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F eder al R eser v e ba n k o f D alla 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 C ircular No. 70-15 Jan u ary 21, 1970 NEW OFFERING — TREASURY BILLS 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 bills: T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to th e aggregate am ount of $1,500,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Jan u ary 31, 1970, in th e am ount of $1,500,666,000, as follows: 271-DAY B IL L S (to m atu rity d ate) to be issued February 2, 1970, in the am ount of $500,000,000, or there abouts, representing an additional am ount of bills dated O ctober 31, 1969, and to m ature O ctober 31, 1970, originally issued in th e am ount of $1,002,537,000, the additional and original bills to be freely interchangeable. 365-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated Jan u ary 31, 1970, and to m ature Jan u ary 31, 1971. T he 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 atu rity th eir face am ount will be payable w ithout interest. T h ey 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 v alue). T enders will be received a t F ed eral R eserve B anks and B ranches up to th e closing hour, one-thirty p.m., E astern Standard Tim e, Tuesday, January 27, 1970. T enders will not be received a t the T reasury D epartm ent, W ashington. Each tender m ust be for a n even m ultiple of $1,000, an d in th e case of com petitive tenders th e price offered m u st be expressed on the basis of 100, w ith not m ore th an three decimals, e.g., 99.925. F ractions m ay not be used. (N otw ithstanding th e fact th a t the oneyear bills will ru n for 365-days, th e discount rate will be com puted on a bank discount basis of 360-days, as is currently th e practice on all issues of T reasury bills.) I t is urged th a t tenders be m ade on th e p rinted forms and forwarded in th e special envelopes which will be supplied by F ed eral R eserve B anks or B ranches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided th e nam es of th e customers are set forth in such tenders. O thers th a n banking institutions will n o t be p erm itted to subm it tenders except for th e ir own account T enders will be received w ithout deposit from incorporated banks and tru st com panies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by p aym ent of 2 percent of th e 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 a fte r th e closing hour, tenders will be opened a t th e F ederal R eserve B anks an d Branches, following which public announcem ent will be m ade by th e T reasury D epartm ent of the am ount and price range of accepted bids. Only those sub m 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. 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 th e average price (in three decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for accepted tenders in accordance w ith th e bids m ust be m ade or com pleted a t th e F ederal R eserve B ank on F ebru ary 2, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Jan u ary 31, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m aturing bills accepted in exchange an d th e issue price of th e new bills. T he income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of th e bills, does not have any exem ption, as such, and loss from th e 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 h e bills are subject to estate, inheritance, gift or other excise taxes, w hether F ederal or State, b u t are exem pt from all taxation now or hereafter im posed on th e principal or in terest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. F o r purposes of taxation th e 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 ) an d 1221 (5 ) of the Internal R evenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is not considered 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, th e owner of T reasury bills (o th er th a n life insurance com panies) issued hereunder need include in his income tax retu rn only th e difference betw een th e price p aid for such bills, w hether on original issue or on subsequent purchase, and th e am ount actually received eith er upon sale or redem ption a t m atu rity during th e taxable year for which th e return is made, as ordinary gain or loss. T reasury D ep artm en t C ircular No. 418 (cu rren t revision) and this notice, prescribe the term s of th e T reasury bills and govern the conditions of th e ir issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch. In accordance with the ab ove announcement, tenders will be received at this bank and its branches at El Paso, Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Tuesday, January 27, 1970. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell President (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 ADDITION TO TREASURY BILLS 271 DAYS TO MATURITY Dated October 31,1969 Maturing October 31,1970 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The_____________________________ ___Branch El Paso 79999 Houston 77001 (Date) San Antonio 78206 Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated. _NOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $_ Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. (_ _ Prices should be ex pressed on the basis of f ; @ COMPETITIVE TENDERS < $------------------------@----------- s $------------------------------ e. g., 99.926. Fractions must not be used. TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. ; ... @ ... Denominations Desired Num ber of Pieces $ Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M aturity Value (5) $ (5) $ (5) $ METHOD OF PAYMENT 1,000 $ 5,000 $ 10,000 $ 50,000 $ (a) $ □ (a) $ 100,000 $ □ (5) $ 500,000 $ (a) $1 ,000,000 $ □ By maturing bills held by____________________ _ □P a y m e n t to be made by_ Charge our reserve account on payment date Draft enclosed (Effectual delivery of enclosed d raft shall be on latest day which will perm it presentm ent in order to obtain irrevocably collected funds on paym ent date) Delivery Instructions: □ □ Pledge to secure Treasury Tax and Loan Account (Subscriber's fu ll nam e or corporate title) Hold in Custody Account—Member banks for own account only □ Ship to (Address) By. ________________ (Authorized official sig nature and title) (For th e account of, if tender is fo r another subscriber) (Address) IMPORTANT 1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity 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 matters should not be enclosed. Envelopes for submitting tenders may be obtained from this 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 tender and the signing of the form by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who should sign in the form ___________________________ , a copartnership, by--------------- ------------------------------------------- , a member of the firm”. 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an incorporated bank or trust company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is material, the tender may be disregarded. (See reverse for announcement)