e d o ffic ia l s ig n a tu re an d t it le )

□

Other___ _______________________________
( F o r th e acco u n t o f, i f te n d e r is fo r a n o th e r su b scrib e r)

(A d d re s s )

IM P O R T A N T
1. N o tender for less than $110,000 w ill be considered and each tender over $110,000 m u st be for an amount in m ultiples of
$55,000 (m aturity value).

2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gen t of the
United States, w ith notation on the envelope reading “T E N D E R FOR T R E A S U R Y O F F E R IN G ”. Since envelopes
received w ith this legend w ill not be opened until after the closing tim e specified in the public announcement, communi­
cations relating to other m atters should not be enclosed. Envelopes for submitting tenders m ay be requested from this
bank or appropriate branch.
3 . A ny qualified or conditional tender w ill be rejected.

4. If a corporation m akes the tender the form should be signed by an officer of the corporation authorized to make the
tender and the sign in g o f the form by an officer o f the corporation w ill be construed as a representation by him that he
has been so authorized. I f the tender is made by a partnership it should be signed by a member of the firm, who
should sign in the form 4t.......... ........... .................................... , 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
m ent securities w ill be disregarded, unless accompanied by a deposit of 2 per cent 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. I f the language of th is form is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material,
the tender m ay be disregarded.

(Se reverse for announcement)