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F ederal Reserve Bank of Dallas


C ircular No. 71-272
N ovem ber 16, 1971

To All Banking Institutions an d 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 h e 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 N ovem ber 26, 1971, in the am ount of
$3,701,110,000, as follows:
90-DAY B IL L S (to m aturity d ate) to be issued N ovem ber 26, 1971, in the am ount of $2,300,000,000, or th ere­
abouts, representing an additional am ount of bills dated August 26, 1971, and to m ature F ebruary 24, 1972
(C U S IP No. 912793 M P 8 ), originally issued in the am ount of $1,600,030,000, the additional and original
bills to be freely interchangeable.
181-DAY B IL L S for $1,600,000,000, or thereabouts, to b dated N ovem ber 26, 1971, and to m ature M ay 25, 1972
(C U S IP No. 912793 N C 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 aturity v alu e).
T enders will be received a t Federal Reserve B anks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, M onday, Novem ber 22, 1971. T enders will not be received a t the T reasury D epartm ent, W ashington. Each
tend 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 th e case of com petitive
tenders th e price offered m ust be expressed on the basis of 100, w ith not m ore th an th ree decimals, e.g., 99.925. Fractions m ay
not be used. I t is urged th a t tenders be m ade on th e p rinted forms and forwarded in th e special envelopes w hich will be
supplied by F ederal R eserve Banks or B ranches on application therefor.
B anking institutions generally m ay subm it tenders for account of custom ers provided th e nam es of th e customers are
set forth in such tenders. Others th a n banking institutions will n o t be perm itted to subm it tenders except for th e ir own account.
T enders will be received w ithout deposit from incorporated banks and tru st com panies and from responsible an d 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 th e tenders are accom panied by an express guaranty of paym ent b y a n incorporated bank or
tru st company.
Im m ediately after th e closing hour, tenders will be opened a t the F ederal R eserve B anks and Branches, following which
public announcem ent will be m ade by th e T reasury D epartm 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 h e Secretary of th e 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 the average price (in three decim als) of accepted com petitive bids for the respective issues. S ettlem ent for
accepted tenders in accordance w ith th e bids m ust be m ade or com pleted a t th e F ederal R eserve B ank on N ovem ber 26, 1971,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing N ovem ber 26, 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 the issue price of th e 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 th e bills are excluded
from consideration as capital assets. Accordingly, th e owner of T reasury bills (other th a n life insurance com panies) issued here­
under m ust include in his income tax return, as ordinary gain or loss, the difference betw een 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 or redem ption a t m atu rity during th e
taxable year for which the return is made.
T reasury D ep artm en t C ircular No. 418 (cu rrent revision) and this notice, prescribe th e term s of th e T reasury bills and
govern th e conditions of th e ir issue. Copies of the 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 a t this ban k a n d its branches a t El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, November 22, 1971. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell
Amount, R ange and A pproxim ate Y ield of Accepted T enders
91-Day Bills
182-Day Bills
D ue F ebru ary 17, 1972
D ue M ay 18, 1972
T otal Applied F o r--------------------------------------------_.._$3 303,495,000
$2,300,825,000-------------------------------------------------T otal A ccepted________
Y ield
.4.091% -------------------------------------- .H igh_____
4.138% --------------------------------------- Low________________
98.958----------------- .4.122% ( 1 ) ------------------------------ A verage______________
....97.849____________ 4.255% (1 )
( 1 ) T h e ; 3 r a t e s a r e o n a b a n k d is c o u n t b a s is . T h e e q u iv a le n t c o u p o n iss u e y ie ld s a r e 4 . 2 4 % f o r t h e 9 1 - d a y b ills a n d 4 . 4 2 %
1 8 2 - d a y b ills .

for th e

(See reverse for tender form )

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


Dated August 26,1971

Maturing February 24,1972

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

San Antonio 78295



Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e
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 a t 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

COMPETITIVE TENDERS '$_______________ to______ $____________________



100. w ith not m o r e than
three decimal places,
e. g., 99.925. Fractions
must not be used.


Number of

Denominations Desired

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


M a tu rity V alue

< ¥ 15,000
@ $ 50,000
@ $ 100,000
to $ 500,000
to $1,0 ^0,000

< $




Delivery Instructions:
□ Hold in Custody Account Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account

By maturing bills
held by___________________________ _
Payment to be made by_


Charge our reserve account on payment
| | 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 te 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 b t a i n irr e v o c a b ly collected f u n d s o n p a y m e n t


(S u b s c r i b e r 's full n a m e o r c o r p o r a t e title )


(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 )


Ship t o _ -------------------------------( 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)

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 o - 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 officer of the corporation authorized to make th e
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 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 (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
material, the tender may be disregarded.
(S ee re v e rse f o r an n o u n cem en t)

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