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F e d e r a l R e s e r v e Ba n k o f D a lla s 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 N o. 72-42 February 24, 1972 TREASURY OFFERS $3 BILLION STRIP OF WEEKLY BILLS To All Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your atten tio n is invited to the following sta te m e n t giving details of a strip of o u tstan d in g Treasury bills: T h e Treasury Departm ent, by this public notice, invites tenders for additional amounts of fifteen series of Treasury bills to the aggregate am ount of $3,000,000,000, or thereabouts, for cash. T h e additional bills w ill be issued M arch 6, 1972, w ill be in the am ounts, and will be in addition to the bills originally issued and maturing as follows: Amount of Additional Issue Original Issue Dates Maturity Dates 1972 $ 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 Septem ber 30, 1971 October 7, 1971 October 14, 1971 October 21, 1971 October 28, 1971 N ovem ber 4, 1971 N ovem ber 11, 1971 N ovem ber 18, 1971 N ovem ber 26, 1971 Decem ber 2, 1971 D ecem ber 9, 1971 D ecem ber 16, 1971 D ecem ber 23, 1971 Decem ber 30, 1971 January 6, 1972 M arch 30 April 6 April 13 April 20 April 27 M ay 4 M ay 11 M ay 18 M ay 25 June 1 June 8 June 15 June 22 June 29 July 6 Days from March 6 f 1972 to Maturity 24 31 38 45 52 59 66 73 80 87 94 101 108 115 122 CUSIP Nos. 912793 912793 912793 912793 912793 912793 912793 912793 912793 912793 912793 912793 912793 912793 912793 $3,000,000,000 M U7 MV5 MW3 M X1 M Y9 M Z6 NA0 NB8 NC 6 ND4 NE2 NF9 NG7 NH5 NT9 Amount Currently Outstanding (in millions) $3,903 3,901 3,903 3,901 3,902 3,902 3,901 4,007 4,001 1,601 1,601 1,600 1,602 1,601 1,601 Average — 73 T h e additional and original bills will be freely interchangeable. Each tender subm itted m ust be in the m inim um am ount of $150,000. Tenders over $150,000 m ust be in m ultiples of $75,000. O ne-fifteenth of the amount tendered w ill be applied to each of the above series of bills. T h e bills offered hereunder will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face am ount will be payable without 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 aturity v a 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 T im e, W ednesday, March 1, 1972. Tenders will not be received at the Treasury Departm ent, W ashington. In the case of com p etitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. A single price m ust be subm itted for each tender. It is urged that tenders be m ade on the printed forms and forwarded in the special envelopes which will be supplied by Federal R eserve Banks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions w ill not be perm itted to subm it tenders except for their own account. T enders w ill be received w ithout 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 o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust com pany. A ll bidders are required to agree not to purchase or to sell, or to m ake any agreem ents w ith 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 T im e, W ednesday, M arch 1, 1972. Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which pu blic announcem ent will be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. Only those sub m ittin g com petitive tenders w ill be advised of the acceptance or rejection thereof. T h e 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, noncom petitive tenders for $300,000 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 decim als) o f accepted com petitive bids. S ettle m en t for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank in cash or other im m ed iately available funds on M arch 6, 1972. A ny qualified depositary w ill be perm itted to m ake settlem ent by credit in its Treasury tax and loan account for not more than 50 percent of the am ount of Treasury bills allotted to it for itself and its customers. U nder 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 incom e 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 th e 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 their books on the basis of their purchase price prorated to each of the eight outstanding issues using as a basis for proration the closing m arket prices for each of the issues on March 6, 1972. (F ederal R eserve Banks w ill have available a list of these m arket prices, based on the m ean between the bid and asked quotations furnished by the Federal R eserve Bank o f N ew Y ork.) Treasury Departm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch. <l . «» - » -•* » ---------1-----------------* “■ i t : - i \ . i c j c Yours very truly, P. E. Coldwell President (S e e 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 Maturing March 30, April 6, April 13, April 20, April 27, May 4, May 11, May 18, May 25, June 1, June 8, June 15, June 22, June 29, and July 6, 1972 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or_______________________________ Branch The.. El Paso 79999 Houston 77001 (Date) San Antonio 78295 Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to th e 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 amount shown below, and agrees to pay for th e amount allotted, on or before the issue date, by the method and at the rate indicated. NONCOMPETITIVE TENDER $___________________________ NOT TO EXCEED $300,000 (Minimum $150,000 — over th at multiples of $75,000, for each subscriber) Noncompetitive tenders for $300,000 or less (in multiples of $75,000 over $150,000 minimum) without stated price from a n y one bidder will be accepted in full a t the average price (in three decimals) of accepted competitive bids. / Prices should be expressed on the basis of $--------------@ -------$-------------COMPETITIVE TENDERS 100, with not more th a n $ $-------------(minimum $150,000 — over th at th re e decim al p la c e s , multiples of $75,000, for each e. g., 99.925. Fractions $____________ <> a______ $_____________ must not be used. subscriber) i A single price must be submitted for each tender. RSiT TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E CLOSING HOUR, ARE ACCEPTABLE. METHOD OF PAYMENT □ By charge to our Treasury tax and loan account. (N o t to exceed 50 percent of the cost of bills allotted.) □ 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 presentm ent in order to obtain irrevocably collected funds on paym ent date). " □ Payment to be made by.. Delivery Instructions: Treasury Bills allotted will be delivered in convenient denominations. Describe by issue, if more than one of the following methods of delivery is desired. □ Hold in Custody Account—Member banks for own account only □ 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 agreements with respect to the purchase or sale or other dis position of any bills of these additional issues at a specific rate or price, until after one-thirty p.m., Eastern Standard Time. Wednesday, March 1, 1972. ' ' Ship to________________________________ (S u sb crib er’s f u ll n a m e or corp orate title ) (A d d ress) By(A u th orized official s ig n a tu r e a n d title ) (F o r th e acc o u n t o f, i f ten d er is fo r a n oth e r sub scriber) (A d d ress) IMPORTANT 1. No tender for less than $150,000 will be considered and each tender over $150,000 must be for an amount in multiples of $75,000 (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 requested from th is 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 mntmm w T mm UiUi . +L - . --------- 5. Tenders from those otber than incorporated banks and trust companies or responsible and recognized dealer* * • ment securities will be disregarded, unless accompanied by a deposit of 2 per cent of the total am lnvestf inount (m aturitv value) of tbe Treasury bills applied for, or unless tbe tenders are accompanied by an express by an incorporated bank or trust company. ^ ' g u a r a n t y of paym ent n ?1 U 6. If th e la n g u a g e of th is fo r m is c h a n g ed in a n y r esp e ct, which, in th e opinion of the Secret*.™ * x, th e te n d e r m a y b e disregard ed . ^ LA secretary of the 1e (Se reverse for announcement) Treasury, is m aterial,
