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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 l l a 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. 71-287 Novem ber 30, 1971 NEW OFFERING — TREASURY BILLS To All Banking Institutions an 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 D ecem ber 9, 1971, in the am ount of $3,703,695,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued D ecem ber 9, 1971, in th e am ount of $2,300,000,000, or there abouts, representing an additional am ount of bills dated Septem ber 9, 1971, and to m ature M arch 9, 1972 (C U S IP No. 912793 M R 4 ), originally issued in the am ount of $1,601,800,000, th e 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 9, 1971, and to m ature Ju n e 8, 1972 ( C U S IP No. 912 793 N E2 ). ' 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 atu rity value). T enders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern S tandard Tim e, M onday, D ecem ber 6, 1971. T enders will not be received a t the T reasury 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 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 made on the printed forms and forwarded in th e 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 names of the customers are set forth in such tenders. O thers th an banking institutions will n ot 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 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 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 afte r 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 the 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 the acceptance or rejection thereof. T h e Secretary of th e T reasury expressly reserves th e rig ht to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Sub je ct 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 decimals) 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 F ederal R eserve B ank on D ecem ber 9, 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 9, 1971. Cash and exchange tenders will receive equal tre a tm e n t Cash adjustm ents will be m ade for differences between the p ar value of m aturing bills accepted in exchange and the issue price of th e new bills. U nder Sections 454 ( b ) and 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 th e bills are excluded from consideration as capital assets. Accordingly, th e 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 the price paid for th e 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 retu rn is made. T reasury D ep artm en t Circular No. 418 (cu rrent revision) and this notice, prescribe the term s of the T reasury bills and govern th e conditions of th eir issue. Copies of th 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 and its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, December 6, 1971. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell _______________ President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and A pproxim ate Y ield of Accepted T enders 91-Day Bills 182-Day Bills D ue M arch 2, 1972 D ue Ju n e 1, 1972 $3,581,970,000 T o tal A pplied F or.---- ------$2,841,365,000 $2,300,775,000------------------------------------------ y . ...Total A ccepted------------------------------------------------- $1,600,140,000 Price Y ield Frice Yield 98.915.“ . --------- .4.292% ----------------------------------------H igh---------------------------97.775______ __ .4.401 % 98.900----------------- 4.352% ----------------------Low________ 97.746______ ..4.458% 98.907 4.324% ( 1 ) -------------------------------Average___________________ 97.760________ 4.431% (1 ) a ( 1 ) T h e se ra te s a re 18 2 - d a y h i l l s . 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 iv a le n t c o u p o n issu e y ie ld s a r e 4 . 4 4 % fo r t h e 9 1 - d a y b ills a n d 4 . 6 1 % f o r th e (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 Maturing June 8, 1972 Dated December 9,1971 To: Federal Reserve Bank, Station E, 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 at 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. Prices should be ex pressed on the basis of 100, with not more *han @ $ $ th re e lecim al p la c e s, e. g., 99.925. Fractions must not be used. $ r- TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT Denominations Desired N u m b e r of pieces M a tu rity V alue @ $ 10,000 ? 15,000 $ @ $ 50,000 ? (ffl ? 100,000 ? @ ? 1 1 By maturing bills — 11 _ □ □ □ @ $ 500,000 ? @ $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------------------------------------- held by-----------------------------------------Payment to be made by______________ date □ 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 i r r e v o c a b ly collected f u n d s on p a y m e n t d ate) ( S u b s c r i b e r ’s f u l l n a m e o r c o r p o r a t e t i t l e ) (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 h 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 oe 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----------------------------------------------------------------1 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 rs e f o r a n n ou ncem en t)
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