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F ederal Reserve Bank o f Dallas
FISCAL A G E N T OF THE UNITED STATES

DALLAS, TEXAS 7 5 2 2 2
C ircu lar No. 72-209
S e p te m b e r 20, 1972

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O th e rs C o n c e r n e d
in th e E leven th F e d e r a l R e serv e District:

Your a t t e n t i o n is in v ited to th e f o llo w in g s t a t e m e n t giving d e t a il s of tw o is s u e s o f T re a s u ry bills:
T h e T re a su ry D e p a rtm e n t, by th is p u b lic notice, in v ite s te n d e rs for two series of T re a su ry bills to th e ag greg ate a m o u n t of
$2,300,000,000, or th ere ab o u ts, for cash a n d in exchange fo r T re a s u ry bills m a tu rin g S e p te m b e r 30, 1972, in th e a m o u n t of
$1,702,030,000, as follow s:
271-D A Y B IL L S (to m a tu rity d a te ) to b e issued O c to b er 2, 1972, in th e a m o u n t of $500,000,000, o r th e re ­
ab o uts, re p re se n tin g an a d d itio n a l a m o u n t of bills 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. 912793 P Y 6 ) , orig inally issu ed in th e a m o u n t of $1,201,235,000, th e a d d itio n a l a n d original
b ills to b e fre ely interch ang eable.
360-D A Y B IL L S for $1,800,000,000, o r th ere ab o u ts, to be d a te d S e p te m b e r 30, 1972, a n d to m a tu re S e p te m b e r 25,
1973 (C U S I P No. 912793 R C 2 ) .
T h e b ills of bo th series will be issued on a discou 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 interest. T h e y will be issued in b e a re r fo rm only, a n d in
d en o m in atio 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 lv 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 h o ur, o n e -th irty p.m ., E a s te rn D a y ­
lig h t S avin g T im e , T u esd ay , S e p te m b e r 26, 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 a c 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 ov er $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 ­
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 ay n o t
be used. ( T h e discou n t r a te will b e c o m p u te d on a b a n k d iscou n t basis of 360-days, as is c u rre n tly th e p ra c tic e o n all issues of
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 o n th e p rin te d form s a n d fo rw ard ed in th e special envelopes w h ich w ill b e su p ­
p lie d 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 o n a p p lic a tio n th erefo r.
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 cu stom ers p ro v id ed th e n am es o f th e custo m ers a re
se t fo rth in such tend 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 ex cep t fo r th e ir ow n account.
T e n d e rs will 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 p an ies a n d fro m respo n sible a n d recognized
dealers 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 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, un less th e te n d e rs a re acco m p an ied b y a n express g u a ra n ty of p a y m e n t by a n in co rp o ra ted b a n k o r
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 ch es, 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 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 n ly th ose su b­
m ittin g c o m p e titiv e te n d e rs will be a dv ised of th e acc ep ta n ce or re je ctio n thereo 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 cc ep t or re je c t an y or all ten d e rs, in w hole or in p a rt, a n d his a ctio n in a n y such re sp e ct shall b e final.
S u b je ct to th ese reservatio ns, n o n c o m p e titiv e te n d e rs for 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 will be acc ep te d in full a t th e a v erag e p rice ( in th ree 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 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 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
O cto b er 2, 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 like face a m o u n t of T re a su ry b ills m a tu rin g S e p te m b e r 30,
1972. C ash a n d exchange te n d e rs will receiv e e q u al tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e fo r differences b e tw ee n th e p a r va lu e
of m a tu rin g bills acc ep te d in exchange a n d th e issue price of 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 Code of 1954 th e a m o u n t of d iscou n t a t w hich b ills issued
h e reu n d e r a re sold is considered to accru e w hen th e bills a re sold, re d ee m e d o r o therw ise disposed of, a n d th e bills a re excluded
fro m c on 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 insuran ce c o m p a n ies) issued h ere­
u n d e r m u st include in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference b e tw ee n th e price p a id fo r th e bills, w h e th er
on o riginal issue or on su b seq u e n t p u rchase, 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 which th e r e tu rn is m ade.
T re a su ry D e p a rtm e n t C ircu lar 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 s u ry bills a n d
govern th e con d itio ns of th e ir issue. C opies of th e circ u lar m a y 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 a c c o r d a n c e w ith th 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 will b e re c e iv e d a t this b a n k a n d its b r a n c h e s a t El P a so ,
H o u sto n a n d S an A n to n io u p to tw e l v e - th ir ty p.m ., C e n tral D a y lig h t S a v in g Time, T u e s d a y , S e p t e m b e r 2 6 , 1972. T en d e rs
m a y not b e en tered by te lep ho ne.
Yours v e ry truly,
P. E. C o ld w ell
P re s id e n t
(S ee reverse for tender 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

360 DAYS TO MATURITY
Maturing September 25, 1973

Dated September 30, 1972
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
T h e __________________________Branch
E l Paso 79999

H ouston 77001

San Antonio 78295

(Date)

P u rsu a n t to the provisions of T reasury D epartm ent Circular No. 418 (current 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 the am ount allotted, on or before the issue date, by the method and a t th e ra 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 $_

N oncompetitive tenders for $200,000 or less from any one bidder, w ithout sta te d price, will be accepted in full a t the average
price (in three decimals) of accepted com petitive bids.
Prices should be
S
1%
e x p re s s e d on th e
(a)
basis of 100, with
$
1$--!▼
—
not m ore th an three
COMPETITIVE T E N D E R S $
(a)
?
decimal places, e. g.,
99.925. F r a c tio n s
(a)
$
m ust not be used.
$
%
@
Sggr T EN D ERS MAY NOT BE E N TE R E D BY T E LEPH O N E. TEN D ERS BY W IRE, IF RECEIVED BEFO RE TH E
CLOSING HOUR, ARE ACCEPTABLE.
Paym ent fo r this issue of bills cannot be made
by credit to T reasury Tax and Loan Account.

Denominations Desired
Number of
Pieces

M aturity Value

-(5) $
<> $
a

METHOD O F PAY M ENT

10,000 $
15,000 $

□

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

□
□

(5) $1:,000,000 $

By maturing bills
held by---------------------------------------------Payment to be made by--------------------Charge our reserve account on payment
date

I I D r a f t e n c l o s e d (Effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment
date)

Delivery Instructions:
□

Hold in Custody Account—Member
banks for own account only

(Subscriber’s full name or 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 for another subscriber)
(Address)

IM PORTANT
1. No tender for less th an $10,000 will be considered and each tender over $10,000 m ust be for 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
United States, with notation on the envelope reading “TENDER FOR TREASURY O FFE R IN G ”. Since envelopes
received w ith this legend will not be opened until afte r the closing time specified in the public announcement, communi­
cations relating to other m atters should not be enclosed. Envelopes fo r subm itting tenders m ay 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 th e corporation will be construed as a representation by him th a t 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 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 total am ount (m aturity value)
of the T reasury 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 tru s t company.
6. If the language of this form is changed in any respect, which, in the opinion of the S ecretary of the T reasury is
m aterial, the tender m ay be disregarded.

(See reverse for announcement)

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