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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 U N ITE D S T A T E S DALLAS. TEXAS 75222 Circular No. 71-155 July 6, 1971 NEW OFFERING — TREASURY BILLS ro All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of two issues of Treasury bills: T h e Treasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount o f $3,900,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing July 15, 1971, in the am ount of $3,809,920,000, as follows: 91-D A Y B IL L S (to m aturity d ate) to be issued July 15, 1971, in the am ount of $2,300,000,000, or thereabouts, representing an additional am ount of bills dated April 15, 1971, and to mature October 14, 1971 (C U S IP No. 912793 L M 6 ), originally issued in the am ount of $1,600,225,000, 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 15, 1971, and to mature January 13, 1972 (C U S IP N o. 912793 M H 6 ). 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 at m aturity their face am ount w ill 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 a lu e). T enders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D a y lig h t Saving T im e, M onday, July 12, 1971. Tenders will not be received at the Treasury Departm ent, W ashington. Each tender m ust 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 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 that tenders be m ade on the printed forms and forwarded in the special envelopes which will be supplied by Federal R eserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of custom ers provided the nam es 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 accou nt T enders will be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others must 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 will be opened at th e Federal R eserve Banks and Branches, follow ing which public announcem ent will be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. O nly those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e 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 m ade or com pleted at the Federal R eserve B ank on July 15, 1971, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing July 15, 1971. Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents w ill be made for differences betw een the par value of matur ing bills accepted in exchange and the issue price of the new bills. Under Sections 45 4 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount o f 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 incom e tax return, as ordinary gain or loss, the difference between 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 Departm ent Circular N o. 41 8 (current revision) and this notice, prescribe the term s of the Treasury bills and govern the conditions of their issue. Copies o f the circular m ay be obtained from any Federal R eserve Bank or Branch. In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso, Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Monday, July 12, 1971. Tenders may not to be entered by telephone. Yours v r tuy e y rl , P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Am ount, Range and Approxim ate Y ield of A ccepted Tenders 91-D ay B ills 182-Day B ills D u e October 7, 1971 D u e January 6, 1972 $3,332,960,000 T otal A pplied F or_________________________________ $3,294,005,000 $2,300,210,000___________________ T otal A ccepted___________________________________ $1,600,065,000 P rice Y ield Price Y ield 98.652____________ 5.333% ____________________ H igh________________97.200____________ 5.538% 98.598____________ 5.546% —_________________ Low______________ 97.140____________ 5.657% 98.618------------------ 5.467% ( 1 ) ---------------------------------- Average--------------------------------- 97.162____________ 5.614% ( 1 ) ( 1 ) T h e s e r a t e s a r e o n a b a n k d i s c o u n t b a s is . T h e e a u i v a l e n t c o u p o n i s s u e y i e l d s a r e 5 . 6 4 % f o r t h e 9 1 - d a y hi ll s a n d 5 . 8 7 % 1 8 2 - d a y hills. for th e fS e e 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 April 15,1971 Maturing October 14,1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The---------------- ----- --- ---- ---- ---Branch El Paso 79999 Houston 770 1 San Antonio 78295 0 ----------- (Date) Pursuant t t 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 he r v s o s 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 b ls 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 t e method and a t e r t i d c t d eo, o o h lotd r e o e h su ae h t h ae 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 , with u s a e p i e w l be a c pted i f l a t e average e d r o 2 0 0 0 r es idr o t t t d rc, il ce n ul t h p i e (n t r e d c m l ) o a c r c i h e e i a s f c epted c m e i i e b d . o p t t v is _(fp_____ J________________ P i e s o l be ex rcs hud p e s d on th b s s of rse e ai COMPETITIVE TENDERS £ ------------------------@--------- $------------------------------- thre^TmaTplac^ . _ , e g, 9 . 2 . Fraction^ . . 995 h $------------- ------- $---------------- must not be u e . > sd H g 1TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE S '’ CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment f r t i i s e o b ls cannot be made by o h s s u f il Number of c e i t Treasury Tax and Loan A c u t rdt o con. piec“ Maturity Value METHOD OF PAYMENT 10,000 ?. @ $ □ By maturing bills (S) $ 15,000 $held by— ______________________ 50,000 $□ Payment to be made by_ @ $ (al $ 100,000 $□ Charge our reserve account on payment (d) ? 500.000 $date [ | D r a f t e n c l o s e d (Effectual delivery of enclosed d r a f t (S> $1,000,000 s h a l l he o n l a t e s t d a y w h i c h w i l l p e r m i t p r e s e n t m e n t I . Delivery Instructions: □ □ □ to obtain irrevocably collected funds on Hold in Custody Account—Member banks for own account only Pledge I secure Treasury Tax and to Loan Account Ac Ship to_ (Subscriber's full name or corporate title) (A ddress) gy ( A u t h o r i z e d offic ial s i g n a t u r e a n d t i t l e ) ( F o r t h e a c c o u n t o f , if t e n d e r ia f o r a n o t h e r s u b s c r i b e r ) ( Addreea) IMPORTANT 1 No t nder f r l s than $ 0 0 0 w l be c n i e e and each t n e o e $ 0 0 0 must be f r an amount i m l i l s of . e o es 1 , 0 il osdrd edr vr 1,0 o n utpe $ , 0 (maturity v l e . 500 au) 2 Tenders s o l b forwarded i an envelope c e r y addressed t t i bank o a r . hud e n lal o hs r pp opriate branch a F s a Agent o the 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 g n 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 e d il ni f e h l s n pcfe n h u l c c t o s r l t n t o h r matters s ain eaig o t e hould not b e c o e . Envelopes f r submitting t n e s may be o t i e from t i e nlsd o edr band hs bank o a p opriate b a c . r pr rnh 3 Any q a i i do c n i i n lt . u l f e r o d t o a ender w l be r j c e . 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 e c r o a i n a t o i e t make the . f oprto h edr h hud ind fie f h o p r t o u h r z d o t n e 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 b c n t e a a r p e e t t o by him t a he edr h inn f h f i e f h o p r t o i l e o s ru d s e r s n a i n ht nas been s a t o i e . I t e te d r i made by a p r n r h p i s o l be s g e by a member o t e f r , who o uhrzd f h n e s atesi t hud ind f h im s o l s g i t eform “ hud in n h __________________ _ a c p r n r h p by oatesi, ------------------------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 gn z d d a e s i i v s . hs te noprtd rs r epnil e o i e elr n n e t 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 t o th t t l amount (maturity value) euiis il irgre, nes e o i f e c n f e oa o t e Treasury blsa p i d f r o u l s t e t n e s are 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 f ul in o p r t d bank o t u t company. 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 t e Secr t r o t e Treasury i f h f hs s n epc, h c , n h p n o f h eay f h a m t r a , t e t n e may be d s e a d d aeil h edr irgre. (See reverse for announcement)