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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. 71-161
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, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
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 mature January 20, 1972
(C U S IP No. 912793 M J 2 ).
T h e bills o f both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at .naturity 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 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. 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 must 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 custom ers provided the nam es o f th e 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 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 com pany.
Im m ediately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, following which
public announcem ent will be made by the Treasury 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 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 w ith the bids m ust be m ade or com pleted a t the Federal R eserve B ank 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 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 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 o f 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 D epartm ent Circular N o. 41 8 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. C opies 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, Monday, July 19, 1971. Tenders may
net 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__________________________________ .Total A ccepted___________________________________$1,600,010,000
P rice
Y ield
Price
Y ield
98.650
5 .3 4 1 % ____
H ig h _______________________ 97.242
.5.455%
98.637
5.392% -------------------------------,
..Low_______________________ 97.2 26 _____________ 5.487%
98.641
:----------5.376% ( 1 ) --------------------------------- A verage---------------------------------97.2 2 8_____________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
1 8 2 - d a y b ills.

(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 TREASURY BILLS

182 DAYS TO MATURITY
Maturing January 20, 1972

Dated July 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
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 or 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
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 , without s a e p i e w l be a c
e d r o 2 0 0 0 r es
idr
t t d rc, il
c epted i f l a t e average
n ul t h
p i e ( nt r e d c m l ) o a c p e c m e i i ebd.
r c i h e e i a s f c e t d o p t t v is
_____________
P i e s o l be ex­
rcs hud
pressed on t e b s s of
h ai
100 ,with not more than
COMPETITIVE TENDERS
-@ ------------three decimal places,
e g., 9 . 2 . Fractions
995
_@ _
----------------------must not be used.
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
(a) $
15,000 $■
held by--------------------------------------------50,000 ?& $
□ Payment to be made by___________ _
@ I 100,000 $.
□ Charge our reserve account on payment
(?) ? 500,000 $date
|~| D ra ft enclosed (Effectual delivery of enclosed d r a f t
,
@ $1;000,000 $shall be on latest day which will permit presentm ent in
order to obtain irrevocably collected funds on p a y m e n t
Delivery Instructions:
date]
“u
□

Hold in Custody Account—Member
banks for own account only

(Subscriber’s full name or corporate title)

□

Pledge to secure Treasury Tax and
Loan Account

(Address)

□

Ship to------------------------------ ---------

Ry

(Authorized official signature and title)
(F o r the account of, if tender is for another subscriber)
(Address)

IMPORTANT
1 No t
.
ender f r l s than $ 0 0 0 w l be c n i e e and each t nder o e $ 0 0 0 must be f r an amount i m ltiples of
o es
1 , 0 il
osdrd
e
vr 1,0
o
n u
$ , 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 propriate branch a F s a Agent of the
.
hud
n
lal
o hs
r p
s icl
' United S a e , with n t t o on t e e v
tts
oain
h n elope reading “TENDER FOR TREASURY OFFERING”. S n e envelopes
ic
r c i e with t i legend w l not be opened u t l a t r t e c o i g time s e i i d i the p b i announcement, communi­
eevd
hs
il
ni f e h l s n
pcfe n
ulc
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 this
ain eaig o te
hud
nlsd
o
edr
band
bank o app o r a e b a c .
r rpit rnh
3 Any q a i i d o 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 ould 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
h
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 g o t e form by an of c r o t e c r o a i n w l be con t ue a a r p e e t t o by him that he
h inn f h
fi e f h o p r t o i l
sr d s ersnain
has been s a t o i e . I t t
o u h r z d f he ender i made by a par n s i i s o l be s g e by a member o t e f r , -wH0
s
t er h p t h u d
ind
f h im
sh u d s g i t eform “
ol 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 iz d d a e s i invest­
.
hs te
noprtd
rs
r epnil
e o n e 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 per e o th t t l amount (maturity value)
euiis il
irgre, nes
eoi f
c nt f e o a
o t e Treasury b ls a p i d f r o u l s t e t n e s a 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 re
f ul
i c r o a e bank o t u t company.
noprtd
r rs
6 .I t language o t i form i changed i any r s e t w i h i t e o i i n o the Secretary o t e Treasury j
f he
f hs
s
n
epc, h c , n h p n o f
f h
s
m t r a , t e t n e may be d s e a d d
aeil h e d r
irgre.
(See reverse for announcement)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102