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F ederal R eserve Ba nk o f D allas
FISCAL AGE N T OF THE UNITED STATES

DALLAS, TE X A S 7 5 2 2 2
C ircu la r No. 72-236
O cto b er 18, 1972

NEW OFFERING — TREASURY BILLS
To All B a n k in g In stitutions a n d O th e r s C o n c e r n e d
in t h e E leventh F e d e r a l R e serv e District:

Y our a t t e n t i o n is in v ite d to t h e fo llo w in g s t a t e m e n t g iv in g d e t a i l s of tw o iss u e s of T re a s u ry 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 fo r tw o series of T re a su ry bills to th e a g gregate 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 for T re a su ry bills m a tu rin g O cto b er 31, 1972, in th e a m o u n t of
$1,700,170,000, as follow s:
273-D A Y B IL L S ( to m a tu rity d a te ) to b e issued O ctob er 31, 1972, in th e a m o u n t of $500,000,000, o r th e re ­
ab ou ts, re p re se n tin g a n a d d itio n a l a m o u n t of b ills d a te d J u ly 31, 1972, a n d to m a tu re J u ly 31, 1973
(C U S I P No. 912793 R A 6 ) , o rig inally issued in th e a m o u n t of $1,200,980,000, th e a d d itio n al a n d original
b ills to be fre ely in terch an geab le.
357-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 O cto b er 31, 1972, a n d to m a tu re O cto b er 23,
1973 (C U S I P No. 912793 R D 0 ) .
T h e b ills of b o th series will b e issued on a disco u n t basis 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 vided , a n d a t m a tu rity th e ir face a m o u n t will b e p a y a b le w ith o u t in terest. T h e y w ill b e issued in b e a re r fo rm 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 r ity v a lv e ).
T e n d e rs w ill b e received a t F e d e ra l R e se rv e B a n k s an d B ran ch es u p to th e closing h our, o n e -th irty p.m ., E a s te rn D a y ­
lig h t S aving T im e , T u esd ay , O cto b er 24, 1972. T e n d e rs w ill 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 a c 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 ov er $ 1 0 ,0 0 0 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 ­
d ers 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 a y n o t
be used. I t is u rg 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 arded in th e special en velo p es w hich will b e sup p lied
b y F e d e ra l R eserv e B a n k s or B ran ch es on a p p lic atio n th erefor.
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 cu stom ers p ro v id ed th e n a m e s o f th e cu sto m ers a re
se t fo rth in such ten d ers. O th ers 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 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 ep o sit from in co rp o ra ted b a n k s a n d tr u s t c o m p anies a n d from respo n sible a n d recognized
d ealers in in v e s tm 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 b ills a p p lie d for, un less th e te n d e rs a re a cc o 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.
I m m e d ia te ly a f te r th e closing hour, te n d e rs will 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 ch es, 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 b y 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 rang e of a cc ep te d bids. O nly th o se su b ­
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 o r re je c t a n y o r a ll ten d e rs, in w hole or in p a rt, a n d h is a ctio n in a n y such re sp e ct shall b e final.
S u b je c t to th ese reservatio ns, n o n c o m p e titiv e te n d e rs for 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 acc ep te d in full a t th e av era g 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 for th e resp ectiv 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
O cto b er 31, 1972, in cash or o th e r im m e d ia tely a v ailab le fu n ds o r in a like face a m o u n t of T re a su ry b ills m a tu rin g O ctob er 31,
1972. C ash a n d exchange te n d e rs will receive eq ual tre a tm e n t. Cash a d ju s tm e n ts w ill b e m ad 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 S ections 4 5 4 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e Code of 1954 th e a m o u n t of discou n t a t w hich b ills issued
h e re u n d e r a re sold is con sid ered to accru e w hen th e bills a re sold, re d ee m e d or o therw ise disposed 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 bills ( o th e r th a n life in su ran ce co m p an ies) issued h e re ­
u n d e r m u st inclu d e in his incom e tax re tu rn , as o rd in ary gain o r 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 pu 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 r ity du rin g
th e tax a b le y e a r for 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 rev 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 bills a n d
govern th e con d itio ns of th e ir issue. C opies of th e circ 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 o r B ran ch .

In a c c o r d a n c e w ith 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 will b e re c e iv e d a t this b a n k a n d its b r a n c h e s a t El P a so ,
H o u sto n a n d S an A n to n io u p to tw e l v e - th ir ty p .m .. C e n tral D ay lig h t S av in g Time, T u e s d a y , O c to b e r 24 , 1972. T en d e rs
m a y not be en tered by telep h o n e .
Yours v e r y truly,
P. E. C o ld w ell
P re s id e n t
(S ee reverse for te nd er 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

357 DAYS TO MATURITY
Dated October 31,1972

Maturing October 23, 1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The__________________________ Branch
E l Paso 79999

Houston 77001

San Antonio 78295

(D a ta )

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 th e
public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ount
shown below, and agrees to pay fo r th e am ount allotted, on or before the issue date, by the m ethod and a t th e ra te indicated.

JNOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $.

Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full at the average
price (in th ree decimals) of accepted competitive bids.
Prices should be
($----------------------- @ -- $-------------e x p r e s s e d on th e
basis of 100, w ith
not more th an th ree
COMPETITIVE TENDERS g,
_<§>.
decimal places, e. g.,
99.925. F r a c ti o n s
m ust n ot be used.

;

^

-@ -

“ TEN D E R S MAY NOT BE E N TE R E D BY TE L EPH O N E . TEND ERS BY W IRE, IF RECEIVED BEFO RE TH E
CLOSING HOUR, A RE ACCEPTABLE.
Denominations Desired

N um ber of
P ie c e s

Paym ent fo r this issue of bills cannot be made
by credit to T reasury Tax and Loan Account.

M a tu r i ty V a lu e

(5) $
(5) $

10,000

METHOD OF PAYM ENT

$ .

□

15.000 $.

By maturing bills
held by______________________________
Paym ent to be made by______________

(5) $ 50.000 $_
(® $ 100,000 $_

□

<> $ 500,000 $_
3
(5) $1

□

Charge our reserve account on payment
date

I

I D r a f t e n c l o s e d ( E f f e c tu a l d e liv e ry o f en c lo se d d r a f t
s h a ll b e o n la te s t d a y w h ic h w ill p e r m it p r e s e n t m e n t in
o r d e r to o b ta in ir r e v o c a b ly c o lle c te d f u n d s o n p a y m e n t
d a te )

Delivery Instructions:
□
□
□

Hold in Custody Account—Member
banks for own account only
Pledge to secure Treasury Tax and
Loan Account
Ship to___________________________

( S u b s c r ib e r ’s f u ll n a m e o r c o r p o r a te ti tle )

( A d d re s s)

B y.
( A u th o r is e d o fficial s i g n a t u r e a n d ti tle )

( F o r th e a c c o u n t o f . I f t e n d e r is f o r a n o t h e r s u b s c r ib e r )

( A d d re s s)

IM PORTANT
1. No tender for less th a n $10,000 will be considered and each tender over $10,000 m u st be fo r an am ount in m ultiples 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 States, with notation on the envelope reading “TEND ER FOR TREA SU RY O F F E R IN G ”. Since envelopes
received w ith this legend will not be opened until a f te r the closing tim e specified in the public announcement, communi­
cations relating to other m a tte rs should no t be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this
bank or app rop riate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, th e form should be signed by an officer of the corporation authorized to m ake 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 th e tender is made by a p artnersh ip 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 th an incorporated banks and tr u 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 to tal am ount (m atu rity value)
of the T reasu ry bills applied for, or unless the tenders are 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 th is form is changed in any respect, which, in th e opinion of th e S ecretary of th e T reasu ry is
m aterial, the tender m ay be disregarded.

(See reverae for announcement)

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