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R e s e r v e Ba n k o f D a l l a s



Circular No. 72-49
March 7, 1972

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
of $4,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing March 16, 1972, in the amount of
$3,901,460,000, as follows:
91-DAY BILLS (to maturity date) to be issued March 16, 1972, in the amount of $2,400,000,000, or there­
abouts, representing an additional amount of bills dated December 16, 1971, and to mature June IS, 1972
(CU SIP No. 912793 N F 9), originally issued in the amount of $1,600,400,000 (an additional $204,310,000 was
issued on March 6, 1972), the additional and original bills to be freely interchangeable.
182-DAY BILLS for $1,800,000,000, or thereabouts, to be dated March 16, 1972, and to mature September 14,
1972 (CU SIP No. 912793 P C 4 ).
The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable 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).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard Time, Monday, March 13, 1972. Tenders will not be received at the Treasury Department, Washington. Each
tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. In the case o f competitive
tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions 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.
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 of 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. Sub­
ject to these reservations, noncompetitive tenders for each issue for $200,000 or less 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 on March 16, 1972,
in cash or other immediately available funds or in a like face amount of Treasury bills maturing March 16, 1972. Cash and
exchange tenders will receive equal treatment Cash adjustments will be made for differences between the par value of maturing
bills accepted in exchange and the issue price of the new bills.
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 here­
under 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 of 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, Monday, March 13, 1972. Tenders may not
be entered by telephone.
Yours very truly,
P. E. Coldwell
Amount, Range and Approximate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
Due June 8, 1972
Due September 7, 1972
$4,128,995,000----------------------------------Total Applied For_________________________________$3,608,745,000
$2,400,550,000__________________________________ Total Accepted _________________________________ $1,800,120,000
99.116------------------ 3.497% _______________
.High______________________ 98.099_____________ 3.760%
99.097------------------ 3.572% ___________
.....Low__________________ .98.072________________ 3.814%
99.102------------------- 3.553% ( 1 ) ------------ ----------------- Average............................
.98.081____________ 3.796% (1 )
( 1 ) T h e se rates are o n a ban k d iscou n t basis. T h e eq u iv a le n t co u p o n issue y ie ld s are 3 . 6 3 % fo r the 9 1 -d a y bills an d 3 . 9 2 % fo r the
1 8 2 -d a y bills.

(See reverse for tender form)

This publication was digitized and made available by the FederalReserve Bank o f Dallas' Historical Fib rary (


Dated March 1 6,1972

Maturing September 1 4,1972

T o : Federal Reserve Bank, Station K , Dallas, Texas 75222
or —
El Paso 79999

Houston 77001

San Antonio 78295


Pursuant to the provisions o f Treasury Department Circular No. 418 (current revision) and the provisions o f the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount
shown below, and agrees to pay fo r the amount allotted, on or before the issue date, by the method and at the rate indicated.

NON CO M PETITIVE T E N D E R $_______________________________________________ N O T TO E X 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) o f accepted competitive bids.





Prices should be expressed on the basis of
100, with not more than
three decim al places,
e. g., 99.925. Fractions
must not be used.

Denominations Desired
Number of

Payment fo r this issue o f bills cannot be made by
credit to Treasury Tax and Loan Account.

Maturity Value

________ @ $
________ @ $

15,000 $.

________ @ $

50,000 $.

________@ $

100,000 $.

________ @ $


10,000 $.

500,000 $-


________ @ $ 1, 000,000

B y maturing bills
held by____________________________________
Payment to be made by________________
Charge our reserve account on payment
D raft enclosed (Effectual delivery o f enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment

Delivery Instructions:

Pledge to secure Treasury Tax and
Loan Account

(Subscriber's full name or corporate title)

Hold in Custody Account— Member
banks for own account only



By---------------------------------------------------------------(Authorized official signature and title)

Ship to-----------------------------------------------(F or the account of, if tender is for another subscriber)

1. No tender for less than $10,000 will be considered and each tender over $10,000 must be fo r an amount in multiples of
$5,000 (maturity value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f the
United States, with notation on the envelope reading “ TENDER FOR TREASU RY 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 fo r 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 o f the corporation authorized to make the
tender and the signing o f the form by an officer o f 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 o f 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 trust companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by a deposit o f 2 percent o f the total amount (maturity value)
o f the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty o f full payment by an
incorporated bank or trust company.
6. I f the language o f this form is changed in any respect, which, in the opinion o f the Secretary o f the Treasury is
material, the tender may be disregarded.
(See reverse fo r announcement)

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