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F ederal reserve b a n k of Dallas F IS 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 N o. 72-34 F e b ru a ry 15, 1972 N E W O FF E R IN 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 thers C oncerned 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 to 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 bills : T h e T re a s u 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 for tw o series of T re a su ry bills to th e aggregate a m o u n t of $1,700,000,000, or th ere ab o u ts, fo r cash a n d in exchange fo r T re a su ry bills m a tu rin g F e b ru a ry 29, 1972, in th e a m o u n t of $1,701,180,000, as follow s: 275-D A Y B IL L S (to m a tu r ity d a te ) to b e issued F e b ru a ry 29, 1972, in th e a m o u n t of $500,000,000, o r th e re ab outs, re p re se n tin g a n a d d itio n al a m o u n t of b ills d a te d N o v em b er 30, 1971, a n d to m a tu re N o v e m b er 30, 1972 ( C U S I P No. 912793 N N 2 ) , o riginally issued in th e a m o u n t of $1,200,655,000, th e a d d itio n a l a n d original bills to be freely in terch an g eab le. 365-D A Y B IL L S fo r $1,200,000,000, o r th ere ab o u ts, to b e d a te d F e b ru a ry 29, 1972, a n d to m a tu re F e b ru a ry 28, 1973 (C U S IP No. 912793 P U 4 ) . T h e bills of b o th series w ill b e issued on a d isc o u n t basis u n d e r c o m p e titiv e a n d no n c o m p e titiv e b id d in g as 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 in terest. T h e y w ill b e issued in b e a re r form only, a n d in d e n 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 receiv ed a t F e d e ra l R eserv e B a n k s a n d B ran ch es u p to th e closing ho ur, 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 , F e b ru a ry 22, 1972. T e n d e rs w ill no t be receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington. E a c 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 o ver $10,000 m u st be in m u ltip le s of $5,000. I n th e case of c o m p e titiv e te n ders th e p rice offered m u s t b e expressed on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay n o t be used. (N o tw ith sta n d in g th e fa c t th a t th e o ne-year b ills w ill ru n for 366-days, th e d isco u n t 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 ctice o n a ll issues o f T re a s u ry bills.) I t is u rged t h a t te n d e rs b e m ad e 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 erefor. B a n k in g in stitu tio n s g en erally m a y su b m it te n d e rs fo r acc o u n t of custo m ers p ro v id ed th e n am es of th e cu stom ers a re set fo rth in such ten d ers. O th ers 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 cep t for th e ir ow n account. T e n d e rs w ill be receiv ed w ith o u t d e p o sit fro m in co rp o ra ted b a n k s a n d tru s t c om p anies a n d from resp o n sib le a n d recognized de ale rs in in v e stm e n t securities. T e n d e rs from o th ers m u st be a cco m p an ied b y p a y m e n t of 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, u nless th e te n d e rs a re a cco m p an ied b y a n express g u a ra n ty of p a y m e n t b y a n in co rp o ra ted b a n k or tr u s t com pany. Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill b e o p e n 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 ranches, follow ing w hich p u b lic a n n o u n ce m en t w ill be m ad e b y 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 o f a cc ep te d bids. O nly tho se sub m ittin g c o m p e titiv e te n d e rs w ill be ad v ised of th e a cc ep ta n ce or re je ctio n thereof. T h e S e c re ta ry of th e T re a su ry expressly reserves th e r ig h t to a c c e p t or re je c t a n y or a ll ten d e rs, in w hole or in p a rt, a n d h is a ctio n in a n y such re sp e c t sh all b e final. S u b je c t to th ese reserv ation s, n o n co m p e titiv e te n d e rs fo r each issue for $200,000 o r less w ith o u t sta te d p rice from a n y one b id d e r w ill b e acc ep te d in full a t th e av erag e p rice ( in th re e d e cim als) of acc ep te d co m p e titiv e b id s for th e re sp e ctiv e issues. S e ttle m e n t for acc ep te d te n d e rs in accordance w ith th e b id s m u s t be m ad e o r co m p le te d a t th e F e d e ra l R e se rv e B a n k on F e b ru a ry 29, 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 bills m a tu rin g F e b ru a ry 29, 1972. C ash a n d exchange te n d e rs w ill receive 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 a d e fo r differences b e tw ee n th e p a r valu e of m a tu rin g bills a cc ep te d in exchange a n d th e issue p rice of th e new bills. U n d e r S ections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e C ode of 1954 th e a m o u n t of d iscou nt a t w hich bills issued h e re u n d e r a re sold is co nsidered to accru e w hen th e bills a re sold, re d ee m e d o r o therw ise disposed of, a n d th e bills a re excluded from co n sid era tio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (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 st in clude in his incom e ta x re tu rn , as o rd in a ry gain or loss, th e d ifference b e tw ee n th e p rice p a id for th e bills, w h e th er on original issue or on su b seq u e n t p u rch ase, a n d th e a m o u n t a c tu a lly re ce iv e d e ith e r u p o n sale or re d e m p tio n a t m a tu rity du rin g th e ta x a b le y e a r for w hich th e r e tu r n is m ade. T re a su ry D e p a rtm e n t C ircu la r No. 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 bills a n d govern th e c ond ition s of th e ir issue. C opies of th e c ircu lar m a y b e o b tain e d from a n y F e d e ra l R e se rv e B a n k or 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 , F e b r u a r y 2 2 , 1 9 7 2 . T e n d e r s m a y not b e e n te re d b y te lep h o n e. Y o u r s v e r y tru ly , P. E. C o l d w e l l P resident ( See reverse 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 365 DAYS TO MATURITY Maturing February 28, 1973 Dated February 29,1972 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The____________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (D a te ) P u rsu an t to the provisions of T reasu ry D epartm ent Circular No. 418 (current revision) and the provisions of the public announcem ent issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasury bills in the am ount shown below, and agrees to pay for th e am ount allotted, on or before the issue date, by th e method and a t the ra te 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 nea price (in three decimals) of accepted competitive bids. '________________________________________________________________Prices should be ex ______________ @ ________ $____________________ - pressed on the basis of * COMPETITIVE TENDERS <S________________ @_______ $_____________________ (I ----------------------@ -------------$-------------------------------------- e. g., 99.925. Fractions m ust not be used. BSP TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Paym ent fo r this issue of bills cannot be made by credit to T reasury T ax and Loan Account. Denominations Desired N um ber of P ie c e s M aturity Value (a) $ (a) $ METHOD OF PAYM ENT 10,000 ¥ 15,000 $ □ By m aturing bills held by_____________________________ Payment to be made by_____________ 50,000 $ (a) $ 100,000 $ () $ 500,000 $ a □ □ (a) $1,000,000 $ Charge our reserve account on payment date |” J D r a f t e n c l o s (E ffectual ed (ffl $ delivery o f enclosed d r a f t shall be on latest day which will perm it presentm ent in order to obtain irrevocably collected funds on paym ent date) Delivery Instructions: □ Hold in Custody Account—Member banks for own account only (Subscriber’s full name or corporate title) □ Pledge to secure Treasury Tax and Loan Account (Address) □ Ship to--------------------------------------- By- (Authorized official signature and title) (For the account of, if tender is for another subscriber) (Address) IMPORTANT 1. No ten der fo r less th a n $10,000 will be considered and each tender over $10,000 m u st be fo r an am ount in multiples of $5,000 (m atu rity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of the U nited States, w ith notation on the envelope reading “T EN D ER FOR TREA SU RY O FF E R IN G ”. Since envelopes received w ith this legend will not be opened until a fte r the closing tim e specified in the public announcement, communi cations relating to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank or appro priate branch. 3. A ny qualified or conditional ten d er 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 th e signing of the form by an officer of th e corporation will be construed as a representation by him th a t he h as been so authorized. If the tender is m ade by a partnersh ip it should be signed by a mem ber of the firm, who should sign in the form “ .... ............... .................... ........., a copartnership, b y ---- ---------------------------- . ------ ------ ----, a mem ber of the firm”. 5. Tenders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of th e to tal am ount (m atu rity value) of the T re asu ry bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an incorporated bank or tr u s t company. 6. I f the language of th is form is changed in an y respect, which, in th e opinion of the S ecretary of the T reasury is m aterial, th e tender m ay be disregarded. (See reverse fo r announcem ent)
@FedFRASER