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F ederal Reserve Ban k o f Dallas
FISCAL AG E N T OF THE UNITED STATES

DALLAS, TEXAS 7 5 2 2 2
C ircu la r No. 72-235
O cto b er 18, 1972

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

Your a t t e n t i o n is in v ited to t h e fo llo w in g s t a t e m e n t givin g d e t a il s of tw o iss u e s of T re a s u ry 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 for two series of T re a su ry bills to th e a g gregate 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 for T re a su ry bills m a tu rin g O cto b er 31, 1972, in th e a m o u n t of
$1,700,170,000, as follow s:
273-D A Y B IL L S (to m a tu rity d a te ) to b e issued O cto b er 31, 1972, in th e a m o u n t of $500,000,000, or th e re ­
abo u ts, re p rese n tin g a n a d d itio n a l a m o u n t of bills 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 No. 912793 R A 6 ) , orig inally issued in th e a m o u n t of $1,200,980,000, th e a d d itio n al a n d original
bills to be freely in terch an g eab le.
357-D A Y B IL L S for $1,800,000,000, or th ere ab o u ts, to b e d a te d O ctob er 31, 1972, a n d to m a tu re O c to b er 23,
1973 (C U S I P No. 912793 R D 0 ) .
T h e bills of b o th series will be issued on a d isco u n t basis u n d e r c o m p e titiv e a n d no 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 terest. 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 (ma«.urity v a lv e ).
T e n d e rs will be 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 , T u esd ay , O cto b er 24, 1972. T e n d e rs will n o t b e receiv ed 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 $ 1 0 ,0 0 0 m u st b e in m u ltip le s 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 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. I t is urg 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 envelopes w hich w ill b e su pp lied
b y F e d e ra l R eserv e B a n k s o r B ran ch es on a p p lic a tio n therefo r.
B a n k in g in stitu tio n s g enerally m a y su b m it te n d e rs fo r acc o u n t of c usto m ers p ro v id ed th e n am es of th e custo m ers a re
se t fo rth in such tend ers. O th ers th a n b a n k in g in stitu tio n s will 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 be receiv ed w ith o u t d ep 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 resp o nsib le a n d recognized
d e ale rs in in v estm 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 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 bills 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
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 eserv 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 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 ge o f a cc ep te d bids. O n ly th o se su b ­
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 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
reserv es th e rig h t to a cc ep t o r re je c t a n y o r a ll 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 c t to th ese reservation s, n o n c o m p e titiv e te n d e rs fo r 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 er will be a cc ep te d in full a t th e averag e p rice (in th re e d e cim als) of a cc ep te d c o m p e titiv e bids for th e respective issues.
S e ttle m e n t for a cc ep te d ten d e rs in accordance w ith th e b id s m u st be m a d 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 31, 1972, in cash o r o th e r im m e d ia tely a v ailab le fu .id s or in a like face a m o u n t of T re a su ry bills m a tu rin g O cto ber 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. Cash a d ju s tm e n ts w ill be m ad e for differences b e tw ee n th e p a r v alue
of m a tu rin g bills a cc ep te d in exchange a n d th e issue price 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 o f d isco u nt a t w hich b ills issued
h e re u n d e r a re sold is co nsidered 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 are ex cluded
from c o nsid 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 co m p a n ies) issued h e re ­
u n d e r m u st inclu d e 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 original issue or on su b seq u e n t pu rchase, a n d th e a m o u n t a c tu a lly re ce iv e d 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 ab le y e a r for 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 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 a n d
g overn th e co n dition 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 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 wi!! b o r e c e iv e d a t this b a n k e 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 entral D a y lig h t S av in g Time, T u e s d a y , O c to b e r 24, 1972. T end e rs
m a y not be entered by telep h o n e .
Yours v e r y truly,
P. E. C oldw el!
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 ADDITION TO TREASURY BILLS

273 DAYS TO MATURITY
Dated July 31,1972

M aturing July 31, 1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The__________________________ Branch
El P?so 79999

Houston 77001

San Antonio 78295

(Date)

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

.NOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $.

Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full at the average
price (in th ree decimals) of accepted competitive bids.
/«
iTts
«
Prices should be
e x p r e s s e d on th e
$
(n)
basis of 100, with
$
not more th an three
COMPETITIVE TENDERS U$
(a)
$
decimal places, e.g.,
99.925. F r a c ti o n s
$
(a)
$
m ust not be used.
$

........ $

@

TEN D E R S MAY NOT BE E N TE R E D BY T E LEPH O N E. T EN D ERS BY W IRE, IF RECEIVED BEFO RE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Num ber of
Pieces

Paym ent fo r this issue of bills cannot be made
by credit to T reasury T ax and Loan Account.

M aturity Value

(5) $
(5) $

METHOD OF PAYM ENT

10,000 $
15,000 $

□

@ $ 50,000 ?
>
(5) $ 100,000 $
(5) $ 500,000 $
(5) $1. 000,000 $

□
□

By maturing bills
held by______________________________
Paym ent to be made by______________
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 raft
shall be on latest day which will perm it presentm ent 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)

IMPORTANT
1. No tender fo r less th an $10,000 will be considered and each tender over $10,000 m ust 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 appropriate branch as Fiscal A gent of the
United States, w ith notation on the envelope reading “TEND ER FOR TREASURY O FFE R IN G ”. Since envelopes
received w ith this legend will not be opened until a fte r the closing tim e specified in the public announcement, communi­
cations relating to other m a tte rs 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 the 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 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 total am ount (m atu rity value)
of the T reasury bills applied for, or unless the 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 this form is changed in any respect, which, in the opinion of the Secretary of the T reasury is
m aterial, the tender may be disregarded.

(See reverse for announcement)

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