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F ederal Reserve Bank o f D allas


Circular No. 72-164
August 1, 1972

‘ All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your attentio n is invited to the following sta te m e n t giving details of tw o issues of Treasury bills:
The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $4,100,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing August 10, 1972, in the amount of
$3,900,925,000, as follows:
91-DAY BILLS (to maturity date) to be issued August 10, 1972, in the amount of $2,300,000,000, or thereabouts,
representing an additional amount of bills dated May 11, 1972, and to mature November 9, 1972 (CUSIP No.
912793 P L 4), originally issued in the amount of $1,800,365,000, the additional and original bills to be freely
182-DAY BILLS for $1,800,000,000, or thereabouts, to be dated August 10, 1972, and to mature February 8, 1973
(C USIP No. 912793 Q E9).
The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form only, and in
denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Daylight Saving Time, Monday, August 7, 1972. Tenders will not be received at the Treasury Department, Washington. Each
tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. In the case of competitive
tenders the price offered must 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 may submit tenders for account of customers provided the names of the customers are
set forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their own account.
Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or
trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only those
submitting competitive tenders will be advised of the acceptance or rejection thereof. The 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, noncompetitive 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 decimals) of accepted competitive bids for the respective issues. Settlement for
accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on August 10, 1972,
in cash or other immediately available funds or in a like face amount of Treasury bills maturing August 10, 1972. Cash and
exchange tenders will receive equal treatment. Cash adjustments will be made for differences between 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 Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued here­
under must 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 redemption at maturity during the
taxable year for which the return is made.
Treasury Department 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 may be obtained from any Federal Reserve Bank or Branch.

In acco rda nc e with th e a b o v e a n n o u n c e m e n t, tend ers will b e received a t this b a n k a n d its b ranch es a t El Paso,
^U$fon a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M onday, A ugust 7, 1972. Tenders m ay
** be e n tere d by te le p h o n e.
Yours very truly,
P. E. Coldwell
Amount, Range and Approximate Yield of Accepted Tenders
3-Month Bills
6-Month Bills
Due November 2, 1972
Due February 1, 1973
$3,616,915,000______________________________ .Total Applied For_______________________________ $3,159,855,000
$2,300,045,000________________________________.Total Accepted------------------------------------------------- $ 1,800,030,000
3.746% ________________________ .High______________________ 97.848__________ 4.257%
3.829% _________________________ Low_______________________ 97.810__________ 4.332%
3.794% ( 1 ) ___________________ .Average_____________________ 97.827__________ 4.298% (1 )
( 1 ) T h e s e rates are on a b an k discou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 3 .8 8 % for th e 3-m on th b ills and 4 .4 5 % for
th e 6-m on th bills.

(See reverse for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated August 10,1972

Maturing February 8,1973

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.

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 )



Prices should be
exp ressed on th e
basis of 100, w ith
not more than three
decimal places, e. g.,
99.925. F ra c tio n s
must not be used.


Denominations Desired
N umber of

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.

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

I I D r a f t e n c l o s e d (Effectual delivery o f enclosed draft
shall be on latest day which will permit presentm ent in
order to obtain irrevocably collected funds On paym ent
(Subscriber’s fu ll name or corporate title)



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



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 a
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who
-------------------------------- , a copartnership, by-----------------------------------------------------------.---- ,
should sign in the form
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 a5
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 be disregarded.
(See reverse for announcement)

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