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F ederal Reserve Bank o f 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 DALLAS, TEXAS 75222 C i r c u l a r No. 7 3-28 4 N o v e m b e r 5, 1973 TREASURY OFFERS $1.1 BILLION STRIP OF WEEKLY BILLS ^ All B a n k in g Institutions a n d O th e r s C o n c e r n e d in t h e E leventh F e d e r a l R e serv e District: Your a t t e n t i o n is in v ite d to th e f o llo w in g s t a t e m e n t g iv in g d e ta ils of a strip of o u t s t a n d i n g T re as u ry bills: T h e T rea su ry D e p a r tm e n t, b y th is p u b lic n o tic e, in v ite s ten d ers for a d d itio n al a m o u n ts o f e le v e n series o f T r ea su ry b ills to t h e a g g rega te a m o u n t o f $ 1 ,1 0 0 ,0 0 0 ,0 0 0 , or th erea b ou ts, for cash. T h e a d d ition a l b ills w ill b e issu ed N o v e m b e r 14, 1 9 7 3 , w ill be in th e a m o u n ts an d w ill b e in a d d itio n to th e b ills orig in a lly issued and m a tu rin g as fo llo w s: Amount of Additional Issue * 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 00,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 O rig ina l Issue Dates M ay M ay June June June June J u ly J u ly J u ly J u ly A ug. 24, 1 97 3 3 1, 1973 7, 1973 14, 1973 21 , 1973 28, 1973 5, 1973 12, 1973 19, 1973 26, 1973 2, 1973 M atu rity D ate s N o v . 23 , 1973 N o v . 29, 1973 D e c . 6, 1973 D e c . 13, 1973 D e c . 20, 19 73 D e c . 27, 1973 J an . 3, 1974 Jan. 10, 1 97 4 J an . 17, 1 97 4 Jan. 24 , 1 97 4 Jan. 3 1 , 1 9 7 4 *1,100,000,000 D ays from N ovem ber 14, 19 7 3 to M aturity A m o unt Currently O u ts ta n d i n g (in millions) SE7 SF4 SG2 SH0 SJ6 SK3 SS6 ST4 SU1 SV9 SW 7 9 15 22 29 36 43 50 57 64 71 78 $ 4,2 02 4 ,2 0 5 4 ,2 1 0 4 ,1 9 2 4 ,2 0 3 4 ,2 0 4 4 ,2 0 2 4 ,2 0 4 4 ,2 0 3 4 ,2 0 1 4 ,2 1 2 A v e r a g e ______ ...................... 43.1 CUSIP Nos. 912793 912793 912793 912793 912793 912793 912793 912793 912793 912793 912793 T h e a d d itio n a l an d o rigin al b ills w ill b e fr e e ly in terch an g ea b le. E ach te n d e r su b m itted m u st b e in th e m in im u m a m o u n t of $ 1 1 0 ,0 0 0 . T e n d e r s ov er $ 1 1 0 ,0 0 0 m u st b e in m u ltip le s o f $55,0 00 . O n e -e le v e n th o f th e a m o u n t ten d e red w ill b e a p p lie d to ea ch of th e a b o v e series o f bills. T h e b ills offered h ereu n d er w ill b e issu ed o n a d isco u n t b asis und er c o m p e titiv e and n o n c o m p e titiv e b id d in g a s h erein after p rov id ed , a n d a t m a tu rity th eir fa ce a m o u n t w ill b e p a y a b le w ith o u t interest. T h e y w ill b e issu ed in b earer fo rm o n ly , a n d in d e n o m in a tio n s o f $ 1 0 ,0 0 0 , $ 1 5 ,0 0 0 , $ 5 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 and $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a lu e ) . T e n d e r s w ill b e rece iv ed at F ed era l R e s e r v e B a n k s a n d B ra n ch es up to th e clo sin g hour, o n e-th irty p.m ., E a ste rn Stan d ard T im e , F r id a y , N o v e m b e r 9, 1973. T e n d e r s w ill n o t b e rece iv ed a t th e T rea su ry D e p a r tm e n t, W ash in g to n . In th e c a se o f c o m p e titiv e ten d e rs th e p rice offered m u st b e ex p ressed o n th e b a sis o f 100, w ith n o t m ore th an three d ecim a ls, e.g., 9 9.9 25 . F ra ctio n s m a y n ot b e used. A sin g le price m u s t b e su b m itted for each ten der. It is u rged th a t ten d ers be m a d e on th e p rin ted form s an d forw ard ed in th e sp ec ia l en v e lo p e s w h ich w ill b e su p p lied by F ed era 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 a cco u n t o f cu sto m ers p ro v id ed t h e n a m e s o f t h e cu stom ers are se t forth in su ch tenders. O thers th a n b an k in g in stitu tio n s w ill n ot be p erm itted to su b m it ten d ers e x c e p t for th eir ow n a c c o u n t T e n d er s w ill b e r e c e iv e d w ith o u t d ep o sit fro m in corp orated banks and trust co m p a n ie s an d from resp o n sib le a n d reco gn ized d ealers in in v e stm e n t secu rities. T e n d er s from others m u st 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 th e fa ce a m o u n t o f T rea 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 exp ress gu aran ty o f p a y m e n t b y a n in corp orated b an k or tru st co m p a n y. A ll b id d ers are req u ired to a gree n o t to p u rch a se or to sell, or to m a k e a n y a g reem en ts w ith r e sp ect to th e p u rch ase or sa le or o th e r d isp o sitio n o f a n y b ills o f th e se a d d itio n a l issu es at a sp ecific rate or p rice, u n til a fter o n e-th irty p.m ., E a stern Stan d ard T im e , F rid a y , N o v e m b e r 9, 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 e n e d a t th e F ed era l R e s e r v e B a n k s a n d B ran ch es, fo llo 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 c c e p te d bids. O n ly th o se *ubm ittin g c o m p e titiv e ten d e rs w ill b e a d v ised o f t h e a ccep ta n ce or rejectio n th ereof. T h e S ecreta ry o f t h e T rea su ry ex p ressly reserves th e righ t to a c c e p t or reject a n y or all tenders, in w h o le or in part, a n d h is a ctio n in a n y su ch r e sp ect sh a ll 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 2 0 ,0 0 0 or le s s ( in a m o u n ts a s se t forth in t h e seco n d p a ra g a p h ) w ith o u t sta ted p rice fro m a n y o n e b id d er w ill b e a ccep ted in fu ll a t th e av era g e p rice ( in th ree d e c im a ls) o f a c c e p te d c o m p e titiv e bids. S e ttle m e n t for a c c 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 e d e r a l R e s e r v e B a n k in cash or other im m e d ia te ly a v a ila b le fu n d s on N o v e m b e r 14, 1973. U n d er S e c tio n s 4 5 4 ( b ) a n d 1221 ( 5 ) o f th e In tern al R e v e n u e C od e o f 1 9 54 th e a m o u n t o f d isco u n t a t w h ich b ills issu ed h ereu n d er are sold is co n sid ered to accru e w h en th e b ills are sold, red eem ed or o th erw ise d isp o sed of, an d th e b ills are exclu d ed from con sid eration as ca p ita l assets. A cco rd in g ly , t h e ow n er o f T reasu ry b ills ( o th e r th a n life in su ran ce c o m p a n ie s) issu ed here un d er m u s t in clu d e in h is in co m e ta x return, as ord in ary gain or loss, th e d ifferen ce b etw een th e p rice p a id for t h e b ills, w h eth er on orig in a l issu e or on su b seq u e n t purch ase, a n d t h e a m o u n t a c tu a lly rece iv ed e ith er u p o n sale or r ed em p tio n a t m a tu rity during th e ta x a b le yea r for w h ich th e return is m ad e. P u rch asers o f a strip o f t h e b ills offered h ereu n d er sh ou ld , for ta x p u rposes, take such b ills o n to th e ir b ook s on th e b asis o f th eir purch ase p rice p rorated to each o f th e e le v e n o u tsta n d in g issu es u sin g a s a b asis for p roration th e clo sin g m a rk et p rices for each o f t h e issu es o n N o v e m b e r 14, 1973. (F e d e r a l R e s e r v e B a n k s w ill h a v e a v a ila b le a lis t o f th e se m a rk et p rices, b a sed on th e m ea n b etw een t h e b id an d a sk ed q u o tation s furnish ed b y th e F e d e r a l R e s e r v e B a n k o f N e w Y o rk .) 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 ) and th is n o tic e, prescrib e th e term s o f th e T r ea su ry b ills and g o v e r n th e co n d itio n s o f th e ir issue. C o p ies o f t h e circular m a y be o b ta in ed from a n y F ed e r a l R e s e r v e B a n k or B ranch. 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 d e r s will b e rec 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 a s o , Houston a n e * ^ a n A nto n io , u p to tw e lv e - th ir ty p .m ., Centre! S t a n d a r d Time, Friday, N o v e m b e r 9, 1973. T e n d e rs m a y not b e e n t e r e d b y t e l e p h o n e . Yours very truly, P. E. C oldw ell P re sid e n t This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR ADDITION TO TREASURY BILLS M aturing: 1973 — Novem ber 23, November 29, December 6, December 13, December 20, and Decem ber 27 1974 — January 3, January 10, January 17, January 24, and January 31 To: Federal Reserve Bank, Station K, Dallas, T exas 75222 or — ___________________________________________________________________________________________ ____ The--------------------------------------------------------------Branch (Date) El Paso 79999 Houston 77001 San Antonio 78295 P u r su a n t to th e p ro v isio n s o f T r ea su ry D e p a r tm e n t C ircular N o . 418 (c u rren t r e v isio n ) and to t h e p ro vision s o f th e public a nnouncem ent, as sh o w n on r e v e r se side, a s issu ed by th e T r ea su r y D e p a r tm e n t, th e u n d ersign ed offers to p u rch ase T re a su r y bills in th e a m ou n t sh o w n below , and a g r e e s to p a y fo r t h e am ou n t allotted, on or b efo re th e is s u e date, by t h e m eth o d and a t t h e ra te indicated. N O N C O M P E T IT IV E T E N D E R $.... _____________________________ N O T TO E X C E E D $220,000 (Minimum $110,000 — over multiples of $55,000, for each subscriber) Noncompetitive tenders for $220,000 or less (in multiples of $55,000 over $110,000 minimum) without stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted competitive bids. . . C O M PE T IT IV E T E N D E R S | ? (minimum $110,000 — over th a t multiples of $55,000, for each subscriber) ---------------------- . Prices should be ' ------------------- ex p ressed on th e $ basis of 100, with $ @ not more than three $. $ j$ decimal places, e.g., $ 1 $ ----------------------------@ ------------------ $ ---------------------------------* t fa c tio n s $ ... ,S ^ _ @ * m ust not be used. $ A single price m ust be subm itted for each tender. TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. METHOD OF PAYMENT □ □ □ Hold in C ustod y — G eneral A cco u n t □ P le d g e to secu re T rea su ry T a x and Loan A ccou n t □ We certify that we, as well as our customers, if any, listed hereon have agreed not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other dis position of any bills of these additional issues at a specific rate or price, until after one-thirty p.m., Eastern Standard Time, Friday, November 9. 1973. Hold in C ustody — T r u st A ccou n t □ Payment to he made by.................................................... H old in C ustody — I n v e stm e n t A ccou n t □ By draft enclosed (effectual delivery of enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date). □ D e liv e ry I n s tr u c t io n s : Treasury Bills allotted will be delivered in convenient denominations. Describe by issue, if more than one of the following methods of delivery is desired. By charge to our reserve account on payment date. O ther________________________________________ ( S u s h c rib e r'a fu ll n a m e o r c o rp o r a te title) (A ddress) By. --------- ---- ----------------------------------------( A u t h o r i z e d of 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 of, i f t e n d e r is f o r a n o t h e r s u b s c r i b e r ) (A ddress) IMPORTANT 1. No tender for less than $110,000 will be considered and each tender over $110,000 m ust be for an amount in multiples of $55,000 (m aturity 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 m atters should not be enclosed. Envelopes for submitting tenders may be requested 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 th a t 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 ________ i a member of the firm”. 5. Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in invest ment securities will 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. 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. ’ (Se reverse for announcement)
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