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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. 71-183
August 3, 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 o f Treasury bills to the aggregate amount
of $3,900,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing August 12, 1971, in the am ount of
$3,802,040,000, as follows:
91-D A Y B IL L S (to m aturity date) to be issued August 12, 1971, in the am ount of $2,300,000,000, or thereabouts,
representing an additional am ount of bills dated M ay 13, 1971, and to mature N ovem ber 11, 1971 (C U S IP No.
912793 L R 5 ), originally issued in the am ount of $1,400,040,000, 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 August 12, 1971, and to m ature February 10, 1972
(C U S IP No. 912793 M M 5 ).
T h e bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face am ount w ill be payable w ithout interest. T h ey will be issued in bearer form only, and in
denom inations o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity valu e).
Tenders w ill 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, A ugust 9, 1971. T enders will not be received at the Treasury Departm ent, W ashington. Each
tender m ust be for a m inim um o f $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 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 envelopes which w ill 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 names o f 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 w ill 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 b y 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 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 o f the acceptance or rejection thereof. T he 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
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) o f 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 Bank on August 12, 1971,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing August 12, 1971. Cash and
exchange tenders will receive equal treatm ent. 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 45 4 ( b ) and 1221 ( 5 ) o f 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, th e difference betw een the price paid for th e 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 of their issue. Copies o f 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, August 9, 1971. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
_______________
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R ange and Approxim ate Y ield o f A ccepted Tenders
91-D ay B ills
D ue Novem ber 4, 1971
$3,801,885,000______________ _
_
$2,300,135,000_________________
P rice
Y ield
98.678____________ 5.230% __.......
98.661____________ 5.297% _____
98.667_
_
_______5.273% ( 1 ) .

182-D ay B ills
D u e February 3, 1972
..Total A pplied For..
.......
...$3,398,610,000
T otal A ccep ted.....
-----------------$1,600,940,000
Price
Y ield
_______ H igh ________________ ______ 97.170.......
. 5.598%
_______ X o w ________________ ____ __97.150___
.5.637%
A verage
____ _____________ 97.160____
5.618% ( 1 )

(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 5.43% for the 91-day bills and 5.88% 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
Dated August 12,1971

Maturing February 10,1972

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. 4 ( u r n r v s o ) and the p o i i n o the
o h rvsos f
iclr
18 c r e t e i i n
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 the 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 eoe
su ae
h
t h ae niae.
NONCOMPETITIVE TENDER $_______________________________________ NOT TO EXCEED $209,000
Noncompetitive t n e s f r $ 0 , 0 or l s from any one b d e , without s a e p i e w l be a c
edr o 2000
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
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
pre s d on t e b s s of
se
h ai
COMPETITIVE TENDERS h _______________ @______ ___________________
e g, 9 . 2 . Fractions
. 995
must not be u e .
sd
t y 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 b ls cannot be made by
o h s s u f il
N
umber o
f
....
c e i t Treasury Tax and Loan A o
rdt o
cc unt.
Piece8
M t n yVle
B u t au
METHOD OF PAYMENT
@ ¥ 10,000 ¥□ By maturing bills
¥ 15,000 ¥■
held by--------------------------------------------50,000 ¥□ Payment to be made by_
@ ¥
$

.. .

(5) $ 100,000 ¥■
¥ 500,000 ¥(5) $1:,000,000 ¥Delivery Instructions:
□
□

| | Ship to--------------- .------------------------------------------ —
-

.

□

Charge our reserve account on payment
date
|— Draft enclosed (Effectual delivery of enclosed d r a f t
|
shall be on latest day which will permit presentment in

^

Hold in Custody Account—Member
banks for own account only
Pledge to secure Treasury Tax and
Loan Account

$

to °btain irrevocably collected funda on caym“ ‘

(Subscriber's fuU name or comorate title)

(Add ------- -------^
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 )
( F o r t h e a c c o u n t of , i f 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 t
.
ender f r l s than $ 0 0 0 w l be c n i e e and each t
o es
1 , 0 il
osdrd
ender over $ 0 0 0 must be f r an amount i m l i l s o
1,0
o
n utpe f
$ , 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 o the
.
hud
n
lal
o hs
r pr
s icl
f
" United S a e , with n t t o on t envelope reading “
tts
oain
he
TENDER FOR TREASURY OFFERING”. S n e envelopes
ic
r c i e with t i l
eevd
h s egend w l not be opened u t l a t r th c o i g time s e i i d i t e p b i announcement, communi­
il
ni f e e 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 not be e c o e . Envelopes f r submitting t n e s may be o t i e from t i
nlsd
o
edr
band
hs
bank o app op i t b a c .
r r rae rnh
3 Any q a i i d o c n i i n l t n e w l be r j c e .
.
ulfe r o d t o a e d r il eetd
4 I a c r o a i n makes t e t n e , the form s o l be 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
hud
ind
fie f h o p r t o u h r z d o
tender and t e sig 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 that he
h
nn f h
fie f h o p r t o i l
o
s ersnain
has been s a t o i e . I t e te d r i made by a p r n rs i i s o l be si
o uhrzd f h ne s
ate hp t hud
gned by a member o t e f r , who
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 iz d d a e s i i v s ­
.
hs te
noprtd
rs
r epnil
e o n e elr 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 perc n o t e t t l amount (maturity value)
e u i i s il
irgre, nes
eoi f
e t f h oa
o t e Treasury b ls a p i d f r o u l s th 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 e 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 i h i t e o i i n o t Secretary o t Treasury i
f h
f hs
s
n
e p c , h c , n h p n o f he
f he
s
mtra,t t
a e i l he ender may be d s e a d d
irgre.
(See reverse for announcement)

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