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, 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)