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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 N IT E D S T A T E S DALLAS, TEXAS 75222 Circular No. 71-104 M ay 4, 1971 NEW OFFERING — TREASURY BILLS To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the fo llow in g statem ent giving details of tw o issues of Treasury bills: T h e Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of $3,400,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing M ay 13, 1971, in the am ount of $3,403,620,000, as follows: 9 1 -D A Y B IL L S (to m aturity date) to be issued M ay 13, 1971, in the am ount of $2,000,000,000, or thereabouts, representing an additional am ount of bills dated February 11, 1971, and to mature August 12, 1971 (C U S IP No. 912793 L D 6 ), originally issued in the am ount of $1,400,250,000 (an additional $200,520,000 was issued April 6, 1 9 7 1 ), the additional and original bills to be freely interchangeable. 182-D A Y B IL L S for $1,400,000,000, or thereabouts to be dated M ay 13, 1971, and to mature N ovem ber 11, 1971 (C U S IP No. 912793 L R 5 ). 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 at m aturity their face am ount will be payable without interest. T h ey w ill 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 v a lu e). Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D a y lig h t Savings T im e, M onday, M ay 10, 1971. Tenders will not be received at the Treasury Departm ent, W ashington. Each tender m ust be for a m inim um of $10,000. Tenders over $10,000 must 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 than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be m ade on the printed forms and forwarded in the special envelopes which will be supplied by Federal R eserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account. T enders w ill be received without deposit from incorporated banks and trust com panies 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 Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust com pany. Im m ediately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, following which public announcem ent will be made by the Treasury Departm 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 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. Sub ject to these reservations, noncom petitive tenders for each issue for $200,000 or less without 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 the respective issues. Settlem ent for accepted tenders in accordance w ith the bids m ust be m ade or com pleted at the Federal R eserve Bank on M ay 13, 1971, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing M ay 13, 1971. Cash and exchange tenders will receive equal treatment. Cash adjustm ents will be made for differences between the par value of matur ing bills accepted in exchange and the issue price of the new bills. Under Sections 454 (b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is considered to accrue when the 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 incom e tax return, as ordinary gain or loss, the difference betw een the price paid for the bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is made. Treasury Departm ent 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 m ay be obtained from any Federal Reserve B ank or Branch. In accord 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 a n d San Antonio up to twelve-thirty p.m.. Central Daylight Savings Time, M o n d ay, M a y 10, 1 971 . Tenders may not b e entered by t ele p h o n e . Yours very truly, P. E. Cold well ________________ President LAST PREVIOUS OFFERING OF TREASURY BILLS Am ount, R ange and Approxim ate Y ield of A ccepted Tenders 91-D ay B ills 182-D ay B ills D u e August 5, 1971 D u e Novem ber 4, 1971 $3,219,590,000 T otal A pplied For_________________________________ $2,806,560,000 $2,000,235,000__________________________________ T otal A ccepted___________________________________ $1,400,400,000 P rice Y ield Price Y ield 99.032—-i_________ 3.829% ____________________________ H igh _______________________97.900____________ 4.154% 99.015 3 .897% ____________________________ Low _______________________97.872____________ 4.209% 9 9.023 3.865% ( 1 ) --------• ----------- A verage______________ „* _ 9 7 . 8 8 6 ____________ 4.182% ( 1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 3.97% for the 91-day bills and 4.34% for the 182-day bills. (S e e 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 Dated February 11,1971 Maturing August 12,1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The-------------------------------------Branch El Paso 79999 Houston 77001 San Antonio 78206 (D a te ) Pursuant t the provisions of Treasury Department Circular No. 418 (current r v s o ) and the provisions of the o eiin p b i announcement issued by the Treasury Department, the undersigned o f r t purchase Treasury b l s i the amount ulc fes o il n shown below, and agrees t pay for the amount a l t e , on or before the i s e d t , by the method and at the ra e i d c t d o lotd su ae t niae. NONCOMPETITIVE TENDER $________________________________ NOT TO EXCEED $200,000 Noncompetitive tenders f r $200,000 or l s from any one b d e , without stated p i e w l be accepted i f l a the average o es idr rc, il n ul t p i e ( n three decimals) of accepted competitive b d . rc i is Prices should be ex pressed on the basis of 1 0 with not more than 0, COMPETITIVE TENDERS ■$ @ $v ---- ---- ■ three decimal places, e g, 9 . 2 . Fractions . . 995 $ @ must not be u e . sd ? TENDERS M A Y NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment f r t i i s e o b l s cannot be made by o h s s u f il N u m b e r of c e i t Treasury Tax and Loan Account. rdt o M a tu rity V alue pieces METHOD OF PAYMENT x T ■ - -@ $ 10,000 $_ -@ $ 15,000 $50,000 $_ _@ $ □ □ By maturing bills held by-----------------------------------------Payment to be made by_____________ _@ $ 100,000 $_ _@ $ 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------------------------------------- □ Charge our reserve account on payment date | | D r a f t e n c l o s e d (E ffectual delivery o f enclosed d r a f t shall be on la te st day which will p e rm it p re s e n tm e n t in o rd e r to o bta in irrevocably collected fun d s on p a y m e n t d a te ) (S u b sc rib e r’s fu ll nam e o r c o rp o ra te title ) (A dd ress) By_ (A u tho rized official s ig n a tu re a n d title ) ( F o r th e accou n t of, if te n d e r is fo r a n o th e r su bscrib er) (A ddress) IMPORTANT 1 No tender for l s than $10,000 w l be considered and each tender over $10,000 must be for an amount i multiples of . es il n $5 0 0 (maturity v l e . ,0 au) 2 Tenders should be forwarded i an envelope c e r y addressed t t i bank or appropriate branch as Fi c l Agent of the . n lal o hs sa United S a e , with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes tts received with t i legend w l not be opened u t l af e the c o i g time s e i i d i the p b i announcement, communi hs il ni t r lsn pcfe n ulc c t o s r l t n t other matters should not be e c o e . Envelopes for submitting tenders may be obtained from t i ain eaig o nlsd hs bank or appropriate branch. 3 Any q a i i d or c n i i n l tender w l be r j c e . . ulfe odtoa il eetd 4 I a corporation makes the t n e , the form should be signed by an o f c r of the corporation authorized t make the . f edr fie o tender and the signing o the form by an o f c r o the corporation w l be construed as a representation by him that he f fie f il has been s author z d I the tender i made by a partnership i should be signed by a member o the f r , who o ie. f s t f im should sign i the form “___________________ ,a copartnership, by-----------------n . -, a member o the f r . f im” 5 Tenders from those other than incorporated banks and t u t companies or responsible and recognized d a . rs e lers i invest n ment s c r t e w l be disregarded, unless accompanied by a d euiis il eposit o 2 percent o the t t l amount (maturity value) f f oa of the Treasury b l s applied f r or unless the tenders are accompanied by an express guaranty of f l payment by an il o, ul incorporated bank or t u t company. rs 6 I the language o t i form i changed i any r s e t which, i t opinion o the Secretary of the Treasury i . f f hs s n epc, n he f s m terial, the tender may be disregarded. a (See reverse for announcement)