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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)