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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 N o. 71-166 J u ly 20, 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, 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 29, 1971, in the am ount of $3,803,480,000, as follows: 91-D A Y B IL L S (to m aturity date) to be issued July 29, 1971, in the am ount of $2,300,000,000, or thereabouts, representing an additional am ount of bills dated April 29, 1971, and to mature October 28, 1971 (C U S IP No. 912793 L P 9 ), originally issued in the am ount of $1,401,225,000, 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 29, 1971, and to mature January 27, 1972 (C U S IP N o. 912793 M K 9 ). 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 m aturity their face am ount will be payable without in terest 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, J u ly 26, 1971. T enders w ill not be received a t the Treasury D epartm 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 m ore 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 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 custom ers are set forth in such tenders. Others than banking institutions wiil not be perm itted to subm it tenders except for their own account. T enders 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 o f 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 th e closing hour, tenders w ill be opened at the 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 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 w ith the bids m ust be m ade or com pleted at the Federal R eserve B ank on July 29, 1971, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing July 29, 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 of the new bills. U nder Sections 45 4 (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 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 a t 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 o f their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank 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 26, 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 91-D ay B ills 182-D ay B ills D u e October 21, 1971 D u e January 20, 1972 $4,089,335,000__________________ T otal A pplied For._ $2,981,195,000 $2,300,365,000__ _ .T otal A ccep ted_________ $1,600,050,000 P rice Y ield P rice Y ield 98.615-------------------- 5.479% -------------------------------H igh_ 97.144_____________5.649% 98.591-------------------- 5.5 74 % _______________________ Low ____________________97.093____________ 5.750% 98.598-------------------- 5.546% ( 1 ) ............................... A v e r a g e __ _ 97.106_____________ 5.724% ( 1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 5.72% for the 91-day bills and 5.99% 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 28, 1971 Dated April 29, 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 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 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 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 , 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, i l c epted i f l a t e average n ul t h p i e ( n t r e d c m l ) o ac epted c m e i i e b d . rc i h e e i a s f c o p t t v is _____________ P i e s o l be ex rcs hud 4 p e s d on t e b s s o rse h ai f 100 , with not more than COMPETITIVE TENDERS A 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 A c rdt o c ount. pieces Maturity Value METHOD OF PAYMENT 10,000 $________________ □ By maturing bills $ 15.000 $______________ held by--------------------------------------------$ 50.000 $______________ □ Payment to be made by____________ _ $ 100,000 $________________ @ $ 500,000 $______________ @ □ Charge our reserve account on payment date |— Draft enclosed (Effectual delivery of enclosed d r a ft | $ 1, 000,000 $ _______________ shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date) Delivery Instructions: □ 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--------------------------------------- By- (Authorized official signature and title) (For the account of, if tender is for another subscriber) (A ddress) IMPORTANT 1 No tender 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 l i l s o . o es 1 , 0 il osdrd e vr 1,0 o n utpe f $ , 0 (maturity v l e . 500 au) 2 Tenders s . hould be forwarded i an e v n n elope c e r y addressed t t i bank o a p lal o hs r p ropriate 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 “ tts oain h 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 t e p b i announcement, communi eevd hs 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 o l n 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 h u d ot nlsd o edr band hs bank o a p opriate b a c . r pr 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 t n e , t e form s . f oprto he e d r h hould be s g e by an of c r o t e c r o a i n a t o i e t make the ind fi e 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 c r o t e c r o a i n w l be c nstrued 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 o s ersnain ht has been s a t o i e . I t e te o u h r z d f h nder i made by a p r n r h p i s o l be s g d by a member o t e f r , who s atesi t hud i ne f h im ------------------ ,a c p r n r h p by---- . oatesi, _________________________ ( s o l s g i t form “ h u d i n n he 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 i v s . hs te noprtd rs r epnil e o n z d 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 perc n o t e t t l amount (maturity v l e euiis il irgre, nes eoi f e t f h oa au) o t e Treasury b l s a p i d f r o u l s th 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 e e d r f ul i c r or t d bank or t u t company. nop ae rs 6 .I t language o t i form i changed i any r s e t w i , i t e o i i n o t f he f hs s n e p c , h ch n h p n o f he S ecretary o t e Treasury i f h s mtra, te t a e i l h ender may be d s e a d d irgre. (See reverse for announcement)