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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. 71-156 July 6, 1971 NEW OFFERING — TREASURY BILLS To 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 amount of $3,900,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing 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 date) to be issued July 15, 1971, in the amount of $2,300,000,000, or thereabouts, representing an additional am ount of bills dated A pril 15, 1971, and to m ature 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 m ature January 13, 1972 (C U S IP No. 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 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 a lu e). Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving T im e, M onday, July 12, 1971. Tenders w ill not be received at the Treasury D epartm ent, W ashington. Each tender must be for a m inim um of $10,000. T enders 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 decim als, 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 e n v i opes 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 customers 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 account. Tenders 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 m ust be accom panied by paym ent of 2 percent of the face amount 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 th e Federal R eserve Banks and Branches, follow ing which public announcem ent will be m ade by the Treasury Departm 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 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 w ithout 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 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 maturing July 15, 1971. Cash and exchange tenders will receive equal treatment. Cash adjustm ents will be made for differences betw een th e 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 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 term s of the Treasury bills and govern the conditions of their issue. Copies of th e 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 very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approxim ate Y ield of A ccepted Tenders 9 1-D ay B ills 182-D ay B ills D u e October 7, 1971 D u e January 6, 1972 $3,332,960,000 T otal A pplied_For__________ $3,294,005,000 $2,300,210,000__________________________________ T otal A ccepted— $1,600,065,000 Price Y ield Price Y ield 98.652 5.333% -------------------------------------- —H ig h _____________________ ..97.200____________5.538% 98.598 5.546% _______________________ X o w _____________________ 97.140____________ 5.657% 98.618 5.467% ( 1 ) ------------------------------- Average_________________ 97.162________ 5.614% ( 1 ) (1 ) These rates are 182-day hillg. on a bank discount basis. The equivalent coupon issue yields are 5.64% for the 91-day bills and 5.87% for the f S e e r e v e r s e fo r t e n d e r fo r m ) 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 Maturing January 13,1972 Dated July 15,1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The---------------------------------------Branch El Paso 79999 Houston 77001 San Antonio 782 5 9 (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 p o i i n o the o h rvsos f iclr c ret eiin he r v s o s f p b i announcement i s e by c e Treasury Department, t e undersigned o f r t purchase Treasury bls 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 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 he s u a e 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 , without 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 t t d rc, il ce n ul t h p i e (n t r e d c a s o a c r c i h e e im l ) f c epted c m e i i e b d . o p t t v is P i e s o l be ex rcs hud p e s d on th b s s of rse e ai 100,with n t more than o (a) $ $ three decimal places, e g, 9 . 2 . Fractions . . 995 $ ... . * must not b u e . e sd t 3 T 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 N um ber ol c e i t Treasury Tax and Loan A c u t rdt o con. M a tu rity V alue pieces METHOD OF PAYMENT < $ 10,000 $ff> □ By maturing bills 15,000 $0> $ held by _ 50,000 $. □ Payment to be made by----------------? (cb $ 100,000 $□ Charge our reserve account on payment (a) ? 500,000 f date I | Draft enclosed (Effectual delivery of enclosed d r a f t $1,000,000 s h a l l b e o n l a t e s t d a y w h i c h wil l p e r m i t p r e s e n t m e n t i n o r d e r to o b t a i n i r r e v o c a b l y c o l l e c t e d f u n d s o n Delivery Instructions: □ □ □ Hold in Custody Account—Member banks for own account only Pledge to secure Treasury Tax and Loan Account Ship to--------------------------------------- dete) ( S u h s c r i h e r ’H f u l l n a m e o r c o r p o r a t e t i t l e ) (A ddress) Bv_ ( A u t h o r i z e d o ffi cia l 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 is f o r a n o t h e r s u b s c r i b e r ) (Address) IMPORTANT 1 No tender f r l s than $ 0 0 0 w l be c n i e e and each t n e over $ 0 0 0 must be f r an amount i m l i l s of . o es 1 , 0 il osdrd edr 1,0 o n utpe $ , 0 (maturity v l e . 500 au) 2 Tenders s o l be forwarded i an envelope c e r y addressed t t i bank or a p opriate branch a F s a Agent o the . hud n lal o hs 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 legend w l n 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 i l ot 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 n t be e c o e . Envelopes f r submitting t n e s may be o t i e from t i o nlsd o edr band hs bank o appropriate b a c . r 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 t ender and t e s g i o t e form by an o f c r o t e c r o a i n w l be c n t u d a a r p e e t t o by him t a he h i n ng f h fie f h o p r t o i l osre s ersnain ht has been s a t o i e . I th t nder i made by a p r n r h p i s u d be si n d by a member o t e f r , who o uhrzd f e e s a t e s i t ho l ge f h im s o l s g i t e form “------------------ ,a c p r n r h p by----------------------------- 3 hud in n h 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 g z d d a e s i i v s . hs te noprtd rs r epnil e o ni e e l r 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 t e t t l amount (maturity value) euiis il irgre, nes e o i f e c n f h 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 i c r o a e bank o t u tcompany. noprtd 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 Secretary o t e Treasury j f h f hs s n epc, h c , n h p n o f h f h g m t r a , t et a e i l h ender may be d s e a d d irgre. (See reverse for announcement)