View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ed er a l R e se r v e Bank

of

Dallas

FISCAL AGENT OF THE UNITED STATES

DALLAS, T EX AS

75222
Circular No. 71-226
S eptem ber 21, 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 following statem ent giving details of two issues of Treasury bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to th e aggregate am ount
of $3,900,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Septem ber 30, 1971, in the am ount of
$5,502,863,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued Septem ber 30, 1971, in the am ount of $2,300,000,000, or there­
abouts, representing an additional am ount of bills dated Ju ly 1, 1971, and to m ature D ecem ber 30, 1971
(C U S IP No. 912793 M F 0 ), originally issued in the am ount of $1,600,535,000, th e additional and original
bills to be freely interchangeable.
182-DAY B IL L S for $1,600,000,000, or thereabouts, to be dated Septem ber 30, 1971, and to m ature M arch 30, 1972
(C U S IP No. 912793 M U 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 a t m aturity their face am ount will be payable w ithout interest. T hey 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 atu rity value).
T enders will be received a t F ederal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, Septem ber 27, 1971. T enders will not be received a t the T reasury D epartm ent, Washington. Each
tender m ust be for a m inim um of $10,000. T enders over $10,000 m ust be in m ultiples of $5,000. In the case of com petitive
tenders th e price offered m ust be expressed on th e basis of 100, w ith not more th a n three decimals, e.g., 99.925. Fractions may
not be used. I t is urged th a t tenders be m ade on th e prin ted forms and forwarded in th e special envelopes which will be
supplied by Federal! R eserve Banks or B ranches on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided the names of th e customers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for the ir own account.
T enders will be received w ithout deposit from incorporated banks and trust companies 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 the face am ount of
Treasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after th e closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following 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 will be advised of the acceptance or rejection thereof. T h e Secretary of the T reasury 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 a t the average price (in three decim als) of accepted com petitive bids for the respective issues. S ettlem ent for
accepted tenders in accordance w ith the bids m ust be made or com pleted a t th e F ederal R eserve B ank on S eptem ber 30, 1971,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Septem ber 30, 1971. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the p ar value of m aturing
bills accepted in exchange and the issue price of th e new bills.
U nder Sections 454 (b ) and 1221 (5 ) of the Internal R evenue Code of 1954 th e am ount of discount a t which bills issued
hereunder are sold is considered to accrue when th e bills are sold, redeem ed or otherwise disposed of, and th e bills are excluded
from consideration as capital assets. Accordingly, the owner of T reasury bills (other th an life insurance com panies) issued here­
under m ust include in his income tax return, as ordinary gain or loss, the difference between the price paid for the bills, w hether on
original issue or on subsequent purchase, and th e am ount actually received either upon sale or redem ption a t m aturity during the
taxable year for which the return is made.
T reasury D epartm ent Circular No. 418 (cu rren t revision) and this notice, prescribe th e term s of th e T reasury bills and
govern th e conditions of their issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank or Branch.

In accordance with the above announcement, tenders will be received a t this bank and its branches a t El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Monday, September 27, 1971. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
_______________
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and A pproxim ate Y ield of Accepted T enders
91-Day Bills
182-Day Bills
D ue D ecem ber 23, 1971
D ue M arch 23, 1972
$3,351,445,000---------------------------------------------- T o tal Applied F or__________________
$2,399,057,000
$2,300,280,000------------------- ----------------------------.Total Accepted__________
$1,600,057,000
Price
Y ield
Price
Y ield
98.810
4.708% ------------------------------------- J l ig h _____________________ 97.508___________ 4.929%
98.793-..---4.775% --------------------------------------- Low__________________
97.454____________ 5.036%
98.801
4.743% ( 1 ) ..---------------Average____________ 97.476____________4.993% (1 )
■ t ) T hese rates are on a bank discount basis. T h e eq uivalent coupon issue yields a re 4 .8 8 % for th e 91 -day bills a n d 5 .2 1 % for the

1 8 2 - d a y bill s.

(See 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 March 3 , 1972
0

Dated September 30,1971
To: Federal Reserve Bank, Station K, D l a , Texas 75222
als
or —
The_________
Branch
El Paso 79999

Houston 77001

San Antonio 78295

(DaU)

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 full at the average
price (in three decimals) of accepted competitive bids.
$________________________

$

COMPETITIVE TENDERS '$_

------------------------------------

$------------------------------------

(?-

Prices should be ex ­
pressed on the basis of
100, with not more than
three decim al p la c e s,
e. g., 99.925. Fractions
must not be used.

TENDERS MAY 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 atu rity VaJue

10,000 $
.
15,000 $
.
.
@ ? 50,000 $
.
@ ? 100,000 $
.
@ $ 500,000 $
(a) $ . 0 0 0 0 $
1,0,0 .
Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□ Ship to
----- ------------------------@ $

□

By maturing bills
held by-----------------------------------------Payment to be made by__________ __

.

□
□
|

1

Charge our reserve account on payment
date
Draft enclosed (Effectual delivery o f enclosed d r a f t
shall be on latest day which will p erm it p r e s e n tm e n t in
order to obta in irrevocably collected funds on p a y m e n t
date)

(S ubscrib er's full nam e or c o rpo rate title)

(Address)

By-

(Authorized official s ig n a t u re an d title)
(F or the account of, If te nder Is fo r a n o th e r subscriber)

(Address)

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 o f 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 th is
bank or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to m ake the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him th at 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 in the 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 in vest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity valu e)
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)

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