The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Reserve Bank federal of D allas 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. 71-167 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 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 29, 1971, in th e am ount of $3,803,480,000, as follows: 91-D A Y B IL L S (to m aturity date) to be issued J u ly 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 No. 912793 M K 9 ). 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 w ill 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 th e closing hour, one-thirty p.m., Eastern D a y lig h t Saving T im e, M onday, July 26, 1971. Tenders w ill not be received at the Treasury Departm ent, Washington. 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 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 su p p lied 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 o f the customers are se t forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own accou nt T en d ers will be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. T enders 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 tru st com pany. Im m ediately after th e closing hour, tenders will be opened at the Federal R eserve Banks and Branches, follow ing which p u b lic announcem ent will be made by the Treasury D epartm ent of th e am ount and price range of accepted bids. O nly those su bm ittin g com petitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary o f 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 je ct to these reservations, noncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder will b e accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for accep ted tenders in accordance with the bids m ust be made or com pleted at the Federal R eserve Bank on J u ly 29, 1971, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing July 29, 1971. Cash and exchange tenders will receive equal treatment. Cash adjustm ents will be made for differences betw een the par value of matur in g bills accepted in exchange and the issue price of the new bills. Under Sections 4 5 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 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 Departm ent Circular No. 418 (current revision) and this notice, prescribe the terms of th e Treasury bills and govern the conditions of their issue. Copies of the circular may 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, M onday, July 26, 1971. Tenders may lot to be entered by telephone. Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Am ount, 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______________________________ ...Total_A ccep ted___________________________________$1,600,050,000 Price Y ield Price Y ield 98.615_____________ 5.479% ............................... H ig h _ 97.144_____________5.649% 98.591_____________ 5.574% ___________________________ Low________________________ 97.093____________ 5.750% 98.598 5.546% ( 1 ) _ .......................... A verage_______ 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 TREASURY BILLS 182 DAYS TO MATURITY Maturing January 27, 1972 Dated July 29, 1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount shown below, and agrees to pay forthe amount allotted, on or before the issue date, by the method and at the rate indicated. NONCOMPETITIVE TENDER $__________________________ _____________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. ____________ Prices should be ex -@ pressed on the basis of 100 ,with not more than COMPETITIVE TENDERS -@ -----------three decimal places, e g., 99.925. Fractions f -----------must not be used. u UEIP TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment for this issue of bills cannot be made by Number of credit to Treasury Tax and Loan Account. Maturity Value pieces METHOD OF PAYMENT @ $ 10,000 $. □ By maturing bills @ ? 15,000 $. held by_____________ _________________ 50,000 $. □ Payment to be made by_____________ @ ? @ $ 100,000 $. □ Charge our reserve account on payment @ ¥ 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 (a $1,000,000 $. shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on paym en t 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( 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 ) (For the account of, if tender is for another subscriber) (A ddress) IMPORTANT 1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiples of $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes received with this legend will not be opened until after the closing time specified in the public announcement, communi cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank or appropriate branch. 3. Any qualified or conditionaltenderwillbe rejected. 4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the tender and the signing of the form by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who shouldsignintheform “ ,a copartnership, by------------------------------ a member of the firm.” 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an incorporated bank or trust company. 6 .If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is material, the tender may be disregarded. (See reverse for announcement)
@FedFRASER