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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

. «»

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» ---------1-----------------* “■

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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

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.

+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,