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F ederal reserve bank 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 D A LL A S, T E X A S 7 5 2 2 2 Circular No. 70-8 January 14, 1970 NEW OFFERING — TREASURY BILLS fo 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 T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $3,000,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing January 22, 1970, in the am ount of $2,900,192,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued January 22, 1970, in the am ount of $1,800,000,000, or there abouts, representing an additional am ount of bills dated O ctober 23, 1969, and to m ature April 23, 1970, originally issued in the am ount of $1,200,393,000, 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 22, 1970, and to m ature Ju ly 23, 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 th e ir face am ount will be payable without in te rest 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 atu rity value). T enders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern S tandard Tim e, M onday, January 19, 1970. T enders will not be received a t the T reasury D epartm ent, Washington. E ach 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 th e basis of 100, with not m ore than three decimals, e.g., 99.925. Fractions m ay 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 F ederal Reserve Banks or Branches on application therefor. Banking institutions generally may subm it tenders for account of customers provided the names of the customers are set forth in such tenders. O thers 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 trust 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 th e closing hour, tenders will be opened a t th e 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. 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 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 completed at the Federal Reserve Bank on January 22, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing January 22,1970. exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m atur ing bills accepted in exchange and the issue price of new bills. T h e income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury 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, whether F ederal or State, but are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of th e U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount a t which Treasury bills are originally sold by the U nited States is considered to be in tere st 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, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, th e owner of Treasury bills (other than life insurance com panies) issued hereunder need include in his income tax return 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 retu rn is made, as ordinary gain or loss. T reasury D epartm ent C ircular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. Cash and In accordance with the ab ove announcement, tenders will be received at this bank and its branches at El Paso, Houston an d San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, January 19, 1970. Tenders m ay not be entered by telephone. Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and A pproxim ate Yield of Accepted Tenders 91-Day B ills 182-Day Bills Due April 16, 1970 Due July 16, 1970 $2,874,039,000 T otal Applied F o r----------------------------------------------- $3,156,461,000 $1,800,145,000__ T otal_A ccepted_________________________________$1,202,583,000 Price Y ield Price Yield 98.029______ ___ 7.797% .................................... High 96.076 7.762% 98.009 7.876% ______________ -Low 96.064 ......................7.785 % 98.019.._ 7.837% (1 )... Average____________ 96.065------------------7.784% (1 ) ( 1 ) These rate* are on a bank discount basis. The equivalent coupon issue yields are 8.11% for the 91-day bills, and 8.21% for the 182-day bills. (See reverse side 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 TREASURY BILLS 182 DAYS TO MATURITY Dated January 22,1970 Maturing July 23,1970 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The______________________________Branch E l Paso 79999 H ouston 77001 (D ate) San Antonio 78206 P u rsu a n t to the provisions of T reasu ry D epartm ent C ircular No. 418 (cu rre n t revision) and the provisions of th e public announcem ent issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasury bills in the am ount shown below, and agrees to pay fo r the am ount allotted, on or before th e issue date, by the method and a t the ra te indicated. NONCOMPETITIVE TENDER $_______________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, w ithout sta te d price, will be accepted in full a t th e av e rag e price (in th ree decimals) of accepted com petitive bids. ($ . P rices should be ex pressed on the basis o f 100, w ith not more th a n ------------------------------ th r e e d ecim al p la c e s ____________________ e. g., 99.925. Fractions' m ust not be used. ____________________ -@ - COMPETITIVE TENDERS < 5h - T E N D E R S MAY NOT BE 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 , IF R E C E IV E D B E F O R E T H E CLOSING HOUR, A R E A C C EPT A B L E . Paym ent fo r th is issue of bills cannot be m ade by credit to T re asu ry T ax and Loan Account. M ETHOD OF PA Y M E N T Denominations D esired N u m b e r of Pieces M aturity V alue 1,000 $_ -@ 5,000 10,000 50,000 100,000 500,000 □ $_ $_ □ By maturing bills held by____________________ Payment to be made by_ $_ $_ □ $_ □ Charge our reserve account on payment date Draft enclosed (E ffectual delivery of enclosed d r a f t sh all be on la te st day w hich w ill p e rm it p re se n tm e n t in o rd er to o b tain irrevocably collected fu nd s on p a y m e n t date) $ 1 ,0 0 0 ,0 0 0 $_ Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to------------------------------------- (S u b scrib er’s fu ll n am e o r co rp o ra te title ) (A ddress) By- (A u tho rized official s ig n a tu re an d title) (F o r th e a cco un t of, if te n d e r is fo r a n o th e r subscriber) (A ddress) IM PORTANT 1. No ten d er fo r less th a n $1,000 will be considered and each ten der m ust be fo r an am ount in m ultiples of $1,000 (m a tu rity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or app ropriate branch as Fiscal A gent of th e U nited States, w ith notation on the envelope reading “ T E N D E R FOR T R E A SU R Y O F F E R IN G ”. Since envelopes received w ith th is legend will not be opened until a fte r the closing time specified in the public announcem ent, com m uni cations relatin g to other m a tte rs should not be enclosed. Envelopes for subm itting tenders m ay be obtained from th is bank or ap pro p riate branch. 3. A ny qualified or conditional tender 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 th e tender and th e signing of the form by an officer of th e corporation will be construed as a represen tation by him th a t he has been so authorized. I f th e tender is m ade by a partn ersh ip it should be signed by a member of the firm, w ho should sign in the form “_____ , a copartnership, by---------------------------------------------------------------> a m ember of the firm ”. 5. Tenders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers in in v e st m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m atu rity valu e) 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 the language of this form is changed in any respect, which, in the opinion of the S ecretary of the T re asu ry i s m aterial, the ten d er m ay be disregarded. (See reverse for announcement)