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Circular No. 71-249
October 19, 1971


To AM Banking Institutions a n d O thers Concerned
in th e Eleventh Federal Reserve District:

Your atte n tio n is invited to th e follow ing sta te m e n t giving details of tw o issues of Treasury bills:
The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of
$1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing October 31, 1971, in the amount of
$1,701,110,000, as follows:
273-DAY BILLS (to maturity date) to be issued November 1, 1971, in the amount of $500,000,000, or there­
abouts, representing an additional amount of bills dated July 31, 1971, and to mature July 31, 1972
(C USIP No. 912793 N J 1 ), originally issued in the amount of $1,202,455,000, the additional and original bills
to be freely interchangeable.
366-DAY BILLS for $1,200,000,000, or thereabouts, to be dated October 31, 1971, and to mature October 31,
1972 (C USIP No. 912793 N M 4).
T he bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form only, and in
denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Daylight Saving Time, Tuesday, October 26, 1971. Tenders will not be received at the Treasury Department, Washington.
Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. In the case of competitive
tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not
be used. (Notwithstanding the fact that the one-year bills will run for 366-days, the discount rate will be computed on a bank dis­
count basis of 360-days, as is currently the practice on all issues of Treasury bills.) It is urged that tenders be made on the printed
forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of customers provided the names of the customers are
set forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their own account.
Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or
trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only those sub­
mitting competitive tenders will be advised of the acceptance or rejection thereof. The 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.
Subject to these reservations, noncompetitive 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 decimals) of accepted competitive bids for the respective issues.
Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on
November 1, 1971, in cash or other immediately available funds or in a like face amount of Treasury bills maturing
October 31, 1971. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences
between the par value of maturing bills accepted in exchange and the issue price of the new bills.
Under Sections 454 (b ) and 1221 (5 ) of the Internal Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued here­
under must include in his income tax return, as ordinary gain or loss, the difference between the price paid for the bills, whether on
original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

In acco rd a n c e with th e a b o v e a n n o u n c e m e n t, ten d ers will b e received a t this b a n k a n d its b ra n c h e s a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, Tuesday, O ctober 26, 1971. Tenders
m a y not b e e n te re d by te le p h o n e.
Your v ery truly,
P. E. Coldwell
(See reverse for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated October 31,1971

Maturing October 31, 1972

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The--------------------------------------- Branch
El Paso 79999 Houston 77001

San Antonio 78295


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.


.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 bids.
Prices should be ex­
pressed on the basis of
100, with not more than
three decimal places,
e. g., 99.925. Fractions
must not be used.
Denominations Desired
Number of

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M aturity Value

.(fib $
<> $


10,000 $
15,000 $-


50,000 $(5) $ 100,000 *(5) $ 500,000
<> $


By m aturing bills
held by_____________________________
Paym ent to be made by______________


Charge our reserve account on paym ent
I I D raft enclosed (Effectual delivery of enclosed d ra ft

(5) $1 ,000,000 *

shall be on latest day which will perm it presentm ent in
order to obtain irrevocably collected funds on paym ent

Delivery Instructio ns:

Hold in Custody Account—Member
banks fo r own account only
Pledge to secure T reasury Tax and
Loan Account
Ship to---------------------------------------

(Subscriber’s fu ll nam e or corporate title)

By(Authorized official signature and title)
(For the account of, if tender is for another subscriber)

1. 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).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or apropriate 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.
3. Any qualified or conditional tender will be rejected.
4. 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”.
5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest­
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.
6. 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 fo r announcement)

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