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F ederal

reserve

Bank

of

Dallas

FISCA L AGENT OF THE UNITED STATES

DALLAS, TEXAS 75222
C ircu la r No. 72-146
J u ly 19, 1972

N E W O FFERIN G — TREASURY BILLS

To All B a n k i n g I n s t i t u t i o n s a n d O t h e r s C o n c e r n e d
in t h e E l e v e n t h F e d e r a l R e s e r v e District:

Y o u r a t t e n t i o n is i n v i t e d t o t h e f o l l o w i n g s t a t e m e n t g i v i n g d e t a i l s o f t w o i s s u e s o f T r e a s u r y 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 bills to th e ag g reg ate 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 J u ly 31, 1972, in th e a m o u n t of
$1,702,645,000, as follow s:
273-D A Y B IL L S (to m a tu rity d a te ) to b e issued J u ly 31, 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 A p ril 30, 1972, a n d to m a tu re A pril 30, 1973
( C U S I P No. 912793 P W O ) , o rig in ally issued in th e a m o u n t of $1,199,850,000, th e a d d itio n a l a n d original
b ills to b e fre ely in terchang eable.
3 65-D A Y B IL L S fo r $1,200,000,000, o r th ere ab o u ts, to b e d a te d J u ly 31, 1972, a n d to m a tu re J u ly 31, 1973
( C U S I P N o. 912793 R A 6 ).
T h e b ills of b o th series w ill b e issued on a d isco u n t b asis 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
pro v id ed , a n d a t m a tu rity th e ir face a m o u n t w ill b e p a y ab le w ith o u t in te re st. T h e y w ill be issued in b e a re r form only, a n d in
d e n o m in a tio 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 will 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 ra n ch e s u p to th e closing h our, 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 , J u ly 25, 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 a c h
te n d e r m u st b e fo r a m in im u m of $10,000. T e n d e rs o v e r $10,000 m u st be in m u ltip le s of $5,000. I n th e case of c o m p e titiv e te n ­
d e rs th e p rice offered m u st b e 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
b e used. (N o tw ith sta n d in g th e fa c t t h a t th e o ne-year b ills w ill r u n fo r 366-days, th e d isco u n t r a te w ill b e 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 c tic e on a ll issues o f T re a su ry b ills.) I t is u rg e d 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 sp ecial e n velop es w hich w ill b e su p p lied b y 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 g en erally 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 cu stom ers a re
se t fo rth in such ten d ers. O th e rs th a n b an k in g in stitu tio n s will n o t b e 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 a c c o u n t
T e n d e rs w ill be receiv ed w ith o u t d e 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 resp o n sib le a n d recognized
de 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 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 s u 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 o r
tr u s t com pany.
Im m e d ia te ly a f te r th e closing hou r, 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 c e m e n 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 ran g e of acc ep te d bids. O n ly those sub­
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 a c c ep ta n ce o r re je c tio 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 e rs, in w hole o r in p a rt, a n d h is a c tio n in a n y such re sp e c t shall be final.
S u b je c t to th e se 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 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 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 b e 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 o n
J u ly 31, 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 bills m a tu rin g J u ly 31, 1972.
C ash a n d exchange te n d e rs will receive e q u al tre a tm e n t. C ash a d ju s tm e n ts w ill b e m ad e fo r differences b e tw ee n th e p a r v a lu e
o f m a tu rin g bills a cc ep te d in ex change a n d th e issue p rice of th e new bills.
U n d e r Sections 4 54 ( 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 c onsidered to accru e w hen 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 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 b ills ( o th e r th a n life in su ran ce co m p an ies) issued here­
u n d e r m u st in clude in h is incom e ta x re tu rn , a s o rd in ary gain o r 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 on su b se q 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 r e 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 b ills a n d
govern th e cond ition s of th e ir issue. C op ies of th e circ u lar m a y b e 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 a c c o r d a n c e w i t h t h 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 w ill b e r e c e i v e d a t t h i s b a n k a n d its b r a n c h e s a t El P a s o ,
H o u s t o n a n d S a n A n t o n i o u p t o t w e l v e - t h i r t y p . m . , C e n t r a l D a y l i g h t S a v i n g T im e , T u e s d a y , J u l y 2 5 , 1 9 7 2 . T e n d e r s m a y
n ot b e e n te re d b y te le p h o n e .

Yours very truly,
P. E. Coldwell
President

( e r v r efrt n e f r )
S e ees o e d r o m

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 DAYS TO MATURITY
Dated July 31,1972

Maturing July 31,1973

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.

JNOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $.

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.
(fi)
g
Prices should be
exp ressed on the
i St
Cd)
$
basis of 100, with
not more than three
COMPETITIVE TENDERS 7$
£
(a)
$
decimal places, e. g.,
99.925. F raction s
(a)
$
must not be used.
(a)
$
asr* TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um ber of
Pieces

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M aturity Value

(5) $
(5) $

METHOD OF PAYMENT

10,000 $.
15,000 ?-

□

(5) $ 50,000 $(5) $ 100,000 $(5) $ 500,000 $(a) $1 ,000,000 $■

□
□

Hold in Custody Account—Member
banks for own account only

□

Pledge to secure Treasury Tax and
Loan Account
Ship to__________________________

□

Charge our reserve account on payment
date

I 1 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:
□

By m aturing bills
held by-------------------------------------------Paym ent to be made by--------------------

(Subscriber's full nam e or corporate title)
(Address)

By_

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

IMPORTANT
1. 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).
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 matters 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 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”.
5. 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.
6. 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