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F ederal R eserve Ba nk o f D allas FISCAL AGE N T OF THE UNITED STATES DALLAS, TE X A S 7 5 2 2 2 C ircu la r No. 72-236 O cto b er 18, 1972 NEW OFFERING — TREASURY BILLS To All B a n k in g In stitutions a n d O th e r s C o n c e r n e d in t h e E leventh F e d e r a l R e serv e District: Y our a t t e n t i o n is in v ite d to t h e fo llo w in g s t a t e m e n t g iv in g d e t a i l 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 fo r tw o 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, o r 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 ctob er 31, 1972, in th e a m o u n t of $500,000,000, o r th e re ab ou ts, 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 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 ) , o rig 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 b ills to be fre ely in terch an geab le. 357-D A Y B IL L S for $1,800,000,000, or th ere ab o u ts, to be d a te d O cto b er 31, 1972, a n d to m a tu re O cto b er 23, 1973 (C U S I P No. 912793 R D 0 ) . T h e b ills of b o th series will b e issued on a disco 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 p ro vided , a n d a t m a tu rity th e ir face a m o u n t will b e p a y a b le w ith o u t in terest. T h e y w ill b e 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 r ity v a lv e ). T e n d e rs w ill b e received a t F e d e ra l R e se rv e B a n k s an d B ran ch es 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 aving T im e , T u esd ay , O cto b er 24, 1972. T e n d e rs w ill 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 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 $ 1 0 ,0 0 0 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 o re th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t be used. I t is u rg ed 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 arded in th e special en velo p es w hich will b e sup p lied b y F e d e ra l R eserv e B a n k s or B ran ch es on a p p lic atio 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 acc o u n t of cu stom ers p ro v id ed th e n a m e s o f th e cu sto m ers a re se t fo rth in such ten d ers. O th ers 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 te n d e rs e x ce p t for th e ir ow n account. T e n d e rs will be receiv ed w ith o u t d ep o sit from in co rp o ra ted b a n k s a n d tr u s t c o m p anies a n d from respo n sible a n d recognized d ealers in in v e s tm 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 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 b ills 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 ra n 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. I m 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 c e m e n 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 rang e of a cc ep te d bids. O nly 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 acc ep ta n ce o r 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 o r a ll ten d e rs, in w hole or in p a rt, a n d h is 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 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 w ill be acc ep te d in full a t th e av era g 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 for th e resp ectiv e issues. S e ttle m e n t fo r 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 31, 1972, in cash or o th e r im m e d ia tely a v ailab le fu n ds o r in a like face a m o u n t of T re a su ry b ills m a tu rin g O ctob er 31, 1972. C ash a n d exchange te n d e rs will receive eq ual tre a tm e n t. Cash 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 alu e 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 S ections 4 5 4 ( 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 discou n t a t w hich b ills issued h e re u n d e r a re sold is con sid ered to accru e w hen th e bills a re sold, re d ee m e d or o therw 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 bills ( o th e r th a n life in su ran ce co m p an 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 o riginal 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 r ity du rin g th e tax a b 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 govern th e con d itio ns of th e ir issue. C opies of th e circ u lar m ay 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 ran ch . In a c c o r d a n c e w ith 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 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 ay lig h t S av in g Time, T u e s d a y , O c to b e r 24 , 1972. T en d e rs m a y not be en tered by telep h o n e . Yours v e r y truly, P. E. C o ld w ell P re s id e n t (S ee reverse for te nd 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 357 DAYS TO MATURITY Dated October 31,1972 Maturing October 23, 1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The__________________________ Branch E l Paso 79999 Houston 77001 San Antonio 78295 (D a ta ) P u rsu a n t to the provisions of T reasu ry D epartm ent Circular No. 418 (current revision) and the provisions of th e public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ount shown below, and agrees to pay fo r th e am ount allotted, on or before the issue date, by the m ethod and a t th e ra te indicated. JNOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $. Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full at the average price (in th ree decimals) of accepted competitive bids. Prices should be ($----------------------- @ -- $-------------e x p r e s s e d on th e basis of 100, w ith not more th an th ree COMPETITIVE TENDERS g, _<§>. decimal places, e. g., 99.925. F r a c ti o n s m ust n ot be used. ; ^ -@ - “ TEN D E R S MAY NOT BE E N TE R E D BY TE L EPH O N E . TEND ERS BY W IRE, IF RECEIVED BEFO RE TH E CLOSING HOUR, A RE ACCEPTABLE. Denominations Desired N um ber of P ie c e s Paym ent fo r this issue of bills cannot be made by credit to T reasury Tax and Loan Account. M a tu r i ty V a lu e (5) $ (5) $ 10,000 METHOD OF PAYM ENT $ . □ 15.000 $. (5) $ 50.000 $_ (® $ 100,000 $_ □ <3> $ 500,000 $_ (5) $1 □ Charge our reserve account on payment date I I D r a f t e n c l o s e d ( E f f e c tu a l d e liv e ry o f en c lo se d d r a f t s h a ll b e o n la te s t d a y w h ic h w ill p e r m it p r e s e n t m e n t in o r d e r to o b ta in ir r e v o c a b ly c o lle c te d f u n d s o n p a y m e n t d a te ) Delivery Instructions: □ □ □ By maturing bills held by______________________________ Paym ent to be made by______________ Hold in Custody Account—Member banks for own account only Pledge to secure Treasury Tax and Loan Account Ship to___________________________ ( S u b s c r ib e r ’s f u ll n a m e o r c o r p o r a te ti tle ) ( A d d re s s) B y. ( A u th o r is e d o fficial s i g n a t u r e a n d ti tle ) ( F o r th e a c c o u n t o f . I f t e n d e r is f o r a n o t h e r s u b s c r ib e r ) ( A d d re s s) IM PORTANT 1. No tender for less th a n $10,000 will be considered and each tender over $10,000 m u st 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 U nited States, with notation on the envelope reading “TEND ER FOR TREA SU RY O F F E R IN G ”. Since envelopes received w ith this legend will not be opened until a f te r the closing tim e specified in the public announcement, communi cations relating to other m a tte rs should no t be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank or app rop riate branch. 3. Any qualified or conditional tender will be rejected. 4. If a corporation makes the tender, th e form should be signed by an officer of the corporation authorized to m ake 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 th e tender is made by a p artnersh ip 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 tr u 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 to tal am ount (m atu rity value) of the T reasu ry 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 tr u s t company. 6. If the language of th is form is changed in any respect, which, in th e opinion of th e S ecretary of th e T reasu ry is m aterial, the tender m ay be disregarded. (See reverae for announcement)