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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 NITED S T A T E S DALLAS, TEX AS 7 5 2 2 2 Circular No. 71-57 M arch 9, 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 M arch 18, 1971, in the am ount of $3,302,225,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued M arch 18, 1971, in the am ount of $1,900,000,000, or there abouts, representing an additional am ount of bills dated Decem ber 17, 1970, and to m ature Ju n e 17, 1971 (C U S IP No. 912793 K N 5), originally issued in the am ount of $1,399,985,000 (an additional $200,745,000 was issued February 26, 1971), 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 M arch 18, 1971, and to m ature Septem ber 16, 1971 (C U SIP No. 912793 L J3 ). 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 th eir 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 Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern S tandard Tim e, M onday, M arch 15, 1971. T enders will not be received a t th e 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 th e basis of 100, with not m ore th a n three decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be made on th e printed forms and forwarded in the special envelopes which will be supplied by F ederal Reserve B anks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided the nam es of th e customers are set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for th eir 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 accompanied 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 m ade 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 th e 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 th e respective issues. S ettlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t the F ederal Reserve B ank on M arch 18, 1971, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M arch 18, 1971. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the p ar 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 th e bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, th e owner of Treasury bills (other th an 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 p aid for the bills, w hether on original issue or on subsequent purchase, and th e am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which th e 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 th e circular m ay be obtained from any Federal Reserve B ank or Branch. In a ccord ance with the a b o v e an n o u n c em en t, tenders will b e received at this bank 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 ay , March 15, 1 971. Tenders m a y iot be entered b y t e le p h o n e . Yours very truly, P. E. Cold well 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 Ju ne 10, 1971 Due Septem ber 9, 1971 $2,905,855,000 .T otal A pplied F o r_______________________________ $2,537,750,000 $1,900,095,000________________________________ T otal_A ccepted_______________________ $1,400,270,000 P rice Yield Price Y ield 99.179 3.248% _________________________ H igh_____________________ 98.325................ .3.313% 99.156----------------- 3.339% ---------------------------------------- Low_____________________ 98.287.—._______ 3.388% 99.164----------------- 3.307% ( 1 ) ------------------------------ Average___________________ 98.302___________ 3.359% (1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 3.39% for the 91-day bills and 3.47% 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 BELLS 91 DAYS TO MATURITY Dated December 17,1970 Maturing June 17,1971 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 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 reasury bills in th e am oun t shown below, and agrees to p ay fo r the am ount allotted, on or before the issue date, by the method and a t the ra te indicated. 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 av erag e price (in three decimals) of accepted competitive bids. COMPETITIVE TENDERS x $_________________________ .<§>. < j» ^ c « -------------------------------------P P rices should be ex pressed on th e 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 ra ctio n s m ust not be used. 2 ^ TEND ERS MAY NOT BE ACCEPTED BY T ELEPH O N E. TEND ERS BY W IRE, IF RECEIV ED BEFO RE T H E CLOSING HOUR, A RE ACCEPTABLE. ‘ Denominations Desired N um ber of pieces P aym ent fo r this issue of bills cannot be m ade by credit to T reasu ry T ax and Loan Account. METHOD OF PAYM ENT M a tu rity V alue $ 1 0 ,0 0 0 $_ $ 15,000 $_ $ 50,000 $_ $ 100,000 $_ @ $ 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 Q D r a f t e n c l o s e d (E ffectual delivery o f enclosed d r a f t sb all be on la te s t d ay 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 u bscrib er’s fu ll n a m e o r co rp o ra te title) (A ddress) By- (A utho rized official s ig n a tu re a n d title ) (F o r th e accoun t of, if te n d e r is fo r a n o th e r subscriber) (A ddress) IM PORTANT 1. No tender fo r less th a n $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 approp riate branch as F iscal A gent of th e U nited States, 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 th e public announcement, com m uni 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 tender will be rejected. 4. I f a corporation m akes the tender, th e form should be signed by an officer of th e corporation authorized to m ake th e tender and the signing of the form by an officer of the corporation will be construed as a representation by him t h a t h e has 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, w ho should sign in th e 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 in v e s t m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity v a lu e ) 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 b y an incorporated bank or tr u s t company. 6. If th e language of this form is changed in any respect, which, in the opinion of th e S ecretary of th e T re a su ry i s m aterial, the tender m ay be disregarded. (See reverse for announcement)
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