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FED ER AL RESERVE BANK OF DALLAS F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS. TEXAS 75222 Circular No. 72-208 Septem ber 20, 1972 N E W OFFERIN 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 t o 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 il ls : T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Septem ber 30, 1972, in the am ount of $1,702,030,000, as follows: 271-DAY B IL L S (to m aturity d ate) to be issued O ctober 2, 1972, in th e am ount of $500,000,000, or there abouts, representing an additional am ount of bills dated Ju n e 30, 1972, and to m ature Ju n e 30, 1973 (C U S IP No. 912793 P Y 6 ), originally issued in the am ount of $1,201,235,000, th e additional and original bills to be freely interchangeable. 360-DAY B ILLS for $1,800,000,000, or thereabouts, to be dated Septem ber 30, 1972, and to m ature Septem ber 25, 1973 (C U S IP No. 912793 R C 2 ). The bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and a t m aturity their face am ount will be payable w ithout interest. T h ey will be issued in bearer form only, and in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity valve). T enders will be received a t Federal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern D ay light Saving Tim e, Tuesday, Septem ber 26, 1972. T enders will not be received a t the T reasury D epartm ent, W ashington. Each tender m ust be for a m inim um of $10,000. T enders over $10,000 m ust be in m ultiples of $5,000. In th e case of com petitive te n ders the price offered m ust be expressed on the basis of 100, with not m ore th an three decimals, e.g., 99.925. Fractions m ay not be used. (T h e discount rate will be com puted on a bank discount basis of 360-days, as is currently th e practice on all issues of T reasury bills.) I t is urged th a t tenders be m ade on the prin ted forms and forwarded in th e special envelopes which will be sup plied by Federal R eserve B anks or B ranches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided th e nam es of th e customers are set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for their own account. Tenders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of th e face am ount of Treasury bills applied for, unless the tenders are accom panied by a n express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately after the closing hour, tenders will be opened a t th e Federal Reserve B anks and Branches, following which public announcem ent will be m ade by the T reasury D epartm ent of the am ount and price range of accepted bids. Only those sub m itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the T reasury 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. Subject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be accepted in full a t the average price (in three decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal R eserve B ank on October 2, 1972, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing S eptem ber 30, 1972. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m aturing bills accepted in exchange and the issue price of th e new bills. U nder Sections 454 (b ) and 1221 (5 ) of th e Internal R evenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other th an life insurance com panies) issued here under m ust include in his income tax return, as ordinary gain or loss, the difference between the price paid for th e bills, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m a tu rity during the taxable year for which the retu rn is made. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s of th e T reasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch. 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 to t w e l 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 , S e p t e m b e r 2 6 , 1 9 7 2 . T e n d e r s m a y not be en te re d by te lep h o n o . Y o u rs v e r y tru ly , P . E. C o l d w e l l P re sid e n t (S ee 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 271 DAYS TO MATURITY Dated June 30,1972 Maturing June 30, 1973 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The__________________________Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) P u rsu a n t to the provisions of T reasu ry D epartm ent Circular No. 418 (current revision) and the provisions of the public announcem ent issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasury bills in the am ount shown below, and agrees to pay for the am ount allotted, on or before the issue date, by the method and a t th e ra te indicated. N O N C O M P E T I T I V E T E N D E R $__________________________________ N O T T O E X C E E D $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, w ithout sta te d price, will be accepted in full at the average price (in three decimals) of accepted com petitive bids. Prices should be ------------ vw---- --------v -------------------------------e x p r e s s e d on th e basis of 100, w ith (a) $ $ not more th an three (a) $ $ decimal places, e.g., 99.925. F r a c tio n s (a ) ? $ m ust not be used. $ @ $ T EN D ER S MAY NOT BE E N TE R E D BY T E L EPH O N E . TEN D ERS BY W IRE, IF RECEIVED BEFO RE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations D esired Number of Pieces P aym ent for this issue of bills cannot be made by credit to T reasury Tax and Loan Account. M aturity Value (5> $ (5) $ METHOD OF PAY M ENT 10,000 $ 15,000 $ □ (5) $ 50,000 $ (5) $ 100,000 $ (5) $ 500,000 $ □ □ (5) $ 1:000,000 $ , □ date) Hold in Custody Account—Member banks for own account only Pledge to secure Treasury Tax and Loan Account | [ S h i p t o _______________________________________ Charge our reserve account on payment date I I D r a f t e n c l o s e d (Effectual delivery of enclosed d raft shall be on latest day which will permit presentm ent In order to obtain irrevocably collected funds on payment Delivery Instructions: □ By maturing bills held by--------------------------Payment to be made by. (Subscriber’s full name or corporate title) (A ddress) „ By- (Authorized official signature and title) (For the account of, if tender is for another subscriber) (Address) IM PORTANT 1. No tender fo r less th an $10,000 will be considered and each tender over $10,000 m ust be fo r an am ount in m ultip’es of $5,000 (m atu rity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of the U nited S tates, with notation on the envelope reading “TEND ER FOR TREASURY O FF E R IN G ”. Since envelopes received w ith this legend will not be opened until a fte r the closing tim e specified in the public announcement, communi cations relating to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank or app ro p riate branch. 3. Any qualified or conditional tender will be rejected. 4. I f 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 th e corporation will be construed as a representation by him th a t he has been so authorized. If the tender is made by a p artnership it should be signed by a m em ber 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 s t companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m aturity value) of the T reasury bills applied for, or unless the tenders a re accompanied by an express g u ara n ty of full paym ent by an incorporated bank or tr u s t company. 6. If the language of this form is changed in any respect, which, in the opinion of the S ecretary of the T reasu ry is m aterial, th e tender m ay be disregarded. (See reverse for announcement)