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F ederal R eserve Bank of Dallas F IS C A L A G E N T O F T H E U NITED S T A T E S DALLAS, TEXAS 7 5 2 2 2 Circular No. 71-40 F ebruary 2, 1971 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 fo llow in g statem ent giving details of tw o issues of Treasury bills: T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $3,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing February 11, 1971, in the am ount of $3,405,955,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued February 11, 1971, in the am ount of $2,000,000,000, or there abouts, representing an additional am ount of bills dated Novem ber 12, 1970, and to m ature M ay 13, 1971 (C U S IP No. 912793 K H 8), originally issued in the am ount of $1,400,925,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,400,000,000, or thereabouts, to be dated F ebruary 11, 1971, and to m ature August 12, 1971 (CUSIP No. 912793 LD6). T he bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and a t m aturity their face am ount will be payable w ithout interest. T hey 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 atu rity value). T enders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard Tim e, M onday, February 8, 1971. T enders will not be received a t the T reasury D epartm ent, W ashington. Each tender m ust be for a m inim um of $10,000. T enders over $10,000 m ust 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 th a t tenders be m ade on the printed forms and forwarded in the special envelopes which will 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 th an banking institutions will not be perm itted to subm it tenders except for their own account. Tenders will be received w ithout deposit from incorporated banks and tru st companies 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 T reasury bills applied for, unless th e tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Only those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T he Secretary of the T reasury 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 a t the average price (in three decim als) of accepted com petitive bids for the respective issues. S ettlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t th e Federal Reserve B ank on February 11, 1971, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing February 11, 1971. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m atur ing bills accepted in exchange and the issue price of the new bills. U nder Sections 454 (b ) and 1221 (5 ) of th e Internal R evenue Code of 1954 the am ount of discount a t 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 T reasury 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, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the retu rn is made. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and govern th e conditions of their issue. Copies of the circular m ay be obtained from any F ederal Reserve 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 ank a n d its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, M o n d ay, February 8, 1971. Tenders may not b e entered by te le p h o n e . Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approxim ate Yield of Accepted T enders 91-Day Bills 182-Day Bills D ue M ay 6, 1971 D ue August 5, 1971 $3,121,295,000 T otal Applied F o r_______________________________ $2,751,285,000 $2,000,175,000________________________________ T o tal_A ccepted________________________________ $1,401,555,000 P rice Y ield Price Yield 98.975 4.055% __________________________H igh______________________97.932___________ 4.091% 98.954 4.138% __________________________ Low______________ 97.907____________ 4.140% 98.961 4.110% ( 1 ) ____________________ Average____________________ 97.920____________4.114% (1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4.21% for the 91-day bills and 4.26% for the 182-day bills. (See reverse for tender form ) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 182 DAYS TO MATURITY Dated February 11,1971 Maturing August 12, 1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________ Branch El Paso 79999 H ouston 77001 San Antonio 78206 (D ate) ^ P u rsu an t to the provisions of T reasu ry D epartm ent Circular No. 418 (current revision) and the provisions of t h e public announcement issued by the T reasu ry D epartm ent, th e undersigned offers to purchase T reasury bills in the a m o u n t shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by the method and a t the ra te in d icated NONCOMPETITIVE TENDER $_________________________________ -NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t the a v e ra g e price (in three decimals) of accepted competitive bids. f ---------- COMPETITIVE TENDERS Prices should be ex pressed on the basis o f 100, with not more th an three decimal p laces e. g., 99.925. Fractions’ must not be used. -@ - ___________ )$---------- .<§>_ B S P TEND ERS MAY NOT BE ACCEPTED BY TE L EPH O N E . TEND ERS BY W IRE, IF RECEIV ED BEFO RE T H t? CLOSING HOUR, ARE ACCEPTABLE. Denominations D esired N um ber of pieces Paym ent fo r th is issue of bills cannot be m ad e b v credit to T reasury Tax and Loan Account. METHOD OF PAYM ENT M a tu rity V alue @ $ @ $ 10,000 $_ 15.000 $_ □ 50.000 $_ @ $ 100,000 $_____________ @ $ □ □ Charge our reserve account on payment date I I Draft enclosed (E ffectual delivery o f enclosed d r a f t _______ @ $ 500,000 $________________ @ $ 1 ,000,000 $ ________________ Delivery Instructions: □ Hold i Custody Account— Member n banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to-------------------- By maturing bills held by._______________________ ____ Payment to be made by_______ _ sh all be on la te st day w hich w ill 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 p a y m e n t date) (S ub scriber’s fu ll n a m e o r c o rp o ra te title) (A ddress) By (A u thorized official s ig n a tu re a n d title ) (F o r the acco u n t of, if te n d e r is fo r a n o th e r su bscriber) (A ddress) IM PORTANT 1. No tender fo r less th a n $10,000 will be considered and each tend er over $10,000 m ust be fo r an am ount in m ultiples of $5,000 (m atu rity value). ' ' 2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of th e U nited States, w ith notation on the envelope reading “T EN D ER FOR TREASURY O FF E R IN G ”. Since envelopes received w ith this legend will not be opened until a fte r th e closing time specified in the public announcement, com m uni cations relating to other m a tte rs should not be enclosed. Envelopes for subm itting tenders m ay be obtained from th i s bank or appropriate branch. 3. A ny qualified or conditional tender will be rejected. 4. If a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to m ake th e tender and the signing of the form by an officer of th e corporation will be construed as a representation by him t h a t h e has been so authorized. If th e ten der is m ade by a p artn e rsh ip it should be signed by a m em ber of the firm, w h o should sign in the form “--------------------------------- — ------ , a copartnership, by -----------------------------------------------------a m em ber of the firm.” 5. Tenders from those other th an incorporated banks and tr u s t companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m atu rity v a lu e ) of the T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent b y a n incorporated bank or tru s t company. * * 6. If the language of this form is changed in any respect, which, in the opinion of the S ecretary of the T re a s u ry j s m aterial, the tender m ay be disregarded. (See reverse for announcement)