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F e d e r a l R e s e r v e Ba n k o f D a lla s
F IS 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. 71-248
October 15, 1971

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institution s a n d O th e r s C o n c e rn e d
in t h e E leventh F e d e r a l R e se rv e District:
Your a t t e n t i o n is in v ite d to th e f o llo w in g s t a t e m e n t g iv in g d e t a il s of t w o is s u e s o f T re as u ry bills:
T h e T r ea su ry D e p a r tm e n t, b y th is p u b lic n o tic e, in v ites ten d e rs for tw o series o f T rea su ry b ills to th e a g grega te a m o u n t
o f $ 3 ,9 0 0 ,0 0 0 ,0 0 0 , or th ereab ou ts, for cash and in ex ch a n g e for T rea su ry b ills m atu rin g O ctob er 28, 197 1 , in t h e am ou n t o f
$ 3 ,7 1 4 ,3 9 0 ,0 0 0 , as follo w s:
9 1 -D A Y B I L L S ( to m a tu rity d a te ) to b e issu ed O ctob er 28, 1971, in the a m o u n t o f $ 2 ,3 0 0 ,0 0 0 ,0 0 0 , or th e re­
ab ou ts, rep resen tin g an ad d itio n a l a m o u n t o f b ills d ated J u ly 29, 1971, and to m a tu re Jan u ary 27 , 1972
( C U S I P N o . 9 1 2 7 9 3 M K 9 ) , o rig in a lly issu e d in th e a m o u n t o f $ 1 ,6 0 0 ,7 0 5 ,0 0 0 , t h e a d d itio n al a n d origin al
b ills to b e fr e e ly in terch an geab le.
1 8 2 -D A Y B I L L S for $ 1 ,6 0 0 ,0 0 0 ,0 0 0 , or th erea b ou ts, to b e d a te d O ctob er 28, 1 9 71 , a n d to m atu re A p ril 27 , 1972
(C U S IP N o. 912793 M Y 9 ).
T h e b ills o f b o th se ries w ill b e issu ed o n a d isc o u n t b asis und er c o m p e titiv e a n d n o n c o m p e titiv e b id d in g a s h erein a fter
p ro vid ed , and a t m a tu rity their fa c e a m o u n t w ill b e p a y a b le w ith o u t in terest. T h e y w ill b e issu ed in bearer form o n ly , and in
d e n o m in a tio n s o f $ 1 0 ,0 0 0 , $ 1 5 ,0 0 0 , $ 5 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 a n d $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a l u e ) .
T e n d e r s w ill b e r e ce iv ed a t F ed era l R e s e r v e B a n k s an d B ra n c h e s u p to t h e c lo sin g hour, o n e-th irty p .m ., E astern
D a y lig h t S a v in g T im e , F rid a y , O cto b er 22, 1971. T e n d er s w ill n o t b e receiv ed a t th e T reasu ry D ep a rtm e n t, W a sh in g to n . E ach
ten d e r m u st b e for a m in im u m o f $1 0,0 00 . T e n d e r s o v er $ 1 0 ,0 0 0 m u s t b e in m u ltip le s o f $ 5 ,00 0. In t h e c a se o f c o m p e titiv e
ten d ers th e p rice o ffered m u s t be exp ressed o n t h e b a sis o f 100, w ith n o t m ore than th r e e d ecim a ls, e.g., 99 .92 5. F ra ctio n s m a y
n ot b e used. I t is u rged th a t ten d ers b e m a d e o n t h e p rin ted fo rm s a n d forw ard ed in t h e sp e c ia l e n v e lo p e s w h ic h w ill b e
s u p p lie d b y F ed e r a l R e s e r v e B a n k s or B ra n c h e s o n a p p lic a tio n therefor.
B a n k in g in stitu tio n s g en era lly m a y su b m it te n d e r s for a cco u n t o f cu stom ers p ro v id ed t h e n a m es o f t h e cu sto m ers are
s e t forth in su ch ten d ers. O thers th a n b a n k in g in stitu tio n s w ill n o t b e p erm itted to su b m it ten d e rs e x c e p t for th e ir ow n a c c o u n t
T e n d e r s w ill b e rece iv ed w ith o u t d e p o sit from in co rp o rated banks an d tru st co m p a n ie s and from resp o n sib le a n d reco g n ised
d ea lers in in v e stm e n t secu rities. T e n d e r s from o th ers m u s t b e a c c o m p a n ie d b y p a y m e n t o f 2 p ercen t o f t h e fa c e a m o u n t o f
T reasu ry b ills a p p lie d for, u n less t h e ten d e rs are a c c o m p a n ie d b y a n ex p ress gu aran ty o f p a y m e n t b y a n in corp orated b an k or
tru st co m p a n y .
I m m e d ia te ly a fter th e clo sin g hour, ten d e rs w ill b e o p en ed a t t h e F ed e r a l R e s e r v e B a n k s an d B ra n ch es, fo llo w in g w h ich
p u b lic a n n o u n c e m e n t w ill b e m ad e b y th e T r ea su ry D e p a r tm e n t o f th e a m o u n t an d p rice range o f a c c e p te d bids. O n ly th o se
su b m ittin g c o m p e titiv e ten d e rs w ill b e a d v ise d o f th e a ccep ta n ce or rejectio n th ereo f. T h e S ecretary of t h e T r ea su ry ex p ressly
reserv es th e righ t to a c c e p t or reject a n y or a ll tenders, in w h o le or in part, and h is a ctio n in a n y su ch resp ect sh all b e final. S u b ­
ject to th e se reservations, n o n c o m p e titiv e ten d ers for ea ch issu e for $ 2 0 0 ,0 0 0 or less w ith o u t sta ted p rice from a n y o n e b id d er w ill
b e a c c e p te d in fu ll a t t h e a v erage p rice ( in th r ee d e c im a ls) o f a ccep ted c o m p e titiv e b id s fo r th e resp ectiv e issu es. S e t tle m e n t for
a cc e p te d ten d ers in a ccord an ce w ith th e b id s m u st b e m a d e or c o m p le te d a t t h e F ed era l R e s e r v e B a n k o n O cto b er 28 , 1971,
in cash or other im m e d ia te ly a v a ila b le fun d s or in a lik e fa c e a m o u n t of T rea su ry b ills m a tu rin g O ctob er 2 8, 1971. Cash an d
ex ch a n g e ten d ers w ill r e c e iv e eq u al trea tm en t. C ash a d ju stm en ts w ill b e m a d e fo r d ifferen ces b e tw e e n th e p ar v a lu e o f m a tu rin g
b ills a ccep ted in ex ch a n g e a n d th e issu e price o f t h e n e w b ills.
U n d er S e c tio n s 4 5 4 ( b ) an d 1221 ( 5 ) o f th e In tern a l R e v e n u e C od e o f 1 95 4 t h e a m o u n t o f d isco u n t a t w h ich b ills issu ed
h ereu n d er are sold is co n sid ered t o accru e w h en t h e b ills are sold, red eem ed or o th erw ise d isp o sed o f, and t h e b ills are ex clu d ed
from con sid era tion a s c a p ita l assets. A cco rd in g ly , t h e o w n er o f T rea su ry b ills ( o th e r th a n life insu ran ce c o m p a n ie s) issu ed h ere­
u n d er m u st in clu d e in h is in co m e ta x return, a s ord in ary g ain or lo ss, th e d ifferen ce b etw een th e p rice p a id fo r th e b ills, w h eth er o n
orig in a l issu e or on su b seq u e n t purchase, an d th e a m o u n t a ctu a lly r e c e iv e d e ith er upon saie or r ed em p tio n a t m a tu rity d uring th e
ta x a b le y ea r for w h ich t h e return is m ade.
T rea su ry D e p a r tm e n t C ircular N o . 4 1 8 (cu rren t r e v is io n ) an d th is n o tic e, p rescrib e th e term s o f t h e T r ea su ry b ills an d
g o v ern t h e c o n d itio n s o f th eir issue. C o p ies o f th e circu lar m a y b e o b ta in e d from a n y F e d e r a l R e s e r v e B a n k or B ranch.

In a c c o r d a n c e w ith t h e a b o v e a n n o u n c e m e n t , te n d e r s will b e r e c e iv e d a t this b a n k a n d its b r a n c h e s a t El P aso,
| Houston a n d San A n to n io u p to tw e lv e - th ir ty p .m ., Central D a y lig h t S avin g Time, F riday, O c to b e r 22, 1971. T enders
may n o t b e e n t e r e d b y te l e p h o n e .
Y ours v e r y truly,
P. E. C oldw ell
________________

Fig u re s c o n c e r n i n g

o f f e ri n g o f 9 1 - D a y T r e a s u r y Bills m a t u r i n g J a n u a r y 2 0 ,

P re sid e n t

1972, and

1 8 2 - D a y T r e a s u r y Bills m a t u r i n g

April 2 0 , 1 9 7 2 , n o t a v a i l a b l e w h e n th is c i r c u l a r w a s p r i n t e d .

(S ee 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 April 2 7 ,1 9 7 2

Dated October 28,1971
T o : Federal R eserve Bank, Station K, Dallas, Texas 75222
or —
The
_______________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(D ate)

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 T E N D E R $__________________________________________ NOT TO E X C E E D $200,000

Si

IM
N

O
S

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.
__________________
Prices should be ex­
pressed on the basis of
100, with not more than
COMPETITIVE T E N D E R S
--------------------------th re e decimal p laces,
e. g., 99.925. Fractions
_(©_
--------------------------m ust not be used.

£

<3

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.

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Denominations Deaired
N u m b e r of
pieces

%

O
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a

10,000

< %
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(n) $
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Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT

M atu rity V alue

15,000

□

50,000 *
<® % 100,000 ?

H
<
Q
O

□

□

Charge our reserve account on paym en t
date
|~| D ra ft enclosed (E ffectual delivery o f enclosed d r a f t

% 500,000 *
m n ,000,000 %
Delivery Instructions:

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□

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s h a ll be on la t e s t d a y w h ic h w ill p e r m i t p r e e e n t m e n t in
o r d e r to o b t a i n irr e v o c a b l y c o lle c te d f u n d s o n p a y m e n t
date)

Hold in Custody Account— Member
banks for own account only

□

Ship to.------------------------------------------

(S u b scrib er1 fu ll nam e or corp o rate title)
!

Pledge to secure Treasury Tax and
Loan Account

P □
C
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B y m aturing bills
held by---------------------------------------------Paym ent to be made b y_____________ _

(Addreu)

By-

(A uthorized official aiffnature a n d title)

ifi

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(F o r the accou n t of. If te n d e r in fo r a n o th e r subscriber)

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(A d d reu )

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IMPORTANT
1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust be for an amount in multiples of
$5,000 (m aturity value).
2 Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of 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 m atters should not be enclosed. Envelopes for submitting tenders may be obtained from this
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 make the
tender and the Bigning of the form by an officer of the corporation will be construed as a representation by him th a t 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 invest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value)
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)

J

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