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F ederal 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. 72-51
M arch 14, 1972

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 s ta te m e n t giving details of two issues of Treasury bills:
T he Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $4,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing March 23, 1972, in the am ount of
$3,909,510,000, as follows:
91-D A Y B IL L S (to m aturity date) to be issued March 23, 1972, in the am ount of $2,400,000,000, or there­
abouts, representing an additional amount of bills dated D ecem ber 23, 1971, and to mature June 22, 1972
(C U S IP No. 912793 N G 7 ), originally issued in the amount of $1,601,755,000, (an additional $204,310,000 was
issued on March 6, 1 9 72 ), the additional and original bills to be freely interchangeable.
182-DA Y B IL L S for $1,800,000,000, or thereabouts, to be dated March 23, 1972, and to mature Septem ber 21,
1972 (C U S IP No. 912793 P D 2 ) .
T he bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face amount w ill be payable w ithout interest. T h ey 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 va lu e).
Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard T im e, M onday, March 20, 1972. Tenders w ill not be received at the Treasury Departm ent, W ashington. Each
tender m ust be for a m inim um of $10,000. Tenders 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, with not more than three decimals, e.g., 99.925. Fractions may
not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account.
Tenders will be received without deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of the 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 the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcem ent w ill be made by the Treasury D epartm ent of the amount 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 Treasury 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 without stated price from any one bidder will
be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be made or com pleted at the Federal Reserve Bank on March 23, 1972,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing March 23, 1972. Cash and
exchange tenders will receive equal treatment. Cash adjustm ents will be made for differences betw een the par value of maturing
bills accepted in exchange and the issue price of the new bills.
Under Sections 454 (b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the amount of discount at 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 Treasury 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, whether on
original issue or on subsequent purchase, and the amount actually received either upon sale or redem ption at m aturity during the
taxable year for which the return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch.

In acco rd an ce with the a b o v e a n n o u n c e m e n t, tenders will be received a t this b a n k a n d its branch es a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central S tan d ard Time, M o n d ay , March 20, 1972. Tenders m ay not
be en te re d by telep h o n e.
Yours very truly,
P. E. Coldwell
______________
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Y ield of A ccepted Tenders
91-D ay B ills
182-Day B ills
D u e June 15, 1972
D u e Septem ber 14, 1972
$3,460,975,000_____________________________ ' G-T o ta l A pplied For_________________________________ $3,015,460,000
$2,400,105,000___________________
T otal A ccepted________________________________AJ_$1,800,135,000
Price
Y ield
Price
Yield
9 9.060
3.719% ___________________________ H ig h ______________________ 97.903____________ 4.148%
99.010
3.916% ____________________________ Low______________________ 97.861____________ 4.231%
99.028
3.845% ( 1 ) _________________ Average_________________________ 97.879____________ 4.195% (1 )
( 1 ) T h ese rates are on a bank discou nt basis. T h e eq u iv alen t coupon issue y ie ld s are 3 .9 4 % for th e 9 1 -d a y bills and 4 .3 5 % for the
18 2 -d a y bills.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
(S e e reverse for tender form )

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Maturing September 21,1972

Dated March 23,1972
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 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.
/a*
c
p
Prices should be ex­
pressed on the basis of
100, with not more than
COMPETITIVE TENDERS $
$
I
@
th re e decim al places,
e. g., 99.925. Fractions
$
@
$
must not be used.
TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT

Denominations Desired
Number of
pieces

M aturity V alue

@ $ 10,000
@ $ 15,000
@ $ 50,000
@ $ 100,000
@ $ 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-------------------------------------

□
□

By maturing bills
held by___________________________
Payment to be made by______________

□

Charge our reserve account on payment
date
I I Draft enclosed (Effectual delivery of enclosed d raft
shall be on latest day which w ill perm it presentm ent in
order to obtain irrevocably collected funds on paym ent
date)

(Subscriber’s full nam e or corporate title)
(Address)

By.

(Authorized official signature and title)
(For the account of, if tender is for another subscriber)
(Address)

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 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 at 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 trust 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 de disregarded.
(See reverse for announcement)

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