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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. 71-152 June 25, 1971 NEW OFFERING — TREASURY BILLS To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of two 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 $3,900,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing July 8, 1971, in the am ount of $3,803,490,000, as follows: 91-D A Y B IL L S (to m aturity date) to be issued July 8, 1971, in the amount of $2,300,000,000, or thereabouts, representing an additional amount of bills dated April 8, 1971, and to mature October 7, 1971 (C U S IP No. 912793 L L 8 ), originally issued in the amount of $1,600,600,000, the additional and original bills to be freely interchangeable. 182-DA Y B IL L S for $1,600,000,000, or thereabouts, to be dated July 8, 1971, and to mature January 6, 1972 (C U S IP No. 912793 M G 8 ). T he 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 amount 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 alu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving T im e, Friday, July 2, 1971. Tenders w ill 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 must 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 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. 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 must 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 w ill be opened at the Federal Reserve Banks and Branches, follow ing which public announcem ent will be made by the Treasury D epartm ent of the am ount and price range of accepted bids. Only 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 m ade or com pleted at the Federal R eserve Bank on July 8, 1971, in cash or other im m ediately available funds or in a like face amount of Treasury bills m aturing July 8, 1971. Cash and exchange tenders will receive equal treatment. Cash adjustments will be m ade for differences betw een 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 must 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 R eserve Bank or Branch. In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso, Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Friday, July 2, 1971. Tenders may not to be entered by telephone. Yours very truly, P. E. Coldwell _______________ President Figures co ncerning offering of 9 1 -Day Treasury Bills maturing S e p t e m b e r 3 0 , 1 9 7 1 , a n d 1 8 2 - D a y Treasury Bills maturing D e c e m b e r 3 0 , 1 9 7 1 , not a v a i la b l e w hen this circular w as prin te d . ( S e e r e v e r s e fo r t e n d e r f o r m ) 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 Maturing January 6,1972 Dated July 8,1971 PLEASE OBSERVE CLOSING DATE — FRIDAY, JULY 2, 1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________ Brandi El Paso 79999 Houston 77001 San Antonio 78206 (Date) Pursuant t t e p o i i n o Treasury Department C r u a No. 418 ( u r n r v s o ) and t e p o i i n o the o h rvsos f iclr cret eiin h rvsos f p b i announcement i s e by t e Treasury Department, t e undersigned o f r t purchase Treasury bls i t e amount ulc sud h h fes o il n h shown b l w and agrees t pay f r t e amount a l t e , on o b f r t e i s e d t ,by t e method and a the r t i d c t d eo, o o h lotd r e o e h su ae h t a e niae. __________________________________ NONCOMPETITIVE TENDER $ _NOT TO EXCEED $200,000 Noncompetitive t n e s f r $ 0 , 0 o l s from any one b d e , with u s a e p i e w l be acce t d i f l a t e average e d r o 2 0 0 0 r es idr o t t t d rc, il p e n ul t h p i e ( n t r e de i a s o a c p e c mp t t v b d . r c i h e c m l ) f c e t d o e i i e is $_____________________P i e sho l be ex rcs ud p e s d on t e b s s o rse h ai f (* 100 , with n t more than o $ COMPETITIVE TENDERS <$_ _@_ ---------------three decimal places, e g, 9 . 2 . Fractions . . 995 ot sd $------------------- must n be u e . TENDERS MAY 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 bls cannot be made by o h s s u f il Number of c e i t Treasury Tax and Loan Account. rdt o Maturity Value pieces METHOD OF PAYMENT 10,000 $_ -@ $ □ By maturing bills $ 15,000 $ held by---------------------------------------- __ □ Payment to be made by--------------------@ $ 50,000 $_ $ 100,000 $_ □ Charge our reserve account on payment $ 500,000 $_ date | | Draft enclosed (Effectual delivery of enclosed d r a ft $1,000,000 $shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on paym ent date) Delivery Instructions: □ Hold in Custody Account—Member banks for own account only (Subscriber’s full name or corporate title) □ Pledge to secure Treasury Tax and Loan Account (Address) □ Ship to--------------------------------------- By- (Authorized official signature and title) (For the account oft if tender iB for another subscriber) (A ddress) IMPORTANT 1 No t . ender f r l s than $ 0 0 0 w l be c n i e e and each t n e o er $ 0 0 0 must be f r an amount i m l i l s o o es 1 , 0 il osdrd edr v 1,0 o n utpe f $ , 0 (maturity v l e . 500 au) 2 Tenders s o l be forwarded i an e v . hud n n elope c e r y addressed t t i bank o approp a e branch a F s a Agent o the lal o hs r ri t s icl f United S a e , with n t t o on t e e tts oain h nvelope reading “TENDER FOR TREASURY OFFERING”. S n e envelopes ic r c i e with t i legend w l n be opened u t l a t r t e c o i g time s e i i d i t e p b i announcement, communi eevd hs i l ot ni f e h ls n pcfe n h u l c c t o s r l t n t o h r matters s ain eaig o te hould not be e c o e . Envelopes f r submitting t n e s may be o t i e from t i nlsd o edr band hs bank o appr p i t b a c . r orae rnh 3 Any q a i i do c n i i n lt n e w l be r j c e . . ulfe r o d t o a e d r il eetd 4 I a c r o a i n makes t e t n e , t e form s o l be s g e by an o f c r o t e c r o a i n a t o i e t make the . f oprto h edr h hud ind fie f h o p r t o u h r z d o t nder and t e s g i g o t e form by an o f c r o t e c r o a i n w l be c n trued a a r p e e t t o by him t a he e h inn f h fie f h o p r t o i l os s ersnain ht has been s a t o i e . I t e ten e i made by a p r n r h p i s o l be s g e by a member o t e f r , who o uhrzd f h dr s atesi t hud ind f h im s o l s g i t e form “ hud in n h __________________ ,a c p r n r h p by----------------------------_ , oatesi, a member o t ef r . f h im” 5 Tenders from t o e o h r than i c r o a e banks and t u t companies o r s o s b e and reco n ze d a e s i i v s . hs te noprtd rs r epnil g i d elr n net ment s c r t e w l be d s e a d d u l s accompanied by a d p s t o 2 p r e t o t e t t l amount (maturity v l e euiis il irgre, nes e o i f e c n f h oa au) o t e Treasury blsa p i d f r o u l s th t n e s a accompanied by an express guaranty o f l payment by an f h il p l e o , r n e s e e d r re f ul i c r o a e bank o t u tcompany. noprtd r rs 6 .I t e language o t i form i changed i any r s e t w i h i t e o i i n o t e S c etary o t e Treasury i f h f hs s n epc, h c , n h p n o f h e r f h s m t r a , t et nd r may be d s e a d d aeil h e e irgre. (See reverse for announcement)