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F ederal R eserve 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 C ircular No. 71-206 A ugust 27, 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 T reasury D epartm ent, b y this public notice, invites tenders for two series of T reasury bills to th e aggregate am ount of $3,900,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Septem ber 9, 1971, in th e am ount of $3,702,250,000, as follows: 91-DAY B IL L S (to m a turity d ate) to be issued Septem ber 9, 1971, in th e am ount of $2,300,000,000, or there abouts, representing an additional am ount of bills dated Ju n e 10, 1971, and to m ature D ecem ber 9, 1971 (C U S IP No. 912793 L V 6), originally issued in the am ount of $1,400,480,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,600,000,000, or thereabouts, to be dated Septem ber 9, 1971, and to m ature M arch 9, 1972 (C U S IP No. 912793 M R 4 ). 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 a t m aturity their face am ount will 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 value). T enders will be received a t F ederal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Friday, Septem ber 3, 1971. T enders will not be received a t th e T reasury D epartm ent, Washington. Each ten d er m ust be for a m inim 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 th e basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged th a t tenders be m ade on th e printed forms an d forwarded in th e special envelopes which will be supplied by F ederal R eserve B anks or B ranches on application therefor. B anking institutions generally may subm it tenders for account of customers provided the names of th e customers are set forth in such tenders. O thers th a n banking institutions will not be perm itted to subm it tenders except for th e ir own account. T enders will be received without deposit from incorporated banks and tru st companies 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 T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately a fte r th e closing hour, tenders will be opened a t th e Federal R eserve Banks and Branches, following which public announcem ent will be m ade by th e T reasury D epartm en t of the am ount and price range of accepted bids. Only those subm itting com petitive tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of the T reasury 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 a t the average price (in three decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for accepted tenders in accordance with the bids m ust be made or com pleted a t the F ederal R eserve B ank on Septem ber 9, 1971, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Septem ber 9, 1971; provided, however, th a t settlem ent for tenders subm itted to th e Federal R eserve B ank of San Francisco or its Los Angeles B ranch m ust be com pleted a t the bank or branch on Septem ber 10, 1971, and m ust include one day’s accrued interest if settlem ent is m ade with other th an T reasury bills m aturing Septem ber 9. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between th e p ar value of m aturing bills accepted in exchange and the issue price of the new bills. U nder Sections 454 (b ) and 1221 (5 ) of th e Internal R evenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is considered to accrue when th e bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other th an life insurance com panies) issued here u nder m ust include in his income tax return, as ordinary gain or loss, the difference between the price paid for the bills, w hether on original issue or on subsequent purchase, an d th e am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which th e return is made. T reasury D ep artm en t C ircular No. 418 (curren t revision) and this notice, prescribe th e term s of th e T reasury bills and govern th e conditions of their issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank 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, Friday, September 3, 1971. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell ______________ President Figures c o n c e rn in g offering o f 9 1 -D ay T reasury Bills maturing D e c e m b e r 2, 1 9 7 1 , a n d 1 8 2 -D a y Treasury Bills maturing M arch 2, 1 9 7 1 , no t a v a i la b l e w h e n this circular w a s printe d. (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 September 9,1971 Maturing March 9, 1972 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 for the amount allotted, on or before the issue date, by the method and at the rate indicated. PLEASE OBSERVE CLOSING DATE — FRIDAY, SEPTEMBER 3, 1971 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 b.ds. $ ----------------------------- @ ________ $ ------------------------------ COMPETITIVE TENDERS Prices should be ex pressed on the basis of @_____ $_______________________Sre^ ecT m aT pla^ , ($- ----------------------@ ----------- $ -------------------------------------- e g . , 99.925. Fractions must not be used. BSP TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Number of Piecea Denominations Desired . . . . . . Maturity Value M % 10,000 %(5) $ 15,000 %© ? 50,000 ?- Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD 0 PAYMENT " □ □ -© $ 100,000 ?-© ? 500,000 $-<S> $1,000,000 ?Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ □ By maturing bills held-by--------------------------------------- -Payment to be made by_ □ Charge our reserve account on payment date | | Draft e n c l o s e d (Effectual delivery of enclosed d ra ft shall be on latest day which will p e rm it p re s e n tm e n t in ^ obtain irrevocahly colle<!te<1 lund"on paymen* (S u b ^ r ita e r '. full nam e o r c orpo ra te title) Pledge to secure Treasury Tax and--------------Loan Account ByShip to------------------------ (Address)--------------(A uthorized official eigrnatnre a nd title) ( F o r th e account of, if te nder is fo r an o th e r subscriber) (Address) IMPORTANT I. 2 3. 4. 5. ’ 6. ' 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). 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. Any qualified or conditional tender will be rejected. 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 should sign in the form ------------------------------------- , a copartnership, by-------------------------------------------------------------------- a member of the firm.” Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in vest 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. 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)
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