The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal Reserve Bank of Dallas F IS C A L A G E N T O F T H E UNITED S T A T E S DALLAS, TEXAS 7 5 2 2 2 Circular No. 71-41 F ebruary 5, 1971 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in th e Eleventh Federal Reserve District: Your attention is invited to the fo llo w 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 18, 1971, in the am ount of $3,399,780,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued F ebruary 18, 1971, in the am ount of $2,000,000,000, or there abouts, representing an additional am ount of bills dated Novem ber 19, 1970, and to m ature M ay 20, 1971 (C U C IP No. 912793 K J 4 ), originally issued in the am ount of $1,403,485,000, 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 18, 1971, and to m ature August 19, 1971 (C U SIP No. 912793 L E 4 ). T h e 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 denom inations 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 F ederal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern S tandard Tim e, Thursday, February 11, 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 th an 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 F ederal 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. O thers th an banking institutions will not be perm itted to subm it tenders except for their own account. T enders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized dealers in investm ent securities. T enders 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 the 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 without 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 made or com pleted at the Federal Reserve B ank on February 18, 1971, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing February 18, 1971. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade 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 the Internal Revenue 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 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, 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 th e return 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 Federal Reserve B ank or Branch. In acc o rd an c e 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, Thursday, February 11, 1971. Tenders m ay not b e en tered by te le p h o n e . Yours very truly, P. E. Coldwell President Figur es co n cern in g offering o f 9 1 -D ay Treasury Bills maturi ng M a y 13, 1 9 7 1 , a n d 1 8 2 -D a y Treasury Bills matu ri ng A ugu st 12, 1971, n o t a v a i la b l e w h en this circular w a s printe d. (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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated November 19,1970 Maturing May 20,1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The-------------------------------------- Branch E l Paso 79999 H ouston 77001 San Antonio 78206 (D ate) P u rsu an t to th e provisions of T reasury D epartm ent Circular No. 418 (current revision) and th e provisions of th e public announcement issued by th e T reasury D epartm ent, th e undersigned offers to purchase T reasu ry bills in th e am ount 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 indicated. NONCOMPETITIVE TENDER $_ a _NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t the average price (in three decimals) of accepted com petitive bids. Prices should be ex pressed on the basis of 100, w ith not more th a n th r e e d ec im a l p la c e s, e. g., 99.925. F ractions m ust n ot be used. f --------------------->* COMPETITIVE TENDERS >$___________ 3 )$ ---------------------- Pi Pi m h 11®= 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 E CLOSING HOUR, ARE ACCEPTABLE. f a <5 Denominations Desired N um b er of pieces -@ $ H <3 Q 0 £H H CO O J u w ► M W O Q C O 10,000 $_ -@ $ -@ $ 15.000 $_ 50.000 $_ $ § £ Paym ent fo r this issue of bills cannot be m ade by credit to T reasury Tax and Loan Account. METHOD OF PAYM ENT M a tu rity V alue 1 0 0 ,0 0 0 $_ 500,000 $_ @ $ 1,000,000 $ ___________ Delivery Instructions: □ Hold in Custody Account—Member 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______________ □ □ Charge our reserve account on payment date | | Draft enclosed (E ffectu al delivery o f enclosed d r a f t -@ $ 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 uthorized official s ig n a tu re a n d title ) (F o r th e acco unt of, if te n d e r is fo r a n o th e r sub scriber) o (A ddress) H D Q H h0 Ph IMPORTANT 1. No tender fo r less th a n $10,000 will be considered and each ten der 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 ap prop riate branch as Fiscal A gent of th e U nited States, w ith notation on the envelope reading “TEN 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 tim e specified in the public announcem ent, communi cations relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank or appropriate branch. 3. A ny qualified or conditional tend er will be rejected. 4. If a corporation m akes th e tender, the form should be signed by an officer of the corporation authorized to m ake th e tend er and th e signing of the form by an officer of th e corporation will be construed as a representation by him th a t he h as been so authorized. If th e tender is m ade by a p artn e rsh ip it should be signed by a m em ber of the firm, who should sign in the form “___________________________ , a copartnership, by--------------------------------------------------------------- , a m em ber of th e firm.” 5. Tenders from those other th a n 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 to tal am ount (m atu rity value) of the T reasu ry bills applied for, or unless th e tenders are accompanied by an express g u ara n ty of full paym ent by an incorporated bank or tru s t company. 6 If th e langu ag e of this form is changed in any respect, which, in th e opinion of th e S ecretary of th e T reasury is . m aterial, th e tender m ay be disregarded. (See reverse for announcement)