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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, TEX AS 75222 Circular No. 71-185 A ugust 10, 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 am ount of $3,900,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing August 19, 1971, in the am ount of $3,604,130,000, as follows: 91-D A Y E IL L S (to m aturity d ate) to be issued A ugust 19, 1971, in the amount of $2,300,000,000, or thereabouts, representing an additional am ount of bills dated M ay 20, 1971, and to mature Novem ber 18, 1971 (C U S IP No. 912793 L S 3 ), originally issued in the am ount of $1,401,985,000, 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 19, 1971, and to mature February 17, 1972 (C U S IP No. 912793 M N 3 ). 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 of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu 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, August 16, 1971. Tenders will not be received at the Treasury Departm ent, W ashington. Each tender m ust be for a minim um of $10,000. T enders over $10,000 m ust 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 supplied by Federal R eserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided th e nam es of the custom ers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own accou nt Tenders will be received without 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 trust company. Im m ediately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, follow ing which public announcem ent will be m ade by the Treasury Departm 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 August 19, 1971, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing August 19, 1971. Cash and exchange tenders will 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. Under Sections 454 ( b ) and 1221 ( 5 ) o f the Internal R evenue Code o f 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, 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 at m aturity during the taxable year for which the return is made. Treasury D epartm ent Circular No. 41 8 (current revision) and this notice, prescribe the term s of the Treasury bills and govern the conditions of their issue. Copies of the circular m ay 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, August 16, 1971. Tenders may not 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 Accepted Tenders 91-D ay B ills 182-D ay B ills D u e N ovem ber 11, 1971 D u e February 10, 1972 $3,561,580,000_________________________________T otal A pplied For_________________________________ $2,742,030,000 $2,300,390,000-------------- ------------------------------------- _Total A ccepted___________________________________$1,600,130,000 Price Y ield Price Y ield 98.667 5.273% ----------------------------------------- .H igh.. __________________ 97.110____________ 5.716% 98.635 5.400% ---------------------------------- _Low________________________________ 97.069___ 5.798% 98.642 5.372% ( 1 ) --------- ----------------------A v e r a g e ______________________________ 97.083___ 5.770% (1 ) (1 ) These rates areon a bank discount basis. The equivalent coupon issue yields are 5.54% for the 91-day bills and 6.04% for the 1 8 2 - d a y hills. (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 February 17, 1972 Dated August 19,1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The---------------------------------------Branch £1 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 t e o h rvsos f iclr cr e t eiin h rvsos f h p b i announcement i s e by t e Treasury Department, t e undersigned o f r t purchase Treasury b l s i t e amount ulc sud h h fes o il n h shown b l w and agrees t pay f rt 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 or l s from any one b d e , without s a e p i e w l be ac e t d i f l a t e average edr o 2000 es idr t t d rc, i l c p e n ul t h p i e ( nt r e d c m l ) o a c p e c m t t v b d . r c i h e e i a s f c e t d o pe i i e i s P i e s o l be ex rcs hud p e s d on t e b s s o rse h ai f 100 ,with n more than ot COMPETITIVE TENDERS $. $ three decimal p a e , lcs e g, 9 . 2 . F a t o s . 995 r c i n <s> 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 b ls cannot be made by o h s s u f il Number of c e i t Treasury Tax and Loan A c unt. rdt o co pieces Maturity Value METHOD OF PAYMENT @ $ 10,000 $. □ By maturing bills @ ? 15,000 $. held by-------------------------------------------□ Payment to be made by-------------------@ $ 50,000 $. @ $ 100,000 $. □ Charge our reserve account on payment @ ? 500,000 $. date |— Draft enclosed (Effectual delivery of enclosed d raft | @ $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 □ Pledge to secure Treasury Tax and Loan Account □ Ship to--------------------------------------- (Subscriber's full name or corporate title) ( Address) By- (Authorized official signature and title) (F or the account of, if tender is for another subscriber) (Address) IMPORTANT 1 No te . nder f r l s than $ 0 0 0 w l be c n i e e and each t d r over $ 0 0 0 must be f r an amount i m l i l s o o es 1 , 0 il osdrd en e 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 app o r a e branch a F s a Agent o t e . hud n lal o hs r rpit s icl f h United S a e , with n t t o on t e envelope reading “TENDER FOR TREASURY OFFERING”. S n e e v l p s tts oain h ic neoe 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 her matters s o l not be e c o e . Envelopes f r submitting t n e may be o t i e from t i ain eaig o t hud nlsd o e d rs 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 e t n e , t e 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 t e . f oprto h edr h hud ind fie f h o p r t o u h r z d o h 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 h inn f h fie f h o p r t o i l onstrued a a r p e e t t o by him t a he s ersnain ht has been s a t o i e . I the t o uhrzd f ender i made by a p r n r h p i s o l be s s atesi t hud igned by a member o t e f r , who f h im should s g i t eform “------------------ a c p r n r h p by------------------------------, in n h 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 i d d a e s i i v s . hs te noprtd rs r epnil e o n ze e l r 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 per e t o t e t t l amount ( e u i i s il irgre, nes eoi f c n f h oa maturity v l e au) o t Treasury b ls a p i d f r o u l s t e t n e s a e accompanied by an express guaranty o f l payment by an f he il p l e o , r n e s h e d r r f ul i c r o a e bank o t u t company. noprtd r rs 6 .I the 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 e S r a y o t e Treasury i f f hs s n e p c , h c , n h p n o f h ec et r f h s m t r a , th tender may be d s e a d d aeil e irgre. (See reverse for announcement)