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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 ST A T E S DALLAS, TEXAS 75222 Circular No. 71-269 November 9, 1971 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O th e rs C o n c e r n e d in t h e E leventh F e d e r a l R eserve District: Y o ur a t te n t io n is in v ite d to ' h e f o llo w in g s t a t e m e n t g iving d e ta ils of t w o iss u e s of 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 tice, in v ite s tenders for tw o series o f T rea su ry b ills t o t h e a g g reg a te am ou n t o f $3 9 0 0 ,0 0 0 ,0 0 0 , or thereab o u ts, for cash an d in ex ch a n g e for T rea su ry b ills m atu rin g N o v e m b e r 18, 19 71 , in th e a m o u n t of $ 3 ,7 0 3 ,8 8 5 ,0 0 0 , as fo llo 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 N o v e m b e r 18, 1971, in th e am ou n t o f $ 2 ,3 0 0 ,0 0 0 ,0 0 0 , or th e re a b ou ts, rep resen tin g an a d d itio n a l a m o u n t o f b ills d ated A u g u st 19, 1971, a n d to m atu re F eb ru a ry 17, 1972 ( C U S I P N o . 9 1 2 7 9 3 M N 3 ) , o rig in a lly issu ed in t h e a m o u n t o f $ 1 ,5 9 9 ,7 8 0 ,0 0 0 , th e a d d ition a l an d origin al b ills to b e fr e e ly in terch an geab le. 182 - D A Y B I L L S for $ 1 ,6 0 0 ,0 0 0 ,0 0 0 , or th ereab o u ts, to b e d ated N o v e m b e r 18, 19 71 , a n d to m a tu re M a y 18, 1972 (C U S IP N o. 912793 N B 8 ). T h e b ills o f b o th series w ill b e issu ed o n a d isco u n t b a sis under c o m p e titiv e an d n o n c o m p e titiv e b id d in g a s h erein after p ro v id ed , an d a t m a tu rity their fa ce 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 b earer form o n ly , an d in d en o m in a tio n s o f $ 1 0 ,0 0 0 , $ 15 ,0 0 0 , $5 0,0 0 0 , $ 1 0 0 ,0 0 0 $ 5 0 0 ,0 0 0 and $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a lu e ) . T e n d e r s w ill b e received at F ed era l R e s e r v e B a n k s a n d B ra n ch es u p to th e c lo sin g hour, o n e-th irty p.m ., E astern S ta n d ard T im e , M o n d a y , N o v e m b e r 15, 1971. T e n d er s w ill n o t b e rece iv ed a t t h e T r ea su ry D ep a rtm e n t, W ash in gton . E a c h ten d e r m u st b e for a m in im u m o f $10 ,00 0. T e n d er s ov er $ 1 0 ,0 0 0 m u st be in m u ltip le s o f $ 5 ,00 0 . In th e ca se o f c o m p e titiv e ten d e rs th e p rice offered m u st be exp ressed on th e b asis o f 100, w ith n ot m ore th an th r ee d ecim a ls, e.g., 9 9 .9 2 5 . F ra ctio n s m a y n o t b e used. It is urged th a t ten d ers b e m a d e o n th e p rin ted form s an d forw arded in t h e sp ec ia l e n v e lo p e s w h ich w ill be su p p lie d by F ed era 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 erally m a y su b m it ten d e rs for accou n t o f cu sto m ers p ro v id ed t h e n a m e s o f th e cu stom ers are s e t forth in such 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 e r m itte d to su b m it ten d e rs ex c e p t for th eir o w n account. T e n d e r s w ill b e re c e iv e d w ith o u t d ep o sit from in corp orated b an k s and trust co m p a n ie s an d from resp on sib le a n d recogn ized d ea lers in in v e stm e n t secu rities. T e n d er s from o thers m u s t b e a cco m p a n ied 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 of T r ea su ry b ills a p p lie d for, u n less th e ten d e rs are accom p an ied b y a n ex p ress guaran ty o f p a y m e n t b y a n in corp orated b an k or tru st com p an y . I m m e d ia te ly a fte r th e clo sin g hour, ten d ers w ill be o p en ed a t th e F ed era l R e s e r v e B a n k s a n d B ranches, fo llo w in g w hich p u b lic a n n o u n c em en t w ill b e m a d e b y th e T rea su ry D e p a r tm e n t o f th e a m o u n t a n d p rice range o f a cc 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 ised o f t h e accep ta n ce or rejection thereof. T h e S ecreta ry o f th e T rea su ry ex p ressly r eserv es th e righ t to a c c e p t or reject a n y or all ten d ers, in w h o le or in part, and his a c tio n in a n y such r e sp ect sh all b e final. S u b j e c t to th e se reservations, n o n c o m p e titiv e ten d e rs for each 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 av erag e p rice ( in th r ee d e c im a ls) of a ccep ted c o m p e titiv e b id s for t h e r e s p ectiv e issu es. S e ttle m e n t for a c c e p te d ten d ers in acco rd an ce w ith t h e b id s m u st b e m a d e or c o m p le te d at th e F ed era l R e s e r v e B a n k on N o v e m b e r 18, 1971, in cash or other im m e d ia te ly a v a ila b le funds or in a lik e face a m o u n t o f T reasu ry b ills m atu rin g N o v e m b e r 18, 1971. C ash and e x ch a n g e ten d e rs w ill r e c e iv e eq u al treatm en t. C ash a d ju stm en ts wilt be m a d e for d ifferen ces b e tw e e n t h e p ar v a lu e o f m atu rin g b ills a cc e p te d in ex ch a n g e a n d th e issu e p rice o f th e n ew bills. U n d er S e c tio n s 4 5 4 ( b ) a n d 1221 ( 5 ) o f th e In tern al R e v e n u e C o d e o f 1 95 4 th 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 so ld is con sid ered t o accru e w h en th e b ills are sold, red eem ed or oth erw ise d isp osed of, a n d t h e b ills are exclu d ed fro m co n sid er a tio n as ca p ita l assets. A ccordin gly, th e ow n er o f T reasu 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 s t in clu d e in h is in com e tax return, a s ord inary gain or loss, t h e d ifferen ce b e tw e e n th e p rice p a id for t h e b ills, w h eth er on o rigin a l issu e or o n su b seq u e n t purch ase, a n d th e am ou n t a ctu a lly r e ce iv ed eith er u p on sa le or r e d e m p tio n a t m a tu rity du rin g th e ta x a b le year for w h ich th e return is m ade. T rea su ry D e p a r tm e n t Circular N o. 4 1 8 (cu rren t r e v is io n ) a n d th is n o tice, p rescrib e th e term s o f th e T rea su ry b ills and g o v ern th e co n d itio n s o f th e ir issue. C o p ies o f t h e circular 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 Branch. In a c c o r d a n c e w ith th 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 rec 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, H ouston a n d San A n to n io u p to tw e l v e - th ir ty p .m .. C en tral S t a n d a r d Time, M o n d a y , N o v e m b e r 15, 19 71. T en d e rs m a y not b e e n t e r e d b y t e l e p h o n e . Yours v e r y truly, P. E. Coldw ell ________________ P re sid e n t LAST PREVIOUS OFFERING OF TREASURY BILLS A m ou n t, R an gr an d A p p ro x im a te Y ie ld o f A c c e p te d T e n d er s 9 1 -D a y B ills 1 8 2 -D a y B ills D u e F eb ru a ry 10, 1972 D u e M a y 11, 1972 $ 3 ,7 2 4 ,5 0 0 ,0 0 0 ___ .... ...T o ta l A p p lie d F o r ------- -------------------------.$ 2 ,7 9 9 ,1 9 0 ,0 0 0 $ 2 ,3 0 0 ,1 6 0 ,0 0 0 _____________________________________T o ta l A c c e p t e d .... $ 1 ,6 0 0 ,0 3 0 ,0 0 0 P rice Y ield P r ic e Y ie ld J l i g h _________ 9 7 .8 2 0 _____________ 4 .3 1 2 % 9 8 .9 5 4 . ...4 .1 3 8 % -----------------------------9 8 .9 4 0 _______ ______ 4 .1 9 3 % __________________ L o w _________ 9 7 .7 9 3 _____________ 4 .3 6 5 % 9 8 .9 4 5 . .. .... .4 .1 7 4 % ( 1 ) . . _______________ A v era g e .__ 9 7 .8 0 6 ___________ 4 .3 4 0 % ( 1 ) (1 1 T h e s e r a te s a r e on a b a n k d is c o u n t b a sis. T h e e q u iv a le n t c o u p o n issu e y ie ld s a r e 4 . 2 9 % f o r th e 9 1 -d a y b ills a n d 4 . 5 1 % fo r th e 18 2 - d a y b i l l 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 Dated November 18,1971 Maturing May 1 8 ,1 9 7 2 To: Federal Reserve Bank, Station K, Dallas, T exas 75222 or — T he— _______________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) 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 thd 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 EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. COMPETITIVE T E N D E R S £ _____________ @ ________$_______________________ Prices should be ex pressed on the basis of ________ _ _ _ @ ________ $______________________ t h ^ d e d m a l p la c e ? e. g., 99.925. Fractions ---------------------@ ------------- $----------------------------------m ust not be used. i TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment for this issue of bills cannot be made by N u m b e r of credit to Treasury Tax and Loan Account. pieces M a tu rity V alue METHOD OF PAYMENT (5> $ (5) $ 10,000 ¥ 15,000 $ n U 50,000 ¥ (® $ 100,000 $ ® $ □ □ - held by_ P a y m e n t to b e m ade b y □ @ $ 500,000 ¥ (3) *1 ,000,000 ¥ d a te □ • s h a ll be o n la t e s t day w h ic 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 o n p a y m e n t d a te ) D e liv e ry In stru ctio n s: □ □ Hold in C u stod y A ccou n t M em ber banks fo r ow n account only - m m P led ge to secure T reasu ry T ax and L oan A cco u n t (S u b scrib er’s' fu ll n a m e o r c o rp o ra te title ) __________________________________ _______ i (A d dress) B y ---------( A u t h o r i z e d of fi c ia l s i g n a t u r e a n d t i t l e ) □ Ship to— —--------------------------------------------------------------------------------------------------------------------------( 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 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 \g e n t 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 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 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 hills 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. (See reverse for announcement)
@FedFRASER