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F ederal reserve Ba n k of Dallas F IS C A L A G E N T O F T H E UN ITED S T A T E S DALLAS, TEXAS 75222 C ircu la r No. 72-96 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 no tice, in v ite s te n d e rs for tw o series of T re a su ry b ills to th e a g g reg ate 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 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 be issued M a y 31, 1972, in th e a m o u n t of $500,000,000, or th e re ab outs, re p rese n tin g a n a d d itio n al 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 ), originally 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 b e fre ely in terch an g eab le. 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 No. 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 c o m p e titiv e b id d in g as h e re in a fte r p rov ided , a n d a t m a tu rity th e ir face a m o u n t will be p a y a b le w ith o u t in te re st. T h e y w ill be issued in b e a re r fo rm only, a n d in d e n o m in atio n s o f $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 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 ran ch es u p to th e closing hour, o n e -th irty p.m ., E a s te rn D a y lig h t S av ing T im e , T u esd ay , M a y 23, 1972. T e n d e rs w ill n o t b e 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 for a m in im u m of $10,000. T e n d e rs o v er $10,000 m u st b e in m u ltip les of $5,000. In th e case of c o m p e titiv e te n ders 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 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 on e-year b ills w ill ru n for 366-days, th e disco u n t ra te w ill be co m p u te d on 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 of T re a su ry bills.) 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 fo rw ard ed in th e special env elop es w hich w ill b e su p p lied by 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 a cc o u n t of custom ers p ro v id ed th e n am es of th e custom ers a re se t fo rth in such tenders. O th e rs th a n b an 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 own account. T e n d e rs w ill b e 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 co m pan ies a n d from resp o n sib le a n d recognized d ealers 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 cc o 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 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 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 c e m e n t will be m ad e by th e T re a su ry D e p a rtm e n t o f th e a m o u n t a n d p rice ran ge of a cc ep te d bids. O nly those sub m ittin g c o m p e titiv e te n d e rs will be a d v ised of th e a cc ep ta n ce or re je ctio n thereof. T h e S e c retary o f th e T re a su ry expressly reserves th e rig h t to a c c e p t o r 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 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 for each issue fo r $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 fu ll 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 ids fo r th e re sp e ctiv e issues. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e b id s m u st be m ad e or 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 or o th e r im m e d ia te ly a v ailab le fu n d s or in a like face a m o u n t of T re a su ry bills m a tu rin g M a y 31, 1972. of m a tu rin g bills 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 Sections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e C ode of 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 b ills a re sold, re d ee m e d or o therw ise disposed of, a n d th e bills a re excluded fro m c o n sid era tio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insu rance c o m p a n ies) issued h ere u n d e r m u st in clude in h is 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 original issue o r on 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 tax a b le y e a r for w hich th e re tu rn 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 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 bills a n d govern th e con ditio ns of th e ir issue. C opies of th e c ircu lar m ay be o b tain 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 accordance with the a b ove announcement, tenders w ill bo received a t this b ank an d its branches a t El Paso, Houston a n d San Antonio up to tw e lve-thirty p.m., Central D aylight Saving Time, Tuesday, M a y 23, 1972. Tenders m a y not be entered by telephone. Yours very truly, P. E. Coldwell President (S ee 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 ADDITION TO TREASURY BILLS 273 D A Y S TO M A T U R IT Y Dated February 29,1972 Maturing February 28, 1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — Th e__________________________Branch El Paso 79999 H ouston 77001 San A ntonio 78295 (D ate) P u rsu a n t to th e provisions of T reasury D epartm ent C ircular No. 418 (cu rre n 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 reasu ry 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 method and a t th e ra te indicated. . 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, w ithout stated price, will be accepted in full a t the average price (in th ree decimals) of accepted com petitive bids. / P rices should be exiS ___________________ @ ________ $_________________________ pressed on th e basis of C O M P E T I T I V E T E N D E R S <*______________ @ ______ JJ___________________ -------------------------- @ -------------$ -------------------------------------- ttref LTmaTSa'J'S! e. g., 99.925. F ractions m ust not be used. TE N D E R S MAY NOT BE EN TE R E D BY TELEPH O N E. TEN D ERS BY W IRE, IF RECEIV ED BEFO RE THE CLOSING HOUR, ARE ACCEPTABLE. D enom inations D esired N u m b e r of Pieces P aym ent fo r th is issue of bills cannot be made by credit to T reasury T ax and Loan Account. M a tu rity V alu e (5) $ 10,000 $ (3) $ 15,000 $ <5> $ 50,000 $ METHOD OF PAY M EN T □ □ By maturing bills held by______________________________ Payment to be made by______________ (3) $ 100,000 $ □ (5) $ 500,000 $ (5) $1 ,000,000 $ I I D r a f t e n c l o s e d (E ffectual delivery o f enclosed d r a f t 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 d ate) Delivery Instructions: □ Charge our reserve account on payment date Hold in Custody Account—Member banks for own account only (S u b scrib er’s fu ll n am e o r c o rp o rate title) □ Pledge to secure Treasury Tax and Loan Account (A ddress) □ Ship to___________________________ 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 a n $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 ap propriate branch as Fiscal A gent of the U nited S tates, w ith notation on th e 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. Any 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 the 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 the 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 th e 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 th e tenders are accompanied by an express g u aran ty of full paym ent by an incorporated bank or tru s t company. 6. If 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, the tender m ay be disregarded. (See reverse for announcement)
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