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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 UNITED S T A T E S

DALLAS, T EX A S 7 5 2 2 2
Circular No. 71-58
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 d ate) to be issued M arch 18, 1971, in the am ount of $1,900,000,000, or th ere­
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 th e am ount of $1,399,985,000 (an additional $200,745,000
was issued F ebruary 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 S IP 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 e ir face am ount will be payable w ithout in te re st 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 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 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 th e basis of 100, with not m ore th an three decimals, e.g., 99.925. Fractions m ay not be
used. I t is urged th a t tenders be m ade on the p rinted forms and forwarded in the special envelopes which will be supplied by
F ederal R eserve Banks or B ranches on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided the nam es 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 th e ir 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 the closing hour, tenders will be opened a t the F ederal Reserve Banks and Branches, following which
public announcem ent will be m ade by th e 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 th e average price (in th ree 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 Federal 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 m ade for differences between the p ar value of m atur­
ing bills accepted in exchange and th e issue price of th e 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 th e bills are excluded
from consideration as capital assets. Accordingly, the owner of T reasury 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 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 y ear for which th e retu rn is made.
T reasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe the term s of the T reasury bills and
govern the conditions of th eir issue. Copies of the 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 b ank a n d its branches at El Paso,
Houston an d San Antonio up to twelve-thirty p.m., Central Standard Time, M on d ay, March 15, 1 971. Tenders m ay
not b e entered b y te 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 T enders
91-Day Bills
182-Day Bills
D ue June 10, 1971
D ue Septem ber 9, 1971
$2,905,855,000
.T otal A pplied For_______________________________ $2,537,750,000
$1,900,095,000________
.T otal_A ccepted________________________________ $1,400,270,000
P rice
Yield
P rice
Y ield
99.179
3.248% ---------------------------------------H igh_____________________ 98.325...................
3.313%
99.156
3.339% __________________________L o w ______________________98.287____________3.388%
99.164
3.307% ( 1 ) ------------------------------- A verage____________________ 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.

(S ee reverse for ten d er 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 March 18,1971

Maturing September 16, 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 ursuant to th e provisions of T reasu ry D epartm ent Circular No. 418 (cu rren t revision) and th e provisions o f th e
public announcement issued by th e T reasu ry D epartm ent, th e undersigned offers to purchase T reasu ry bills in th e am o u n t
shown below, and agrees to p ay fo r th e am ount allotted, on or before the issue date, by the m ethod and a t th e 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 th e av e rag e
price (in three decimals) of accepted com petitive bids.

COMPETITIVE TENDERS
------------------------------

-@ -

P rices should b e ex­
pressed on th e b asis of
100, w ith not m o re th a n
th r e e d e c im a l p la c e s ,
e. g., 99.925. F ra c tio n s
m u st_n o t be used.

2 S P TEND ERS MAY NOT BE ACCEPTED BY TE L EPH O N E . TEN D ERS BY W IRE, IF RECEIV ED B E FO R E T H E
CLOSING HOUR, A RE ACCEPTABLE.
D enominations Desired
N um ber of
pieces

P aym ent fo r th is issue of bills cannot be m a d e by
credit to T re asu ry T ax and Loan Account.
METHOD O F PAYM ENT

M a tu rity V alue

$___ 10,000 $____________

$ 15,000 $___________
$ 50,000 $___________
$ 100,000 $___________
_(S) $ 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 ffectual 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
order 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 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 u n t of, if te n d e r is f o r a n o th e r su b scrib er)
(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 ap propriate branch as F iscal A gent of th e
U nited States, w ith notation on th e envelope reading “T EN D ER FOR TREA SU RY 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 rela tin g to other m a tte rs should not be enclosed. Envelopes for subm itting tenders m ay be obtained fro m th is
bank or ap propriate 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 th e corporation authorized to m ak e th e
tender and th e signing of the form by an officer of th e corporation will be construed as a represen tation by him t h a t he
has been so authorized. If th e tender is made 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. T enders 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 th e to tal am ount (m atu rity v a lu e )
of th e T reasu ry bills applied for, or unless the 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 langu age of this form is changed in any respect, which, in the opinion of the S ecretary of th e T re a s u ry is
* m aterial, th e tend er m ay be disregarded.

(See reverse for announcement)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102