View PDF

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 U N IT E D S T A T E S

DALLAS, T E X A S 7 5 2 2 2
Circular No. 71-63
M arch 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 follow 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 $3,500,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M arch 25, 1971, in the am ount of
$3,304,795,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued M arch 25, 1971, in the am ount of $1,900,000,000, or th ere­
abouts, representing an additional am ount of bills dated D ecem ber 24, 1970, and to m ature June 24, 1971
(C U S IP No. 912793 K P O ), originally issued in the am ount of $1,403,800,000 (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 $1,600,000,000, or thereabouts, to be dated M arch 25, 1971, and to m ature Septem ber 23,
1971 (C U S IP No. 912793 L K O ).
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 R eserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern
S tandard Tim e, Monday, M arch 22, 1971. T enders will not be received a t the Treasury 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 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 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 trust companies and from responsible and recognized
dealers in investm ent securities. Tenders 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 R eserve 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. 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 25, 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 25, 1971. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e 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 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, the owner of T reasury 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 the return is made.
T reasury D epartm ent Circular No. 418 (curren t revision) and this notice, prescribe the term s of the T reasury bills and
govern th e conditions of th eir issue. Copies of the circular m ay be obtained from any Federal 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 ay , March 22, 1 971. Tenders may
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 A ccepted Tenders
91-Day Bills
182-Day Bills
D ue June 17, 1971
D ue Septem ber 16, 1971
$2,813,410,000
T otal A pplied F or_______________________________ $2,527,435,000
$1,900,095,000________________________________ T o tal A ccepted_________________________________$1,400,075,000
P rice
Y ield
Price
Yield
99.183----------------- 3.232% ---------------------------------------.H igh______________________ 98.295___________ 3.373%
99.153___________ 3.351% __________________________L o w ______________________ 98.258___________ 3.446%
99.164----------------- 3.307% ( 1 ) ----------------------------- .Average____________________ 98.273___________ 3.416% (1 )
(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 3.39% for the 91-day bills and 3.53% 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated March 25,1971

Maturing September 23,1971

To: Federal Reserve Bank, Station R, Dallas, Texas 75222
or —
The-------------------------------------- Branch
E l 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 (cu rren t revision) and the provisions of th e
public announcement issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am ount
shown below, and agrees to pay for 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 at the average
price (in three decimals) of accepted competitive bids.
$_________________________

COMPETITIVE TENDERS W

-@ -

)•
$

c
j»
^

"

? --------------------------------------

Prices should be ex­
pressed on the basis of
100, with not more th a n
th r e e d ecim al p la c e s ,
e. g., 99.925. F ractions
m ust not be used.

TEND ERS MAY NOT BE ACCEPTED BY TELEPH O N E. TEND ERS BY W IRE, IF RECEIVED BEFO RE T H E
CLOSING HOUR, ARE ACCEPTABLE.
~
Denominations Desired
N um ber of
pieces

Paym ent for 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

@ $
@ $

10,000 $15,000 S­
P

□

50,000 S.
S
100,000 *
@$
P
@ $ 500,000 S­
$1,000,000 S@
S
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
shall be on la te st day w hich will p e rm it p re s e n tm e n t in
o rd e r to ob tain irrevocably collected fu n d s on p a y m e n t
d a te )
(S u b sc rib e r’s fu ll n am e o r c o rp o ra te title )

(A dd ress)

By-

(A u th o rized 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 d d ress)

IM PORTANT
1. No ten der fo r less th a n $10,000 will be considered and each tender over $10,000 m ust be for 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 th is bank or app ropriate branch as Fiscal A gent of th e
U nited S tates, 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 the closing tim e specified in th e public announcement, com muni­
cations relatin g to other m a tte rs should not be enclosed. Envelopes for subm itting tenders m ay be obtained from th is
bank or appro priate branch.
3. A ny qualified or conditional tender will be rejected.
4. If a corporation m akes the 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 the corporation will be construed as a representation by him th a t he
h as 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, who
should sign in th e 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 alue)
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 tru 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 asu ry is
m aterial, th e ten der m ay be disregarded.

(See reverse for announcement)

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