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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 ST A T E S DALLAS, TEXAS 75222 C ircu la r No. 72-95 M a y 17, 1972 N EW OFFERING — TREASURY BILLS To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the fo llo w ing 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 aggregate a m o u n t of $1,700,000,000, o r 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 M a y 31, 1972, in th e a m o u n t of $1,701,075,000, as follows: 273-D A Y B IL L S (to m a tu rity d a te ) to b e issued M a y 31, 1972, in th e a m o u n t of $500,000,000, or th e re ab o u ts, re p rese n tin g a n a d d itio n a l a m o u n t of bills 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 ), o riginally issued in th e a m o u n t of $1,200,095,000, th e a d d itio n al a n d original b ills to be fre ely in terch an geable. 365-D A Y B IL L S for $1,200,000,000, or th ere ab o u ts, to be d a te d M a y 31, 1972, a n d to m a tu re M a y 31, 1973 (C U S IP N o. 921793 P X 8 ). T h e b ills of b o th series w ill 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 co 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 will be p a y ab le w ith o u t in terest. T h e y will be issued in b e a re r fo rm 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 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 ho ur, o n e -th irty p.m ., E a s te rn D a y lig h t S aving T im e , T u esd ay , M a y 23, 1972. T e n d e rs w ill n o t be received a t th e T re a su ry D e p a rtm e n t, W ashington. E ac h te n d e r m u st be fo r a m in im u m of $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 d ers th e p rice offered m u st be 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 b e used. (N o tw ith sta n d in g th e fa c t t h a t th e one-y ear b ills w ill ru n for 366-days, th e disc o u n t ra te will b e co m p u te d on a b a n k dis c o u n t basis o f 360-days, as is c u rre n tly th e p ra ctice on all issues of T re a s u ry b ills.) I t is u rg e d t h a t te n d e rs be m ad e o n th e p rin te d form s a n d fo rw arded in th e special envelopes w hich w ill be su p p lied b y F e d e ra l R eserv e B a n k s or B ra n ch e s on a p p lic a tio n th ere fo 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 a cc o u n t of custom ers p ro v id ed th e n am es o f th e custom ers a re se t fo rth in such ten d ers. O th e rs th a n b a n k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it te n d e rs e x ce p t fo r th e ir ow n account. T e n d e rs w ill be receiv ed w ith o u t de p o sit fro m in co rp o ra ted b a n k s a n d tr u s t com panies a n d from respon sible a n d recognized d e ale rs in in v e stm e n t securities. T e n d e rs fro m 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 b ills 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 tru 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 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 ran ches, 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 th o se su b m ittin g c o m p e titiv e te n d e rs w ill be a d v ised of th e acc ep ta n ce or re je ctio n th ereo f. T h e S e c retary of th e T re a s u ry expressly reserves th e rig h t to a c c e p t or re je c t a n y or all ten d ers, in w hole or in p a rt, a n d h is actio n in a n y such re sp e c t 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 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 be a cc ep te d in full a t th e av erag e p rice (in th re e d e cim als) of a cc ep te d c o m p e titiv e b id s fo r th e re sp e ctiv e issues. S e ttle m e n t fo r a cc ep te d te n d e rs in accord an ce w ith th e b id s m u st be 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 31, 1972, in cash o r o th e r im m e d ia tely av ailab le fu n d s or in a like face a m o u n t of T re a su ry b ills m a tu rin g M a y 31, 1972. of m a tu rin g b ills 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 Sectio ns 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 isc o u n t a t w hich b ills issued h e re u n d e r a re sold is co nsid ered to accrue w h en th e b ills a re sold, re d ee m e d o r o th erw ise disposed of, a n d th e b ills a re excluded from c o n sid era tio n as c a p ita l assets. A ccordingly, th e ow ner of T re a s u ry bills (o th e r th a n life insurance c o m p a n ies) issued h e re u n d e r m u st in clu d e in his incom e ta x re tu rn , as o rd in ary gain or loss, th e difference b e tw ee n th e p rice p a id fo r th e bills, w h e th er on o rig in al issue o r o n 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 receiv ed 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 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 rev 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 co nditions of th e ir issue. C opies of th e c ircu lar m ay 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 o r B ranch. In accordance w ith the ab ove announcement, tenders w ill be received a t this b ank and its branches a t El Paso, Houston an d San Antonio up to tw e lve-thirty p.m., Central Daylight Saving Time, Tuesday, M a y 23, 1972. Tenders m a y not be entered by telephone. Yours very truly, P. E. Coldwell President (See reverse for tend 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 Dated M a y 31,1972 Maturing M a y 31,1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The__________________________Branch El Paso 79999 Houston 77001 San Antonio 78295 (D ate) P u rsu a n t to th e provisions of T reasu ry D epartm ent C ircular No. 418 (cu rren t 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 fo r th e am ount allotted, on or before the issue date, by the m ethod and a t the r a te indicated. J N O T T O E X C E E D $200,000 N O N C O M P E T I T I V 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 COMPETITIVE T E N D E R S 6;_______________ @ ______ $___________________ JhJ’ e fdecTmaTplaS j _ Q vs7--------------------------- @ ---------- $--------------------------------- e. g., 99.925. Fractions must not be used. TEN D ERS MAY NOT BE EN TER E D BY TE L EPH O N E . TEN D ERS BY W IRE, IF RECEIVED BEFO RE THE CLOSING HOUR, A RE ACCEPTABLE. Denominations Desired N u m b er o f Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT M atu rity V alu e (5) $ 10,000 $. (5) $ 15,000 $- (5) $ 50,000 $- □ □ By maturing bills held by______________________________ Payment to be made by______________ (5> $ 100,000 $- □ Charge our reserve account on payment date I I Draft enclosed (E ffectual delivery o f enclosed d r a f t (5) $ 500,000 $(5) $1,000,000 $- sh all be on la te st day w hich w ill p e rm it p re sen tm en t In o rd e r to o b tain irrevocably collected fu n d s on p ay m en t date) Delivery Instructions: □ □ □ Hold in Custody Account— Member banks for own account only Pledge to secure Treasury Tax and Loan Account Ship to___________________________ (S u b scrib er’s fu ll n am e o r c o rp o rate title ) (A ddress) By(A uthorized official sig n a tu re an d title ) (F o r th e acco u n t of, if te n d e r is f o r a n o th e r su b scrib er) (A ddress) IM PORTANT 1. No tender fo r less th an $10,000 will be considered and each tender over $10,000 m u st 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 S tates, w ith notation on the envelope reading “TEND ER FOR TREASURY O FFE R IN G ”. Since envelopes received w ith th is 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 tters should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank or app ro p riate branch. 3. A ny qualified or conditional tender will be rejected. 4. If a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to m ake th e tender and the signing of th e form by an officer of th e corporation will be construed as a representation by him th a t he has been so authorized. If th e tender is m ade by a partn ersh ip it should be signed by a m em ber of th e firm, who should sign in the form “ ......................................... ..................., a copartnership, by...................... ............ ............................................ , a m em ber of th e firm ”. 5. Tenders from those other th an incorporated banks and tru 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 reasu 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 any respect, which, in the opinion of the S ecretary of th e T reasu ry is m aterial, th e tender m ay be disregarded. (See reverse for announcement)
@FedFRASER