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F ederal 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. 72-89
M ay 9, 1972

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutio ns a n d O th e r s C o n c e r n e d
in th e E leventh F e d e ra l R eserv e 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 in g d e t a il s of 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 tice, in v ite s ten d ers for tw o series o f T rea su ry b ills to th e agg reg ate a m o u n t
o f $ 4 ,1 0 0 ,0 0 0 ,0 0 0 , or th erea b ou ts, fo r cash an d in ex ch a n g e for T r ea su ry b ills m atu rin g M a y 18, 19 72 , in t h e a m o u n t o f
$ 4 ,2 1 1 ,5 5 5 ,0 0 0 , as follow s:
9 1 - D A Y B I L L S (to m a tu rity d a te ) to b e issu ed M a y 18, 1972, in th e a m o u n t o f $ 2 ,3 0 0 ,0 0 0 ,0 0 0 , or th ere­
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 a te d F eb ru a ry 17, 1972, an d to m a tu re A u g u st 17, 1972
( C U S I P N o . 9 1 2 7 9 3 N Z 5 ) , o rig in a lly issu ed in t h e a m o u n t o f $ 1 ,8 0 0 ,5 4 0 ,0 0 0 , th e a d d ition a l an d origin al b ills
to b e fr e e ly in terch a n g ea b le.
1 8 2 -D A Y B I L L S for $ 1 ,8 0 0 ,0 0 0 ,0 0 0 , or th erea b ou ts, to b e d ated M a y 18, 1972, a n d to m atu re N o v e m b e r 16, 1972
( C U S I P N o . 9 1 2 7 9 3 P M 2 ),
T h e b ills o f both series w ill b e issu ed on a d isco u n t b a sis und 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 as h erein a fter
p rov id ed , and 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 b e issu ed in b ea rer form o n ly, an d in
d en 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 a n 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 receiv ed a t F ed era l R e s e r v e B a n k s and B ra n ch es u p to th e clo sin g hour, o n e-th irty p .m ., E a ste rn
D a y lig h t S a v in g T im e , M on d a y, M a y 15, 1972. T e n d e r s w ill n o t b e r e ce iv ed a t th e T rea su ry D e p a r tm e n t, W ash in gton . E a ch
ten d er m u s t be for a m in im u m o f $1 0,0 0 0 . T e n d er s o v er $ 1 0 ,0 0 0 m u s t b e in m u ltip le s o f $ 5 ,000. In th e case o f c o m p e titiv e
ten d e rs th e p rice offered m u st be exp ressed on t h e b asis o f 100, w ith n o t m o re th a n th ree d ecim a ls, e.g., 9 9 .9 2 5 . F ractio n s m a y
n ot b e used. It is urged th a t ten d ers be m a d e on t h e p rin ted fo rm s and forw ard ed in th 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 erally m a y su b m it ten d ers for a cco u n t o f cu sto m ers p ro vid ed t h e n a m e s o f t h e cu stom ers are
se t forth in su ch tenders. O thers th a n b a n k in g in stitu tio n s w ill n ot b e p erm itted to su b m it ten d ers ex c e p t for th eir o w n account.
T e n d e r s w ill b e rece iv ed w ith o u t d ep o sit from in corp orated b a n k s and tru st c o m p a n ie s an d from resp o n sib le a n d recogn ized
d ea lers in in v e stm e n t secu rities. T e n d er s from o thers m u s t b e a cco m p a n ied b y p a y m e n t o f 2 p ercen t o f th e fa ce a m o u n t of
T rea su ry b ills a p p lie d for, u n le ss t h e ten d ers are a cco m p a n ied b y an exp ress g u aran ty o f p a y m e n t b y a n in corp o ra ted b a n k or
trust com p a n y.
I m m e d ia te ly a fter th e clo sin g hour, te n d e r s 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 a n d B ra n ch es, fo llo w in g w hich
p u b lic a n n o u n c em en t w ill b e m a d e b y t h e T r ea 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 range o f a ccep ted bids. O n ly th o se
su b m ittin g c o m p e titiv e ten d ers w ill b e a d v ise d o f t h e a ccep ta n ce or rejectio n th ereof. T h e S ecreta ry o f th e T rea su ry ex p ressly
reserv es the right to a c c e p t or reject a n y or a ll ten d ers, in w h o le or in part, an d h is a ctio n in a n y such resp ect sh all 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 ers for ea ch 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 fu ll a t th e a verag e p rice ( i n th ree d e c im a ls) o f a ccep ted c o m p e titiv e b id s for th e resp ectiv e issues. S e ttle m e n t for
a cc e p te d ten d e rs in a ccord an 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 o n M a y 18, 1972,
in cash or oth er im m e d ia te ly a v a ila b le fun d s or in a lik e fa ce a m o u n t o f T rea su ry b ills m atu rin g M a y 18, 1972. C ash and
ex ch a n g e ten d e rs w ill r ece iv e eq u al treatm 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 p ar v a lu e o f m atu rin g
b ills a ccep ted in ex ch a n g e a n d th e issu e p rice o f th e n ew b ills.
U n d er S e c tio n s 4 5 4 ( b ) and 1221 ( 5 ) o f th e In tern al R e v e n u e C od e o f 1954 th e a m o u n t o f d isco u n t a t w h ich b ills issu ed
h ereu n d er are sold is con sid ered to accru e w h en th e b ills are sold, red eem ed or o th erw ise d isp osed of, and t h e b ills are ex clu d ed
from con sid era tio n as ca p ita l assets. A cco rd in gly, t h e o w n er o f T reasu ry b ills ( o th e r th a n life in su ran ce c o m p a n ie s) issu ed h ere­
u n d er m u s t in clu d e in h is in co m e tax return, as ord inary g ain or loss, th e d ifferen ce b e tw e e n th e p rice p a id for t h e b ills, w h eth er o n
origin al issu e or on su b seq u e n t p urchase, and t h e a m o u n t a c tu a lly re c e iv e d e ith er u p on sa le or r ed em p tio n a t m a tu rity during t h e
ta x a b le year for w h ich th e return is m ade.
T rea 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 ) a n d th is n otice, p rescrib e th e term s o f t h e T rea su ry b ills an d
g ov ern th e c o n d itio n s o f th eir 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 ouston a n d S an A n to n io u p to tw e lv e - th ir ty p .m ., C e n tral D a y lig h t S a v in g Time, M o n d a y , M a y 15, 1972. T en d e rs m a y
not b e e n t e r e d b y te l e p h o n e .
Y ours v e ry truly,
P. E. Coldw ell
_______________

P re sid e n t

LAST PREVIOUS OFFERING OF TREASURY BILLS
A m o u n t, R a n g e a n d A p p ro x im a te Y ie ld o f A cce p ted T e n d er s
9 1 - D a y B ills
1 8 2 -D a y B ills
D u e A u g u st 10, 1972
D u e N o v e m b e r 9, 1972
$ 3 ,7 1 6 ,3 9 5 ,0 0 0 _________________________
.T o ta l A p p lie d F o r ___________________________________ $ 3 ,1 7 9 ,6 7 5 ,0 0 0
$ 2 ,3 0 0 ,3 5 5 ,0 0 0
___ __________________ ____________T o ta l A c c e p te d
$ 1 ,8 0 0 ,1 6 0 ,0 0 0
P r ic e
Y ie ld
P r ic e
Y ie ld
9 9 .1 3 9 --------------------3 .4 0 6 % -------------------------------------H ig h ___________________ 9 8 .0 3 1 _____________ 3 .8 9 5 %
9 9 .1 1 5 --------------------3.5 01 % ---------------------------------------------L o w ______ ____________________ 9 8 .0 0 4 _____________3 .9 4 8 %
9 9 .1 2 5 --------------------3 .4 6 2 % ( 1 ) ----------------------------------- A v e r a g e------------------------------------ 9 8 .0 2 5 _____________ 3 .9 0 7 % (1 )
( 1 ) T h e s e ra te s are on a h a n k d is c o u n t basis. T h e e q u iv a le n t couponissue yields a re 3 . 5 4 %
1 8 2 - d a y h ills .

for th e Q l-d a v hills a n d 4 0 4 %

for

the

(S e
v e rs e f r te n d e fo rm
This publication was digitized and made available by ether eFederaloReserver Bank) of Dallas' Historical Library (FedHistory@dal.frb.org)

TENDER FOR ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Maturing A u gu st 17, 1972

Dated February 17,1972
To: Federal Reserve Bank, Station K, Dallas, T exas 75222
or —
T he___________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(D& ta)

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.
-N O T TO E X C E E D $200,000
N O N C O M P E T IT IV E T E N D E R $_______________________________________
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
Prices should be ex­
pressed on the basis of
100, with not more thmn
r
C O M PE T IT IV E T E N D E R S Z$_
- @ -¥------------------------------t h r e e d e c im a l p la c e s,
e. g„ 99.925. Fractions
m ust not be used.
h
Z W ' TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b e r of
pieces

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT
□ B y m a tu r in g bills
h eld b y _________________________________
□ P a y m e n t to b e m ade b y _________________

M a tu rity V alue

& $

10,000 ¥

(a) ¥

15,000 ¥

(a) ?

50,000 ¥

<> ¥
3

100,000 ¥

□

C harge our r e se r v e a ccou n t on p a y m e n t
d a te
[ j D r a f t enclosed (Effectual delivery o f enclosed d r a f t

< ¥ 500,000 $
5>
< $1 ,000,000 $
a>

s h a l l be o n l a t e s t d a y w h i c h w i l l 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 ly c olle c te d f u n d s o n p a y m e n t
d ate)

D e liv e ry In str u c tio n s:
□
□

P le d g e to se c u r e T r e a su r y T a x and
L oan A cco u n t

( S u b s c r i b e r 's full n a m e o r c o r p o r a t e title )

Hold in C ustod y A ccou n t— M em ber
b a n k s fo r ow n accou n t only

( A d d r e s s )

B y( A u t h o r i z e d o f f i c ia l s i g n a t u r e a n d t i t l e )

□

S h ip t o --------------------------------------------( 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 m ust 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 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 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 f o r m _______________________ , 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
m aterial, the tender may de disregarded.
(See reverse for announcement)

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