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F ederal reserve Bank of Dallas
F I S C A L A G E N T O F T H E U N IT E D S T A T E S

D A LLA S, TEX A S 75222
Circular No. 71-307
Decem ber 16, 1971

OFFERING
TREASURY BILL — TAX ANTICIPATION SERIES
To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the following statement giving details of two issues of Treasury bills:
The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
o f $2,500,000,000, or thereabouts, as follows:
114-DAY BILLS (to maturity date) to be issued December 29, 1971, in the amount of $1,500,000,000, or there­
abouts, representing an additional amount of bills dated December 1, 1971, and to mature April 21, 1972
(CU SIP No. 912793 N R 3 ), originally issued in the amount of $2,506,090,000, the additional and original bills
to be freely interchangeable. The bills will be accepted at face value in payment o f income taxes due on
April 15, 1972.
175-DAY BILLS (to maturity date) to be issued December 29, 1971, in the amount of $1,000,000,000, or there­
abouts, representing an additional amount of bills dated December 13, 1971, and to mature June 21, 1972,
(CU SIP No. 912793 N S 1), originally issued in the amount o f $2,010,325,000, the additional and original
bills to be freely interchangeable. The bills will be accepted at face value in payment of income taxes due on
June 15, 1972.
The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter
provided and at maturity, to the extent they are not presented in payment of income taxes, their face amount will be pay­
able without interest. They will be issued in bearer form only, and in denominations of $10,000, $15,000, $50,000, $100,000,
$500,000 and $1,000,000 (maturity value).
Taxpayers desiring to apply these bills in payment o f income taxes may submit the bills to a Federal Reserve Bank or
Branch or to the Office of the Treasurer of the United States, Washington, not more than fifteen days before the appropriate income
tax payment date. In the case of bills submitted in payment of income taxes of a corporation they shall be accompanied by a
duly completed Form 503 and the office receiving these items will effect the deposit on the date the taxes are due. In the case
of bills submitted in payment of income taxes of all other taxpayers, the office receiving the bills will issue receipts therefor,
the original of which the taxpayer shall submit on or before the date the taxes are due to the District Director o f Internal
Revenue for the District in which such taxes are payable.
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard Time, Wednesday, December 22, 1971. Tenders will not be received at the Treasury Department, Washington.
Each tender must be for a minimum o f $10,000. Tenders over $10,000 must be in multiples of $5,000. In the case of com­
petitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Frac­
tions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which
will be supplied by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of customers provided the names of the customers are set
forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their own account.
Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or
trust company.
All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or
sale or other disposition of any bills of the issue for which they are bidding at a specific rate or price, until after one-thirty p.m.,
Eastern Standard Time, Wednesday, December 22, 1971.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following
which public announcement will be made by the Treasury Department o f the amount and price range of accepted bids. Only those
submitting competitive tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury 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.
Subject to these reservations, noncompetitive tenders for $200,000 or less for the 114-day bills and $200,000 or less for the
175-day bills, without stated price from any one bidder will be accepted in full at the average price (in three decimals) of
accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank in cash or other immediately available funds on December 29, 1971. Any qualified deposi­
tary will be permitted to make settlement by credit in its Treasury tax loan account for Treasury bills allotted to it for itself
and its customers.
Under Sections 454 (b ) and 1221 (5 ) of the Internal Revenue Code of 1954 the amount of discount at which bills
issued hereunder are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are
excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies)
issued hereunder must include in his income tax return, as ordinary gain or loss, the difference between the price paid for the
bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption
at maturity during the taxable year for which the return is made.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch.

In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Wednesday, December 22, 1971. Tenders
may not be entered by telephone.

Yours very truly,
P. E. Coldwell
President

(S e e reverse side for tender form )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

This issue of Treasury b l s will be accepted at face value in payment of income taxes due
il
on June 15, 1972

TENDER FOR ADDITION TO TREASURY BILLS
TAX ANTICIPATION SERIES
Dated December 13,1971

175 DAYS TO MATURITY

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The__----------------------------------- Branch
El Paso 79999 Houston 77001

Maturing June 21,1972

______________________

San Antonio 78295

(Date)

P ursuant to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and to the
provisions of the public announcement, as shown on reverse side, as issued by th e Treasury D epartm ent,
th e undersigned offers to purchase Treasury bills in the am ount shown below, and agrees to pay fo r the
am ount allotted, on or before th e issue date, by th e 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.

r
k

COMPETITIVE TENDERS <$_
---------------------------------------

USlr’TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

METHOD OF PAYMENT

Maturity Value

<> $
5

□

$
<> $ 50,000 Sa
(S) $ 100,000 $.
,<> $ 500,000 ?a
m $ i ,000,000
m

By charge to Treasury Tax and Loan Account.

□

10,000 $
15,000 Sl

Payment to be made by.................................. .....
(Name of Bank)

□

By charge to our reserve account on payment date.

□

By draft enclosed (effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment
date).

We certify that we, as well as our customers, if any, listed
hereon have agreed not to purchase or to sell, or to make any
agreements with respect to the purchase or sale or other disposi­
tion of any bills of this issue at a specific rate or price, until
a f t er o n e-th irty p.m., E a s te rn S ta n d a rd Time, W ednesday,
December 22, 1971.

Delivery In structio ns:

---------------------------------------------------------(Subscriber’s full name or corporate title)

□ Hold in Custody Account — Member
banks for own account only

(Address)

□ Pledge .to Secure T reasury Tax and
T
.
Loan Account

----------

| ] S h i p t o ___________________________________________________

(Authorized official signature and title)

(For the account of, if tender is for another subscriber)
(Address)

IM P O R T A N T

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, communications
relating to other m atters should not be enclosed. Envelopes for submitting tenders may be requested 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 that 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.
(See reverse for announcement)

"

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