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F ederal






DALLAS, T EX AS 7 5 2 2 2
C ircular No. 71-77
M arch 30, 1971

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llow 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 $3,500,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing April 8, 1971, in the am ount of
$3,404,445,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued A pril 8, 1971, in the am ount of $1,900,000,000, or thereabouts,
representing an additional am ount of bills dated Ja n u ary 7, 1971, and to m ature Ju ly 8, 1971 (C U S IP No.
912793 K X 3 ), originally issued in the am ount of $1,401,705,000 (an additional am ount of approxim ately
$200,000,000 will be issued on April 6, 1971), the additional and original bills to be freely interchangeable.
182-DAY B ILLS for $1,600,000,000, or thereabouts, to be dated A pril 8, 1971, and to m ature O ctober 7, 1971
(C U S IP No. 912793 L L 8).
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 Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, April 5, 1971. T enders will not be received a t the T reasury D epartm ent, W ashington. 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 more than 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 Reserve 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 than banking institutions will not be perm itted to subm it tenders except for their own account.
T enders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of the face am ount of
Treasury 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 F ederal 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 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. 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 made or com pleted a t the Federal R eserve B ank on April 8, 1971,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing April 8, 1971. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made 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 th e 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 Treasury 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 the return is made.
T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In accord ance with the a b o v e an n o u n c em en t, tenders will b e received at this bank a n d its branches at El Paso,
Houston an d San Antonio up to twelve-thirty p.m., Central Standard Time, M on d ay, April 5, 1971. Tenders m a y not
be entered by t ele p h o n e .
Yours very truly,
P. E. Cold well
Amount, R ange and Approxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue July 1, 1971
Due Septem ber 30, 1971
.Total Applied F o r_______________________________ $2,672,385,000
$ 1,900,415,000________________________________.T otal_A ccepted_ _________________$ 1,600,005,000
3.442% _________________________.H igh_____________________ 9 8 .1 6 0 --_________ 3.640%
3.600% _________________________ Low______________________98.114____________3.731 %
99.110--,.--------------- 3.521% ( 1 ) ------------------------------Average------------------------------ 98.132____________3.695% (1 )
(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 3.61% for the 91-day bills and 3.83% for the
182-day bills.

(See reverse for tender form )

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


Dated April 8,1971

Maturing October 7, 1971

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

Houston 77001

San Antonio 78206

(D ate)

P ursuant to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and th e provisions of th e
public announcement issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am o unt
shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by the method and a t the ra te indicated.

Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated
price (in three decimals) of accepted com petitive bids.

_NOT TO EXCEED $200,000
price, will be accepted in full a t the a e a
v r ge


Prices should be ex­
pressed on the basis of
100, with not more th a n
th r e e d ecim al p la c e s ,
e. g., 99.925. F ractio n s
m ust_not be used.

D enominations Desired
N um ber of

Paym ent fo r this issue of bills cannot be m ade by
credit to T reasury Tax and Loan Account.

M a tu rity V alue


10,000 $_


15.000 $_


50.000 $_


1 0 0 ,0 0 0


By maturing bills
held by____________________________
Payment to be made by______________



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________________________


-@ $

Charge our reserve account on payment
Draft enclosed (E ffectual delivery o f enclosed d r a f t
shall be on latest day w hich will p e rm it p re s e n tm e n t in
ord er to o b tain irrevocably collected fun ds on p a y m e n t
d a te )
(S u b sc rib e r’s fu ll n a m e o r c o rp o ra te title )

(A ddress)

By(A u th o rize d official s ig n a tu re a n d title )

(F o r the a cc o u n t of. if te n d e r is fo r a n o th e r su b scrib er)
(A ddress)

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 approp riate branch as Fiscal A gent of th e
United States, with notation on the envelope reading “TEN D ER FOR TREASURY O FF E R IN G ”. Since envelopes
received w ith this legend will not be opened until a fte r th e closing tim e specified in th e public announcement, communi­
cations relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is
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 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 th a t he
has been so authorized. If th e tender is made by a p artn e rsh ip it should be signed by a m em ber of the firm, who
should sign in the form “___________________________ , a copartnership, by_________________________________________
a m em ber 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 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 ara n ty of full paym ent by an
incorporated bank or tru s t company.
6. If th e language of this form is changed in any respect, which, in the opinion of the S ecretary of the T reasu ry is
m aterial, th e tend er m ay be disregarded.

(See reverse for announcement)

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