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F ederal R eserve Ban k o f Dallas F I S 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. 71-304 D ecem ber 17, 1971 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n 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 D ecem ber 30, 1971, in the am ount of $3,901,690,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued D ecem ber 30, 1971, in the am ount of $2,300,000,000, or there abouts, representing an additional am ount of bills dated Septem ber 30, 1971, and to m ature M arch 30, 1972 (C U S IP No. 912793 M U 7 ), originally issued in th e am ount of $1,600,085,000, th e additional an d original bills to be freely interchangeable. 182-DAY B IL L S for $1,600,000,000, or thereabouts, to be dated D ecem ber 30, 1971, and to m ature Ju n e 29, 1972 (C U S IP No. 912793 N H 5 ). T he 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 th e ir face am ount will be payable w ithout interest. T h ey will be issued in b earer form only, and in denom inations of $10,000, $15,000, $50,000, $100,000 $500,000 and $1,000,000 (m atu rity value). T enders will be received a t F ederal R eserve B anks and Branches u p to th e closing hour, one-thirty p.m., E astern Standard Tim e, Monday, Decem ber 27, 1971. T enders will not be received a t the T reasury D epartm ent, W ashington. Each ten d 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 more th a n three decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be m ade on the printed forms and forwarded in th e special envelopes which will be supplied by F ederal R eserve Banks o r B ranches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided th e names of the customers are set forth in such tenders. O thers th an banking institutions will not 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 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 th e tenders are accompanied by an express guaranty of p aym ent by an incorporated bank or tru st company. Im m ediately after th e closing hour, tenders will be opened a t th e F ederal R eserve B anks and Branches, following which public announcem ent will be m ade by the T reasury D epartm ent of the am ount and price range of accepted bids. Only those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary of th e T reasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, an d his action in any such respect shall be final. Sub ject to these reservations, noncom petitive tenders for each issue for $200,000 o r less w ithout stated price from any one bidder will be accepted in full a t th e average price (in three decim als) of accepted com petitive bids for th e respective issues. Settlem ent for accepted tenders in accordance with th e bids m ust be m ade or completed a t th e Federal R eserve B ank on Decem ber 30, 1971, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing D ecem ber 30, 1971. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences betw een 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 Revenue 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 the bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other th a n life insurance com panies) issued here u nder m ust include in his income tax return, as ordinary gain or loss, the 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 or redem ption a t m aturity during th e taxable year for which the return is made. T reasury D ep artm en t C ircular No. 418 (curren t revision) and this notice, prescribe th e term s of th e T reasury bills and govern th e conditions of th eir issue. Copies of th e circular m ay be obtained from any Federal R eserve B ank 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 a n d San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, December 27, 1971. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell _______________ President Figures co n cern in g offerin g o f 9 1 -D ay T reasury Bills m aturing M arch 2 3 , 1 9 7 2 , a n d 1 8 2 -D a y T reasury Bills m aturin g Ju n e 22, 1972 , not a v a i la b l e w h en this circular w a s p rinted. (S ee reverse for ten der form ) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Maturing March 30, 1972 Dated September 30,1971 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 a t 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. COMPETITIVE TENDERS I $ $ @ Prices should be ex pressed on the basis of 100, with not more than th re e decim al p laces, e. g., 99.925. Fractions m ust not be used. $ s TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment for this issue of bills cannot be made by N u m b e r of credit to Treasury Tax and Loan Account. M a tu r ity V alue pieces METHOD OF PAYMENT $ 10,000 $_ $ 15.000 $_ □ □ _<S> $ 50.000 -@ $ 1 0 0 ,0 0 0 $_ @ $ 500,000 $_ @ □ $ 1,000,000 $ _______________ Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to------------------------------------- I By maturing bills held by------------------------------------Payment to be made by--------------------Charge our reserve account on payment date | Draft enclosed (E ffectual delivery o f enclosed d r a f t sh a ll he on l a 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 b t a i n i r r 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 d ate) (S u b s c r ib e r 's full n a m e o r c o rp o r a t e title ) (A ddress) By- ( 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) IMPORTANT 1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust 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 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 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 m aterial, the tender may be disregarded. (S e e re v e rse f o r ann o u n cem en t)