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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, TEX AS 7 5 2 2 2 C ircular No. 71-85 A pril 13, 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 th e aggregate am ount of $3,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing April 22, 1971, in the am ount of $7,665,455,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued April 22, 1971, in the am ount of $2,000,000,000, or thereabouts, representing an additional am ount of bills dated January 21, 1971, and to m ature Ju ly 22, 1971 (C U S IP No. 912793 K Z 8), originally issued in the am ount of $1,400,855,000 (an additional $200,520,000 was issued A pril 6, 1971), 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 April 22, 1971, and to m ature October 21, 1971 (C U S IP No. 912793 L N 4 ). T he 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 atu rity 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, Monday, April 19, 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 m ore th an three decimals, e.g., 99.925. Fractions may not be used. It is urged th a t tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by F ederal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided th e names of th e customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for th eir own account. T enders will be received without 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 accompanied 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 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 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. S ettlem ent for accepted tenders in accordance with the bids m ust be made or com pleted a t the Federal Reserve B ank on April 22, 1971, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing April 22, 1971. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between th e p a r 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 Treasury bills (other th an 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 th e T reasury bills and govern th e conditions of th eir issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch. In a ccord ance 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 an d San Antonio up to twelve-thirty p.m., Central Standard Time, M on d a y, April 19, 1 971 . Tenders m a y not be entered by te le p h o n e . Yours very truly, P. E. Cold well President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and A pproxim ate Y ield of Accepted Tenders 91-Day Bills 182-Day Bills D ue Ju ly 15, 1971 D ue October 14, 1971 $3,100,895,000 T otal Applied F o r_______________________________ $2,618,395,000 $2,000,125,000________________________________ T otal_Accepted_________________________________$1,600,115,000 P rice Yield P rice Yield 99.012------------------3.909% _________________________ JHigh____________ .________ 97.953____________ 4.049% 98.961___________ 4.110% __________________________ Low______________________ 97.865___________ 4.223% 98.979----------------- 4.030% ( 1 ) ------------------------------ .Average_____________________97.907___________ 4.140% (1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4.15% for the 91-day bills and 4.30% 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 (FedHistory@dal.frb.org) TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated January 21,1971 Maturing July 22,1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The-------------------------------------- Branch E l Paso 79999 H ouston 77001 San Antonio 78206 (D ate) P u rsu an t to th e provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of th e public announcement issued by the T reasury D epartm ent, th e undersigned offers to purchase T reasury bills in th e am ount 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 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 a t the averag e price (in three decimals) of accepted com petitive bids. $_________________________ (j» ^ ~ $-------------------------------------- COMPETITIVE TENDERS >$ i ^ ?- Prices should be ex pressed on the basis of 100, w ith not more th a n th r e e decim al p la c e s , e. g., 99.925. F ra ctio n s m ust n ot be used. TEND ERS 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, A RE ACCEPTABLE. Denominations Desired N u m b er of pieces Paym ent fo r th is issue of bills cannot be m ade by credit to T reasu ry Tax and Loan Account. METHOD OF PAYM ENT M a tu rity V alue @ $ 10,000 $______________ @ $ 15,000 $______________ @ $ 50,000 $______________ □ By maturing bills held by____________________________ Payment to be made by______________ □ @ $ 100,000 $______________ □ Charge our reserve account on payment date Q Draft enclosed (E ffectual delivery o f enclosed d r a f t ______ @ $ 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------------------------------------- shall be on latest 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 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 th e a cc o u n t of, if te n d e r is f o r a n o th e r su b sc rib e r) (A ddress) IM PORTANT 1. No tender fo r 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 th is bank or app ropriate branch as Fiscal A gent of th e U nited S tates, w ith 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 the public announcement, com muni cations relating 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 ap propriate branch. 3. A ny qualified or conditional tender will be rejected. 4. If a corporation m akes th e tender, the form should be signed by an officer of the corporation authorized to m ake th e tend er 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 m ade 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 7 a m em ber of the 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 est m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of th e total am ount (m atu rity value) of th e 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. I f 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 tender m ay be disregarded. (See reverse for announcement)