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D A L L A S. T E X A S 7 5 2 2 2

Circular No. 72-58
March 22, 1972

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

There is quoted below a statement issued by the Treasury Department
in regard to an auction of United States Treasury Notes:


The $1-3/1+ billion, or thereabouts, of 3-year Treasury Notes
to be sold at auction under competitive and noncompetitive bidding
will be issued on April 3, 1972. The 5-7/8$ Treasury Notes of
Series F-1975, will be dated April 3, 1972, and will mature May 15,
1975 (CUSIP No. 912827 CQ3).
The notes will be issued in registered and bearer form in
denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000.
Interest will be payable on November 15, 1972, and thereafter on
May 15 and November 15 until maturity.
Tenders for the notes will be received up to 1:30 p.m.,
Eastern Standard Time, Tuesday, March 28, 1972, at any Federal
Reserve Bank or Branch and at the Office of the Treasurer of the
United States, Washington, D. C. 20220; provided, however, that
noncompetitive tenders will be considered timely received if
they are mailed to any such agency under a postmark no later
than Monday, March 27.
Each tender must be in the amount of $1,000 or a multiple
thereof, and must state the price offered, if it is a competi­
tive tender, or the term "noncompetitive", if it is a noncom­
petitive tender. The price on competitive tenders must be
expressed on the basis of 100, with two decimals, e.g., 100.00.
Tenders at a price less than 99-26 will not be accepted.
Fractions may not be used. The notation "Tender For Treasury
Notes" should be printed at the bottom of the envelope in which
the tender is submitted.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (

- 2 -

Public announcement will be made of the amount and price
range of accepted tenders. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary
of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any
such respect shall be final. Subject to these reservations
noncompetitive tenders of $200,000 or less will be accepted
in full at the average price (in two decimals) of accepted
competitive tenders. This price may be 100.00, or more or
less than 100.00.
Commercial banks, which for this purpose are defined as
banks accepting demand deposits, may submit tenders for account
of customers provided the names of the customers are set forth
in such tenders. Others than commercial banks will not be per­
mitted to submit tenders except for their own account.
Tenders will be received without deposit from commercial
and other banks for their own account, Federally-insured savings
and loan associations, States, political subdivisions or instru­
mentalities thereof, public pension and retirement and other
public funds, international organizations in which the United
States holds membership, foreign central banks and foreign
States, dealers who make primary markets in Government securi­
ties and report daily to the Federal Reserve Bank of New York
their positions with respect to Government securities and
borrowings thereon, Federal Reserve Banks, and Government
accounts. Tenders from others must be accompanied by payment
of 5 percent of the face amount of notes applied for.
Payment for accepted tenders must be completed on or
before Monday, April 3, 1972, at the Federal Reserve Bank or
Branch or at the Office of the Treasurer of the United States
in cash or other funds immediately available to the Treasury
by that date. Any qualified depositary will be permitted to
make settlement by credit in its Treasury Tax and Loan Account
for the amount of the notes allotted to it for itself and its
customers. Where full payment is not completed in funds avail­
able by the payment date, the allotment will be canceled and
the deposit with the tender up to 5 percent of the amount of
notes allotted will be subject to forfeiture to the United
Nonbank investors should understand that their checks
will constitute payment only if they are fully and finally
collected by the payment date Monday, April 3, 1972. Checks
not so collected will subject the investor's deposit to
forfeiture as set forth in the preceding paragraph. A check
payable other than at a Federal Reserve Bank received on the
payment date will not constitute immediately available funds
on that date. The Treasury will construe as timely payment

- 3 any check payable to the Federal Reserve Bank or the Treasurer
of the United States that is received at such bank or office
by Wednesday, March 29, 1972, provided the check is drawn on
a bank in the Federal Reserve District of the bank or office
to which the tender is submitted.
Commercial banks are prohibited from making unsecured
loans, or loans collateralized in -whole or in part by the
notes bid for, to cover the deposits required to be paid when
tenders are entered, and they will be required to make the
usual certification to that effect. Other lenders are reques­
ted to refrain from making such loans.
All bidders are required to agree not to purchase or to
sell, or to make any agreements with respect to the purchase
or sale or other disposition of the notes bid for under this
offering at a specific rate or price, until after 1:30 p.m.,
Eastern Standard Time, Tuesday, March 28, 1972.

Copies of the official circular and tender form for the Treasury
notes are enclosed. Subscriptions will be received by this Bank and its
Branches at El Paso, Houston and San Antonio up to the closing hour, 12:30
p.m., Central Standard Time, Tuesday, March 28, 1972; however, noncompetitive
tenders will be considered timely received if they are mailed under a post­
mark no later than March 27.
Yours very truly,
P. E. Coldwell