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F ederal Reserve Bank o f Dallas


Circular No. 71-273
Novem ber 16, 1971

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 he 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 Novem ber 26, 1971, in th e am ount of
$3,701,110,000, as follows:
90-DAY B IL L S (to m aturity d ate) to be issued Novem ber 26, 1971, in the am ount of $2,300,000,000, or th ere­
abouts, representing an additional am ount of bills dated August 26, 1971, and to m ature February 24, 1972
(C U S IP No. 912793 M P 8 ), originally issued in th e am ount of $1,600,030,000, the additional and original
bills to be freely interchangeable.
181-DAY B IL L S for $1,600,000,000, or thereabouts, to b dated Novem ber 26, 1971, and to m ature M ay 25, 1972
(C U S IP No. 912793 N C 6).
T he 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 in tere st 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 Reserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, Novem ber 22, 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 the case of com petitive
tenders th e price offered m ust be expressed on th e basis of 100, with not more th an three decimals, e.g., 99.925. Fractions may
not be used. I t is urged th a t tenders be m ade on the printed forms and forwarded in th e special envelopes which will be
supplied by F ederal Reserve Banks or Branches on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided th e nam es of the customers are
set forth in such tenders. Others than banking institutions will not be p erm itted to subm it tenders except for their own accou n t
T enders will be received w ithout deposit from incorporated banks and tru st companies and from responsible an d 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
T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t th e F ederal R eserve B anks and Branches, following which
public announcem ent will be m ade by the T reasury D epartm 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 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 th e 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 th e bids m ust be m ade or completed a t th e Federal Reserve B ank on N ovem ber 26, 1971,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Novem ber 26, 1971. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p a r value of m aturing
bills accepted in exchange and the issue price of the new bills.
U nder Sections 454 (b ) an d 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 the bills are sold, redeem ed or otherwise disposed of, and th e 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 income tax return, as ordinary gain or loss, the difference between th e price paid for th e bills, w hether on
original issue or on subsequent purchase, and th e am ount actually received eith er upon sale or redem ption a t m atu rity during the
taxable year for which th e return is made.
Treasury D ep artm en t Circular No. 418 (current revision) and this notice, prescribe the term s of th e T reasury bills and
govern the conditions of th eir issue. Copies of th e circular m ay be obtained from any Federal R eserve B ank or Branch.

In accordance with the above announcement, tenders will be received at this bank a n d its branches a t El Paso,
Houston an d San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, November 22, 1971. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell
Amount, R ange and A pproxim ate Y ield of Accepted T enders
91-Day Bills
182-Day Bills
D ue February 17, 1972
D ue M ay 18, 1972
T otal A pplied F o r_______
$2,300,825,000--------------------------------T otal A ccepted_________________________________$1,601,725,000
Y ield
98.966------------------4.091 % -------------------------------------- H igh_____________________ 97.866________ ___4.221 %
98.954----------------- .4.138% --------------------------------------- Low______________________ 97.844___________ 4.265%
98.958----------------- 4.122% ( 1 ) ------------------Average_____________ 97.849___________ 4.255% (1 )
1 8 2 - < £ y e biH,s lteS a r e

0 n ° b a n k d ;sc o u n t b a s is '

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 4 %

(S ee reverse for tend er form )

f o r t h e 9 1 - d a y b ills a n d

4 .4 2 %

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (

fo r th e


Maturing May 25,1972

Dated November 26,1971
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
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 at the rate indicated.

N ONCOMPETITIVE 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.


Prices should be ex­
pressed on the basis of
100, with not more than
th re e decim al p laces,
e. g., 99.925. Fractions
m ust not be used.

Denominations Desired
N u m b e r of

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

M a tu r ity V alue


1 0 ,0 0 0


-<2> $


15,000 $_
50,000 $_


1 0 0 ,0 0 0



$ 500,000


Charge our reserve account on payment
| | Draft enclosed (E ffectu al delivery o f enclosed d r a f t


@ $1,000,000 $_

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______________

s h a l l be o n l a t e s t d a y w h i c h w i l l p e r m i t p r e s e n t m e n t i n
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

( S u b s c r i b e r 's full n a m e o r c o r p o r a t e t it le )

(A ddress)

By( 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 )

( 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)

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 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 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 fo r an no un cem ent)

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