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F ederal Reserve Bank of Dallas F IS C A L A G E N T O F T H E U NITED ST A T E S DALLAS, TEXAS 75222 Circular No. 71-235 October 1, 1971 NEW OFFERING — TREASURY BILLS To All B a n k in g Institution s a n d O th e r s C o n c e r n e d In t h e E leventh F e d e r a l R eserve District: Y our a t t e n t i o n is in v ite d to th e fo llo w in g s t a t e m e n t g iving d e ta ils of tw o iss u e s of T re as u ry bills: T h e T r ea su ry D e p a r tm e n t, b y th is p u b lic n o tic e, in v ite s ten d ers for tw o series o f T rea su ry b ills to th e ag g reg a te am o u n t o f $ 3 ,9 0 0 ,0 0 0 ,0 0 0 , or th erea b o u ts, fo r cash and in ex ch a n g e fo r T r ea su ry b ills m atu rin g O ctob er 14, 1971, in th e a m o u n t of $ 3 ,9 0 2 ,5 1 0 ,0 0 0 , a s fo llo w s: 9 1 -D A Y B I L L S ( to m a tu rity d a te ) to b e issu ed O ctober 14, 19 71 , in th e am ou n t o f $ 2 ,3 0 0 ,0 0 0 ,0 0 0 , or th e re ab o u ts, rep resen tin g an a d d ition a l a m o u n t o f b ills d a te d J u ly 15, 1 9 7 ! , an d to m a tu re Jan u a ry 13, 1972 ( C U S I P N o . 9 1 2 7 9 3 M H 6 ) , o rig in a lly issu ed in th e a m o u n t o f $ 1 ,6 0 0 ,5 6 5 ,0 0 0 , th e ad d itio n a l an d origin al b ills to b e fr e e ly interch an geab le. 1 8 2 -D A Y B I L L S for $ 1 ,6 0 0 ,0 0 0 ,0 0 0 , or th erea b o u ts, to b e d a te d O ctob er 14, 19 7 1, an d to m atu re A p ril 13, 1972 (C U S IP N o. 912793 M W 3 ). T h e b ills o f b o th series w ill b e issu ed o n a d isc o u n t b asis u n d er c o m p e titiv e and n o n c o m p e titiv e b id d in g a s h erein a fter p ro v id ed , an d a t m a tu rity their fa c e a m o u n t w ill b e p a y a b le w ith o u t in terest. T h e y w ill be issu ed in b earer form o n ly , an d in d e n o m in a tio n s o f $ 1 0 ,0 0 0 , $1 5 ,0 0 0 , $ 50 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 and $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a lu e ) . T e n d e r s w ill b e rece iv ed a t F ed era l R e s e r v e B a n k s a n d B r a n c h e s u p to th e c lo sin g hour, o n e-th irty p .m ., E astern D a y lig h t S a v in g T im e , F rid ay , O ctob er 8, 1971. T e n d e r s w ill n o t b e re c e iv e d at th e T r ea su ry D e p a r tm e n t, W a sh in gto n . E a c h ten d er m u st b e for a m in im u m o f $10 ,00 0 . T e n d er s o v er $ 10 ,0 0 0 m u st b e in m u ltip le s o f $ 5,0 00 . In th e case o f c o m p e titiv e ten d e rs th e p rice offered m u st b e exp ressed on th e b asis o f 100, w ith n o t m ore th a n th r ee d ecim a ls, e.g., 9 9 .92 5 . F ra ctio n s m ay n ot be used. It is urged th a t ten d ers be m a d e on t h e p rin ted ‘ orm s a n d forw ard ed in th e sp ec ia l e n v e lo p e s w h ich w ill be su p p lie d by F ed e r a l R e s e r v e B a n k s or B ra n ch es on a p p lica tio n therefor. B a n k in g in stitu tio n s g en era lly m a y su b m it te n d e r s for a cco u n t o f cu stom ers p ro vid ed th e n am es o f th e cu sto m ers are se t fo rth in su ch ten d ers. O thers th an ban k in g in stitu tio n s w ill n o t b e p er m itte d to su b m it ten d ers ex c e p t for th eir o w n a c c o u n t T e n d e r s w ill be r e ce iv ed w ith o u t d ep o sit from in corp orated ban k s and trust co m p a n ie s and from resp onsib le a n d recogn ized d ea lers in in v e stm e n t secu rities. T e n d er s from oth ers m u st b e a c c o m p a n ie d b y p a y m e n t o f 2 p ercen t o f th e fa c e a m o u n t of T reasu ry b ills a p p lied for, u n less t h e ten d e rs are a cco m p a n ied b y an exp ress guaran ty o f p a y m e n t by an :.,co ip o ra ted bank or tru st com p any. Im m e d ia te ly a fte r t h e closin g hour, ten d e rs w ill b e o p en ed a t th e F ed era l R e s e r v e B a n k s a n d B ra nches, fo llo w in g w hich p u b lic a n n o u n c em en t w ill be m a d e by th e T r ea su ry D e p a r tm e n t o f th e am ou n t and p rice ran ge of a cc e p te d bids. O n ly th o se su b m ittin g c o m p e titiv e ten d ers w ill b e a d v ised o f t h e a ccep ta n ce or rejectio n thereof. T h e S ecretary o f th e T r ea su ry ex p ressly reserv es th e right to a c c e p t or reject a n y or all ten d ers, in w h o le or in part, and his a ctio n in a n y su ch resp ect shall be final. S u b ject to th e se reserva tio n s, n o n c o m p e titiv e ten d e rs for each issu e for $ 2 0 0 ,0 0 0 or less w ith o u t sta ted price from a n y o n e bid der w ill b e accep ted in fu ll a t th e a v erage p rice (in th ree d e c im a ls) of a ccep ted c o m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for a c c e p te d ten ders in accord an ce w ith th e b id s m u st b e m a d e or co m p le te d a t th e F ed era l R e s e r v e B a n k on O ctob er 14, 1971, in cash or o th er im m e d ia te ly a v a ila b le fu n d s or in a lik e fa ce am ou n t o f T rea su ry b ills m atu rin g O ctober 14, 1971. Cash and ex ch a n g e ten ders w ill r e ce iv e eq u al trea tm en t. C ash a d ju stm en ts w ill b e m a d e for d ifferen ces b e tw e e n t h e par v a lu e o f m atu rin g b ills a ccep ted in ex ch a n g e an d th e issu e price o f th e n ew bills. U n d er S e c tio n s 4 5 4 ( b ) a n d 1221 ( 5 ) o f th e In tern al R e v e n u e C od e o f 1954 th e a m o u n t o f d iscou n t a t w h ich b ills issued h ereu n d er are sold is con sid ered to accrue w h en th e b ills are sold , red eem ed or oth erw ise d isp osed of, and th e b ills are exclu d ed from con sid eratio n as ca p ita l assets. A ccordin gly, t h e ow n er o f T rea su ry b ills (o th e r th a n life insurance c o m p a n ie s) issu ed h ere un d er m u st in clu d e in h is in com e ta x return, a s ord in ary gain or loss, t h e d ifferen ce b etw een th e p rice p aid for th e b ills, w h eth er on orig in al issu e or o n su b seq u e n t purchase, an d t h e a m o u n t a c tu a lly r e ce iv ed e ith er u p on sa le or r ed em p tio n a t m a tu r ity du rin g the ta x a b le year fo r w h ich t h e return is m ade. T rea su ry D e p a r tm e n t Circular N o. 4 1 8 (cu rren t r e v is io n ) a n d th is n o tic e, p rescrib e th e term s o f t h e T rea su ry b ills and g ov ern th e co n d itio n s o f th eir issue. C o p ies o f th e circular m a y be o b ta in ed from an y F ed e r a l R e s e r v e B a n k or Branch. In a c c o r d a n c e w ith th e a b o v e a n n o u n c e m e n t , te n d e r s will b e rec eiv e d a t this b a n k a n d its b r a n c h e s a t El P aso, Houston a n d San A n to n io u p to tw e l v e - th ir ty p .m ., Central D a y lig h t S a v in g Time, Friday, O c to b e r 8, 1971. T end ers m ay n o t b e e n t e r e d b y te l e p h o n e . Yours v e ry truly, P E. Coldw ell P re sid e n t Fi g u re s c o n c e r n i n g o f f e r i n g o f 9 1 - D a y T r e a s u r y Bills m a t u r i n g January 6, 1972, and 1 8 2 - D c y T r e a s u r y Bills m a t u r i n g April 6 , 1 9 7 2 , n o t a v a i l a b l e w h e n th is c ir c u l a r w a s p r i n t e d . (See 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 CAYS TC MATURITY Dated October 14, 1971 Maturing April 13, 1972 To: Federal Reserve Bank, Station K, Dallas, T exas 75222 or — Th e____________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 ------------------------------ (Datij ~ 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 am ount shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated. NONCOMPETITIVE T E N D E R $__________________________________________NOT TO EXC E E D $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 ox i----------------------------------------------------------------------------------------- pressed on the basis of en 00 PS £3 PQ O ™0, n-ot al T rplaces, <i than COMPETITIVE T E N D E R S h ._________________ @ ^ _______ $________________________ v* th re e decim j e. g 99.925. Fractions VI------------------------------¥------------------------------m ust not be used. IRjT TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E ' CLOSING HOUR, ARE ACCEPTABLE. H W O . PS P* Q . £jr Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account, METHOD OF PAYMENT . M atu rity V alue ¥ 10,000 $- <5> $ 15,000 $- @ (® $ 50,000 $-----------------------$- o. ?. 100,000 $. . D £ finn nnn $ 500,000 $. (?) $ (§) $1,000,000 $_______________________ ,000,000 ?. *1 □ □ □ ” D elivery In stru ctio n s I By m aturing bills held by_ P aym ent to be made by_ Charge our reserve account on p ay m en t □ _ I . N um ber ol pieces ^ H . Denominations Desired D r a f t enclosed (E ffectual delivery of enclosed draft s h a l l be o n l a t e s t d a y w h i c h w i l l p e r m i t p r e s e n t m e n t i n o r d e r to o b t a i n irr e v o c a b l y c o lle c te d f u n d s o n p a y m e n t § J □ Hold in Custody Account— Member banks for own account only ____________________________________________________ __ (S u b scrib er’s fu ll n a m e o r co rp o ra te title) ^ UJ C n1— * TPledgea to secure Treasury T ax and i Loan Account ------------------------------------— — ------------------------------------(A d d reaa) «H r-. O V .V Xfl n Q w □ Ship to ( A u t h o r i z e d o f f i c ia l 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 o f . 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 ) ___________________________________________ (A ddress) W IMPORTANT ^ 1J 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 (m aturity 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 m atters should not be enclosed. Envelopes for submitting tenders may be obtained from th is bank or appropriate branch. 3. Any qualified or conditional tender will be rejected. 4. If a corporation makes the tender, the form should be signed by an ofiicer 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 th a t he has been so autlmrized. 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.” 5. Tenders from those other than incorpc -ated banks and .rust compunies or responsible and recognized dealers in invest ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity 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 tru st company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the T reasury is material, the tender may be disregarded. (See reverse for announcement)
@FedFRASER