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FEDERAL RESERVE B A N K OF D A LLA S
F I S 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, TEX A S

75222
Circular No. 71-105
M ay 4, 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 sta te m e n t 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 m aturing 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 Novem ber 11, 1971
(C U S IP No. 912793 L R 5 ).
T h e bills of both series w ill 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Savings Tim 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 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 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.
Tenders will 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 company.
Im m ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which
public announcem ent w ill be made by the Treasury D epartm ent of the am ount and price range of accepted bids. O nly those
subm itting com petitive tenders w ill be advised of the acceptance or rejection thereof. T he 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 with the bids m ust be made 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 amount of Treasury bills maturing M ay 13, 1971. Cash and
exchange tenders will receive equal treatm ent. 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 income 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 be received at this bank a n d its branches at El Paso,
Houston an d San Antonio up to twelve-thirty p.m., Central Daylight Savings Time, M o n d a y , M a y 10, 1 97 1. Tenders
may not b e entered by t ele p h o n e .
Yours very truly,
P. E. C old well
_________

President

LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, 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 N ovem ber 4, 1971
$3,219,590,000
-Total A pplied For_________________________________ $2,806,560,000
$2,000,235,000__________________________________ -Total A ccep ted___________________________________ $1,400,400,000
Price
Y ield
Price
Y ield
99.032____________ 3 .829% ---------------------------------- ^ - . H i g h _______! “______________ 97.900_____________4.154%
99.015
3.897% ------------------------------------------ Low________________________ 97.872____________ 4.209%
99.023
3.865% ( 1 ) ----------------------------------Average----------------------------------97.886___________ 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated May 13,1971

Maturing November 11, 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 o Treasury Department Circular No. 418 (current r v s o ) and the p
o
f
eiin
rovisions of the
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 a the r i d c
o
lotd
su ae
t
ate n i ated.

NONCOMPETITIVE TENDER $________________________________

_NOT TO EXCEED $200,000

Noncompetitive tenders f r $200,000 or l s from any one b d e , without s ated p i e w l be accepted i f l a the average
o
es
idr
t
rc, il
n ul t
p i e ( n three decimals) of accepted competitive b d .
rc i
is
$______________________ Prices should be ex­
pressed on the basis of
1 0 with not more than
0,
COMPETITIVE TENDERS >$.
_@_
^
three decimal places,
e g, 9 . 2 . Fractions
. . 995
$$-------------------- must not be us d
e.
TENDERS MA Y NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Payment for t i i s e of b l s cannot be made by
hs su
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
10,000 $_
-@ $

i

-@ $
-@ $

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
Draft enclosed (E ffectu al delivery o f enclosed d r a f t
shall be on latest day which will p e rm it p re s e n tm e n t in
o rd e r to o b 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 a m e o r c o rp o ra te title )

(A d d ress)

By-

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

(F o r th e acco u nt 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
$ , 0 (maturity v l e .
500
au)
2 Tenders should be forwarded i an envelope c e r y addressed t t i bank or appropriate branch as F scal Agent of the
.
n
lal
o hs
i
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 a t r the c o i g time s e i i d i the p b i announcement, communi­
hs
il
ni f e
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 o the corporation authorized t make the
. f
edr
fie f
o
tender and the signing o the form by an o f c r of the corporation w l be construed as a representation by him that he
f
fie
il
has been s autho i e . I the tender i made by a partnership i should be signed by a member o the f r , who
o
rzd 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 dealers i invest­
.
rs
n
ment s c r t e w l be disregarded, unless accompanied by a deposit o 2 percent o the t t l amount (maturity value)
euiis il
f
f
oa
of the Treasury b l s applied f r or unless the tenders are accompanied by an express guaranty o f l payment by an
il
o,
f 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 the opinion of the Secretary of the Treasury i
. f
f hs
s
n
epc,
n
s
material, the tender may be disregarded.
(See reverse for announcement)

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