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F ederal

reserve

Bank

of

Dallas

F IS C A L A G E N T O F T H E UNITED S T A T E S

DALLAS, TEXAS 7 5 2 2 2
C ircular No. 71-42
February 5, 1971

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llo w in g statem ent giving details of tw o issues of Treasury bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount
of $3,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing February 18, 1971, in the am ount of
$3,399,780,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued February 18, 1971, in the am ount of $2,000,000,000, or there­
abouts, representing an additional am ount of bills dated Novem ber 19, 1970, and to m ature M ay 20, 1971
(C U C IP No. 912793 K J 4 ), originally issued in the am ount of $1,403,485,000, the additional and original bills
to be freely interchangeable.
182-DAY B IL L S for $1,400,000,000, or thereabouts, to be dated February 18, 1971, and to m ature August 19,
1971 (C U S IP No. 912793 L E 4 ).
T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and a t m aturity their face am ount will be payable w ithout interest. T hey will be issued in bearer form only, and in
denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value).
T enders will be received a t F ederal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, Thursday, F ebruary 11, 1971. T enders will not be received at the T reasury D epartm ent, Washington. Each
tender m ust be for a m inim um of $10,000. T enders over $10,000 m ust be in m ultiples of $5,000. In the case of com petitive tenders
the price offered m ust be expressed on the basis of 100, with not m ore th a n three decimals, e.g., 99.925. Fractions m ay not be
used. It is urged th a t tenders be m ade on the printed forms and forwarded in the special envelopes which will be supplied by
F ederal R eserve Banks or Branches on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided the names of the customers are
set forth in such tenders. O thers th a n banking institutions will not be perm itted to subm it tenders except for their own account.
Tenders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which
public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Only those
subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T he Secretary of the T reasury 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. Sub­
ject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will
be accepted in full a t the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal Reserve B ank on February 18, 1971,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing February 18, 1971. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
U nder Sections 454 (b ) and 1221 (5 ) of the Internal R evenue Code of 1954 the am ount of discount a t which bills issued
hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner of T reasury bills (other than life insurance com panies) issued here­
under m ust include in his income tax return, as ordinary gain or loss, the difference between the price paid for the bills, w hether on
original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m aturity during the
taxable year for which th e return is made.
T reasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe the term s of the T reasury bills and
govern th e conditions of th e ir issue. Copies of the circular m ay be obtained from any F ederal Reserve B ank or Branch.

In a cco rd a nce with the a b o v e an n o u n c em en t, tenders will b e received at this b ank a n d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, Thursday, February 11, 1971. Tenders m ay
not b e entered b y te le p h o n e .
Yours very truly,
P. E. Coldwell
President

F igures c o ncerning offering of 9 1 -D ay Treasury Bills maturing M a y 13, 1 9 7 1 , a n d 1 8 2 -D a y Treasury Bills maturing Augu st 12,
197 1 , n o t a v a i la b l e w hen this circular w as printe d.

(See 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

182 DAYS TO MATURITY
Dated February 18,1971

Maturing August 19,1971

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The-------------------------------------- Branch
El Paso 79999

H ouston 77001

San Antonio 78206

(D ate)

OBSERVE

CLOSING

DATE — THURSDAY, FEBRUARY

11, 1971

P ursuant to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of th e
public announcement issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasu ry bills in the am o u n t
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 rate indicated.

NONCOMPETITIVE TENDER $ _ _______________________________

_NOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full at the av e ra g e
price (in three decimals) of accepted com petitive bids.

I

$___________________ @ ________ $ _________________________

COMPETITIVE TENDERS >$
i<£
^
« --------------------------------------P

*

Prices should be e x ­
pressed on the basis of
100, w ith not m ore th a n
th r e e d ec im a l p la c e s ,
e99-925* F ra c tio n s
< ---------------------------------p
m ust not be used.

StW "TENDERS MAY NOT BE ACCEPTED BY TE L EPH O N E . TEND ERS BY W IRE, IF RECEIV ED BEFO RE T H E
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um b er of
pieces

P aym ent for this issue of bills cannot be m ade b y
credit to T reasury Tax and Loan Account.
METHOD OF PAYM ENT

M a tu rity V alue

@ $ 10,000 $@ $ 15,000 $@ $ 50,000 $@ $ 100,000 *
@ $ 500,000 $@ $1 ,000,000 $Delivery Instructions:
□ Hold in Custody Account— Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□ Ship to-------------------------------------

□
□

By maturing bills
held by--------------------------------------- _
Payment to be made by--------------------- -

□

Charge our reserve account on payment
date
| | Draft enclosed (E ffectual delivery o f enclosed d r a f t
sh all be on la te st day w hich will p e rm it p re s e n tm e n t in
o rd e r to o b ta in irrevocably collected fu n d s on p a y m e n t
d ate)
(S ubscriber’s fu ll n am e o r co rp o ra te title )

(A ddress)

By-

(A uthorized official s ig n a tu re a n d title )
(F o r th e accoun t of, if te n d e r is fo r a n o th e r subscriber)

PLEASE

(A ddress)

IM PORTANT
1. No tender fo r less th a n $10,000 will be considered and each ten der over $10,000 m ust be fo r an am ount in m ultiples o f
$5,000 (m atu rity value).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or approp riate branch as Fiscal A gent of th e
United States, w ith notation on the envelope reading “TEN D ER FOR TREASURY O FFE R IN G ”. Since envelopes
received w ith this legend will not be opened until a fte r th e closing time specified in the public announcement, com m uni­
cations relating to other m a tte rs should not be enclosed. Envelopes for subm itting tenders m ay be obtained from th is
bank or appropriate branch.
3. A ny qualified or conditional tender will be rejected.
4. If a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to m ake th e
tender and the signing of the form by an officer of the corporation will be construed as a representation by him t h a t h e
has been so authorized. If the tender is made by a p artn e rsh ip it should be signed by a m em ber of the firm, w h o
should sign in the form “------------------------------------------ , a copartnership, by
—
a m em ber of th e firm.”
5. Tenders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers in in v e s t­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m atu rity v a lu e )
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 b y a n
incorporated bank or tr u s t company.
6. If the language of this form is changed in any respect, which, in the opinion of th e Secretary of the T re a su ry i s
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