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FED ER A L 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
C ircu la r No. 72-118
J u n e 19, 1972

N EW 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 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 fo r tw o series of T re a su ry b ills to th e ag greg 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 b ills m a tu rin g J u n e 30, 1972, in th e a m o u n t of
$l,700,8u5 ,00 0, as follow s:
274-D A Y B IL L S (to m a tu rity d a te ) to be issued J u n e 30, 1972, in th e a m o u n t of $500,000,000, or th e re ­
a bou ts, 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 M a rc h 31, 1972, a n d to m a tu re M a rc h 31, 1973
(C U S I P No. 912793 P V 2 ), o rig in ally issued in th e a m o u n t of $1,200,810,000, th e a d d itio n a l a n d original
b ills to b e fre ely in terch an geable.
3 65-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 J u n e 30, 1972, a n d to m a tu re J u n e 30, 1973
(C U S I P No. 921793 P Y 6 ).
T h e bills 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
pro 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 te r e s t T h e y will be issued in b e a re r fo rm only, a n d in
de 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 be 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 hou r, o n e -th irty p.m ., E a s te rn
D a y lig h t S av in g T im e , F rid a y , J u n e 23, 1972. T e n d e rs w ill n o t be 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 be for 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 co 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 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
be used. (N o tw ith sta n d in g th e fa ct t h a t th e o n e-year bills w ill ru n fo r 366-days, th e d isco u n t ra te w ill b e co m p u te d o n a b a n k d is­
co u n t basis of 360-days, as is c u rre n tly th e p ra ctice on a ll issues of T re a su ry bills.) I t is u rg e d th a t te n d e rs be m ad e on th e p rin te d
form s a n d forw arded in th e special e nvelo pes w hich w ill be su p p lied b y F e d e ra l R e se rv e B an k s or B ran ch es on a p p lic a tio n th erefor.
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 cu stom 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 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 ten d e rs e x ce p t fo r th e ir own account.
T e n d e rs w ill be received w ith o u t d e p o sit from in co rp o ra ted b a n k s a n d tru s t com p anies a n d fro m respon sible a n d recognized
d ealers in in v e stm 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 by 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 cc o m p an ied b y a n express g u a ran 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 h our, 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 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 range of a cc ep te d bids. O n ly tho se sub­
m ittin g c o m p e titiv e te n d e rs will be ad v ised of th e a cc ep ta n ce or re je c tio n th ereo f. T h e S e c retary of 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 a ll ten d ers, in w hole o r in p a rt, a n d his a c tio n in a n y such re sp e ct shall be final.
S u b je c t to th ese reservation s, n o n c o m p e titiv e te n d e rs for each issue for $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 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 acc ep te d c o m p e titiv e b ids fo r th e resp 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 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
Ju n e 30, 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 b ills m a tu rin g J u n e 30, 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 b ills issued
h e re u n d e r a re sold is con sidered 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 ap 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 insu rance co m p an ies) issued h e re ­
u n d e r m u st in clude in his incom e tax re tu rn , as o rd in ary gain o r loss, th e difference b e tw ee n th e p rice p a id for th e bills, w h e th er
on o rig in al issue or 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 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 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 an d
govern th e c o n d ition s of th e ir issue. C opies of th e circ u lar m a y be 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 or B ranch.

In accordance w ith the a b ove announcement, tenders w ill be received a t this b ank an d its branches a t El Paso,
Houston and San Antonio up to tw e lv e -th irty p.m., Central Daylight Saving Time, Fridcy, June 2 3, 1972. Tenders m ay
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

274 DAYS TO MATURITY
Dated March 31,1972

Maturing March 31, 1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
Th e__________________________Branch

El Paso 79999 Houston 77001 San Antonio 78295

( D a te )

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 aate, by the method and at the rate 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 $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
/
Prices should be expressed on the basis of
1$-------------------------- @ _______ $--------------------------------COMPETITIVE T E N D E R S

{$_______________ @

______ $___________________

tTre^d^TmaTJlac^

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
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.
N u m b e r of
Pieces
M atu rity V alu e
METHOD OF PAYMENT
() $
3

10,000 $

<> $
5

15,000 $

() $
5

50,000 $

□
□

By maturing bills
held by______________________________
Payment to be made by_

( ) $ 100,000 $
5

□

Charge our reserve account on payment
date
I I Draft enclosed (E ffectual delivery o f enclosed d ra ft

( ) $ 500,000 $
5
( ) $1,000,000 $
5

shall be on la te st day w hich will p e rm it p re sen tm en t In
o rd e r to o b ta in irrevocably collected fu n d s on p a y m e n t
date)

Delivery Instructions:
□

Hold in Custody Account— Member
banks for own account only

(S u b scrib er’s fu ll nam e o r co rp o ra te title )

□

Pledge to secure Treasury Tax and
Loan Account

(A ddress)

□

Ship to___________________________

By.
(A uthorized official s ig n a tu re a n 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)

1.
2.

3.
4.

5.

6.

IMPORTANT
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).
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 matters should not be enclosed. Envelopes for submitting tenders may be obtained from this
bank or appropriate branch.
Any qualified or conditional tender will be rejected.
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”.
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.
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