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federal

reserve

Bank of Dallas

FISCAL AGENT OF THE UNITED STATES

DALLAS, TEXAS 75222
C ircu la r N o. 72-173
A ug ust 18, 1972

NEW OFFERING — TREASURY BILLS
To All Banking Insfitufions a n d Others Concerned
in the Eleventh Federal Reserve District:

Your attentio n is invited to the following s ta te m e n t 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 ten d e rs for tw o series of T re a su ry b ills to th e agg reg ate a m o u n t of
$2,300,000,000, o r th ere ab o u ts, fo r cash a n d in exchange fo r T re a s u ry bills m a tu rin g A ugu st 31, 1972, in th e a m o u n t of
$5,797,825,000, as follow s:
273-D A Y B IL L S (to m a tu rity d a te ) to be issued A ug ust 31, 1972, in th e a m o u n t of $500,000,000, or th e re ­
ab outs, re p re se n tin g a n a d d itio n al a m o u n t of b ills d a te d M a y 31, 1972, a n d to m a tu re M a y 31, 1973
( C U S IP N o. 912793 P X 8 ) , o riginally issued in th e a m o u n t of $1,200,180,000, th e a d d itio n a l a n d original
b ills to be fre ely in terch an g eab le.
362-D A Y B IL L S fo r $1,800,000,000, or th ere ab o u ts, to be d a te d A u gust 31, 1972, a n d to m a tu re A ugu st 28, 1973
(C U S I P No. 912793 R B 4 ) .
T h e b ills of b o th series w ill b e issued on a d isco u n t b asis 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 v id ed , 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 te re st. 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 rity v a lv e ).
T e n d e rs will b e re ce iv e d 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 hou r, 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 h u rsd a y , A u g u st 24, 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 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 les of $5,000. In th e case of c o m p e titiv e te n ­
ders th e p rice offered m u st 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 ay n o t
b e used. (N o tw ith sta n d in g th e fa c t t h a t th e long issue of bills w ill ru n fo r 362-days, th e d isco u n t ra te w ill b e co m p u te d on a b a n k d is­
co 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 b ills.) I t is urg ed th a t te n d e rs be m ad e o n th e p rin te d
form s a n d fo rw ard ed in th e special env elop es w hich w ill be su p p lied b y F e d e ra l R e se rv e B a n k s or B ra n ch e s 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 c ustom ers p ro v id ed th e n am es of th e cu stom ers a re
se t 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 e x cep t fo r th e ir own a c c o u n t
T e n d e rs w ill b e 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 tr u s t co m panies a n d from respo nsib le a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs fro m o th ers m u st be acco m p an ied b y p a 3T n ent 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 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 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 ran ches, 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 by 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 ran g 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 a cc ep ta n ce or re je c tio n thereof. T h e S e c retary o f 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 ers, in w hole or in p a rt, a n d h is a c tio n in a n y such re sp e ct shall be final.
S u b je c t to tliese reservations, n o n c o m p e titiv e te n d e rs fo r each issue for $200,000 o r 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 v 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 b id s fo r th e resp 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 bids m u st be m ad e or 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
A ug ust 31, 1972, in cash or o th e r im m e d ia te ly av ailab le fu n d s or in a like face a m o u n t of T re a su ry b ills m a tu rin g A u g u st 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 betw een th e p a r v alu e
of m a tu rin g bills 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 isco u n t a t w hich b ills issued
h e re u n d e r a re sold is con sidered to accrue w hen th e bills a re sold, re d ee m e d o r oth erw ise disposed of, a n d th e b ills a re excluded
fro m c o n sid eratio 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 insurance co m p an 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 ary gain or 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 u rch ase, a n d th e a m o u n t a c tu a lly re ce iv e d e ith e r u p o n sale or re d e m p tio n a t m a tu rity du 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 of th e T re a su ry b ills a n d
govern th e c o n ditions of th e ir issue. C opies of th e circ u 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 or B ranch.

In a ccordance with the a b o v e a n n o u n c e m e n t, te n d e rs will b e received a t this b a n k a n d its b ra n c h e s a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m.. Central Daylight Saving Time, Thursday, A ugust 24, 1972. Tenders m ay
not b e e n te re d by tele p h o n e .
Yours very truly,
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 BILLS

273 DAYS TO MATURITY
Dated May 31,1972

Maturing May 31,1973

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.

J^OT 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.
/S»
^
^
Prices should be
ex pressed on th e
(n) ..
basis of 100, with
$
$
■
not more than three
COMPETITIVE TENDERS $
(a)
?
T
decimal places, e. g.,
99.925. F ra c tio n s
(a)
$
$
must not be used.
$

TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Num ber of
Pieces

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

M aturity Value

$

METHOD OF PAYMENT

10,000 $____________

□

$ 15,000 $___________
$ 50,000 $___________
-(g) $ 100,000 $___________
-(5) $ 500,000 $___________

□
□

Charge our reserve account on payment
date
I I Draft enclosed (Effectual delivery of enclosed d ra ft

$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_____________

shall be on latest day which will 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 sisn atu re 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, imless 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
m aterial, the tender may be disregarded.
(See reverse for announcement)

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