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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 ITE D S T A T E S DALLAS, TEXAS 75222 C ircu la r N o. 72-74 A p ril 19, 1972 N EW OFFERING — TREASURY BILLS To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the follo w ing statem ent giving details of tw o issues of Treasury bills: T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, in v ite s te n d e rs for two series of T re a su ry b ills to th e a g gregate a m o u n t of $1,700,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g A p ril 30, 1972, in th e a m o u n t of $1,701,685,000, as follows: 275-D A Y B IL L S (to m a tu rity d a te ) to b e issued M a y 1, 1972, in th e a m o u n t of $500,000,000, or th e re ab o uts, re p re se n tin g a n a d d itio n al a m o u n t of bills d a te d J a n u a r y 31, 1972, a n d to m a tu re J a n u a ry 31, 1973 (C U S IP No. 912793 P T 7 ) , origin ally issued in th e a m o u n t of $1,200,370,000, th e a d d itio n a l a n d o riginal b ills to b e fre ely in terch an g eab le. 365-D A Y B IL L S fo r $1,200,000,000, or th ere ab o u ts, to b e d a te d A p ril 30, 1972, a n d to m a tu re A p ril 30, 1973 (C U S IP N o. 912793 P W 0 ). T h e b ills of b o th series w ill b e issued on a d isco u nt basis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r p ro vided , a n d a t m a tu rity th e ir face a m o u n t will be p a y a b le w ith o u t in terest. T h e y will be issued in b e a re r form only, a n d in d e n o m in a tio n s of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu r ity v a lu e ). ,i ’ T e n d e rs w ill b e received a t F e d e ra l R e se rv e B a n k s a n d B ra n ch e s u p to th e closing hour, o n e -th irty p.m ., E a s te rn S ta n d a rd T im e , T u esd ay , A p ril 25, 1972. T e n d e rs will n o t b e receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington. E ach te n d e r m u st be for a m in im u m of $10,000. T e n d e rs o v er $10,000 m u st be in m u ltip les of $5,000. I n th e case of c o m p e titiv e te n d ers th e p rice offered m u s t be expressed on th e basis of 100, w ith n o t m o re th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t b e used. (N o tw ith sta n d in g th e fa ct t h a t th e on e-y ear b ills will ru n for 366-days, th e d isco u n t r a te w ill be co m p u te d o n a b a n k disc o u n t basis of 360-days, as is c u rre n tly th e p ra c tic e on all issues o f T re a su ry b ills.) I t is urg ed t h a t te n d e rs b e m ad e on th e p rin te d form s a n d forw ard ed in th e special env elo pes w hich w ill b e su p p lied b y F e d e ra l R e se rv e B a n k s o r B ran ch es on a p p lic a tio n th erefo r. B a n k in g in stitu tio n s gen erally m a y su b m it te n d e rs fo r acc o u n t of cu stom ers p ro v id ed th e n am es o f th e cu sto m ers a re set fo rth in such ten d ers. O th e rs th a n b a n k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it te n d e rs ex cep t for th e ir ow n account. T e n d e rs will be receiv ed w ith o u t d ep o sit fro m in co rp o ra ted b a n k s a n d tr u s t co m pan ies a n d fro m resp o nsib le a n d recognized d e ale rs in in v e stm e n t securities. T e n d e rs from o th ers m u st be acco m p an ied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of T re a su ry b ills a p p lie d for, unless th e te n d e rs a re a cc o m p an ied b y a n express g u a ra n ty of p a y m e n t b y a n in co rp o ra ted b a n k or tr u s t com pany. Im m e d ia te ly a f te r th e closing hour, te n d e rs will b e o p e n ed a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich p u b lic a n n o u n c e m e n t will be m ad e b y th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d p ric e ran g e of a cc ep te d bids. O n ly th o se sub m ittin g c o m p e titiv e te n d e rs will b e a d v ised of th e acc ep ta n ce o r re je ctio n thereo f. T h e S e c retary of th e T re a su ry expressly reserv es th e rig h t to a c c e p t or re je c t a n y o r all ten d e rs, in w hole or in p a rt, a n d h is actio n in a n y such re sp e ct shall b e final. S u b je c t to th ese reserv atio ns, n o n c o m p e titiv e te n d e rs for each issue for $200,000 or less w ith o u t sta te d p rice fro m a n y one b id d e r w ill be a cc ep te d in full a t th e a verag e p rice ( in th re e d e cim als) of acc ep te d c o m p e titiv e bids fo r th e re sp e ctiv e issues. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e b id s m u st be m ad e o r c o m p le te d a t th e F e d e ra l R e se rv e B a n k on M a y 1, 1972, in cash or o th e r im m e d ia tely a v ailab le fu n d s or in a lik e face a m o u n t of T re a su ry bills m a tu rin g A p ril 30, 1972. C ash a n d exchange te n d e rs will receive eq ual tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e for differences be tw ee n th e p a r v a lu e of m a tu rin g b ills a cc ep te d in exchange a n d th e issue p rice of th e new bills. U n d e r S ections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e C ode of 1954 th e a m o u n t of d isco u nt a t w hich bills issued h e re u n d e r are sold is co n sidered to accru e w hen th e b ills a re sold, re d ee m e d o r o therw ise disposed of, a n d th e b ills a re excluded from co n sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a s u ry bills ( o th e r th a n life insuran ce c o m p a n ies) issued h e re u n d e r m u st in clud e in his incom e ta x re tu rn , as o rd in a ry gain o r loss, th e difference b etw een th e p rice p a id for th e bills, w h e th er on orig in al issue o r on su b seq u e n t p urchase, a n d th e a m o u n t a c tu a lly receiv ed e ith e r u p o n sale o r re d e m p tio n a t m a tu r ity d urin g th e ta x a b le y e a r for w hich th e r e tu rn is m ade. T re a s u ry D e p a rtm e n t C ircu la r No. 418 (c u rre n t rev isio n ) a n d th is notice, p re sc rib e th e te rm s of th e T re a s u ry b ills a n d govern th e co nd itio n s of th e ir issue. C opies of th e circu lar m ay be o b ta in e d fro m a n y F e d e ra l R e se rv e B a n k o r B ran ch . In accordance w ith the ab ove announcem ent, tenders w ill be received a t this b ank an d its branches a t El Paso, Houston an d San Antonio up to tw elv e-th irty p.m., Central Standard Time, Tuesday, April 25, 1972. Tenders m a y not be entered by telephone. Yours very truly, P. E. C oldwell President (S ee reverse for ten d er 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 275 D A Y S TO M A T U R IT Y Dated January 31,1972 Maturing January 31,1973 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 at the rate indicated. _NOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $. Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. / Prices should be ex1$-------------------------- @ ----------- $--------------------------------pressed on the basis of ' 100, with not more than COMPETITIVE TENDERS -------------------------- @ ----------- $--------------------------------th ree decimal places, e. g., 99.925. Fractions --------------------@ ----------- ? --------------------------------must not be used. TENDERS MAY NOT BE ENTERED 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 credit to Treasury Tax and Loan Account. N u m b er of Pieces M a tu rity V alu e METHOD OF PAYMENT (5) $ (2) $ 10,000 $ 15,000 $ □ (5) $ 50,000 $ <S) $ 100,000 $ (a) $ 500,000 $ (5) $1:,000,000 $ □ Delivery Instructions: □ By m aturing bills held by_____________________________ Paym ent to be made by_____________ □ Charge our reserve account on paym ent date I I D r a f t e n c l o s e d (E ffectu al delivery o f enclosed d r a f t sh all be on la te st day w hich w ill p e rm it p re sen tm en t in o rd e r to o b ta in irrev o cably collected fu n d s on p a y m e n t date) Hold in Custody Account—Member banks fo r own account only (S u b scrib er’s fu ll n am e o r c o rp o ra te title ) □ Pledge to secure Treasury Tax and Loan Account (A ddress) □ Ship to__________________________ By_ (A utho rized official sig n tu u re a n d title ) (F o r th e acco u n t of, if te n d e r is fo r a n o th e r su b scrib er) (A ddress) 1. 2. 3. 4. 5. 6. IMPORTANT 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 (maturity value). 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 matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank or appropriate branch. Any qualified or conditional tender will be rejected. 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”. 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 (maturity 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. 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. (See reverse for announcement)
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