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F ederal Reserve Bank o f D allas F IS C A L A G E N T O F T H E U N ITE D S T A T E S DALLAS, TEXAS 75222 Circular No. 71-299 D ecem ber 10, 1971 NEW O F F E R I N G — TREA SU RY BILLS To All Banking Institutions and 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 D ecem ber 23, 1971, in th e am ount of $3,903,835,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued Decem ber 23, 1971, in th e am ount of $2,300,000,000, or th ere abouts, representing an additional am ount of bills dated Septem ber 23, 1971, and to m ature M arch 23, 1972 (C U S IP No. 912793 M T 0 ), originally issued in th e am ount of $1,600,070,000, the additional and original bills to be freely interchangeable. 182-DA Y B IL L S for $1,600,000,000, or th ereab o u ts, to be d a te d D e c em b er 23, 1971, a n d to m a tu re J u n e 22, 1972 (C U S IP No. 912793 N G 7). 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 th e closing hour, one-thirty p.m., E astern S tandard Tim e, Friday, D ecem ber 17, 1971. T enders will not be received a t the T reasury D epartm ent, W ashington. Each tender m ust be for a minim 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 must be expressed on the basis of 100, with not more th a n th ree decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be m ade on the printed forms and forwarded in the special envelopes which will be supplied by F ederal R eserve B anks 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 Bet forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for th e ir own account T enders will be received w ithout deposit from incorporated banks and tru st com panies and irom responsible and recognized dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the 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 th e closing hour, tenders will be opened a t th e Federal Reserve B anks and Branches, following which public announcem ent will be m ade by the Treasury D ep artm 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 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 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 th e average price (in th ree decim als) of accepted com petitive bids for the respective issues. S ettlem ent for accepted tenders in acocrdance with the bids m ust be m ade or com pleted a t the F ederal Reserve B ank on D ecem ber 23, 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 23, 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 maturing bills accepted in exchange and the issue price of the 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 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 th an 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 atu rity during the taxable year for which the return is made. T reasury D ep artm en t Circular No. 418 (current revision) and this notice, prescribe th e term s of th e T reasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any F ederal R eserve Bank 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 a n d San Antonio up to twelve-thirty p.m., Central Standard Time, Friday, December 17, 1971. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell ______________ President Figures co n cern in g offering of 9 1 -D ay T reasury Bills maturing M arch 16, 1 9 7 2 , a n d 1 8 2 -D a y Treasury Bills m atu ring Ju n e 15, 19 7 2 , not a v a i la b l e w h en this circular w a s p rinted. (S ee 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 December 23,1971 Maturing June 22, 1972 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The. ___ 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 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. PLEASE OBSERVE CLOSING DATE — FRIDAY, DECEMBER 17, 1971 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. ___________________ 'j_______ « 1 C O M P E T IT IV E T E N D E R S / S -------------------------------------------- I' <B ) Prices should be expressed on the basis of $ 100, with not more than v----------------------------------------- th re e decimal p laces, e. g., 99.925. Fractions @ -$-----------------------------------must not be used. TENDERS M AY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT M a tu rity V alue .@ $ 1 0 ,0 0 0 $_ @ $ □ 15,000-$-------------------50,000_$_____________ ______ @ $ □ @ $ 100,000 $ t * _ _____________________________________ □ Charge our reserve account on payment LJ date * * C Draft enclosed (E ffectual delivery o f enclosed d r a f t D @ $ 500,000 $-------------------_(5> $1 000 000 $_____________ *- By maturing bills held by. Payment to be made by s h a ll h e on 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 i r r e v o c a b ly collected f u n d s o n p a y m e n t f Delivery Instructions: d ate) □ Hold i n Custody AcCOUnt Member ( S u b s c r ib e r 's full n a m e o r c o rp o r a te title ) banks for own account only________________ _______________________________________________ (A ddress) □ Pledge to secure Treasury Tax and Loan Account 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 ) □ Ship to——------------------------------- ---------( 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 material, the tender may be disregarded. (S ee re v e rse f o r an n ou ncem ent)