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F ederal Reserve Bank of Dallas F IS C A L A G EN T O F T H E U N ITED S T A T E S DALLAS, TEX AS 75222 C ircular N o . 72 -66 A p ril 4 , 1972 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutio ns a n d O th e r s C o n c e r n e d in t h e E leventh F e d e r a l R e serv e District: Y our a t t e n t i o n is in v ite d to t h e f o llo w in g s t a t e m e n t g iv in g d e t a il s of tw o issu es of T re as u ry bills: T h e T r ea su ry D e p a r tm e n t, b y th is p u b lic n o tic e, in v ite s ten d ers for tw o series o f T rea su ry b ills t o t h e a g g reg a te a m ou n t o f $ 4 ,1 0 0 ,0 0 0 ,0 0 0 , or therea b ou ts, for cash and in ex ch a n g e for T rea su ry b ills m a tu rin g A p ril 13, 19 72 , in th e a m o u n t o f $ 4 ,1 0 6 ,9 0 0 ,0 0 0 , a s follow s: 9 1 - D A Y B I L L S (to m a tu rity d a te ) t o b e issu ed A p ril 13, 1972, in th e a m o u n t o f $ 2 ,3 0 0 ,0 0 0 ,0 0 0 , or th e re a b ou ts, rep resen tin g a n a d d itio n a l a m o u n t o f b ills d a te d J an u a ry 13, 197 2, and to m a tu re J u ly 13, 1972 ( C U S I P N o . 9 1 2 7 9 3 N U 6 ) , o rig in a lly issu ed in t h e a m o u n t o f $ 1 ,6 0 0 ,2 0 0 ,0 0 0 , th e a d d itio n a l an d origin al b ills t o b e fr e e ly in terch an g eab le. 1 8 2 -D A Y B I L L S for $ 1 ,8 0 0 ,0 0 0 ,0 0 0 , or th ereab o u ts, to b e d a ted A p ril 13, 197 2 , an d to m atu re O cto b er 12, 1972 ( C U S I P N o . 9 1 2 7 9 3 P G S ). T h e b ills o f b o th series w ill b e issu ed o n a d isco u n t b a sis und er c o m p e titiv e an d n o n c o m p e titiv e b id d in g a s h erein a fter p rov id ed , a n d a t m a tu rity th eir fa c e a m o u n t w ill b e p a y a b le w ith o u t in terest. T h e y w ill b e issu ed in b earer form o n ly , a n d in d en o m in a tio n s o f $ 1 0 ,0 0 0 , $ 1 5 ,0 0 0 , $ 5 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 an d $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a lu e ) . T e n d e r s w ill b e r e ce iv ed a t F ed era l R e s e r v e B a n k s and B ranches up to th e clo sin g hour, o n e-th irty p.m . E a ste rn S tan d ard T im e , M o n d a y , A p ril 10, 1972. T e n d e r s w ill n o t b e r e ce iv ed a t t h e T rea su ry D e p a r tm e n t, W ash in g to n . E ach te n d e r m u st b e for a m in im u m o f $1 0,0 0 0 . T e n d er s ov er $ 1 0 ,0 0 0 m u s t b e in m u ltip le s o f $ 5 ,00 0. In t h e c a se o f c o m p e titiv e ten d e rs th e p rice offered m u st b e ex p ressed on th e b a sis o f 100, w ith n o t m ore th a n th ree d ecim a ls, e.g., 9 9 .9 2 5 . F ra ctio n s m a y n o t b e used. I t is urged th a t ten d ers b e m a d e on th e p rin te d form s and forw arded in th e sp ec ia l e n v e lo p e s w h ich w ill be su p p lie d b y F ed era l R e s e r v e B a n k s or B r a n c h e s on a p p lica tio n therefor. B a n k in g in stitu tio n s g en era lly m a y su b m it ten d e rs for a ccou n t o f cu sto m ers p ro vid ed th e n a m e s o f t h e cu sto m ers are se t forth in su ch tenders. O thers th a n b an k in g in stitu tio n s w ill n o t b e p erm itted to su b m it ten d e rs e x c e p t for th eir ow n accou n t. T e n d e r s w ill b e receiv ed w ith o u t d ep o sit from incorp orated b a n k s a n d tru st c o m p a n ie s an d from resp o n sib le a n d recogn ized d ea lers in in v e stm e n t secu rities. T e n d e r s from o th ers m u st b e a cco m p a n ied b y p a y m e n t o f 2 p er c e n t o f th e fa c e a m o u n t o f T r ea su ry b ills a p p lie d for, u n less t h e ten d e rs are a cco m p a n ied b y an ex p ress gu aran ty o f p a y m e n t b y an in corp orated b a n k or tru st co m p a n y . I m m e d ia te ly a fte r th e c lo sin g hour, ten d e rs w ill b e o p e n e d a t th e F ed era l R e s e r v e B a n k s and B ranches, fo llo w in g w h ich p u b lic a n n o u n c em en t w ill b e m a d e b y th e T rea su ry D e p a r tm e n t o f t h e a m o u n t an d p rice range o f a cc e p te d bids. O n ly th o se s u b m ittin g c o m p e titiv e ten d ers w ill b e a d v ise d o f th e a ccep ta n ce or rejectio n th ereof. T h e S ecreta ry o f t h e T reasu ry ex p ressly r eserv es th e rig h t to a c c e p t or reject a n y or a ll ten d ers, in w h o le or in part, a n d h is a ctio n in a n y su ch resp ect sh all b e final. S u b j e c t to th e se reservations, n o n c o m p e titiv e ten d e rs for each issu e for $ 2 0 0 ,0 0 0 or less w ith o u t sta ted p rice from a n y o n e b id d er w ill b e a cc e p te d in fu ll a t t h e a vera ge p rice ( in th r ee d e c im a ls) o f a cc e p te d c o m p e titiv e b id s for th e re sp e c tiv e issu es. S e ttle m e n t for a c c e p te d ten d e rs in a ccord an ce w ith th e b id s m u s t b e m a d e o r c o m p le te d a t t h e F ed era l R e s e r v e B a n k on A p ril 13, 1972, in ca sh or o th er im m e d ia te ly a v a ila b le fu n d s or in a lik e fa c e a m o u n t o f T rea su ry b ills m atu rin g A p ril 13, 1972. C ash and ex ch a n g e ten d ers w ill r e ce iv e e q u a l trea tm en t. C ash a d ju stm en ts w ill b e m a d e for d ifferen ces b e tw e e n t h e p ar v a lu e o f m atu rin g b ills a cc e p te d in ex ch a n g e and th e issu e p rice o f t h e n ew bills. U n d er S e c tio n s 4 5 4 ( b ) an d 1221 ( 5 ) o f th e In tern al R e v e n u e C o d e o f 19 54 th e a m o u n t o f d isco u n t a t w h ich b ills issu ed h ereu n d er are so ld is con sid ered to accrue w h en t h e b ills are sold, red eem ed or o th erw ise d isp osed of, and t h e b ills are exclu d ed from con sid era tio n a s ca p ita l a ssets. A cco rd in g ly , t h e ow n er o f T rea su ry b ills ( o th e r th a n life insu ran ce c o m p a n ie s) issu ed h ere u n d er m u s t in clu d e in h is in co m e tax return, a s ord in ary g ain or loss, th e d ifferen ce b etw een t h e p rice p a id for th e b ills, w h eth er on orig in al issu e or on su b seq u e n t p u rch ase, an d t h e a m o u n t a ctu a lly rece iv ed e ith er u p o n sa le or red em p tio n a t m a tu rity du rin g th e t a x a b le y ea r for w h ich t h e return is m ade. T r ea su ry D e p a r tm e n t C ircular N o . 4 1 8 (cu rren t re v is io n ) an d th is n o tice, p rescrib e th e term s o f th e T rea su ry b ills and g ov ern t h e c o n d itio n s o f their issue. C o p ie s o f t h e circular m a y b e o b ta in ed from a n y F ed era l R e s e r v e B a n k or B ranch. In a c c o r d a n c e w ith t h e a b o v e a n n o u n c e m e n t , t e n d e r s will b e r e c e iv e d a t this b a n k a n d its b r a n c h e s a t El P aso , H o u sto n a n d S an A n to n io u p to tw e l v e - th ir ty p .m ., C e ntral S t a n d a r d Time, M o n d a y , April 10, 1 972 . T e n d e rs m a y n o t b e en tered by te lephone. Y ours v ery truly, P. E. C o ld w ell P re sid e n t LAST PREVIOUS OFFERING OF TREASURY BILLS A m o u n t, R a n g e a n d A p p ro x im a te Y ie ld o f A c c e p te d T e n d er s 9 1 - D a y B ills D u e J u ly 6, 1972 $ 3 ,9 8 2 ,1 1 5 ,0 0 0 __________________ $ 2 ,3 0 0 ,1 7 0 ,0 0 0 __________________ P r ic e Y ie ld 9 9 .0 6 0 _____________ 3 .7 1 9 % _____ 9 9 .0 3 4 _____________ 3 .8 2 2 % _____ 9 9 .0 4 0 _____________ 3 .7 9 8 % (1 ) ..T o ta l A p p lie d For_ T o ta l A c c e p te d .__ ...H ig h .... L o w ___ -A v e r a g e . 1 8 2 -D a y B ills D u e O cto b er 5, 1972 ----------------------------$ 3 ,5 0 7 ,9 9 5 ,0 0 0 ----------------------------$ 1 ,8 0 0 ,2 9 5 ,0 0 0 P r ic e Y ie ld .9 7 .8 2 0 _____________ 4 .3 1 2 % 9 7 .7 8 0 _____________ 4 .3 9 1 % -97.792______________ 4 .3 6 7 % (1 ) ( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t b a sis. 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 9 % fo r th e 9 1 - d a y b ills a n d 4 . 5 3 % fo r th e 1 8 2 -d a y b ills. (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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated January 1 3,1 9 7 2 Maturing July 13,1972 To: Federal Reserve Bank, Station K, Dallas, T exas 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 T E N D E R $_________________________________________ NOT TO E X C E E D $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. Prices should be ex *----------------------------------pressed on the basis of <» 100, with not more than COMPETITIVE T EN D E R S -@ v----------------------------------th re e decim al places, $ e. g., 99.925. Fractions ^ m ust not be used. jg lP TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b e r of pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT M a tu rity V alue <g> $ 10,000 $ <§> $ 15,000 $ @ $ 50,000 $ □ □ @ $ 100,000 $ By m aturing bills held by________________________________ Paym ent to be made by________________ □ Charge our reserve account on paym ent date [ 1 D raft enclosed (E ffectnal delivery o f enclosed d r a f t <3> $ 500,000 $ @ $1,000,000 $ s h a ll be on l a t e s t d a y w h i c h will 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) D elivery Instructions: □ Hold in Custody Account— Member banks fo r own account only □ Pledge to secure Treasury Tax and Loan Account (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 dd ress) 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 ) □ Ship to------------------------------------------( 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 d d ress) 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 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. 8. 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 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 de disregarded. (See reverse fo r announcement)
@FedFRASER