View PDF

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

F ederal Reserve Bank of Dallas
F IS C A L

A G E N T

O F

T H E

U N IT E D

DALLAS. TEXAS

ST A T E S

75222
Circular No. 71-264
Novem ber 2, 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 statem ent giving details of two issues of Treasury bills:
T he T reasury 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 T reasury bills m aturing Novem ber 11, 1971, in the am ount of
$3,700,100,000 as follows:
91-DAY B IL L S (to m aturity d ate) to be issued Novem ber 11, 1971, in the am ount of $2,300,000,000, or there­
abouts, representing an additional am ount of bills dated August 12, 1971, and to m ature F ebruary 10, 1972
(C U S IP No. 912793 M M 5 ), originally issued in the am ount of $1,599,975,000, the additional and original
bills to be freely interchangeable.
182-DAY B IL L S for $1,600,000,000, or thereabouts, to be dated Novem ber 11, 1971, and to m ature M ay 11, 1972
(C U S IP No. 912793 N A 0).
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 without 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 B anks and Branches up to th e closing hour, one-thirty p.m., E astern
Standard Tim e, M onday, Novem ber 8, 1971. T enders will not be received a t the Treasury D epartm ent, W ashington. 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 th e case of com petitive
tenders the price offered m ust be expressed on th e basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions m ay
not be used. It is urged th a t tenders be made on th e p rinted forms and forwarded in the special envelopes which will be
supplied by F ederal R eserve Banks or Branches on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided th e names of the customers are
set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for their 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 th e 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 th e T reasury D ep artm ent of th e am ount and price range of accepted bids. Only those
subm itting com petitive tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of th e 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 with the bids m ust be m ade or com pleted a t the Federal Reserve Bank on Novem ber 11, 1971,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing N ovem ber 11, 1971. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m aturing
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 of 1954 the am ount of discount a t 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, th e owner of T reasury bills (other than life insurance com panies) issued here­
under m ust include in his income tax return, as ordinary gain or loss, th e difference between the price paid for the bills, w hether on
original issue or on subsequent purchase, and the 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 (current revision) and this notice, prescribe th e term s of the T reasury bills and
govern th e conditions of th e ir issue. Copies of the circular may be obtained from any Federal R eserve B ank or Branch.

In accordance with the above announcement, tenders will be received a t this bank a n d its branches a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m.. Central Standard Time, Monday, November 8, 1971. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell
___________
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and A pproxim ate Y ield of Accepted T enders
91-Day Bills
182-Day Bills
D ue F ebruary 3, 1972
D ue M ay 4, 1972
$3,953,980,000
.T otal Applied F o r_______________________________ $3,026,485,000
$2,301,210,000--------------------------------.T otal A ccepted_________________________________$1,601,470,000
P rice
Yield
Price
Y ield
98.940
.4.193% ------------------------------------- .H igh________________
. 9 7 . 8 2 2 ____________ 4.308%
98.928
4.241% -------------------------------------- Low______________________ 97.801___________ 4.350%
98.930
.4.233% ( 1 ) ------------------Average_____________ 97.803____________.4.346% (1 )
( 1 ) T h e s e r a t e s a r e o n a b a n k d i s c o u n t b a s is . T h e e q u i v a l e n t c o u p o n i s s u e y i e l d s a r e 4 . 3 5 %
1 8 2 - d a y b ills .

fo r t h e 9 1 - d a y b ills a n d 4 . 5 2 %

fo r th e

(S e e rev e rse fo r te n d e r fo rm )

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
Dated August 12,1971

Maturing February 10,1972

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(D a te )

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 a t the rate indicated.

NONCOMPETITIVE TENDER $____________________________________ JNOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
-------------------- @ ________$___________________

Prices should be ex­
pressed on the basis of
COMPETITIVE TENDERS___ $_________________<3)________ $________________
100, with not more than
-------------------------------------------- i
^
T
th re e decim al p laces,
fq,
^
e. g., 99.925. Fractions
v5
---------------------------- (S'-------------$---------------------------------must not be used.
TENDERS M AY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
pieces

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT

M a tu r ity V alue

$

1 0 ,0 0 0 $.

@$
______@ $

□

15.000 $-------------------50,000_$_____________

□

By maturing bills
held by_________
Payment to be made by______________.

@ $ 100,000 $

__________________________________
_
□ Charge our reserve account on payment
--------- @ $ 500,000-$-------------------date
(a) $1 non non $|— Draft enclosed (E
I
ffectual deliveryO en
f closeddraft
v»

t

t

a h a ll he on l a t e s t d a y w h i c h w ill p e r m i t p r e s 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 ly collected f u n d s on p a y m e n t

V

Delivery Instructions:
□ Hold in Custody Account Member
banks for own account only________________ ________
□ Pledge to secure Treasury Tax and
Loan Account
By-------□ Ship to-------------------------------------

date)
( S u b s c rib e r's full n a m e o r c o rp o r a te title )

(Address 1

( A u t h o r i z e d o f fi c ia l s i g n a t u r e a n d t i t l e )

( F o r t h e a c c o u n t o f , i f t e n d e r is f o r a n o t h e r s u b s c r i b e r ]

(A ddress)

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 (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 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_______________________________________ _ t
a member of the firm.”
5. Tenders from those other than incorporated banks and tru st 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 (m aturity 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 tru st 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.
'
(S ee re v e rse f o r ann o u n cem en t)

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