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F ederal






D A LL A S, T E X A S 7 5 2 2 2

Circular No. 70-3
January 7, 1970

t o 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 h e T reasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount
of $3,000,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing January 15, 1970, in the am ount of
$2,905,533,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued January 15, 1970, in the am ount of $1,800,000,000, or there­
abouts, representing an additional am ount of bills dated October 16, 1969, and to m ature April 16, 1970,
originally issued in the am ount of $1,203,109,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,200,000,000, or thereabouts, to be dated January 15, 1970, and to m ature Ju ly 16, 1970.
T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and a t m aturity their face am ount will be payable without interest. T hey will be issued in bearer form only, and in
denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v alu e).
T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, Jan uary 12, 1970. T enders will not be received at the Treasury D epartm ent, W ashington.
Each tender m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on
the basis of 100, with not more th an three decimals, e.g., 99.925. Fractions may not be used. It is urged th a t tenders be made
on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or B ranches on
application therefor.
Banking 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 will not be perm itted to subm it tenders except for their own account.
T enders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which
public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T he Secretary of the T reasury expressly reserves the
rig ht 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 each issue for $200,000 or less w ithout stated price from any one bidder will be
accepted in full a t the average price (in three decimals) of accepted com petitive bids for the respective issues. S ettlem ent for
accepted tenders in accordance with the bids m ust be made or com pleted a t the F ederal Reserve B ank on Janu ary 15, 1970, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing January 15, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m a tu r­
ing bills accepted in exchange and the issue price of new bills.
T he income derived from T reasury bills, w hether interest or gain from the sale or other disposition of th e bills, does not
have any exemption, as such, and loss from the sale or other disposition of T reasury bills does not have any special treatm ent,
as such, under the Internal R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether
Federal or State, b u t are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State,
or any of th e possessions of the U nited States, or by any local taxing authority. F o r purposes of taxation the am ount of discount
a t which T reasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454 (b ) and
1221 (5 ) of the Internal R evenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of T reasury bills (other th an life insurance com panies) issued hereunder need include
in his income tax retu rn only the difference between the price paid for such bills, w hether on original issue or on subsequent
purchase, and the am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury D ep artm en t Circular No. 418 (cu rren t revision) and this notice, prescribe the term s of the T reasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any F ederal R eserve B ank or Branch.

In accordance with the above announcement, tenders will be received at this bank an d its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, January 12, 1970. Tenders may
hot be entered by telephone.
Yours very truly,
P. E. Coldwell
Amount, Range and Approxim ate Y ield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue April 9, 1970
Due July 9, 1970
.T otal Applied F o r_______________________________ $2,507,337,000
$1,800,150,000________________________________ T otal_A ccepted_________________________________$1,200,892,000
P rice
Y ield
98.012_____________ 7.865% ________________________ H igh______________________95.966____________ 7.979%
97.982_____________ 7.983% ________________________ Low______________________ 95.956____________ 7.999%
97.988_____________ 7.960% ( 1 ) ___________________ Average___________________ 95.960_______
7.991% (1 )
( 1 ) T hese ra te s are on a b an k discount basis. T h e equivalent coupon issue yields are 8 .2 4 % for th e 91-day bills, and 8 .4 4 % for th e
182-day bills.

(S ee reverse side for tender form )

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


Dated October 16,1969

Maturing April 16,1970

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
The_--------- —____________________ Branch
E l Paso 79999

H ouston 77001

San Antonio 78206

(D ate)

P u rsu a n t to th e provisions of T reasu ry D epartm ent C ircular No. 418 (cu rre n t revision) and the provisions of the
public announcem ent issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ount
shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by the method and a t the ra te indicated.



N oncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full at the average
price (in three decimals) of accepted com petitive bids.
Prices should be ex­
pressed on the basis of
100, w ith not more than
th r e e d ec im a l p laces,
e, g., 99.925. F ractions
m ust not be used.


COMPETITIVE TENDERS < $----------------(i----------

fS r " T E N D E R S MAY NOT B E E N T E R E D BY T E L E P H O N E . T E N D E R S BY W IR E , I F R E C E IV E D B E F O R E T H E
Denominations Desired
Number of

P aym ent fo r th is issue of bills cannot be made
by credit to T re asu ry T ax and Loan Account.

M aturity Value


1 ,0 0 0 $_

-@ $

5,000 $_



1 0 ,0 0 0 $ ­

- @ $ 100,000
_@ $ 500,000
$ 1,000,000
-@ $


By maturing bills
held by
__ _____________________
Payment to be made by_







Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□ Ship to.
__ _________________

Charge our reserve account on payment
Draft enclosed (Effectual delivery of enclosed draft
shall be on latest day which w ill permit presentm ent in
order to obtain irrevocably collected funds on payment
(Subscriber’s fu ll name or corporate title)



(Authorized official signature and title)
(For the account of. if tender is for another subscriber)

1. No tender fo r less th a n $1,000 will be considered and each tend er m ust be fo r an am ount in m ultiples of $1,000 (m atu rity
2. Tenders should be forw arded in an envelope clearly addressed to this bank or app ropriate branch as Fiscal A gent of the
U nited States, w ith notation on the envelope reading “ T E N D E R FO R T R E A SU R Y O F F E R IN G ”. Since envelopes
received w ith this legend will not be opened until a fte r the closing time specified in the public announcem ent, communi­
cations rela tin g 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. Any qualified or conditional tend er will be rejected.
4. I f a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the
tend er 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. I f th e tender is made by a partn ersh ip it should be signed by a member of th e firm, who
should sign in the form *
, a copartnership, by-------------------------------------------------------------- ,
a member 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 the total am ount (m a tu rity value)
of the T re asu ry bills applied for, or unless th e 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 th e language of this form is changed in any respect, which, in the opinion of th e S ecretary of th e T reasu ry is
m aterial, th e tend er m ay be disregarded.

(See reverse for announcement)

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