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F ed er a l r e s e r v e Ba n k o f D allas


Circular No. 71-282
N ovem ber 23, 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 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 Decem ber 2, 1971, in th e am ount of
$3,695,275,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued D ecem ber 2, 1971, in the am ount of $2,300,000,000, or there­
abouts, representing an additional am ount of bills dated Septem ber 2, 1971, and to m ature M arch 2, 1972
(C U S IP No. 912793 M Q 6 ), originally issued in the am ount of $1,599,780,000, 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 D ecem ber 2, 1971, and to m ature Ju ne 1, 1972
(C U S IP No. 912793 N D 4 ).
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 aturity value).
T enders will be received a t F ederal R eserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern
S tandard T im e, M onday, Novem ber 29, 1971. T enders will no t 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 the price offered m ust be expressed on th e basis of 100, with not more th an th ree decimals, e.g., 99.925. Fractions may
not be used. I t is urged th a t tenders be m ade on th e p rinted forms and forwarded in the special envelopes which will be
supplied by F ederal R eserve B anks or B ranches on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided th e nam es of th e customers are
set forth in such tenders. Others th an 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 tru st com panies 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 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 F ederal Reserve B anks and Branches, following which
public announcem ent will be m ade by th e T reasury D epartm en t of the 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 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 with th e bids m ust be m ade or com pleted a t the F ederal Reserve B ank on D ecem ber 2, 1971,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing D ecem ber 2, 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 an d the issue price of th e 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 th e bills are sold, redeem ed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner of T reasury bills (other tha n 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 to 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 aturity during toe
taxable year for which th e return is made.
T reasury D ep artm en t C ircular No. 418 (current revision) and this notice, prescribe to e term s of toe T reasury bills and
govern to e conditions of the ir issue. Copies of to 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 a n d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, November 29, 1971. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell
A m ount, R ange and A pproxim ate Y ield of Accepted T enders
90-Day Bills
181-Day Bills
D ue F ebru ary 24, 1972
D ue M ay 25, 1972
T o tal Applied F o r_______________________________ $3,193,020,000
$2,300,240,000------------------------------------------------.T otal A ccepted____________________
98.954— ................_ 4 .1 8 4 % ------------------------------------- H igh_____________________ 97.803....................... ..4,370%
4.284% -------------------------------------- Low_____________________ 97.778____________ 4.419%
98.941—4.236% ( 1 ) ----------------------------- Average______________ ___ 97.782___________ 4,411% (1 )
I 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 1 - d a y b ills .

f o r t h e 9 0 - d a y b ills a n d 4 . 5 9 %

fo r th e

(See reverse for tend er form)

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


Dated December 2,1971

Maturing June 1,1972

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

Houston 77001

San Antonio 78295

(Daf )

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 $____________________________________ 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


th^’ e^dec'imarpla^s1


e. g., 99.925. Fractions
m ust not be used.

Denominations Desired
Payment for this issue of bills cannot be made by
N u m b e r or
credit to Treasury Tax and Loan Account.
M a tu r ity V alue

@ $

10,000 $



By maturing bills

@ $ 15,000 $-----------@ $ 50,000_$____________

held by.
□ Payment to be made by-------------

@ $ 100,000 $

□ Charge our reserve account on payment
LJ date
n Draft enclosed (E ffectual delivery of enclosed d r a f t

_____ @

$ 500,000-$------------

@ V , non nnn *
~ Vf,



Delivery Instructions:
□ Hold in Custody Account Member
banks for own account only

s h a ll be on l a t e s t d a y 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

(S u b sc rib e r’s fu ll na m e o r c o rp o ra te title)

( A ddress)

□ Pledge to secure Treasury Tax and
Loan Account

B y--------( 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 )

□ 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)

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 f o r an n o u n cem en t)

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