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F ederal reser ve Ba nk o f D allas FISCAL A G E N T OF THE UNITED STATES DALLAS, T E X A S 7 5 2 2 2 Circular No. 72-264 November 15, 1972 N E W OFFERING — TREASURY BILLS To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the fo llo w ing statem ent giving details of an issue of Treasury bills: The Treasury Department, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 355-day Treasury bills for cash and in exchange for Treasury bills maturing November 30, 1972, in the amount of $5,803,525,000. The bills of this series will be dated November 30, 1972, and will mature November 20, 1973 (CUSIP No. 912793 R E 8). The bills 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 Standard Time, Wednesday, November 22, 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 ten ders 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 a t 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 sub mitting 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. Subject to these reservations, noncompetitive tenders 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. Settlement for accepted tenders in accor dance with the bids must be made or completed at the Federal Reserve Bank on November 30, 1972, in cash or other immediately available funds or in a like face amount of Treasury bills maturing November 30, 1972. Cash and exchange tenders will re ceive 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 a t 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 accordance w ith the a b o v e announcem ent, tenders w ill be received a t this b a n k a n d its branches a t El Paso, Houston an d San Antonio up to tw elv e -th irty p.m., Central Standard Time, W ed n es d a y , N ovem ber 2 2 , 1972. Tenders m a y not be entered by telephone. Y ours v e ry truly, P. E. C o ld w e ll P re s id e n t (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 355 DAYS TO MATURITY Dated November 30,1972 Maturing November 20,1973 To: Federal Reserve Bank, Station E, Dallas, Texas 75222 or — The__________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (D ate) P u rsu a n t to the provisions of T reasu ry D epartm ent Circular No. 418 (cu rre n t revision) and the provisions of the public announcem ent issued by th e T reasu ry D epartm ent, th e undersigned offers to purchase T reasu ry bills in th e am ount shown below, and agrees to pay fo r th e am ount allotted, on or before th e issue date, by th e 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, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. /« /7i\ « 1 ? (n) ? $ (a) $ * () 5 $ ! Prices should be e x p re s s e d on th e basis of 100, w ith not m ore th an three decimal places, e. g., 99.925. F r a c tio n s m ust not be used. $ BST TE N D E R S MAY NOT BE EN TE R E D BY TE L EPH O N E . TEN D ERS BY W IRE, IF RECEIVED BEFO RE THE CLOSING HOUR, ARE ACCEPTABLE. P aym ent fo r this issue of bills cannot be made by credit to T reasury T ax and Loan Account. Denominations D esired N u m b er of Pieces M a tu rity V alu e <> $ a (5) $ (S) $ METHOD OF PAY M EN T 10,000 $ 15,000 $ □ By m aturing bills held by-------------------------------------------Paym ent to be made by_____________ 50,000 $ (3) $ 100,000 $ (3) $ 500,000 $ □ □ Charge our reserve account on paym ent date @ *. 1 ,000,000 $ n D r a f t e n c l o s e d (E ffectu al delivery o f enclosed d r a f t ahall be on la te st day w hich w ill p e rm it p re sen tm en t in o rd e r to o b ta in irrev o cab ly collected fu n d s on p a y m e n t d ate) Delivery Instructio n s: □ Hold in Custody Account—Member banks for own account only (S u b sc rib e r's fu ll n am e o r c o rp o ra te title ) □ Pledge to secure T reasury Tax and Loan Account (A ddress) □ Ship to__________________________ By- (A u th o rized official s ig n a tu re a n d title ) (F o r th e a cc o u n t o f, if te n d e r is fo r a n o th e r su b sc rib e r) (A ddress) IMPORTANT 1. No ten d er fo r 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 app ropriate branch as Fiscal A gent of th e U nited S tates, w ith notation on th e envelope reading “TEN D ER FOR TREA SU RY O FF E R IN G ”. Since envelopes received w ith th is legend will not be opened until a fte r th e closing tim e specified in the public announcem ent, 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. A ny qualified or conditional tender will be rejected. 4. If a corporation m akes the tender, th e form should be signed by an officer of th e corporation authorized to m ake th e tender and th e 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 m ade by a p artn ersh ip it should be signed by a m em ber of th e firm, who should sign in the form “ ............................................................., a copartnership, by................................................................................ , a m em ber of th e firm”. 5. Tenders from those other th a n 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 th e 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 a ra 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, th e tender m ay be disregarded. (See reverse for announcement)