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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 ITE D S T A T E S DALLAS. TELXAS 75222 Circular No. 71-309 Decem ber 28, 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 Treasury bills m aturing January 6, 1972, in the am ount of $3,892,460,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued Jan u ary 6, 1972, in the am ount of $2,300,000,000, or there abouts, representing an additional am ount of bills dated October 7, 1971, and to m ature April 6, 1972 (C U S IP No. 912793 M V 5), originally issued in th e am ount of $1,598,895,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,600,000,000, or thereabouts to be dated January 6, 1972, and to m ature Ju ly 6, 1972 (C U S IP No. 912793 N T 9 ). 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 their face am ount will be payable w ithout in tere st 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 F ederal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern S tandard Tim e, Monday, Jan u ary 3, 1972. T enders will not be received a t the T reasury D epartm ent, Washington. Each tender m ust be for a minim 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 th e basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged th a t tenders be m ade on th e printed forms and forwarded in th e special envelopes which will be supplied by Federal R eserve B anks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided th e nam es of the customers are set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for their 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 the face am ount of T reasury bills applied for, unless th e tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately after the closing hour, tenders will be opened a t th e Federal R eserve Banks and Branches, following which public announcem ent will be made 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 he Secretary of the T reasury exnressly 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 the bids m ust be m ade or com pleted a t the Federal Reserve B ank on Jan u ary 6, 1972 in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Janu ary 6, 1972. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar 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 the 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 than life insurance com panies) issued here under 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 the am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which th e return is made. ' T reasury D epartm ent Circular No. 418 (current 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 at this ban k and its branches at El Paso Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, January 3, 1972. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and A pproxim ate Y ield of Accepted T enders 91-Day Bills D ue M arch 30, 1972 $3,372,370,000______________ $2,300,425,000______________ Price Y ield 99.070____________3.679%.. 99.044____________3.782%.. 99.057____________3.731% (1)_ _Total A pplied For.. T otal A ccepted__ -High_ I Average. J ‘h e *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 3 . 8 3 % 1 8 2 - d a y bills. 182-Day Bills D ue Ju n e 29, 1972 ----------------------- $2,748,005,000 ----------------------- $1,600,105,000 Price Yield 98.029-----3.899% 97.985------------------ 3.986% 98.002-------------------3.952% (1 ) fo r t h e 9 1 - d a y b ills a n d 4 . 1 0 % fo r th e ' (S ee reverse for tender form ) i 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 Dated October 7,1971 Maturing April 6,1972 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The— -------------------------------- Branch El Paso 79999 Houston 77001 San Antonio 78295 (D a ta ) 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 oifers 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. Prices should be ex pressed on the basis of 100, with not more than COMPETITIVE TENDERS < _ $ th re e decim al places, e. g., 99.925. Fractions !, <fP m ust not be used. $ 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. pieces M a tu r ity V alue METHOD OF PAYMENT $ 1 0 ,0 0 0 $ - -@ $ 15.000 $_ -@ $ 50.000 $_ .<§! $ 1 0 0 ,0 0 0 $_ □ □ □ _@ $ 500,000 $_ □ $ 1 ,0 0 0 ,0 0 0 $_ Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to------------------------------------- By maturing bills held by___________________________ Payment to be made by_ 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 l l b e o n l a t e s t d a y w h i c 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 l y c olle 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 te title ) (A ddress) By( A u t h o r i z e d of 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 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 dd ress) IMPORTANT 1. No tender fo r 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 a fter 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 material, the tender may be disregarded. (S ee re v e rse f o r an n o u n cem en t)
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