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F ederal Reserve bank of Dallas F I S C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEXAS 75222 Circular No. 71-151 June 25, 1971 NEW OFFERING — TREASURY BILLS To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the follo w in g sta te m e n t giving details of tw o issues of Treasury bills: T h e Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of $3,900,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing July 8, 1971, in the am ount of $3,803,490,000, as follows: 91-D A Y B IL L S (to m aturity date) to be issued July 8, 1971, in the am ount of $2,300,000,000, or thereabouts, representing an additional am ount of bills dated April 8, 1971, and to mature October 7, 1971 (C U S IP No. 912793 L L 8 ), originally issued in the am ount of $1,600,600,000, the additional and original bills to be freely interchangeable. 182-D A Y B IL L S for $1,600,000,000, or thereabouts, to be dated July 8, 1971, and to mature January 6, 1972 (C U S IP No. 912793 M G 8 ). T h e bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face amount will be payable without interest. T h ey 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 v alu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D ayligh t Saving T im e, Friday, July 2, 1971. Tenders w ill not be received at the Treasury Departm ent, W ashington. Each tender must be for a m inim um of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of com petitive tenders the price offered must 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 that tenders be made on the printed forms and forwarded in the special envelopes which w ill be supplied by Federal R eserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust com panies 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 Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust company. Im m ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow ing which public announcem ent will be made by the Treasury Departm ent of the am ount and price range of accepted bids. Only those subm itting com petitive tenders w ill 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 without stated price from any one bidder will be accepted in full at 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 at the Federal R eserve Bank on July 8, 1971, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing July 8, 1971. Cash and exchange tenders will receive equal treatment. Cash adjustm ents will be made for differences between the par value of matur ing bills accepted in exchange and the issue price of the new bills. Under Sections 454 (b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount of discount at 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 betw een the price paid for the bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is made. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank 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 b an k a n d its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Friday, July 2, 1971. Tenders m ay not to b e entered by tele p h o n e . Yours very truly, P. E. Coldwell President Figures co n cern in g offering of 9 1 -Day Treasury Bills maturing S e p t e m b e r 3 0 , 1 9 7 1 , a n d 1 8 2 - D a y Treasury Bills ma turing D e c e m b e r 3 0 , 1 9 7 1 , not a v a i la b l e w h en this circular w a s p rin te d . ( S e e r e v e r s e fo r t e n d e r f o r m ) 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 April 8,1971 Maturing October 7,1971 PLEASE OBSERVE CLOSING DATE — FRIDAY, JULY 2, 1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The--------------------------------------- Branch El Paso 79999 Houston 77001 San Antonio 78206 (D ate) Pursuant t t e p o i i n o Treasury Department C r u a No. 418 ( u r n r v s o ) and t e p o i i n o the o h rvsos f iclr cret eiin h rvsos f p b i announcement i s e by t e Treasury Department, t e undersigned o f r t purchase Treasury bl s i t e amount ulc sud h h fes o il n h shown b l w and agrees t pay f r t e amount a l t e , on o b f r t e i s e d t ,by th method and a the r t i d c t d eo, o o h lotd r e o e h s u ae e t a e niae. NONCOMPETITIVE TENDER $__________________________________ _NOT TO EXCEED $200,000 Noncompetitive t n e s f r $ 0 , 0 o l s from any one b d e , w thout s a e p i e w l be acc p d i f l a t e average e d r o 2 0 0 0 r es idr i t t d rc, i l e te n u l t h p i e ( n t r e d c m l ) o acce t d c m e i i e b d . rc i h e e i a s f p e o p t t v is $________________ P i e sh u d be ex rcs ol pre s d on the b s s o se ai f 100 ,with n more than ot $ COMPETITIVE TENDERS <$. ------- ; three decimal places, e g, 9 . 2 . Fractions . . 995 ?------------------- must not be u e . sd (• $ TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment f r t i i s e o bls cannot be made by o h s s u f il Number of c e i t Treasury Tax and Loan Account. rdt o Maturity Value pieces METHOD OF PAYMENT - @ ? 10,000 $_ □ By maturing bills $ 15.000 $_ held by-------------------------------------------50.000 $_ □ Payment to be made by--------------------@ $ @ $ 100,000 $______________ □ Charge our reserve account on payment @ $ 500,000 $______________ date | | Draft enclosed (Effectual delivery of enclosed d r a ft @ $ 1,000,000 $ ___________ f shall be on latest day which will permit presentment In order to obtain irrevocably collected funds on paym ent date) Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to--------------------------------------- (Subscriber’s full name or corporate title) (Address) By_ (Authorized official signature and title) (For the account of, if tender is for another subscriber) (Addres s) IMPORTANT 1 No ten e f r l s than $ 0 0 0 w l be c n i e e and each t n e ov r $ 0 0 0 must be f r an amount i m l i l s o . d r o es 1 , 0 il osdrd edr e 1,0 o n utpe f $ , 0 (maturity v l e . 500 au) 2 Tenders s o l be forwarded i an e . hud n nvelope c e r y addressed t t i bank o a p opriate branch a F s a Agent o the lal o hs r pr s icl f United S a e , with n t t o on t e envelope reading “TENDER FOR TREASURY OFFERING”. S n e envelopes tts oain h ic r c i e with t i l gend w l not be opened u t l a t r t e c o i g time s e i i d i t e p b i announcement, communi eevd hs e il ni f e h ls n pcfe n h u l c c t o s r l t n t o h r matters should not be e c o e . Envelopes f r submitting t n e s may be o t i e from t i ain eaig o t e nlsd o edr band hs bank o approp i t b a c . r rae rnh 3 Any q a i i do c n i i n ltenderw l be r j c e . . ulfe r o d t o a il eetd 4 I a c r o a i n makes t e t n e , t e form s o l be s g e by an o f c r o t c r o a i n a t o i e t make the . f oprto h edr h hud ind f i e f he o p r t o u h r z d o tender and t e s g i g o t e form by an o f c r o t e c r o a i n w l be con t u d a a r p e e t t o by him t a he h inn f h fie f h o p r t o i l sre s ersnain ht has been s a t o i e . I t e t o u h r z d f h ender i made by a pa t e s i i s u d be si ned by a member o t e f r , who s r n r h p t ho l g f h im __________________ ,a c p r n r h p by------------------------------ , oatesi, s o l s g i t e form “ hud in n h a member o t ef r . f h im” 5 Tenders from t o e o h r than i c r o a e banks and t u t companies o r s o s b e and r c g . hs te noprtd rs r epnil e o nized d a e s i i v s elr n net ment s c r t e w l be d s e a d d u l s accompanied by a d p s t o 2 p r e o t e t t l amount (maturity v l e euiis il irgre, nes e o i f e c nt f h o a au) o t e Treasury bls a p i d f r o u l s t e t n e s a e accompanied by an express guaranty o f l payment by an f h il p l e o , r n e s h e d r r f ul in o p r t d bank o t u tcompany. croae r rs 6 .I t e language o t i form i changed i any r s e t w i h i t e o i i n o th S cretary o th Treasury i f h f hs s n epc, h c , n h p n o f e e f e s m t r a , t eten e may be d s e a d d aeil h dr irgre. (See reverse for announcement)