The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F e d e r a l Re s e r v e Ba n k 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. 71-35 February 11, 1971 TREASURY OFFERS $1.2 BILLION STRIP OF WEEKLY BILLS To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of a strip of outstanding Treasury bills: The Treasury Department, by this public notice, invites tenders for additional amounts of six series of Treasury bills to the aggregate amount of $1,200,000,000, or thereabouts, for cash. The additional bills will be issued February 26, 1971, will be in the amounts, and will be in addition to the bills originally issued and maturing, as follows: Am ount of A d d itio n al Issue O rig in a l Issue Dates 1970 M a tu rity Dates 1971 $ 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 November 27 December 3 December 10 December 17 December 24 December 31 May 27 June 3 June 10 June 17 June 24 July 1 CUSIP Nos. 912793 912793 912793 912793 912793 912793 KK1 KL9 KM7 KN5 KP0 KQ8 Days from February 2 6 , 197 1 to M a tu rity Am ount Currently Outstanding (in millions) 90 97 104 111 118 125 $1,400 1,399 1,401 1,400 1,404 1,402 Average — 107.5 $1,200,000,000 T he additional and original bills will be freely interchangeable. Each tender submitted must be in the minimum am o unt of $ 6 0 , 0 0 0 . Tenders over $ 6 0 , 0 0 0 must be in multiples o f $ 3 0 , 0 0 0 . O n esixth of the am o unt tendered w ill be a p p lie d to each o f the above series of bills. The bills offered hereunder 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, Thursday, February 18, 1971. Tenders will not be received at the Treasury Department, Washington. 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. A single price must be submitted for each tender. 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. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of these additional issues at a specific rate or price, until after one-thirty p.m., Eastern Standard Time, Thursday, February 18, 1971. 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 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 $240,000 or less (in amounts as set forth in the second paragraph) without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settle ment for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on February 26, 1971. Any qualified depositary will be permitted to make settlement by credit in its Treasury tax and loan account for Treasury bills allotted to it for itself and its customers. 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. Purchasers of a strip of the bills offered hereunder should, for tax purposes, take such bills on to their books on the basis of their purchase price prorated to each of the six outstanding issues using as a basis for proration the closing market prices for each of the issues on February 26, 1971. (Federal Reserve Banks will have available a list of these market prices, based on the mean between the bid and asked quotations furnished by the Federal Reserve Bank of New York.) 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 with the above announcement, tenders w ill be received a t this b a n k a n d its bra n c h e s at El Paso, Houston and San Antonio, up to twelve-thirty p.m., Central Standard Time, Thursday, February 18, 1971. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell President (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 M aturing May 27, June 3, June 10, June 17, June 24, and July 1, 1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The____________________________________ Branch El Paso 79999 Houston 77001 ----------------------------------------(Date) San Antonio 78206 P ursuant to the provisions of Treasury D epartm ent Circular No. 418 (current revision) and to the provisions of the public announcement, as shown on reverse side, as 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 a t the rate indicated. NONCOMPETITIVE TENDER $ _____ ________ _________ NOT TO EXCEED $240,000 (Minimum $60,000 — over th a t multiples of $30,000, for each subscriber) Noncompetitive tenders for $240,000 or less (in multiples of $30,000 over $60,000 minimum) without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. / COMPETITIVE TENDERS \ $ ----------------------------- @ -------------$----------------------------(minimum $60,000 — over th at multiples of $30,000, for each sub.ncnber) j £ 5 \ ▼ ----------------------------- ^ ----------------------------------- ----- i $ ___________________ (g)________ $___________________ y Prices should be expressed on the basis of 100, with not more than three decim al places, e. g., 99.925. Fractions must not be used. A single price m ust be subm itted for each tender. Z& * TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. METHOD OF PAYMENT □ By charge to our Treasury Tax and Loan Account. □ By charge to our reserve account on payment date. □ By draft enclosed (effectual delivery of enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date). □ Payment to be made by__________________________ _______________________________ ____________ Delivery Instructions: Treasury Bills allotted will be delivered in convenient denominations. Describe y issue, if more than oneof the following met ods of delivery is desired. □ Hold in Custody Account-M em ber banks for own account only □ or pnce, until after ^ e -thn-ty p.m„ E astern Standard Time, Thursday, February 18^1971. Pledge to Secure Treasury Tax and Loan Account □ We certify that we, as well as our customers, if any, listed hereon have agreed not to purchase or to sell, or to make any a g re e m e n ts with respect to th e purchase or sale or other disposition ol an y ? of fchese additional issues at a specific rate is (subscriber’s fun name or corporate title) Ship to__________________________________ -------------------------------------------------------------------------------------------- <A “ ' id™ By----------------------------------------------------------------------------------(Authorized official signature and title) (For the account of, if tender is for another subscriber) (Address) IMPORTANT 1. No tender for less than $60,000 will be considered and each tender over $60,000 must be for an amount in multiples of $30,000 (m aturity value). 2. Tenders should be forw arded 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 a fter the closing time specified in the public announcement, comm cations relating to other m atters should not be enclosed. Envelopes for submitting tenders may be requested 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 th an incorporated banks and tru s t companies or responsible and recognized dealers in invest ment securities will be disregarded, unless accompanied by a deposit of 2 per cent 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 s t company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury, is m aterial, the tender may be disregarded. (See reverse for announcement)
@FedFRASER