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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, T EX A S 75222 Circular No. 71-160 July 13, 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 Departm ent, b y 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 22, 1971, in the am ount of $3,803,420,000, as follows: 91-D A Y B IL L S (to m aturity d ate) to be issued July 22, 1971, in the am ount of $2,300,000,000, or thereabouts, representing an additional am ount of bills dated April 22, 1971, and to mature October 21, 1971 (C U S IP No. 912793 L N 4 ), originally issued in the am ount of $1,401,175,000, 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 22, 1971, and to m ature January 20, 1972 (C U S IP No. 912793 M J 2 ). 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 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 v a lu e). T enders will be received a t 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 19, 1971. T enders 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, w ith not more than three decim als, 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 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 th e 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 without 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 th e 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 made 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 w hole 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 w ith the bids m ust be made or com pleted at the Federal R eserve Bank on July 22, 1971, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing July 22, 1971. Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents will be m ade for differences betw een the par value of matur ing bills accepted in exchange and the issue price o f the new bills. Under Sections 4 54 ( 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 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 th e return is made. Treasury D epartm ent Circular No. 4 18 (current revision) and this notice, prescribe the terms of th e 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 accordance with the above announcement, tenders w ill 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, M onday, July 19, 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 Accepted Tenders 91-D ay B ills 182-D ay B ills D u e October 14, 1971 D u e January 13, 1972 $4,093,500,000________________________________ .Total A pplied For ____________________ $3,225,100,000 $2,300,805,000.______ T otal A ccepted______________________ $1,600,010,000 Price Y ield Price Y ield 98.650____________ 5.341% ___________________________ H ig h ______________________ 97.242____________ 5.455% 98.637 5.392% ____________________________Low_______________________97.226____________ 5.487% 98.641 5.376% ( 1 ) --------------------------------- Average------------ ----- ---------------97.228____________ 5.483% ( 1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 5.54% for the 91-day bills and 5.73% for the 182-day bills. (S 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 Maturing October 21, 1971 Dated April 22, 1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The____________________ __Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) 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 c r e t 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 rt e amount a l t e , on o b f r th i s e d t , by t e method and a th r t i d c t d eo, o o h lotd r e o e e su ae h t e ae niae. NONCOMPETITIVE TENDER $_______________________________________ NOT TO EXCEED $200,000 Noncompetitive t n e s for” edr ^90,000 o l s from any one b d e , without s a e p i e w l be a e t d i f l at t e average r es idr t t d rc, il cc p e n u l h p i e ( nt 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 P i e s o l be ex rcs hud p s d on t e basis of res e h 100, with n more than ot COMPETITIVE TENDERS $_ -@ three decimal places, e g, 9 . 2 . Fractions . 995 ----------------------must_not be used. t e n d e r s m a y n o t b e a c c e p t e d b y t e l e p h o n e , t e n d e r s b y w i r e , if r e c e i v e d b e f o r e t h e 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 Account. rdt o M a t u r i t y Value pieces METHOD OF PAYMENT (a ? 10,000 * □ By maturing bills (5) ? 15,000 * held by_____________________________ 50,000 * □ Payment to be made by______________ ■<> ? 8 (® ? 100,000 $. □ Charge our reserve account on payment ((* $ 500,000 *. > date I | Draft enclosed (Effectual delivery of enclosed d r a f t , (5) $1;000,000 $sh a ll be o n la te s t day w h i c h will 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 irr e v o c a b l y collected f u n d s o n P a y m e n t Delivery Instructions: d ate) □ □ □ Hold in Custody Account—Member banks for own account only Pledge to secure Treasury Tax and Loan Account ( S u b s c r i b e r ’s 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 d d r e s s ) Ship to---------------------- --------------— — B y. ( A u t h o r i z e d offi cia l s i g n a t u r e a n d t i t l e ) ( F o p t h e a c c o u n t o f , i f t e n d e r is f o r a n o t h e r s u h s c r i h e r ) (A ddress) IMPORTANT 1 No tender f r l s than $ 0 0 0 w l be c n i e e and each tender over $ 0 0 0 must be f r an amount i m l ip e of . o es 1 , 0 il osdrd 1,0 o n ut ls $ , 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 o a p opriate branch a F s a Agent of the . hud n lal o hs r pr s icl United S a e , with n t t o on t en elope reading “TENDER FOR TREASURY OFFERING”. S n e envelopes tts oain he v 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 p b i announcement, communi eevd hs i l ot ni f e h l s n p c f e n he u l c c t o s r l t n t o h r matters s o l 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 te hud nlsd o edr band hs bank o appro r a e b a c . r pit 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 b 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 e ind fie f h o p r t o u h r z d o t ender and t e s g i g o t e form by an o f cr o t e c r o a i n w l be cons r e a a r p e e t t o by him that he h inn f h f ie f h o p r t o i l tud s ersnain has been s a t o i e . I t t nder 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 u h r z d f he 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 e f 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 i e d a e s i invest . hs te noprtd rs r epnil e o n z d elr n 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 percent o t e t t l amount (maturity value) euiis il irgre, nes eoi f f h oa 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 i c r o a e bank o t u t company. noprtd r rs 6 .I t e language o t i form i changed i any r s e t w f h f hs s n e p c , hich, i t e o i i n o t e Secretary o t e Treasury j n h pno f h f h , m t r a , t e t n er may be d s e a d d aeil h e d irgre. (See reverse for announcement)