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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. 71-176 July 27, 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 tw o series of Treasury bills to the aggregate amount o f $3,900,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing August 5, 1971, in the am ount of $3,807,080,000, as follows: 91-D A Y B IL L S (to m aturity d ate) to be issued August 5, 1971, in the am ount of $2,300,000,000, or thereabouts, representing an additional am ount of bills dated M ay 6, 1971, and to mature Novem ber 4, 1971 (C U S IP No. 912793 L Q 7 ), originally issued in the am ount of $1,400,240,000, the additional and original bills to be freely interchangeable. 182-D A Y B IL L S for $1,600,000,000, or thereabouts, to be dated August 5, 1971, and to m ature February 3, 1972 (C U S IP No. 912793 M L 7 ). 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 will 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 R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving T im e, M onday, August 2, 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. Tenuers 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 decim als, e.g., 99.925. Fractions may 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 custom ers provided the names of the custom ers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for cheir own account. Tenders will be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of th e 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 R eserve Banks and Branches, follow ing which public announcem ent will be made by the Treasury D epartm ent of the amount and price range of accepted bids. O nly those subm itting com petitive tenders will 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 th e bids m ust be m ade or com pleted at the Federal R eserve Bank on Au'tust 5, 1971, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing August 5, 1971. Cash and exchange tenders will receive equal treatment. Cash adjustm ents 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. U nder Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code o f 1954 the amount 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 N o. 41 8 (current revision) and this notice, prescribe the terms o f 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 w ill 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, Monday, August 2, 1971. Tenders Hay not be entered by telephone. Yours very truly, P. E. Coldwell ____________ President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approxim ate Y ield of Accepted Tenders 91-D ay B ills 182-D ay B ills D u e October 28, 1971 D ue January 27, 1972 $4,420,050,000 ..Total A pplied F or_________________________________ $3,608,770,000 $2,311,880,000_____________________ .T otal A ccepted__________________________ $1,600,625,000 Price Y ield Price Y ield 98.614.---5.483% -------------------------H igh.._________________ J S L 9 7 .0 7 2 ________ 5.792% 98.593 5.566% -------------------- — Low............................ 97.043.________ 5.849% 98.5 9 6 5.554% ( 1 ) ---------.-------------------------Average.— IV------------------------ 97.051________ . 5.833% (1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 5.73% for the 91-day bills and 6.11% 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 Maturing February 3, 1972 Dated August 5,1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________ Branch El Paso 79999 Houston 77C01 San Antonio 78295 (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 b ls 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 t e r t i d c t d eo, o o h lotd r e o e h su ae h t h ae 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 , without s a e p i e w l be ac e e d r o 2 0 0 0 r es idr t t d rc, il c pted i f l a t e average n ul t h p i e ( n t r e d c m l ) o a c p e c mp t t v b d . r c i h e e i a s f c e t d o e i i e is P i e s u d be ex r c s ho l p s e on t e b s s o re s d h ai f 100 ,with not more than COMPETITIVE TENDERS * (a) $ three decimal places, e g, 9 . 2 . Fractions . 995 must n be u e . ot sd 1 11®= 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 A count. rdt o c pieces Maturity Value METHOD OF PAYMENT $ 10,000 $□ By maturing bills $ 15,000 $held by_____________________________ O $ 50,000 $□ Payment to be made by_____________ . <> $ 100,000 $e □ Charge our reserve account on payment $ 500,000 $. date |— Draft enclosed (Effectual delivery of enclosed d r a f t | <> $ i ,000,000 ?a shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on paym ent Delivery Instructions: date) □ 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 of, if tender is for another subscriber) (Address) IMPORTANT 1 No t n e f r l s than $ 0 0 0 w l be c n i e e and each t n e over $ 0 0 0 must be f r an amount i m l i l s o . e d r o es 1 , 0 il osdrd edr 1,0 o n utpe f $ , 0 (maturity v l e . 500 au) 2 Tenders s . hould be forwarded i an envelope c e r y addressed t t i bank o a pr n lal o hs r p opriate branch a F s a Agent of the s icl United S a e , with n t t o on t e e v tts oain h n elope reading “TENDER FOR TREASURY OFFERING”. S n e envelopes ic r c i e with t i legend w l not be opened u t l a t r th c o i g time s e i i d i t e p b i announcement, communi eevd hs il ni f e e l s n pcfe n h u l c c t o s r l t n t o h r matters s ain eaig o t e hould n be e c o e . Envelopes f r submitting t n e s may be o t i e from t i ot nlsd o edr band hs bank o a p r p ropriate b a c . rnh 3 Any q a i i d o c n i i n l t . u l f e r o d t o a enderw l be r j c e . 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 te d r and t e s g i g o t e form by an o f c r o t c r o a i n w l be cons r ed a a r p e e t t o by him t a he ne h inn f h f i e f he o p r t o i l tu s ersnain ht has been s a t o i e . I t e tender i made by a p r n s i i sh u d be s g e by a member o t e f r , who o uhrzd f h s a t er h p t o l ind f h im s o l s g i t eform “ hud in n h ,a c p r n r h p by------------------------------ oatesi, a member o t e f 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 r c g i e d a e s i i v s . hs te noprtd rs r epnil eon z 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 o t e t t l amount (maturity value) e u i i s il irgre, nes e o i f e c nt f h o a o t e Treasury bls a 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 t company. 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 cretary o t e Treasury i f h f hs s n epc, h c , n h p n o f h e f h s m t r a , t e tender may be d s e a d d aeil h irgre. (See reverse for announcement)