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F ederal

reserve

Bank

of

Dallas

FISCA L AGENT OF THE UNITED STATES

DALLAS, TEXAS 75222
C ircu la r No. 72-145
J u ly 19, 1972

N E W O FFERIN G — TREASURY BILLS

To All B a n k i n g I n s t i t u t i o n s a n d O t h e r s C o n c e r n e d
in t h e E l e v e n t h F e d e r a l R e s e r v e District:

Y o u r a t t e n t i o n is i n v i t e d to t h e f o l l o w i n g s t a t e m e n t g i v i n g d e t a i l s o f t w o i s s u e s o f T r e a s u r y b ills:
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 tw o series of T re a su ry bills to th e ag g reg ate a m o u n t of
$1,700,000,000, or th ere ab o u ts, fo r cash a n d in exchange for T re a su ry bills m a tu rin g J u ly 31, 1972, in th e a m o u n t of
$1,702,645,000, as follow s:
273-D A Y B IL L S (to m a tu rity d a te ) to be issued J u ly 31, 1972, in th e a m o u n t of $500,000,000, or th e re ­
a bou ts, 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 A pril 30, 1972, a n d to m a tu re A pril 30, 1973
( C U S IP No. 912793 P W O ), o riginally issued in th e a m o u n t of $1,199,850,000, th e a d d itio n al a n d original
b ills to be 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 J u ly 31, 1972, a n d to m a tu re J u ly 31, 1973
(C U S I P No. 912793 R A 6 ).
T h e b ills of b o th series will b e issued on a d isc o u n t 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 rov ided , a n d a t m a tu rity th e ir face a m o u n t will b e p a y ab le w ith o u t in terest. T h e y will b e issued in b e a re r form only, a n d in
d e n o m in atio n s of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu rity v a lu e ).
T e n d e rs will b e receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ran ch es u p to th e closing hour, o n e -th irty p.m ., E a s te rn
D a y lig h t S av in g T im e , T u esd ay , J u ly 25, 1972. T e n d e rs w ill 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 ac h
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 le s of $5,000. In th e case of c o m p e titiv e te n ­
d ers th e p rice offered m u st be expressed on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay n o t
be used. (N o tw ith sta n d in g th e fa c t th a t th e one-y ear bills will ru n for 366-days, th e disco u n t ra te w ill b e c o m p u te d on a b a n k dis­
c o u n t basis of 360-days, as is c u rre n tly th e p ra ctice on all issues of T re a su ry bills.) I t is urged t h a t te n d e rs be m ad e on th e p rin te d
form s a n d forw ard ed in th e special envelopes w hich w ill be su p p lied by F e d e ra l R e se rv e B a n k s or B ran ch es on a p p lic a tio n th erefor.
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 custo m ers p ro v id ed th e nam es of th e cu stom ers a re
set fo rth in such ten d ers. O th e rs th a n b an 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 e x cep t fo r th e ir ow n account.
T e n d e rs will be receiv ed w ith o u t d e p o sit fro m in co rp o ra ted b a n k s a n d tru s t com panies a n d from respon sible 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 b e 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 bills a p p lie d for, u nless th e te n d e rs a re a cco m p an ied by 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 fte r th e closing ho ur, te n d e rs w ill 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 rice rang e of a cc ep te d bids. O n ly those sub­
m ittin g c o m p e titiv e te n d e rs will be a d v ised of th e acc ep ta n ce or re je ctio n thereof. T h e S e c retary of th e T re a su ry expressly
reserves 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 o r in p a rt, a n d h is actio n in a n y such re sp e ct shall be final.
S u b je ct to th ese reservation s, n o n c o m p e titiv e te n d e rs fo r each issue for $200,000 or less w ith o u t sta te d p rice from a n y one
b id d e r will be a cc ep te d in full a t th e av erag e p rice (in th re e d e cim als) of a cc ep te d c o m p e titiv e bids fo r th e re sp ectiv e issues.
S e ttle m e n t fo r 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
J u ly 31, 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 b ills m a tu rin g J u ly 31, 1972.
C ash a n d exchange te n d e rs will receive e q u al tre a tm e n t. C ash a d ju stm e n ts w ill be m ad e fo r differences b etw een th e p a r v alue
of m a tu rin g Dills 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 Sections 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 iscoun t a t w hich bills issued
h e re u n d e r a re sold is co nsidered to accru e w hen th e bills a re sold, re d ee m e d o r o therw ise disposed of, a n d th e bills a re excluded
fro m c o n sid era tio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insu rance c o m p a n ies) issued h ere­
u n d e r m u st includ e in his incom e ta x re tu rn , as o rd in ary gain o r loss, th e difference b e tw ee n th e p rice p a id for th e bills, w h e th er
on original issue or 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 rity d u rin g
th e tax a b le y e a r fo r w hich th e r e tu rn is m ade.
T re a su ry D e p a rtm e n t C ircu la r No. 418 (c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e te rm s o f th e T re a su ry bills a n d
g overn th e con ditio ns of th e ir issue. C opies of th e c ircu lar m a y 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 or B ranch.

In a c c o r d a n c e w i t h 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 w ill b e r e c e i v e d a t th i s b a n k a n d its b r a n c h e s a t El P a s o ,
H o u s t o n a n d S a n A n t o n i o u p t o t w e i v e - t h i r t y p . m . , C e n t r a l D a y l i g h t S a v i n g T im e , T u e s d a y , J u l y 2 5 , 1 9 7 2 . T e n d e r s m a y
not b e e n te re d b y te le p h o n e .
Y o u rs v e r y tr u ly ,

.

P. E. Coldwell
President
(See 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 B7LLS

273 DAYS TO MATURITY
Dated April 30,1972

Maturing April 30,1973

T o: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —

T h e __________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

( D a te )

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and thr 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 tnree decimals) of accepted competitive bids.
Prices should be
/ $-------------------- @
------------- $-----------------------ex p ressed on the
\$_____________ __________ $_________________
basis of 100, with
not more than three
COMPETITIVE TENDERS &________________ @___________ $____________________
decimal places, e. g . ,
99.925. F raction s
$________________ @___________ $____________________
must not be used.

$______________@ _________ $_________________

fiST TENDERS MAY NOT BE ENTERED 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.

Denominations Desired
N um ber of
P ie c e s

-<0> $
~f> $
(f

M a tu r i ty V a lu e

METHOD OF PAYMENT

10,000 $15,000 $-

□

-<5) $ 50,000 $-(5) $ 100,000 $-fb $ 500,000 $(i

□
□

-<5> $1 ,000,000 $.

Charge our reserve account on payment
date

I I D r a f t e n c l o s e d (E f f e c tu a l d e liv e ry o f en c lo sed d r a f t
s h a ll b e on la te s t d a y w h ic h w ill p e r m it p r e s e n t m e n t in
o r d e r to o b ta in irre v o c a b ly co llec ted f u n d s o n p a y m e n t
d a te )

Delivery Instructions:
□

By m aturing bills
held by---------------------------------------------Payment to be made by---------------------

Hold in Custody Account—Member
banks for own account only

( S u b s c r ib e r ’? f u ll n a m e o r c o r p o r a t e ti tle )

□

Pledge to secure Treasury Tax and
Loan Account

(A d d re s s)

□

Ship to___________________________

By( A u th o riz e d official s i g n a t u r e a n d ti tle )

( F o r th 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 ib e r )

(

(A d d re s s)

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 (maturity 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 i*elating to other matters 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 (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.
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.
(See reverse for announcement)

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