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F ederal Reserve Bank o f Dallas FISCAL AGENT OF THE UNITED STATES DALLAS, TEXAS 75222 Circular No. 72-201 September 12, 1972 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in th e Eleventh Federal Reserve District: Your a ttention 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 September 21, 1972, in the amount of $4,101,700,000, as follows: 91-DAY BILLS (to maturity date) to be issued September 21, 1972, in the amount of $2,300,000,000, or there abouts, representing an additional amount of bills dated June 22, 1972, and to mature December 21, 1972 (CUSIP No. 912793 P R 1 ), originally issued in the amount of $1,802,075,000, the additional and original bills to be freely interchangeable. 182-DAY BILLS for $1,800,000,000, or thereabouts, to be dated September 21, 1972, and to mature March 22, 1973 (CUSIP No. 912793 QL3). 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, September 18, 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 September 21, 1972, in cash or other immediately available funds or in a like face amount of Treasury bills maturing September 21, 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 acc orda n c e with the a b o v e a n n o u n c e m e n t, tend ers will be received a t this b a n k a n d its bra nc he s a t El Paso, Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M on day, S eptem ber 18, 1972. Tenders may not b e en tered by tele p h o n e . Yours very truly, P. E. Coldwell ______________ President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approximate Yield of Accepted Tenders 3-Month Bills 6-Month Bills Due December 14, 1972 Due March 15, 1973 $4,390,620,000______________________________ .Total Applied For_______________________________ $3,391,480,000 $2,301,340,000________________________________ Total Accepted________________________________ $1,800,415,000 Price Yield Price Yield 98.806-------------------4.724%_________________________ High______________________ 97.449___________ 5.046% 98.794------------------ 4.771% _________________________ Low______________________ 97.421___________ 5.101% 98.797------------------- 4.759% ( 1 ) ------------------------------ Average------------------------------- 97.435___________ 5.074% (1 ) ( 1 ) T h ese rates are on a bank discou nt basis. T h e eq u iv alen t coupon issue y ie ld s are 4 .8 8 % for th e 3-m on th b ills and 5 .2 8 % 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 (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 182 DAYS TO MATURITY Dated September 21,1972 Maturing March 22, 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 am ount 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. 1 ? $ COMPETITIVE TENDERS ......... 1 1 ....... 1 . $ . i$ (a) Prices should be expressed on th e basis of 100, w ith not more than three decimal places, e.g., 99.925. F r a c tio n s must not be used. s C .... o) ? (a) $ @ $ TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of pieces @ $ 10,000 @ ? 15,000 @ ? 50,000 @ $ 100,000 @ $ 500,000 .@ $1,000,000 Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT M aturity V alue $ $ $ $ $ $ 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 date I I Draft enclosed (Effectual delivery o f enclosed d raft shall be on latest day which w ill permit presentm ent in order to obtain irrevocably collected funds on paym ent date) (Subscriber’s fu ll name or corporate title) (Address) By- (Authorized official siffn&ture and title) (For the account of, if tender is for another suhecriber) (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 ofthe 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 t 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-----------------------------------------------------------------f 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 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. (S ee reverse for announcement)