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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)

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