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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 U NITED S T A T E S DALLAS, T EX AS 7 5 2 2 2 Circular No. 71-92 A pril 20, 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 d etails 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 $3,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing A pril 29, 1971, in the am ount of $3,402,650,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued A pril 29, 1971, in the am ount of $2,000,000,000, or thereabouts, representing an additional am ount of bills dated January 28, 1971, and to m ature Ju ly 29, 1971 (C U S IP No. 912793 L A 2), originally issued in the am ount of $1,400,440,000 (an additional $200,520,000 was issued A pril 6, 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 A pril 29, 1971, and to m ature O ctober 28, 1971 (C U S IP No. 912793 L P 9 ). 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 D aylight Savings Tim e, Monday, A pril 26, 1971. T enders will not be received a t the T reasury D epartm ent, W ashington. Each tender m ust be tor 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 more than 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 an d forwarded in the special envelopes which will be supplied by F ederal 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. Others than banking institutions will not be perm itted to subm it tenders except for th eir own acco u nt 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 th e 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 at the average price (in three 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 made or com pleted a t the Federal Reserve B ank on April 29, 1971, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing April 29, 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 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 atu rity during the taxable year for which th e return is made. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s of th e T reasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any F ederal Reserve B ank or Branch. In a ccord 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 a n k a n d its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Savings Time, M on d a y, April 26 , 1971. Tenders m ay not be entered by te le p h o n e . Yours very truly, P. E. Coldwell ________ President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and A pproxim ate Yield of A ccepted T enders 91-Day Bills 182-Day Bills Due July 22, 1971 D ue O ctober 21, 1971 $3,576,245,000 T otal Applied F or_______________________________ $3,132,795,000 $2,000,285,000_____________________________ .T otal_A ccepted________________________________ $1,400,700,000 P rice Y ield P rice Yield 99.055 3.738% --------------------------------------- -High-------------------------------- 98.010____ __ ____ 3.936% 99.041___________ 3.794% __________________________ Low______________________ 97.992___________ 3.972% 99.047----------------- 3.770% ( 1 ) ------------------------------- Average-------------------------------97.998___________ 3.960% (1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 3.87% for the 91-day bills and 4.11% 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 FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Maturing July 29; 1971 Dated January 28,1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The-------------------------------------- Branch El Paso 79999 Houston 77001 San Antonio 78206 (D ate) t $e P u rsu an t to the provisions of T reasury D epartm ent Circular No. 418 (curren t revision) and th e provisions oi t public announcement issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the aifl‘ j 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 indie* _NOT TO EXCEED $200,< NONCOMPETITIVE TENDER $_ # '' 1 1 -- gg Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full a t the ave price (in three decimals) of accepted competitive bids. e*; Prices sh ould he pressed on the bas , 100, with not m ore . th r e e decim al P ,- nnj e. g., 99.925. Fract*> m ust not be used- _@_ COMPETITIVE TENDERS >$_ /9 - SW * TEND ERS MAY NOT BE ACCEPTED BY TELEPH O N E. TEND ERS BY W IRE, IF RECEIV ED BEFORE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N um ber of pieces Paym ent fo r this issue of bills cannot be credit to T reasury Tax and Loan Account. METHOD OF PAYMENT M a tu rity V alue $@$ 15,000 ?@$ @ $ 50,000 $@ $ 1 0 0 ,0 0 0 * @ $ 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________________________ 1 0 ,0 0 0 □ th ® by By maturing bills held by_________ Payment to be made by □ □ Charge our reserve account on pay11 16 date Draft enclosed (Effectual delivery of enclos □ shall be on latest day w hich will p e rm it ord er to obtain irrevocably collected fund s on da te ) (S u b sc rib e r’s full nam e o r c o rp o ra te title ) (A dd ress) By- (A u th o rize d 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 s u b sc rib e r) (A ddress) IM PORTANT of ultiPleS 1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust be fo r an am ount in muJ $5,000 (m aturity value). 0f the 2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Age1 e\oVe? * United States, with notation on the envelope reading “TEND ER FOR TREASURY O FFE R IN G ”. Since received with this legend will not be opened until a fte r th e closing tim e specified in the public announcement, c ^ cations relating to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained ±r bank or appropriate branch. 3. Any qualified or conditional tender will be rejected. j<e the 4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to nl^ a t Y tender and the signing of the form by an officer of the corporation will be construed as a representation by nl5 \irJ. vw° has been so authorized. If the tender is made by a p artn e rsh ip it should be signed by a m em ber of the n A should sign in the form “____________________________ a copartnership, by________________________________ — a m ember of the firm.” * ‘ ‘ 5. Tenders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers value^ m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m aturi y 9$ of the T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full payi^eI1 incorporated bank or tru st company. ^ is 6 If the language of this form is changed in any respect, which, in th e opinion of the Secretary of the Trea-S m aterial, the tender may be disregarded. (See reverse for announcement)