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F ederal

reserve

Ba n k

of

D allas

F IS C A L A G EN T O F T H E UN ITED ST A T E S

DALLAS, TEXAS 75222
C ircu la r No. 72-119
J u n e 19, 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 fo r tw o series of T re a su ry b ills to th e agg regate a m o u n t of
$1,700,000,000, or th ere ab o u ts, for cash a n d in exchange fo r 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
$1,700,805,000, as follow s:
274-D A Y B IL L S (to m a tu rity d a te ) to b e issued J u n e 30, 1972, in th e a m o u n t of $500,000,000, or th e re ­
ab outs, re p re se n tin g a n a d d itio n a l a m o u n t of b ills 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 IP No. 912793 P V 2 ) , originally 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 orig in al
bills to be fre ely in terchangeab le.
365-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 IP No. 921793 P Y 6 ) .
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 vid 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 a b le w ith o u t in terest. 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 a tio n s of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu rity 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
D a y lig h t S aving T im e , F rid a y , J u n e 23, 1972. T e n d e rs will 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 o v er $10,000 m u st be in m u ltip les 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
be used. (N o tw ith sta n d in g th e fa c t th a t th e o n e-year bills will ru n for 366-days, th e d isco u n t ra te will b e c o 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 a ll issues of T re a su ry b ills.) I t is urg ed t h a t te n d e rs b e 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 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 erefor.
B a n k in g in stitu tio n s gen 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 of th e cu stom ers are
se t fo rth in such tenders. O th ers 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 ten d e rs ex cep t fo r th e ir ow n account.
T e n d e rs w ill be received w ith o u t d e po 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 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 acco 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, un less 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 o r
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 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 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 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 ad v ised of th e a c c ep ta n ce o r re je ctio n thereof. 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 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 a ctio n in a n y such re sp e c t shall be final.
S u b je ct to th ese reservation s, 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 from a n y one
b id d e r w ill be a cc ep te d in full a t th e a v era g e p rice (in th re e d e cim als) of acc ep te d co m p e titiv e b id s fo r th e re sp ectiv e issues.
S e ttle m e n t for a cc ep te d te n d e rs in accord ance w ith th e b id s 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 eserv e B a n k on
J u n e 30, 1972, in cash o r 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 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 o f th e new bills.
U n d e r S ections 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 o f d isco unt a t w hich b ills issued
h e re u n d e r a re sold is con sidered to accrue w hen th e b ills a re sold, re d ee m e d or oth erw ise disposed of, a n d th e bills a re excluded
from c o n sid eratio 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 in surance co m p an ies) issued h e re ­
u n d e r m u st in clude in his incom e ta x re tu rn , as o rd in ary gain o r loss, th e d ifference b etw een th e p rice p a id for th e bills, w h e th er
on original 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 or re d e m p tio n a t m a tu rity du 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 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 term s of th e T re a su ry bills a n d
govern th e cond ition s of th e ir issue. C opies of th e c ircu lar m a y b e 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 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 elv e -th irty p.m., Central Daylight Saving Time, Friday, June 23, 1972. Tenders m ay
not be entered by telephone.
Yours very truly,
P. E. Coldwell
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
Dated June 30, 1972

Maturing June 30, 1973

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

El Paso 79999 Houston 77001 San Antonio 78295

(Date)

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.
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

< _______________ @
!$

______ $___________________

th^decTm™^^,

I
_
.
e. g., 99.925. Fractions
\«P-------------------------- @ ----------- $---------------------------------must not be used.
UrgP 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.
Num ber of
Pieces
M aturity Value
METHOD OF PAYMENT

$

< $
3>

10,000 $
15,000 $

□

(a) $ 50,000 $
(5) $ 100,000 $
(5) $ 500,000 $

□
□

(fib $1:,000,000 $

By maturing bills
held by______________________________
Payment to be made by______________
Charge our reserve account on payment
date

l~~l D r a f t e n c l o s e d (Effectual delivery of enclosed d ra ft
shall be on latest day which will perm it presentm ent in
order to obtain irrevocably collected funds on paym ent
date)

Delivery Instructions:
□

Hold in Custody Account—Member
banks for own account only

(Subscriber’s full name o r corporate title)

□

Pledge to secure Treasury Tax and
Loan Account

(Address)

□

Ship to___________________________

By(Authorized official signature and title)
(For the account of, if tender is fo r another subscriber)
(Address)

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 fo r announcement)

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