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F ederal Reserve b a n k o f Dallas F I S C A L A G E N T O F T H E U NIT E D S T A T E S DALLAS, TEXAS 75222 C ircu la r No. 72-10 J a n u a ry 19, 1972 N E W OFFERIN G — TREASURY BILLS To All B a n k i n g I n s t i t u t i o n s a n d O t h e r s C o n c e r n e d in t h e E l e v e n t h F e d e r a l R e s e r v e District: Y o u r a t t e n t i o n is i n v i t e d t o t h e f o l l o w i n g s t a t e m e n t g i v i n g d e t a i l s o f t w o i s s u e s o f T r e a s u r y b ills : T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, in v ite s te n d e rs fo r tw o series of T re a su ry b ills to th e aggregate a m o u n t of $1,700,000,000, o r th ere ab o u ts, fo r cash a n d in exchange fo r T re a s u ry bills m a tu rin g J a n u a ry 31, 1972, in th e a m o u n t of $1,699,705,000, as follow s: 274-D A Y B IL L S (to m a tu rity d a te ) to b e issued J a n u a ry 31, 1972, in th e a m o u n t of $500,000,000, or th e re ab o u ts, re p re se n tin g a n a d d itio n a l a m o u n t o f b ills d a te d O ctober 31, 1971, a n d to m a tu re O cto b er 31, 1972 (C U S I P No. 912793 N M 4 ), o rig in ally issued in th e a m o u n t of $1,200,265,000, th e a d d itio n a l a n d original bills to be fre ely in terch an g eab le. 366-D A Y B IL L S for $1,200,000,000, or th ere ab o u ts, to b e d a te d J a n u a ry 31, 1972, a n d to m a tu re J a n u a ry 31, 1973 (C U S IP N o. 912793 P T 7 ) . T h e b ills o f b o th series w ill b e issued on a d isc o u n t b asis u n d e r c o m p e titiv e a n d n o n co m p e titiv e b id d in g a s h e re in a fte r pro v id ed , a n d a t m a tu rity th e ir face a m o u n t w ill b e p a y a b le w ith o u t i n te r e s t T h e y w ill b e issued in b e a re r fo rm only, a n d in d en o m in a tio n s of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu r ity v a lu e ). T e n d e rs w ill be re ce iv e d a t F e d e ra l R e se rv e B a n k s a n d B ra n ch e s u p to th e closing h our, o n e -th irty p.m ., E a s te rn S ta n d a rd T im e , T u esd ay , J a n u a r y 25, 1972. T e n d e rs w ill n o t be re ce iv e d a t th e T re a su ry D e p a rtm e n t, W ashington. E ac h te n d e r m u s t be for a m in im u m of $10,000. T e n d e rs over $10,000 m u st b e in m u ltip le s of $5,000. In th e case of c o m p e titiv e te n d e rs th e p rice offered m u st b e expressed o n th e basis of 100, w ith n o t m o re th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay n o t b e used. (N o tw ith sta n d in g th e fa c t th a t th e one-year bills w ill ru n fo r 366-days, th e d isco unt ra te w ill b e c o m p u te d on a b a n k dis c o u n t basis of 360-days, as is c u rre n tly th e p ra c tic e on a ll issues of T re a su ry b ills.) I t is u rg e d th a t te n d e rs b e m ade on th e p rin te d form s a n d fo rw ard ed in th e special envelopes w hich w ill b e su p p lied b y F e d e ra l R e se rv e B a n k s or B ra n ch e s on a p p lic a tio n th erefo r. B a n k in g in stitu tio n s g en erally m a y su b m it tender* fo r acco u n t of cu sto m ers p ro v id ed th e n a m e s o f th e cu sto m ers a re se t fo rth in such ten d e rs. O th e rs th a n b a n k in g in stitu tio n s will n o t b e p e rm itte d to su b m it te n d e rs ex ce p t fo r th e ir ow n account. T e n d e rs w ill b e received w ith o u t d e p o sit from in co rp o ra ted b a n k s a n d tr u s t c om p anies a n d fro m respo nsib le a n d recognized d e ale rs in in v e stm e n t securities. T e n d e rs from o th e rs m u st be a cc o m p an ied b y p a y m e n t o f 2 p e rc e n t of th e face a m o u n t of T re a su ry bills a p p lie d for, un less th e ten d e r* a re acc o m p an ied b y a n express g u a ra n ty o f p a y m e n t b y a n in co rp o ra ted b a n k o r tr u s t com pany. Im m e d ia te ly a f te r th e closing h o u r, te n d e rs w ill b e op en ed a t th e F e d e ra l R e se rv e B a n k s a n d B ran ch es, follow ing w hich p u b lic a n n o u n c e m e n t w ill b e m ad e by th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d p rice ra n g e of a c c e p te d bids. O nly th o se su b m ittin g c o m p e titiv e te n d e rs w ill be ad v ised of th e acc ep ta n ce or re je ctio n th ereo f. T h e S e c re ta ry of th e T re a su ry expressly reserv es th e rig h t to a c c e p t o r re je c t a n y o r a ll ten d e rs, in w hole o r in p a rt, a n d his a c tio n in a n y such re sp e ct shall be final. S u b je c t to th e se reserv atio n s, n o n c o m p e titiv e te n d e rs fo r each issue fo r $200,000 o r less w ith o u t s ta te d p rice from a n y o ne b id d e r w ill b e a cc ep te d in fu ll a t th e av era g e p rice ( in th re e d e cim als) o f acc ep te d c o m p e titiv e b id s fo r th e re sp e ctiv e issues. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e b id s m u st b e m a d e o r c o m p leted a t th e F e d e ra l R e se rv e B a n k on J a n u a r y 31, 1972, in cash or o th e r im m e d ia te ly a v ailab le fu n d s or in a lik e face a m o u n t of T re a su ry b ills m a tu rin g J a n u a r y 31, 1972. C ash a n d exchange te n d e rs w ill receiv e e q u al tre a tm e n t. C ash a d ju s tm e n ts w ill b e m ad e fo r differences b e tw ee n th e p a r valu e of m a tu rin g bills a c c e p te d in exchange a n d th e issue p rice of th e new bills. U n d e r S ection s 4 54 ( b ) a n d 1221 ( 5 ) o f th e In te rn a l R e v e n u e C od e o f 1954 th e a m o u n t of d isco u n t a t w hich b ills issued h e re u n d e r a re sold is co nsid ered to acc ru e w h en th e b ills a re sold, re d e e m e d o r otherw ise disposed of, a n d th e bills a re excluded fro m co n sid era tio n as c a p ita l assets. A ccordingly, th e ow n er o f T re a su ry b ills (o th e r th a n life in su ran ce c o m p an ies) issued h e re u n d e r m u s t in clu d e in h is inco m e ta x re tu rn , a s o rd in a ry gain o r loss, th e difference b e tw ee n th e p rice p a id for th e bills, w h e th e r on o rig in al issue or on su b seq u e n t pu rch ase, a n d th e a m o u n t a c tu a lly received e ith e r u p o n sale o r re d e m p tio n a t m a tu rity d u rin g th e ta x a b le y e a r fo r w hich th e re tu r n is m ade. T re a su ry D e p a rtm e n t C ircu la r N o. 418 ( c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e te rm s of th e T re a su ry b ills a n d govern th e co n d itio n s of th e ir issue. C opies of th e circ u lar m ay be o b ta in e d fro m a n y F e d e ra l R e se rv e B a n k o r B ranch . In a c c o r d a n c e w i t h t h e a b o v e a n n o u n c e m e n t , t e n d e r s w ill b e r e c e i v e d a t t h i s b a n k a n d its b r a n c h e s a t El P a s o , H o u s t o n a n d S a n A n t o n i o u p to t w e l v e - t h i r t y p . m . , C e n t r a l S t a n d a r d T im e, T u e s d a y , J a n u a r y 2 5 , 1 9 7 2 . T e n d e r s m a y no t b e e n te re d by te lep h o n e. Y o u r v e r y tr u ly , P. E. C o l d w e l l P resident (S e e re v erse fo r te n d e r fo rm ) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 366 DAYS TO MATURITY Maturing January 31,1973 Dated January 31,1972 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The---------------------------------------Branch £1 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 at the rate indicated. NONCOMPETITIVE TENDER $_ _NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. /« /av e Prices should be ex-VSf'-v--------------------------- pressed on the basis of 100, with not more than COMPETITIVE TENDERS -< § > -$ < $ three decimal places, e. g., 99.925. Fractions / $must not be used. 1113^° TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. N um ber of P iec es M a tu r i ty V a lu a o $ $ METHOD OF PAYMENT 10,000 $15,000 $- (H) $ 50,000 ?(3) $ 100,000 ?$ 500,000 $<a> ? i ,000,000 $: □ B y maturing bills held by---------------------------- □ Payment to be ma d e by______________ □ Charge our reserve account on payment date Draft enclosed (E ffe c tu a l d eliv e ry o f en c lo sed d r a f t □ s h a ll be on la te s t d ay w h ich w ill p e r m it p r e s e n t m e n t in o r d e r to o b ta in irre v o c a b ly c o lle c te d f u n d s o n p a y m e n t d a te ) Delivery Instructions: □ Hold in Custody Account— M e m b e r banks for o w n account only (S u b s c rib e r’s f u ll n a m e o r c o r p o r a te ti t l e ) □ Pledge to secure Treasury Tax and Loan Account (A d d re s s) □ Ship to_________________________ By. (A u th o riz e d o fficial s i g n a t u r e a n d title ) ( F o r th e a c c o u n t o f( If t e n d e r is f o r a n o t h e r s u b s c rib e r) ( A d d re s s) 1. 2. 3. 4. 5. 6. IMPORTANT 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 (maturity value). Tenders should be forwarded in an envelope clearly addressed to this bank or apropriate 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 matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank or appropriate branch. Any qualified or conditional tender will be rejected. 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”. Tenders from those other than incorporated banks and trust 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 (maturity 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 trust company. 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. (Sea reverse for announcement)
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