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R e s e r v e Ba n k o f D a lla s

FIS C A L AG EN T O F T H E UNITED ST A TES

DALLAS, TEXAS

75222
Circular No. 71-310
Decem ber 28, 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 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 January 6, 1972, in the am ount of
$3,892,460,000, as follows:
91-DAY B ILLS (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 S ), originally issued in the 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 July 6, 1972
(C U S IP No. 912793 N T 9 ).
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 value).
T enders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, January 3, 1972. T enders will not be received a t th e T reasury D epartm ent, W ashington. Each
tender m ust be for a minim um of $10,000. T enders over $10,000 must 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, with not more th an three decimals, e.g., 99.925. Fractions m ay
not be used. It is urged th a t tenders be m ade on the printed forms and forwarded in the special envelopes which will be
supplied by Federal R eserve Banks or B ranches on application therefor.
B anking institutions generally may subm it tenders for account of customers provided the nam es of the customers are
set forth in such tenders. Others th an 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 companies and from responsible and recognized
dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after th e closing hour, tenders will be opened a t the F ederal Reserve Banks and Branches, following which
public announcem ent will be m ade by the T reasury D ep artm en t of the 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 the T reasury expressly
reserves the 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 decimals) of accepted com petitive bids for the 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 Janu 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 the new bills.
U nder Sections 454 (b ) and 1221 (5 ) of the Internal Revenue Code of 1954 the 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 than life insurance com panies) issued here­
under m ust include in his income tax return, as ordinary gain or loss, the difference between the price paid for the 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 the
taxable year for which the 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 their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In accordance with the above announcement, tenders will be received at this bank and its branches a t El Paso,
Houston an 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
182-Day Bills
D ue M arch 30, 1972
D ue Ju ne 29, 1972
$3,372,370,000
T otal Applied F o r________________________
-$2,748,005,000
$2,300,425,000------------------T otal A ccepted______________________
$1,600,105,000
P rice
Y ield
Price
Y ield
99.070------------3.679% ---------------------------------.H igh_____________________ 98.029...............
3.899%
99.044-----------3.782% ------------------Low______
97.985____________ 3.986%
99.057-------------3.731%
( 1 ) --------------- Average................................
.98.002..................... ....3.952% (1 )

ill

T h e s e r a t e s a r e ° 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 issu e y ie ld s a r e 3 . 8 3 %
1 8 2 - d a y b ills .
' '

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 )

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
Maturing July 6,1972

Dated January 6,1972

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The________________________ Branch
El Paso 79999 Houston 77001

San Antonio 78295

(D ate)

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 a t the average
price (in three decimals) of accepted competitive bids.
$__________________________

Prices shouldbe ex­
pressed on the basis of
«
100, with not more than
^-----------------------------------th re e decim al places,
e. g., 99.925. Fractions
? -----------------------------------must not be used.

COMPETITIVE TENDERS

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
D eno m in ation s D esired
Payment for this issue of bills cannot be made by
N u m b e r of
credit to Treasury Tax and Loan Account.
pjec/v
M atu rity V alue
METHOD OF PAYMENT

□

@ $

10,000 $_
15.000 $_

— @ $

50.000 $_

□

— @ $

1 0 0 ,0 0 0 $_

—

500,000 $_____________

—

® $

@ ?

@

□

Charge our reserve account on payment
date

|“| Draft enclosed
"

$ 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------------------------------------

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

(E ffe c tu a l d e liv e ry o f enclosed 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 i l l 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 ly collected f u n d a o n p a y m e n t
d ate)

( 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 t it le )

(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 ia f o r a n o t h e r s u b s c r i b e r )

(A ddress)

IM P O R T A N T

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 that 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 trust 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.
5. 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 e n t)

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