View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal reserve ba n k of Dallas


Circular No. 72-267
Novem ber 21, 1972

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the following statement giving details of two issues of Treasury bills:
T he Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount
of $4,300,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing N ovem ber 30, 1972, in the am ount of
$5,803,525,000, as follows:
91-D A Y B IL L S (to m aturity date) to be issued Novem ber 30, 1972, in the am ount of $2,400,000,000, or there­
abouts, representing an additional am ount of bills dated August 31, 1972, and to mature March 1, 1973
(C U S IP No. 912793 Q H 2 ), originally issued in the amount of $1,801,810,000, the additional and original bills
to be freely interchangable.
182-D A Y B IL L S (to m aturity date) to be issued Novem ber 30, 1972, in the am ount of $1,900,000,000, or there­
abouts, representing an additional am ount of bills dated M ay 31, 1972, to mature M ay 31, 1973 (C U S IP
No. 912793 P X 8 ) , originally issued in the am ount of $1,200,180,000 (an additional $500,950,000 was issued
August 31, 1 9 7 2 ), the additional and original bills to be freely interchangeable.
T he bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at maturity their face amount w ill be payable without interest. T h ey w ill 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 aturity va lu e).
Tenders w ill be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard Tim e, M onday, N ovem ber 27, 1972. Tenders w ill not be received at the Treasury Departm ent, W ashington. Each
tender must be for a minim um of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of com petitive
tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay
not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which w ill be
supplied by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the nam es of the customers are
set forth in such tenders. Other than banking institutions will not be perm itted to subm it tenders except for their own account.
T enders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of the face am ount of
Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust company.
Im m ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow ing which
public announcem ent will be made by the Treasury D epartm ent of the amount and price range of accepted bids. Only those
subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T he 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, noncom petitive 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 decim als) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with bids m ust be m ade or com pleted at the Federal Reserve B ank on N ovem ber 30, 1972,
in cash or other im m ediately available funds or in a like face amount of Treasury bills maturing Novem ber 30, 1972. Cash and
exchange tenders will receive equal treatment. Cash adjustm ents will be m ade for differences betw een 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 R evenue Code of 1954 the am ount of discount at 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 Treasury bills (other than life insurance com panies) issued here­
under m ust include in his income tax return, as ordinary gain or loss, the difference betw een the price paid for the bills, whether
on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during
the taxable year for which the return is made.
Treasury Departm ent 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 m ay be obtained from any Federal Reserve Bank or Branch.

In accordance with the above announcement, tenders will be received at this bank and its branches at Ei Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, November 27, 1972. Tenders may
not be entered by telephone.

Y u sv r tuy
o r e y rl,

P. E. Coldwell


Am ount, R ange and Approxim ate Y ield of Accepted Tenders
3-M onth B ills
D u e February 22, 1973
Y ield
-4 .7 3 2 % ____
9 8.801_______
„4.796% ____
-4.776% (1 )_

-T o ta l A pplied For„
— T otal A ccepted__
— H ig h — .

6-M onth B ills
D u e M ay 24, 1973
_______________ $3,806,400,000
_______________ $1,900,330,000
Y ield
-9 7 .4 8 2 ­
-9 7.45 3 ­
_______ 5.066%
-9 7 .4 6 1 5.050% ( 1 )

( 1 ) These rates are on a ba n k discount basis. T h e equ ivalen t coupon issue yields are 4 .9 0 % for th e 3-m onth bills an d 5 .2 5 % for
th e 6-m onth bills.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated May 31,1972

Maturing May 31, 1973

T o: Federal Reserve Bank, Station E, Dallas, Texas 75222
or —
The________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(D a te )

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 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.

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.





Prices should be
expressed on th e
basis of 100, with
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
m ust not be used.



Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.

Denominations Desired
N u m b e r of

M a tu rity V alue

-@ $

1 0 , 0 0 0 $ _________________


15,000 $____________

_@ $

50,000 $____________


_@ $

1 0 0 , 0 0 0 $ ---------------------------



_@$ 500,000$-------------------

$ 1,000,000 $------------------

Pledge to secure Treasury Tax and
Loan Account


(S u b sc rib e r’s full n am e o r c o rp o ra te title )

Hold in Custody Account—Member
banks for own account only


Charge our reserve account on paym ent
~ date

I I D r a f t e n c l o s e d (E ffectu al delivery of enclosed d r a f t
shall be on la te st day w hich will p e rm it p re s e n tm e n t in
o rd e r to o b ta in irrevocably collected fu n d s on p a y m e n t
d a te )

Delivery Instructions:

By m aturing bills
held by------------------------------------------- Paym ent to be made by______________

Ship to--------------------------------------

(A d d ress)


(A u th orized official s ig n a tu re a n d title )
( F o r th e acc o u n t of, if te n d e r is f o r a n o th e r su bscrib er)

(A d d ress)


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 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 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--------------------------------------------------------}
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 ofthe Trea
* material, the tender may be disregarded

(See reverse for announcement)

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