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F ederal R eserv e Bank


Da lla s


DALLAS, TEX A S 7 5 2 2 2

C ircular No. 70-12
Janu ary 21, 1970

To 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 hills:
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 T reasury bills m aturing Jan uary 29, 1970, in the am ount of
$2,900,641,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued Jan uary 29, 1970, in the am ount of $1,800,000,000, or there­
abouts, representing an additional am ount of bills dated April 30, 1969, and to m ature April 30, 1970,
originally issued in the am ount of $1,000,634,000, (additional am ounts of $500,151,000, and $1,200,988,000
were issued Ju ly 31, 1969, and October 30, 1969, respectively), the additional and original bills to be freely
182-DAY B IL L S for $1,200,000,000, or thereabouts, to be dated Janu ary 29, 1970, and to m ature Ju ly 30, 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 valu 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, M onday, January 26, 1970. T enders will not be received a t the T reasury D epartm ent, Washington.
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 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 Federal Reserve Banks or Branches on
application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the names of th e 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 tru st companies and from responsible and recognized
dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless the tenders are accom panied 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 F ederal 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 T reasury 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 m ade or com pleted at the Federal Reserve B ank on Jan uary 29, 1970, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing January 29, 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 atur­
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 the 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, 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 the U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount
a t which T reasury bills are originally sold by th e 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 u ntil 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 than 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 atu rity during the
taxable year for which the
return is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s of the T reasury bills and
govern the conditions of th eir issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

in accordance with the above announcement,
Houston and San Antonio up to twelve-thirty p.m.,
hot be entered by telephone.

tenders will be received at this bank and
Central Standard Time, Monday, January

its branches at El Paso,
26, 1970. Tenders may

Yours very truly,
P. E. Coldwell
A mount, R ange and Approxim ate Yield of Accepted T enders
91-Day Bills
182-Day Bills
D ue April 23, 1970
D ue Ju ly 23, 1970
T otal Applied F o r_________
$1,800,184,000________________________________ T o tal_Accepted_________________________________$1,200,785,000
Y ield
P rice
98.041___________ 7.750% __________________
H igh______________ 96.158____________7.600%
98.027___________ 7.805% __________________________Low______________________ 96.120____________7.675%
98.031___________ 7 789% ( 1 ) ____________________.Average____________________ 96.126____________ 7.663% (1 )
( 1 ) T hese ra te s are on a b a n k discount basis. T h e equiv alent coupon issue yields are 8 .0 6 % for th e 91-day bills, an d 8 .0 8 % 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 April 30,1969

Maturing April 30,1970

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
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 (c u 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 th e am ount allotted, on or before th e issue date, by th e method and a t the ra te indicated.

_NOT TO EXCEED $200,000


Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t the average
price (in three decimals) of accepted competitive bids.
Prices should be ex­
------------------------------ pressed on the basis of
100, w ith not more th a n
th r e e d ec im a l p la c e s,
___________________ _ e< g., 99.925. F ractio n s
m ust not be used.


figr* 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 , I F R E C E IV E D B E F O R E T H 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.

D enom inations D esired
N u m b e r of

M aturity V alue

1,000 $
5,000 $
$ 10,000 $
$ 50,000 $
$ 100,000 $
@ ¥ 500,000 $
@ $1,000,000 $


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


By maturing bills
held by___________________________ _
Payment to be made by_
Charge our reserve account on payment
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 sen tm en t ii*
o rd e r to o btain irrevocably collected fu n ds on p a y m e n t

(S u b sc rib e r’s fu ll n a m e o r co rp o ra te title)

(A ddress)


(A u th orized official s ig n a tu re an d title )
(F o r th e acco u n t of, if te n d e r is fo r a n o th e r su bscrib er)

(A ddress)

1. No ten d er fo r less th a n $1,000 will be considered and each tender m ust be fo r an am ount in m ultiples of $1,000 (m a tu rity
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 S tates, w ith notation on th e 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 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 th e 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 representation by him th a t he
has been so authorized. I f th e tender is made by a p artn ersh ip it should be signed by a member of the 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 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 a n
incorporated bank or tr u s t company.
6. If the language of th is form is changed in any respect, which, in th e opinion of the S ecretary of th e T reasu ry is
m aterial, the tender m ay be disregarded.

(See reverse for announcement)

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