The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal, r eser ve Bank o f Dallas FISCA L AGENT OF THE UNITED STATES DALLAS. TEXAS 75222 C ircu la r No. 72-174 A u g u st 18, 1972 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in th e Eleventh Federal Reserve District: Your attentio n is invited to the following s ta te m e n t giving details of two 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 tw o series of T re a su ry b ills to th e ag g reg ate a m o u n t of $2,300,000,000, o r th ere ab o u ts, for cash a n d in exchange fo r T re a su ry bills m a tu rin g A u g u 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 b e issued A ug ust 31, 1972, in th e a m o u n t of $500,000,000, or th e re ab o u ts, re p re se n tin g a n a d d itio n a l a m o u n t of bills 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 No. 912793 P X 8 ) , originally 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 for $1,800,000,000, or th ere ab o u ts, to be d a te d A u g u st 31, 1972, a n d to m a tu re A u g u st 28, 1973 (C U S I P N o. 912793 R B 4 ) . T h e b ills of b o th series will b e issued on a d isc o 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 rovided, a n d a t m a tu rity th e ir face a m o u n t will be p a y ab 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 en 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 receiv ed 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 h o ur, o n e -th irty p.m ., E a s te rn D a y lig h t S avin g T im e , T h u rsd a y , A ug ust 24, 1972. T e n d e rs will n o t be 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 ver $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 ders 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 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 will ru n for 362-days, th e disco u n t ra te w ill be co 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 o n all issues of T re a su ry b ills.) I t is urg ed t h 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 e n velop es 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 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 a cco u n t of cu sto m ers p ro v id ed th e n am es of th e c u 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 will n o t b e p e rm itte d to su b m it te n d e rs e x ce p t for 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 from in co rp o ra ted b a n k s a n d tr u s t com p anies a n d from respon sible a n d recognized de 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 a cc o 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, unless th e te n d e rs a re acc o m p an ied by a n express g u a ra n ty of pasntnent 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 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 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 ge of a cc ep te d bids. O nly 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 o r re je c tio n th ereo f. 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 or a ll ten d e rs, in w hole o r in p a rt, a n d h is a c tio n in a n y such re sp e ct sh all be final. S u b je c t to th ese reservations, n o n c o m p e titiv e te n d e rs fo r each issue fo r $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 av erag e p rice (in th re e d e cim als) o f a cc ep te d c o m p e titiv e b ids fo r th e re sp e ctiv 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 A ug ust 31, 1972, in cash o r 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 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 a d e fo r differences b e tw ee n 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 Sectio ns 4 54 ( 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 disc o u n t a t w hich b ills issued h e re u n d e r a re sold is co nsid ered to accru e w hen th e b ills a re sold, re d ee m e d or o therw ise d isposed 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 b ills (o th e r th a n life insu rance co m p an ies) issued h ere u n d e r m u st include in his incom e ta x re tu rn , as o rd in ary g ain 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 o riginal issue or on su b seq u e n t p u rchase, 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 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 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 o f th e c irc u lar m ay b e 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 acc o rd a nc e 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 bra nc h es a t El Paso, Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, Thursday, A ugust 24, 1972. Tenders m ay not b e e n te re d by te le 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 TREASURY BILLS 362 DAYS TO MATURITY Dated August 31,1972 Maturing August 28, 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 xmdersigned 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 exp ressed on th e fn ) basis of 100, with ... ---- --v^— ■ $ not more than three COMPETITIVE TENDERS/<|; (a ) •$ •$ decimal places, e.g., 99,925. F ra c tio n s (n ) $ 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 Account. M aturity Value $ $ $ 15,000 $50,000 $- $ METHOD OF PAYMENT 10,000 $- 100,000 $- □ □ □ Charge our reserve account on payment date I I Draft enclosed (Effectual delivery of enclosed d raft $ 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____________ shal] be on latest day which will permit presentm ent in order to obtain irrevocably collected funds on paym ent date) (Subscriber’s full name or corporate title) (Address) By- (Authorized official signature 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 m ust 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 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 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 be disregarded. (See reverse for annotmcement)
@FedFRASER