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F ederal R eserve Bank o f D allas
F IS C A L A G EN T O F T H E UN ITED STA TES

DALLAS, TEXAS

75222
C ircular No. 71-296
D ecem ber 7, 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 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 D ecem ber 16, 1971, in the am ount of
$3,700,460,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued D ecem ber 16, 1971, in th e am ount of $2,300,000,000, or there­
abouts, representing an additional am ount of bills dated Septem ber 16, 1971, and to m ature M arch 16, 1972
(C U S IP No. 912793 M S 2 ), originally issued in the am ount of $1,600,960,000, the additional and original
bills to be freely interchangeable.
182-DAY B ILLS for $1,600,000,000, or thereabouts, to be dated D ecem ber 16, 1971, and to m ature Ju n e IS,
1972 (C U S IP No. 912793 N F 9 ).
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 Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
S tandard Tim e, Monday, D ecem ber 13, 1971. T enders will not be received a t the T reasury D epartm ent, W ashington. Each
ten d er 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 the basis of 100, w ith not more th a n three decimals, e.g., 99.925. Fractions may
not be used. It is urged th a t tenders be m ade on th e printed forms and forwarded in th e special envelopes which will be
supplied by Federal R eserve Banks or B ranches on application therefor.
B anking institutions generally may subm it tenders for account of customers provided th e names of the 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 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 after the closing hour, tenders will be opened a t th e Federal R eserve B anks and Branches, following which
public announcem ent will be made by the T reasury D epartm en t of th e 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 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
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. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted a t the F ederal Reserve Bank on D ecem ber 16, 1971,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing D ecem ber 16, 1971. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par 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 Revenue 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 the bills are excluded
from consideration as capital assets. Accordingly, the owner of T reasury bills (o th er 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 the bills, w hether on
original issue or on subsequent purchase, and th e am ount actually received either upon sale or redem ption a t m a tu rity during the
taxable year for which the return is made.
T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and
govern th e conditions of their issue. Copies of the circular m ay be obtained from any F ederal Reserve B ank or Branch.

In accordance with the above announcement, tenders will be received at 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 13, 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 Tenders
91-Day Bills
D ue M arch 9, 1972
$3,621,910,000______________
$2,300,440,000-...'___________J
Price
Y ield
..4.051%.
98.976______
98.960______
.4,114%..
..4.091% (1 ) .
98.966______

T o tal Applied For_
---------------T otal A ccepted__
- - H ig h ...
Low__
.Average..

( 1 ) T h e s e r a t e s a r e o n a b a n k d is 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 . 2 0 %
1 8 2 - d a y b i ll s .

182-Day Bills
D ue Ju n e 8, 1972
________________ $2,904,515,000
________________ $1,600,695,000
Price
Yield
..97.884____________4.185%
.97.854____________4.245%
.97.873
.4.207% (1 )
fo r t h e 9 1 - d a y b ills a n d 4 . 3 7 % 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 (FedHistory@dal.frb.org)

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Dated December 16,1971

Maturing June 15,1972

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 $____________________________________ 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 places,
e. g., 99.925. Fractions
must not be used.

@-

COMPETITIVE TENDERS ($ _______________
I.

_
------------------------------

"

,

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, A RE ACCEPTABLE.
Denominations Desired
Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.
N u m b e r of
pieces

.
_

_

_

@$
@$
< $
s>

10,000
15,000

□

50,000 $_____________
@ $ 100,000 $
$ 500,000 *-------------------@ $1,000,000 <J

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---------------------

-----------------------------------------------------Charge our reserve account on payment
date
| | Draft enclosed (E ffectual delivery of enclosed d r a f t

□

s h a ll h e o n l a t e s t d a y w h i c h will 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

date)
(S u b sc rib e r’s fuU n a m e or c o rp o ra te title )

_______________________________________________
(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 of , 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 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
m aterial, 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