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Federal

reserve

Bank

of

Dallas

F IS C A L A G E N T O F T H E U N ITED S T A T E S

DALLAS, TEXAS 75222
Circular No. 72-75
April 19, 1972
NEW OFFERING — TREASURY BILLS

To A ll Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the fo llo w in g statem ent giving details of tw o issues of Treasury bills:
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 for tw o series of T re a su ry b ills to th e ag 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 for T re a su ry b ills m a tu rin g A p ril 30, 1972, in th e a m o u n t of
$1,701,685,000, as follows:
275-D A Y B IL L S (to m a tu rity d a te ) to b e issued M a y 1, 1972, in th e a m o u n t of $500,000,000, o r th e re ­
ab o u ts, re p re se n tin g a n a d d itio n al a m o u n t of bills d a te d J a n u a r y 31, 1972, a n d to m a tu re J a n u a ry 31, 1973
(C U S IP No. 912793 P T 7 ) , o rig in ally issued in th e a m o u n t of $1,200,370,000, th e a d d itio n a l a n d o riginal
b ills to be freely interch ang eable.
3 65-D A Y B IL L S fo r $1,200,000,000, or th ere ab o u ts, to b e d a te d A pril 30, 1972, a n d to m a tu re A p ril 30, 1973
(C U S IP No. 912793 P W 0).
T h e bills of b o th series will b e issued on a d isco 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 a s 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 will be p a y ab le w ith o u t in terest. T h e y w ill be issued in b e a re r form only, a n d in
den o m in atio 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 will b e receiv ed 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 , T u esd ay , A p ril 25, 1972. T e n d e rs will n o t b e receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington. E ach
te n d e r m u st b e for a m in im u m of $10,000. T e n d e rs ov er $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 ers th e p rice offered m u st be expressed on 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 a y n o t
b e used. (N o tw ith sta n d in g th e fa c t t h a t th e one-year b ills will ru n for 366-days, th e d isco u nt r a te w ill be co m p u te d o n 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 on all issues o f T re a su ry b ills.) I t is u rg ed t h a t te n d e rs be m ad e on th e p rin te d
form s a n d forw ard ed in th e special en velo p es 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 generally m a y su b m it te n d e rs fo r acco u n t of c u sto m ers p ro v id ed th e na m e s of th e c u sto m ers a re
se t fo rth in such tend ers. O th ers th a n b a n k in g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs ex cep 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 tr u s t c o m pan ies a n d from resp on sib le a n d recognized
d ealers in in v e s tm e n t securities. T e n d e rs fro m o th ers m u st b e a ccom 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 b ills a p p lie d for, u n less 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 f te r th e closing hour, te n d e rs will be o p 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 ranches, 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 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 ran g e of acc ep te d bids. O n ly those su b ­
m ittin g c o m p e titiv e te n d e rs will b e ad v ised of th e a cc ep ta n ce o r re je ctio n th ereof. 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 ct 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 c tio n in a n y such re sp e ct shall b e final.
S u b je c t to th ese reservations, n o n c o m p e titiv e te n d e rs fo r each issue fo r $200,000 or less w ith o u t sta te d p rice from a n y one
b id d e r w ill be acc ep te d in full a t th e av erag e p rice ( in th re e d e cim als) of a ccep ted c o m p e titiv e bids fo r th e re sp e ctiv e issues.
S e ttle m e n t fo r acc ep te d te n d e rs in accordance w ith th e bids m u st b e m ad e o r c o 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 y 1, 1972, in cash or o th e r im m e d ia tely 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 A p ril 30, 1972.
C ash a n d exchange te n d e rs will receiv e e q u al tre a tm e n t. C ash a d ju s tm e n ts will b e m ad e for differences b etw een th e p a r v alue
of m a tu rin g b ills acc ep te d in exchange a n d th e issue p rice of th e new bills.
U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e Code of 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 con sid ered to accru e w hen th e bills a re sold, re d ee m e d o r oth erw ise disposed of, a n d th e bills a re excluded
fro m co n sid eratio n as c a p ita l assets. A ccordingly, th e o w ner of T re a su ry bills (o th e r th a n life in su ran ce c o m p a n ies) issued h e re ­
u n d e r m u s t in clu de in h is incom e ta x re tu rn , as o rd in a ry gain or 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 riginal issue o r on su b seq u e n t p u rchase, 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 for 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 No. 41 8 (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 c on d itio ns of th e ir issue. C opies of th e circu lar m a y b e 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 or B ranch.

In accordance w ith the above announcem ent, tenders w ill be received a t this b ank an d its branches a t El Paso,
Houston an d San Antonio up to tw elv e-th irty p.m., Central Standard Time, Tuesday, April 25, 1972. Tenders m a y not
be entered by telephone.
Yours very truly,
P. E. Coldwel!
President
(S ee reverse for ten d er form )

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 D A Y S TO M A T U R IT Y
Maturing April 30,1973

Dated April 30, 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 a n t to the provisions of T reasury D epartm ent Circular No. 418 (cu rren t revision) and the provisions of th e
public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ount
shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by the method and a t th e ra te indicated.

NONCOMPETITIVE TENDER $_______________________________

JVOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
/
Prices should be ex1$_________________ @ _______ $______________________
pressed on the basis of

COMPETITIVE TENDERS <$________________@______ $____________________
j

----------------------------- @ ------------ $--------------------------------------

tTr’ ^decTmaTplaceT,
e
e. g . t 99.925. F ractions
m u st not be used.

TEN D ERS MAY NOT BE EN TE R E D BY T ELEPH O N E. TEND ERS BY W IRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.

Denominations Desired
N um ber of
P iec es

P aym ent fo r this issue of bills cannot be made
by credit to T reasury T ax and Loan Account.

M aturity Value

METHOD OF PAYM ENT

(a) $ 10,000 $
(a) $ 15,000 $
<> $ 50,000 $
5
(a) $ 100,000 $
0 $ 500,000 $
(a) $1 ,000,000 $

□
□

By m aturing bills
held by______________________________
Paym ent to be made by_____________

□ Charge our reserve account on payment
date
I. I D r a f t e n c l o s e d

Delivery Instructions:
□

(E ffectu al delivery o f enclosed d ra ft

s h a ll be o n la t e 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 ta in ir r e v o c a b ly co llec ted f u n d s o n p a y m e n t
d a te )

Hold in Custody Account—Member
banks for own account only

( S u b s c r ib e r ’s f u l l n a m e o r c o r p o r a t e t i tle )

□

Pledge to secure Treasury Tax and
Loan Account

( A d d re s s)

□

Ship to__________________________

By_
( A u th o r iz e d official s i g n a t u r e a n d ti tle )

( F o r t h 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 r ib e r )

( A d d re s s)

IMPORTANT
1. No tender fo r less th a n $10,000 will be considered and each tender over $10,000 m ust be fo r an am ount in m ultiples 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 “TEN D ER FOR TREASURY 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 relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this
bank or ap p ro p riate branch.
3. A ny qualified or conditional tender will be rejected.
4. I f a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the
ten d er and th e signing of the form by an officer of the corporation will be construed as a representation by him th a t he
h as been so authorized. I f the tender is m ade by a p artnership it should be signed by a m em ber of the firm, who
should sign in the form “ ......................................................... , a copartnership, by................................................. .............................. ,
a m em ber of the firm ”.
5. T enders 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 the to tal am ount (m atu rity value)
of the T reasury bills applied for, o r unless th e tenders are accompanied by an express g u a ra n ty of full paym ent by an
incorporated bank or tr u s t company.
6. I f th e language of this form is changed in any respect, which, in the opinion of the S ecretary of th e T reasury is
m aterial, the tender m ay be disregarded.
(See reverse for announcement)

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