The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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)