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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 IT E D S T A T E S

DALLAS, TEXAS 75222
Circular No. 72-33
F ebruary 15, 1972

NEW OFFERING — TREASURY BILLS

To All B a n k in g Institutions a n d O th e r s C o n c e r n e d
in t h e E leven th F e d e r a l R eserve District:

Y our a t t e n t i o n is in v ite d to t h e f o llo w in g s t a t e m e n t g iv ing d e t a il s o f tw o iss u e s of T re as u ry bills:
T h e T r ea su ry D e p a r tm e n t, b y th is p u b lic n o tic e, in v ite s ten d e rs for tw o series o f T r ea su ry b ills to th e ag grega te a m o u n t o f
$ 1 ,7 0 0 ,0 0 0 ,0 0 0 , or thereab o u ts, for ca sh an d in ex ch a n g e fo r T rea su ry b ills m a tu rin g F eb ru ary 29, 1972, in th e a m o u n t o f
$ 1 ,7 0 1 ,1 8 0 ,0 0 0 , a s follow s:
2 7 5 - D A Y B I L L S ( t o m a tu rity d a te ) to b e issu ed F eb ru a ry 29 , 1972, in th e a m o u n t o f $ 5 0 0 ,0 0 0 ,0 0 0 , or th e r e ­
a b ou ts, rep resen tin g an a d d itio n a l a m o u n t o f b ills d ated N o v e m b e r 30, 1971, a n d to m a tu re N o v e m b e r 3 0 , 1972
( C U S I P N o . 9 1 2 7 9 3 N N 2 ) , o rig in a lly issu ed in th e a m o u n t o f $ 1 ,2 0 0 ,6 5 5 ,0 0 0 , th e a d d itio n a l an d origin al
b ills t o b e fr e e ly in terch an g ea b le.
3 6 5 - D A Y B I L L S for $ 1 ,2 0 0 ,0 0 0 ,0 0 0 , or th erea b ou ts, to b e d ated F eb ru ary 29, 1 9 72 , an d to m atu re F eb ru a ry 28,
1 97 3 ( C U S I P N o . 9 1 2 7 9 3 P U 4 ) .
T h e b ills o f b o th series w ill b e issu ed on a d isco u n t b a sis u n d er c o m p e titiv e an d n o n c o m p e titiv e b id d in g a s h erein a fter
p ro v id ed , an d a t m a tu rity th eir fa ce a m o u n t w ill b e p a y a b le w ith o u t in terest. T h e y w ill be issu ed in b earer form on ly , an d in
d e n o m in a tio n s o f $ 1 0 ,0 0 0 , $1 5,0 0 0 , $ 5 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 an d $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a lu e ) .
T e n d e r s w ill b e r e ce iv ed a t F ed era l R e s e r v e B a n k s a n d B r a n c h e s up to th e c lo sin g hour, o n e-th irty p .m ., E astern
S ta n d a rd T im e , T u e sd a y , F eb ru ary 2 2 , 1972. T e n d e r s w ill not b e rece iv ed a t th e T reasu ry D e p a r tm e n t, W ash in g to n . E ach
ten d e r m u s t b e for a m in im u m o f $ 10 ,0 0 0 . T e n d e r s o v er $ 1 0 ,0 0 0 m u s t b e in m u ltip le s o f $ 5,0 00 . In th e ca se o f c o m p e titiv e te n ­
d ers th e p rice offered m u s t b e ex p ressed on th e b a sis o f 100, w ith n o t m ore th a n th ree d ecim a ls, e.g., 9 9 .9 2 5 . F ra ctio n s m a y n ot
b e used . (N o tw ith sta n d in g t h e fa ct th a t t h e o n e-y ea r b ills w ill run for 3 6 6-d a ys, th e d isco u n t rate w ill be co m p u ted o n a b an k dis­
co u n t b a sis o f 3 6 0 -d a y s, a s is cu rren tly t h e p ractice on all issu es o f T rea su ry b ills.) I t is urged th a t ten d e rs b e m a d e o n t h e p rin ted
form s an d forw ard ed in t h e sp ec ia l e n v e lo p e s w h ich w ill b e su p p lied b y F ed era l R e s e r v e B a n k s or B ra n c h e s o n a p p lica tio n therefor.
B a n k in g in stitu tio n s g en era lly m a y su b m it ten d ers for a cco u n t o f cu stom ers p ro v id ed th e n a m e s o f t h e cu stom ers are
se t forth in su ch ten ders. O thers th a n b a n k in g in stitu tio n s w ill n o t b e p erm itted to su b m it ten d e rs ex c e p t for th e ir ow n accou n t.
T e n d e r s w ill b e re c e iv e d w ith o u t d ep o sit from incorp orated b a n k s and tru st co m p a n ie s an d from resp on sib le an d reco gn ized
d ea lers in in v e stm e n t secu rities. T e n d e r s from others m u st b e a cco m p a n ied b y p a y m e n t o f 2 p e r c e n t o f th e fa c e a m o u n t o f
T r ea su ry b ills a p p lied for, u n le ss t h e ten d e rs are a cco m p a n ied b y an exp ress gu a ran ty o f p a y m e n t b y an in corp orated b an k or
tru st com p a n y.
I m m e d ia te ly after t h e closin g hour, ten d ers w ill b e o p e n e d a t th e F ed era l R e s e r v e B a n k s an d B ra n ch es, fo llo w in g w h ich
p u b lic a n n o u n c e m e n t w ill b e m a d e b y th e T rea su ry D e p a r tm e n t o f t h e a m o u n t an d p rice ran ge o f a cc e p te d bids. O n ly th o se su b ­
m itt in g c o m p e titiv e ten d e rs w ill b e a d v ise d o f t h e a cc e p ta n c e or rejectio n th ereof. T h e S ecreta ry o f t h e T r ea su ry ex p ressly
r eserv es th e rig h t to a c c e p t or reject a n y or a ll ten ders, in w h o le or in part, an d h is a ctio n in a n y such resp ect sh a ll b e final.
S u b je c t to th e se reservations, n o n c o m p e titiv e ten d e rs for each issu e for $ 2 0 0 ,0 0 0 or less w ith o u t sta ted p rice from a n y o n e
b id d er w ill b e a c c e p te d in full a t t h e a vera g e p rice ( in th r ee d e c im a ls) o f a c c e p te d c o m p e titiv e b id s for t h e r e s p e c tiv e issues.
S e t tle m e n t for a cc e p te d ten d ers in accord a n ce w ith th e b id s m u s t b e m a d e or c o m p le te d a t t h e F ed era l R e s e r v e B a n k on
F eb ru a ry 29, 19 72 , in cash or oth er im m e d ia te ly a v a ila b le fu n d s or in a lik e fa c e a m o u n t o f T reasu ry b ills m a tu rin g
F eb ru a ry 29, 1972. C ash a n d ex ch a n g e ten d e rs w ill r e c e iv e eq u a l trea tm en t. Cash a d ju stm en ts w ill b e m a d e for d ifferen ces
b e tw e e n th e par v a lu e o f m atu rin g b ills a cc e p te d in ex ch a n g e and t h e issu e price o f th e n ew bills.
U n d er S e c tio n s 4 5 4 ( b ) an d 1221 ( 5 ) o f th e In tern al R e v e n u e C o d e o f 1 9 5 4 t h e a m o u n t o f d isco u n t a t w h ich b ills issued
h ereu n d er are sold is co n sid ered to accru e w h en th e b ills are sold, red eem ed or o th e rw ise d isp o sed of, and th e b ills are ex clu d ed
fro m co n sid er a tio n a s ca p ita l assets. A ccord in gly, th e ow n er o f T r ea su ry b ills ( o th e r th a n life insu ran ce c o m p a n ie s) issu ed h ere­
u n d er m u st in clu d e in h is in co m e ta x return, a s ord in ary gain or loss, t h e d ifferen ce b etw een t h e p rice p a id fo r t h e b ills, w h eth er
o n orig in a l issu e or on su b seq u e n t p u rch ase, an d th e a m o u n t a c tu a lly re c e iv e d e ith er u p on sale or r ed em p tio n a t m a tu rity during
t h e ta x a b le y ea r for w h ich th e return is m ade.
T r ea su ry D e p a r tm e n t Circular N o. 4 1 8 (cu rren t r e v is io n ) an d th is n o tic e, prescrib e t h e term s o f th e T r ea su ry b ills an d
g o v ern th e co n d itio n s o f th e ir issue. C o p ies o f th e circular m a y b e o b ta in ed from a n y F ed era l R e s e r v e B a n k or B ranch.

In a c c o r d a n c e w ith th 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 will b e r e c e iv e d a t this b a n k a n d its b r a n c h e s a t El P aso,
H o uston a n d S a n A n to n io u p to tw e lv e - th ir ty p .m ., C e n tral S t a n d a r d Time T u e s d a y , F e b r u a r y 2 2 , 1 972. T e n d e rs m a y
not b e e n t e r e d b y t e l e p h o n e .
Y ours v e r y truly,
P. E. C oldw ell
P re sid e n t
(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 ADDITION TO TREASURY BILLS

275 DAYS TO MATURITY
Maturing November 3 0 ,1 9 7 2

Dated Novem ber 30,1971
To: Federal Reserve Bank, Station K, Dallas, T exas 75222
or —
T he_____________________________ Branch
El Paso 79999 Houston 77001

San Antonio 78295

(D ate)

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 T E N D E R $____________

_NOT TO EX C E E D $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
ii100, with not more than
COMPETITIVE T E N D E R S <$_
-------------------- @ ------------$------------------------------------ th re e decimal p laces,
e. g., 99.925. Fractions
-----------------------------$------------------------------must not be used.
-----------------------k
US' TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ,",RE ACCEPTABLE.
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

Denominations Desired
N u m b e r of
Pieces

M a tu rity V alue

_@ $
$

15.000 $____

JS> $

METHOD OF PAYMENT

10,000 $____

50.000 $____

$
-@

100,000
500,000

□

C h arge ou r r e se r v e account on p a y m e n t
date

[^]

$1,000,000 $_
D elivery I n s t r u c t io n s :
□

P a y m e n t to be m ade by_

□

$___

B y m a tu r in g bills
held b y ____________

D r a f t e n c l o s e d (E ffe c tu a l d eliv ery o f enclosed d r a f t
s h a ll be on la te 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 l y c o l l e c t e d f u n d s o n p a y m e n t
date)

_________________

$___

$

□

Hold in C ustody A ccou n t— M em ber
banks fo r ow n a ccou n t only

(S u b s c rib e r's full n a m e o r c o rp o r a te title )

□

P led ge to secure T rea su ry T a x and
Loan A cco u n t

(A ddress)

□

S h ip t o ----------------------------------------------

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 b 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 1AEASURY 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 at 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