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F ederal Reserve Bank of Dallas F IS C A L A G E N T O F T H E U N ITED S T A T E S DALLAS, T EX AS 7 5 2 2 2 C ircular No. 71-47 F ebruary 16, 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 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 th e aggregate am ount of $3,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing F ebruary 25, 1971, in the am ount of $3,303,285,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued F ebruary 25, 1971, in the am ount of $1,900,000,000, or there abouts, representing an additional am ount of bills dated Novem ber 27, 1970, and to m ature M ay 27, 1971 (C U S IP No. 912793 K K 1), originally issued in the am ount of $1,400,490,000, 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 25, 1971, and to m ature August 26, 1971 (C U S IP No. 912793 L F 1 ). 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 aturity 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 22, 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 a n three decimals, e.g., 99.925. Fractions m ay not be used. It is urged th a t tenders be m ade on th e printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve 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 than 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 accom panied by an express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately after th e 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 h e 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. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t the F ederal Reserve Bank on February 25, 1971, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing F ebruary 25, 1971. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atur ing bills accepted in exchange and the issue price of th e new bills. U nder Sections 454 (b ) and 1221 (5 ) of the Internal R evenue Code of 1954 the 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, 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 th e ir 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 a n 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 on d a y, February 22, 1971. Tenders m ay 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 A pproxim ate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue M ay 20, 1971 Due August 19, 1971 $3,059,545,000 .T otal Applied F or_______________________________ $2,743,655,000 $2,000,515,000________________________________.T otal_A ccepted________________________________ $1,400,095,000 Price Y ield Price Yield 99.090___________ 3.600 % __________________________ H igh_____________________ 98.159____________3.642 % 99.072___________ 3.671% __________________________ Low______________________98.133____________3.693% 99.080___________ 3.640% ( 1 ) ____________________ Average____________________ 98.140____________ 3.679% (1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 3.72% for the 91-day bills and 3.80% 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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated November 27,1970 Maturing May 27,1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The-------------------------------------- Branch E l Paso 79999 H ouston 77001 San A ntonio 78206 (D ate) P u rsu an t to the provisions of T reasury D epartm ent Circular No. 418 (cu rren t revision) and th e provisions o f th e public announcement issued by the T reasury D epartm ent, th e undersigned offers to purchase T reasury bills in th e 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 dicated. NONCOMPETITIVE TENDER __________________________________ NOT TO EXCEED $200,000 less from any one bidder, w ithout stated price, will be accepted in full at the average Noncompetitive tenders for $200,000 or price (in three decimals) of accepted com petitive bids. $_________________________ COMPETITIVE TENDERS j>$_ ^ «P-------------------------------------- Prices should be e x pressed on the basis of 100, w ith not m ore th a n th r e e d ec im a l p la c e s , e. g., 99.925. F ra c tio n s m ust not be used. TEND ERS MAY NOT BE ACCEPTED BY TELEPH O N E. TEND ERS BY W IRE, IF RECEIV ED BEFO RE T H E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m ber of pieces Paym ent fo r th is issue of bills cannot be m ade b y credit to T reasu ry Tax and Loan Account. METHOD OF PAYM ENT M a tu rity V alue $ 10,000 $_ $ 15.000 $_ 50.000 $_ -@ ? $ -@ ? 1 0 0 ,0 0 0 □ 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 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________________________ s h 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 ubscriber's fu ll n am 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) (A ddress) IM PORTANT 1. No tender fo r less th an $10,000 will be considered and each tender 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 S tates, w ith notation on th e 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, com m uni cations rela tin g to other m atters should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank or ap p ropriate branch. 3. A ny qualified or conditional tender will be rejected. 4. If a corporation m akes the tender, th e 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 th a t h e has been so authorized. If the tender is m ade by a p artn e rsh ip it should be signed by a m em ber of the firm, w ho should sign in the form “___________________________ , a copartnership, by------------------------------------------------------------ , a m em ber of th e firm.” 5. Tenders from those other th an incorporated banks and tr u s t companies or responsible and recognized dealers in in v e st m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m atu rity v alu e) of the T re asu ry bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an incorporated bank or tr u s t company. 6. If the language of this form is changed in any respect, which, in the opinion of th e S ecretary of th e T re asu ry is ’ m aterial, th e ten d er m ay be disregarded. (See reverse for announcement)
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