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F ederal

reserve

bank

of

Dallas

FIS C A L A G ENT O F TH E U N IT E D STATES

DALLAS. TEXAS 75222
Circular No. 71-66
March 16, 1971

OFFERING
TREASURY BILL — TAX ANTICIPATION SERIES

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statement giving details of an issue of Treasury bills:
The Treasury Department, by this public notice, invites tenders for $2,000,000,000, or thereabouts, of 23-day Treasury
bills (to maturity date) to be issued on March 30, 1971, on a discount basis under competitive and noncompetitive bidding as
hereinafter provided. These bills will represent an additional amount of bills dated July 23, 1970, to mature April 22, 1971,
originally issued in the amount of $2,261,190,000. The additional and original bills will be freely interchangeable. They
will be accepted at face value in payment of income taxes due on April 15, 1971, and to the extent they are not
presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers
desiring to apply these bills in payment of April 15, 1971, income taxes may submit the bills to a Federal Reserve Bank or
Branch or to the Office of the Treasurer of the United States, Washington, not more than fifteen days before that date. In the
case of bills submitted in payment of income taxes of a corporation they shall be accompanied by a duly completed Form 503
and the office receiving these items will effect the deposit on April 15, 1971. In the case of bills submitted in payment of income
taxes of all other taxpayers, the office receiving the bills will issue receipts therefor, the original of which the taxpayer shall
submit on or before April 15, 1971, to the District Director of Internal Revenue for the District in which such taxes are payable.
The bills will be issued in bearer form only, and in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard Time, Wednesday, March 24, 1971. Tenders will not be received at the Treasury Department, Washington. Each
tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. In the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of customers provided the names of the customers are
set forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their own account.
Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treas­
ury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust
company.
All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase
or sale or other disposition of any bills of this issue at a specific rate or price, until after one-thirty p.m., Eastern Standard
Time, Wednesday, March 24, 1971.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only those sub­
mitting competitive tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury 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.
Subject to these reservations, noncompetitive tenders for $300,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in
accordance with the bids must be made or completed at the Federal Reserve Bank in cash or other immediately available funds
on March 30, 1971.
Under Sections 454 (b ) and 1221 (5 ) of the Internal Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued here­
under must include in his income tax return, as ordinary gain or loss, the difference between the price paid for the bills, whether
on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during
the taxable year for which the return is made.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio, up to twelve-thirty p.m., Central Standard Time, Wednesday, March 24, 1971. Tenders may
not be entered by telephone.

Yours ve tuy
ry rl,
P. E. Coldwell
President

(S ee reverse side for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

This issue of Treasury bills will be accepted at face value in payment of income taxes due
on April 15,1971

TENDER FOR ADDITION TO TREASURY BILLS
TAX ANTICIPATION SERIES
Dated July 23,1970

Maturing April 22,1971

23 DAYS TO MATURITY

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
Or —
The.-----------------------------------------------------Branch
El Paso 79999

Houston 77001

______________________

San Antonio 78206

(Date)

Pursuant to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and to the
provisions of the public anouncement, as shown on reverse side, as issued by the Treasury Departm ent,
the undersigned offers to purchase Treasury bills in the am ount shown below, and agrees to pay for the
am ount allotted, on or before the issue date, by th e method and a t the rate indicated.
NONCOMPETITIVE TENDER $________________________________ NOT TO EXCEED $300,000
Noncompetitive tenders for $300,000 or less from any one bidder, without stated price, will be accepted in
full at the average price (in three decimals) of accepted competitive bids.

[
1
COMPETITIVE TENDERS (

I

*

(a)

Prices should be ex­
pressed on the basis of
100, with not more than
th re e decim al places,
e. g., 99.925. Fractions
must not be used.

$

k

$

$

1
!

,

$

^ " T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

METHOD OF PAYMENT

Maturity Values

(5) $
(S) $

10,000 $

□

Payment to be made by.

15,000 $50,000 $-

(5) $
(3) $ 100,000 $(5) $ 500,000 $(5) $1 ,000,000 $-

(Name of Bank)
□

By charge to our reserve account on payment date.

□

By d raft enclosed (effectual delivery of enclosed draft
shall be on latest day which will perm it presentment in
order to obtain irrevocably collected funds on payment
date).

We certify that we, as well as our customers, if any, listed
hereon have agreed not to purchase or to sell, or to make f.ny
agreements with respect to the purchase or sale or other disposi­
tion of any bills of this issue at a specific rate Q" price, until
after one-thirty p.m., Eastern Standard Time, Wednesday,
March 24, 1971.

Delivery Instructions:

-------------------(S u b— er s fu ll nam e o r c o rp o rate title—
„-------------------—)
scrib

□ Hold in Custody Account — Member
banks for own account only

(Address)
----------

□ Pledge to Secure T reasury Tax and
Loan Account
[—| S h i p t o _______________________________ — ___________________

(A u thorized official s ig n a tu re a n d title )

(F o r th e a cc o u n t o f, if te n d e r is fo r a n o th e r su b scrib er)
(A ddress)

IMPORTANT
1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust be for an amount in multiples of
$5,000 (m aturity value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes received
with this legend will not be opened until a fter the closing time specified in the public announcement, communications
relating to other m atters should not be enclosed. Envelopes for submitting tenders may be requested from this bank or
appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender the form should be signed by an officer of the corporation authorized to make the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him th at he
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who
should sign in the form “................ .......................................... >a copartnership, by...........................................................................,
a member of the firm”.
5 Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or tru st company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury, is m aterial,
the tender may be disregarded.
(See reverse for announcement)

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