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F ed er a l r es er v e Ba n k 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
C ircu la r N o. 72-53
M a rc h 17, 1972

N E W OFFERING — 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 D istrict:

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 bills to th e a g g reg a te a m o u n t of
$1,700,000,000, o r th ere ab o u ts, for cash a n d in exchange fo r T re a su ry b ills m a tu rin g M a rc h 31, 1972, in th e a m o u n t of
$1,700,605,000, as follow s:

‘

275-D A Y B IL L S (to m a tu rity d a te ) to b e issued M a rc h 31, 1972, in th e a m o u n t of $500,000,000, o r th e re ­
a bouts, re p re se n tin g a n a d d itio n a l a m o u n t of b ills d a te d D e c e m b e r 31, 1971, a n d to m a tu re D e c em b er 31, 1972
(C U S IP No. 912793 N P 7 ) , orig in ally issued in th e a m q u n t of $1,200,475,000, th e a d d itio n a l a n d o riginal
b ills to b e fre ely in te rc h an g e ab le . — J365-D A Y B IL L S for $1,200,000,000, o r th ere ab o u ts, to b e d a te d M a rc h 31, 1972, a n d to m a tu re M a rc h 31, 1973
( C U S IP N o. 912793 P V 2 ).
*
T h e b ills 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 n o n c o m p e titiv e b id d in g as h e re in a fte r
p ro v id ed , a n d a t m a tu rity th e ir face a m o u n t w ill be p a y ab le w ith o u t in te re st. T h e y w ill b e issued in b e a re r fo rm only, a n d in
d e n o m in a tio n s o f $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu rity v a lu e ).

T e n d e rs w ill b e 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 hour, o n e -th irty p.m ., E a s te rn
..S ta n d a rd T im e , F rid a y , M a rc h 24, 1972. T e n d e rs w ill n o t b e rece iv e d a t th e T re a s u ry D e p a rtm e n t, W ashington. E ac h
te n d e r m u st b e for a m in im u m o f $10,000. T e n d e rs .over $10,000 m u st be in m u ltip le s of $5,000. In th e case of c o m p e titiv e te n deiti 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 b ills w ill ru n for 366-days, th e disco u n t ra te w ill b e c o m p u te d o n a b a n k dis" c o u n t ba sis of 360-days, a s is c u rre n tly th e p ra c tic e o n 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 ad e on th e p rin te d
1 form s .and fo rw ard ed in th e special e n v elo p e s w hich Will 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 te n d e rs fo r acc o u n t of cu sto m ers p ro v id ed th e na m e s of th e cu sto m ers a re
v 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 w ill n o t b e p e rm itte d to su b m it te n d e rs e x c e p t fo r th e ir ow n account.
'T e n d e rs w ill b e 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 com panies a n d from resp o n sib le a n d recognized
^'dealers in in v e s tm e n t securities. T e n d e rs from o th ers m u st b e a cco 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, unless 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 b e m a d 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 of a cc ep te d bids. O n ly those sub­
m ittin g c o m p e titiv e te n d e rs w ill b e a d v ised of th e a cc ep ta n ce o r re je c tio 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 h is a ctio n in a n y such re sp e c t shall b e 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 for $200,000 o r less w ith o u t sta te d p rice fro m a n y one
b id d e r w ill b e a cc ep te d in full a t th e a v era g e p rice ( in th re e d e cim als) of a cc ep te d c o m p e titiv e bid s fo r th e re sp e ctiv e issues.
S e ttle m e n t for a c c e p te d te n d e rs in accordance w ith th e b id s m u st 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
M a rc h 31, 1972, in cash o r o th e r im m e d ia tely a v ailab le fu n d s o r in a like face a m o u n t of T re a s u ry b ills m a tu rin g
M a rc h 3 1 / 1972; pro v id ed , how ever, th a t s e ttle m e n t fo r te n d e rs su b m itte d to th e F e d e ra l R e se rv e B an k s of P h ila d e lp h ia
a n d Chicago, o r to th e F e d e ra l R e se rv e B a n k B ra n ch e s in B a ltim o re a n d P ittsb u rg h , m u st be co m p le te d a t th o se B an k s
o r B ra n ch e s o n A p ril 3, 1972, a n d m u st include th re e days’ a cc ru ed in te re st if s e ttle m e n t is m ad e w ith o th e r th a n T re a s­
u ry b ills m a tu rin g M a rc h 31. C ash a n d exchange te n d e rs w ill re ce iv e e q u al tr e a t m e n t C ash a d ju s tm e n ts w ill be m ad e
fo r differences b e tw ee n th e p a r v a lu e of m a tu rin g bills a ccep ted in exchange a n d th e issue p rice of th e new bills.
.

' U n d e r S ections 4 5 4 ( b ) a n d 1221 ( 5 ) o f th e In te rn a l R e v e n u e C ode o f 1954 th e a m o u n t of d isco u n t a t w hich bills issued
h e re u n d e r a re sold is considered 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
«, fro m c o n sid era tio n a s c a p ita l assets. A ccordingly, th e ow ner of T re a s u ry b ills (o th e r th a n life in su ran ce c om panies) issued h e re ­
u n d e r m u st in clu d e in h is incom e tax re tu rn , a s o rd in a ry gain o r loss, th e d ifference betw een th e p ric e p a id fo r th e bills, w h e th er
o n o rig in al issue o r 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 re ce iv e d 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 rn is m ade.
■
T re a s u 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 c irc u lar m a y b e o b ta in e d from 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 t o 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, F r i d a y , M a r c h 2 4 , 1 9 7 2 . T e n d e r s m a y n o t
b e en tered by te le p h o n e .
' ’
Y o u rs v e r y tr u ly ,
P. E. C o l d w e l l
P resid en t

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
Dated March 31,1972

Maturing March 31,1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The---------------------------------------- Branch
El 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.

_______________________________NOT TO EXCEED $200,000
NONCOMPETITIVE TENDER $_________
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
/
Prices should be ex1$___________________@ _________ $-------------------------------------pressed on the basis of

U______________ @_______ $____________________

COMPETITIVE TENDERS
i

^

*

tT refdecT m aT plS
e. g., 99.925. Fractions
must not be used.

.(§ )_

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

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M aturity Value

(5) $
(3) $

METHOD OF PAYMENT

10,000 $
15,000 $

□
□

□

Charge our reserve account on payment
date

I 1 D r a f t e n c l o s e d (Effectual delivery of enclosed d ra ft
shall be on latest day which will perm it presentm ent in
order to obtain irrevocably collected funds on paym ent
date)

Delivery Instructions:
□

Payment to be made by_____________

□

50,000 $
<® $ 100,000 $
<® $ 500,000 $
(5) ?1,000,000 $
<® $

B y maturing bills
held by____________________________

Hold in Custody Account— M e m b e r
banks for o w n account only

(Subscriber’s full name or corporate title)

Pledge to secure Treasury Tax and
Loan Account

(Address)

By□

Ship to_________________________

(Authorized official signature and title)
(For the account of, if tender is fo r another subscriber)
(Address)

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 (maturity value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent 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.
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 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.
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