The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal Reserve Bank of Dallas 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, TEXAS 75222 Circular No. 71-128 June 1, 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 o f $3,500,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing June 10, 1971, in the am ount of $3,501,985,000, as follows: 91-D A Y B IL L S (to m aturity date) to be issued June 10, 1971, in the am ount of $2,100,000,000, or thereabouts, representing an additional am ount of bills dated March 11, 1971, and to mature Septem ber 9, 1971 (C U S IP No. 912793 L H 7 ), originally issued in the am ount of $1,400,825,000 (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 E IL L S for $1,400,000,000,or thereabouts, to be dated June 10, 1971, and to mature D ecem ber 9, 1971 (C U S IP No. 912793 L V 6 ). 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 a y lig h t Saving T im e, M onday, June 7, 1971. Tenders w ill not be received at the Treasury Departm ent, Washington. 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 w ill be supplied by Federal R eserve Banks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided the names of the customers are se t forth in such tenders. Others than banking institutions w ill not be perm itted to subm it tenders except for their own account. T enders 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 com pany. Im m ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow ing which pu blic announcem ent will 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 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 with the bids m ust be m ade or com pleted at the Federal Reserve Bank on June 10, 1971, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing June 10, 1971. Cash and exchange tenders will receive equal treatment. Cash adjustm ents will be m ade for differences between the par value of matur 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 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 D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve Bank or Branch. In acc ord an c e 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 Saving Time, M on d ay, June 7, 19 71. Tenders m ay not to b e entered by te le p h o n e . Yours very truly, P. E. Cold well _____ President LAST PREVIOUS OFFERING OF TREASURY BILLS Am ount, Range and Approxim ate Y ield of A ccepted Tenders 91-D ay B ills 182-D ay B ills D u e Septem ber 2, 1971 D u e D ecem ber 2, 1971 $3,157,675,000 .Total A pplied For_________________________________ $2,345,640,000 $2,100,163,000__________________________________ Total_A ccepted___________________________________ $1,400,050,000 Price Y ield P rice Y ield 98.915 4.292% ----------------------------------------- H ig h ________________________ 97.744____________ 4.462% 98.884 4 .415% ------------------------------------------ Low________________________ 97.680___________ 4.589% 98.902 4.344% ( 1 ) ---------------------------------.Average______________________ 97.721____________ 4.508% ( 1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4.47% for the 91-day bills and 4.69% 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 March 11,1971 Maturing September 9,1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The-------------------------------------Branch El Paso 79999 Houston 77001 San Antonio 78206 ----------- (D a te ) Pursuant 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. NONCOMPETITIVE TENDER $________________________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in fullat the average price (in three decimals) of accepted competitive bids. _____ $____________________ Pricesshouldbe ex pressed on the basis of COMPETITIVE TENDERS ( $------------------------- @----------- $------------------------------tT ’e f decT m ^^fac^, e. g., 99.925. Fractions r U ----- $----------------- must not be used. TENDERS M A Y NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b e r of pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT M a tu rity V alue $ 10,000 $_ -@ ? 15,000 $--------------------- _@ $ 50,000 $--------------------- □ □ By maturing bills held by___________________ Payment to be made by------- _@ $ 100,000 $_ „ „ CAA AAA » □ .(g) $ ouu,uuu $ _______ @ $1,000,000 $_____________ □ Charge our reserve account on payment . . date Draft enclosed (E ffectual delivery o f enclosed draft shall be on la te st day w hich will p e rm it p re s e n tm e n t in ord er to o b ta in irrevocably collected fu n d s on p a y m e n t Delivery Instructions * □ □ Hold in Custody Account—Member banks for own account only Pledge to secure Treasury Tax and Loan Account |— | S h i p t o (Subscriber's full name or corporate title) (Address) gy. (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 sub scriber) (A ddress) 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 willbe 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 inthe 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. (See reverse for announcement)
@FedFRASER