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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 AS 7 5 2 2 2
Circular No. 71-81
A pril 6, 1971

NEW OFFERING — TREASURY BILLS
T All Banking Institutions a n d Others Concerned
o
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 the aggregate am ount
of $3,600,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing April 15, 1971, in the am ount of
$3,407,690,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued April 15, 1971, in the am ount of $2,000,000,000, or thereabouts,
representing an additional am ount of bills dated Jan u ary 14, 1971, and to m ature Ju ly 15, 1971 (C U S IP No.
912793 K Y I), originally issued in the am ount of $1,407,895,000 (an additional am ount of $200,520,000
was issued to d ay ), 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 April 15, 1971, and to m ature O ctober 14, 1971
(C U S IP No. 912793 L M 6).
T he 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 aturity value).
T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, A pril 12, 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
th e price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be
used. It is urged th a t 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.
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 than banking institutions will not be perm itted to subm it tenders except for their own account.
T enders will be received without deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securities. Tenders 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 the closing hour, tenders will be opened a t the Federal Reserve 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 he 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 completed a t the Federal Reserve B ank on A pril 15, 1971,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing April 15, 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 atu r­
ing bills accepted in exchange and the issue price of the new bills.
U nder Sections 454 (b ) and 1221 (5 ) of the 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 Treasury 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 (current revision) and this notice, prescribe the term s of th e T reasury bills and
govern th e conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

In accord ance with the a b o v e a n n o u n c em en t, tenders will be 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 o n d a y , April 12, 1971. Tenders m a y not
be en tered by tele p h o n e .
Yours very truly,
P. E. C old well
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and A pproxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue Ju ly 8, 1971
D ue October 7, 1971
$2,794,745,000
.Total Applied F or_______________________________ $2,599,475,000
$2,000,005,000________________________________ T otal_A ccepted______ ___________________________$1,600,175,000
P rice
Y ield
Price
Yield
99.078----------------- 3.647% __________________________ H igh______________________ 98.120 *
____
3.719%
99.055___________ 3.738% __________________________ Low___ ____________ ______ 98.087____________ 3.784%
99.064----------------- 3.703% ( 1 ) ____________________Average____________________ 98.102____________ 3.754% (1 )
(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 3.80% for the 91-day bills and 3.89% for the
182-day bills.

(S ee 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 FO R ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated January 1 4,1971

Maturing July 1 5 ,1 9 7 1

T o : Federal Reserve Bank, Station K, Dallas, Texas 75222

or —
The_________________________________Branch
El Paso 79999 Houston 77001 San Antonio 78206

(D ate)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.
NON CO M PETITIVE T E N D E R $________________________________________________ N O T TO E X C E E D $200,000
Noncompetitive tenders for $200,090 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.
Prices should be ex­
pressed on the basis of
100, with not more than
three decimal places,
e. g., 99.925. Fractions
must not be used.

COM PETITIVE T E N D E R S

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um ber of
pieces

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT

M aturity Value

10,000

@

$
$

@

$

50,000 $.

@

15,000

$$-

@ $

500,000

□

□

Charge our reserve account on payment
date

| | D r a f t e n c lo s e d
(Effectual delivery o f enclosed d raft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on paym ent
date)

Delivery Instructions:

□

Payment to be made by---------------------------

□

*

@ $1 ,000,000

□

By maturing bills
held by------------------------------------------------------

100,000 *

@ $

□

Hold in Custody Account— Member
banks for own account only
Pledge to secure Treasury Tax and
Loan Account

(Subscriber’s fu ll name or corporate title)

(Address)

By-----------------------------------------------------------------(Authorized official signature and title)

Ship to------------------------------------------------

(F o r the account of, if tender is fo r another subscriber)

(Address)

IMPORTANT

1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiples of
$5,000 (maturity 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 after the closing time specified in the public announcement, communi­
cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained 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 that 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 trust 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 (maturity 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 trust company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.
(S e e rev erse fo r announcem ent)

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