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Federal Reserve Bank of Dallas
F IS 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. 71-256
O ctober 26, 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 statem ent giving details of two Issues of Treasury bills:
T he T reasury D epartm ent, by 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 Novem ber 4, 1971, in the am ount of
$3,700,820,000 as follows:
91-DAY B IL L S (to m aturity d ate) to be issued Novem ber 4, 1971, in the am ount of $2,300,000,000, or there­
abouts, representing an additional am ount of bills dated August 5, 1971, and to m ature F ebruary 3, 1972
(C U S IP No. 912793 M L 7 ), originally issued in the am ount of $1,600,870,000, th e additional and original
bills to be freely interchangeable.
182-DAY B IL L S for $1,600,000,000, or thereabouts, to be dated N ovem ber 4, 1971, and to m ature M ay 4, 1972
(C U S IP No. 912793 M Z 6).
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 hey 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 atu rity v alue).
T enders will be received a t Federal R eserve B anks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, M onday, Novem ber 1, 1971. T enders will not be received a t the T reasury D epartm ent, W ashington. Each
tender 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 the basis of 100, w ith not more th a n three decimals, e.g., 99.925. Fractions may
not be used. I t is urged th a t tenders be made on the printed forms and forwarded in th e special envelopes which will be
supplied by F ederal R eserve Banks or Branches on application therefor.
B anking institutions generally may subm it tenders for account of customers provided the nam es of th e customers are
set forth in such tenders. O thers th an banking institutions will not be perm itted to subm it tenders except for their own accou n t
T enders will be received w ithout deposit from incorporated banks and tru st 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 th e 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 th e closing hour, tenders will be opened a t the F ederal R eserve Banks and Branches, following which
public announcem ent will be made by the T reasury D ep artm en t of th e 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 he Secretary of the T reasury expressly
reserves th e 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 th e average price (in three decimals) of accepted com petitive bids for th e respective issues. S ettlem ent for
accepted tenders in accordance with th e bids m ust be m ade or completed a t the F ederal R eserve B ank on Novem ber 4, 1971,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing N ovem ber 4, 1971. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p a r value of m aturing
bills accepted in exchange and th e 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 the 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
under m ust include in his income tax return, as ordinary gain or loss, th e difference between th e price paid for th e bills, w hether on
original issue or on subsequent purchase, and th e am ount actually received either upon sale o r redem ption a t m aturity during the
taxable y ear for which the return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s of th e Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any F ederal R eserve Bank or Branch.

In accordance with the above announcement, tenders will be received a t this bank a n d its branches a t El Paso,
Houston an d San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, November 1, 1971. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell
______________
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and A pproxim ate Yield of A ccepted T enders
91-Day Bills
182-Day Bills
D ue January 27, 1972
D ue April 27, 1972
$4,154,650,000_____________________
...Total Applied For..
-$2,982,875,000
$2,301,750,000----------------------------------------T otal
Accepter
.$1,600,410,000
Price
Yield
Price
Yield
98.882___________ 4.423% _____________
High
________________97.717..
-4.516%
98.872____________ 4.462% ________________
_ Low _ _
____
97,700...
4.549%
98.877____________ 4.443% (1 )
_________
..Average___________________ 97.710_
4.530% (1 )
( 1 ) T h e s e r a t e s a r e o n a b a n k d i s c o u n t b a s is . T h e e q u i v a l e n t c o u p o n i s s u e y i e l d s a r e 4 . 5 7 % f o r t h e 9 1 - d a y b i l l s a n d 4 . 7 1 % f o r t h e
1 8 2 - d a y b ills .

(S ee reverse for tend er 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 November 4, 1971

Maturing May 4, 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.

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 bids.
Prices should be ex­
pressed on the basis of

COMPETITIVE TENDERS

$ _______________ @______ $______________________ Jhrefdedma^^la^s1
@
!
$
s

@

. . ..
. ..
.

$

e. g., 99.925. Fractions
m ust not be used.

SST1 TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired

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

N um ber of
Piecea

M a tu rity V alue

10,000
15,000
& $ 50,000
< $ 100,000
®
$ 500,000
< $1,000,000
®
<p) ?
(a) $

$
$
$

□

By maturing bills
held by-----------------------------------------Payment to be made by_

□

?

□

%

|

$

I

Charge our reserve account on payment
date
Draft enclosed ( E f f e c t u a l d e l i v e r y o f e n c l o s e d d r a f t
s h a ll be on la t e s t d a y w h ic h w ill p e r m i t p r e s e n t m e n t in
o r d e r to o h t a i n i r r e v o c a b l y c o llected f u n d s o n p a y m e n t
d ate)

Delivery Instructions:
□

□
□

H o ld

in

C U S to d y

A cC O U nt

M e m b e r

<SuhB cribe."s fuU n a m e o r c o m o r a t e tit le )

banks for own account o
n
l
Pledge to secure Treasury Tax and
Loan Account
Ship to-------------------------------------

y

____________________________________
(A ddress)

By--------

( A u t h o r i z e d o f fi 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 of.

if

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)

IMPORTANT
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 (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 afte r 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 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 th a t 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 tru st compan ies 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 Treasury is
m aterial, the tender may be disregarded.
'
(S ee re v e rse f o r an no un cem ent)

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