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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, TEX AS

75222
Circular No. 71-182
A ugust 3, 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 D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount
of $3,900,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing August 12, 1971, in the am ount of
$3,802,040,000, as follows:
91-D A Y B IL L S (to m aturity d ate) to be issued A ugust 12, 1971, in the am ount of $2,300,000,000, or thereabouts,
representing an additional am ount of bills dated M ay 13, 1971, and to mature N ovem ber 11, 1971 (C U S IP No.
912793 L R 5 ), originally issued in the am ount of $1,400,040,000, 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 August 12, 1971, and to mature February 10, 1972
(C U S IP No. 912793 M M 5 ).
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 amount will be payable without in terest 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 will 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 9, 1971. T enders will not be received at the Treasury Departm ent, W ashington. Each
tender must 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 o f 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 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 nam es of the customers are
set forth in such tenders. Others than banking institutions will not be permitted to subm it tenders except for their own accou nt
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 amount 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 th e closing hour, tenders will be opened at the Federal R eserve Banks and Branches, follow ing which
public announcem ent will be m ade 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 w ithout 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 w ith the bids m ust be made or com pleted at the Federal R eserve Bank on August 12, 1971,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing August 12, 1971. Cash and
exchange tenders w ill 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.
Under Sections 4 54 ( b ) and 1221 ( 5 ) o f 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 th e return is made.
Treasury D epartm 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, M onday, August 9, 1971. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
_______________

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 ue N ovem ber 4, 1971
D u e February 3, 1972
$3,801,885,000
T otal A pplied For_________
$3,398,610,000
$2,300,135,000__________________________________ T otal A ccep ted___________________________________$1,600,94L,000
Price
Y ield
Price
Y ield
H ig h _______________________ 97.170______
5.598%
98.678— ....................5.230% __
98.661
__5.297% ___
i o w _______________________ 97.150___
__.5.637%
98.667
5.273% ( 1 ) ------ -------------------------- A verage— _____________
97.160_
5.618% (1 )
(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 5.43% for the 91-day bills and 5.88% 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
Maturing November 11,1971

Dated May 13,1971
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________ .Branch
El Paso 79999 Houston 77001 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
cr e t 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 l s i t e amount
ulc
sud
h
h
fes o
il n h
shown b l w and agrees t pay f rt 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 $
e d r o 200,000 o l s from any one b d e , without s a e p i e w l be a c p e i f l a t e average
r es
idr
t t d rc, il
c e t d n ul t h
p i e ( nt r e d c m l ) o a c
r c i h e e i a s f c epted c m e i i e b d .
o p t t v is
_______________
Pie
rcs
s o l be
hud
p e s d on t e b s s of
rse
h ai
100 ,with n more th^n
ot
<!
COMPETITIVE TENDERS /f
Jn )_
------------three decimal places,
e g, 9 . 2 . Fractions
. 995
------------must not be u e .
sd
Egr" 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 b l s 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
(a) $ 10,000 ?□ By maturing bills
<> $ 15,000 ?a
held by--------------------------------------------<> ? 50,000 ?S
□ Payment to be made by_____________
(a) $ 100,000 ?□ Charge our reserve account on payment
(5) $ 500,000 ?date
| ~| Draft enclosed (Effectual delivery of enclosed d r a f t
<> $1,000,000
5
shall b€ on latest day which will permit presentm ent in
order to obtain irrevocably collected funds on p ay m en t

Delivery Instructions:

d«U)

□

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)
(F or the account of, if tender fa for another subscriber)
(Address)

IMPORTANT
1 No tender f r l s than $ 0 0 0 w l be c n i e e and each t
.
o es
1 , 0 il
osdrd
ender over $ 0 0 0 must be f r an amount i m l i l s of
1,0
o
n utpe
$ , 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 p opriate branch a F s a Agent of the
n
lal
o hs
r pr
s icl
United S a e , with n t t o on t e v
tts
oain
he n elope 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 th 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 e l s n
pcfe n h u l c
c t o s r l t n t oth r matters s
ain eaig o e
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 app o r a e b a c .
r rpit 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 ender w l be r j c e .
il ee t d
4 I a c r o a i n makes t e t n e , t e form s o ld be s g e by an o f c r o the c r o a i n a t o i e t make the
. f oprto
h edr h
hu
ind
fie f
oprto uhrzd o
tender and t e s g i g o t form by an o f c r o t e c r o a i n w l be c nstrued a a r p e e t t o by him that he
h i n n f he
fie f h o p r t o i l
o
s ersnain
has been s a t o i e . I t tender i made by a p r n s i i s o l be s gned by a member o t e f r , who
o u h r z d f he
s
a t er h p t h u d
i
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 the f r .
f
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
.
hs te
noprtd
rs
r epnil
e o nized d a e s i i
e l r n nvest­
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 perc n o t e t t l amount (maturity value)
e uiis il
irgre, nes
eoi f
e t f h oa
o t e Treasury b l s 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
i l p l e o , r n e s e e d r re
f ul
i c r o a e bank or t u t company.
noprtd
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 Secretary o t e Treasury i
f h
f hs
s
n
e p c , h c , n h p n o f he
f h
s
mtra, te t
a e i l h ender may be d s e a d d
irgre.
(See reverse for announcement)

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