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F ederal R eserve bank of Dallas FISCA L AGENT OF THE UNITED STATES DALLAS. T E X A S 7 5 2 2 2 Circular No. 70-21 Jan u ary 28, 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 h e 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 F ebruary 5, 1970, in the am ount of $3,004,928,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued F ebruary 5, 1970, in the am ount of $1,800,000,000, or there abouts, representing an additional am ount of bills dated Novem ber 6, 1969, and to m ature M ay 7, 1970, originally issued in the am ount of $1,201,387,000, 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 February 5, 1970, and to m ature August 6, 1970. 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 aturity th eir face am ount will be payable w ithout in te re st 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 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, February 2, 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 m ore than three decimals, e.g., 99.925. Fractions m ay not be used. I t 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 R eserve Banks or B ranches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided th e nam es 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 th eir 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 paym 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 after th e 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. Only those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e 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. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t the F ederal R eserve B ank on February 5, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing February 5, 1970. Cash and exchange tenders will receive equal tre a tm e n t 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 Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether 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 th e U nited States, or by any local taxing authority. F or 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 ) and 1221 (5 ) of the Internal Revenue 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, th e owner of T reasury bills (o th er th an life insurance com panies) issued hereunder need include in his income tax retu rn only th e difference between the price paid for such bills, w hether on original issue or on subsequent purchase, and th e 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. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and govern th e conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch. In accordance with the above announcement, Houston and San Antonio up to twelve-thirty p.m., not be entered by telephone. tenders will be received a t this bank an d its branches a t El Paso, Central Standard Time, Monday, February 2, 1970. Tenders may Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and A pproxim ate Yield of Accepted T enders 91-Day Bills 182-Day Bills D ue A pril 30, 1970 D ue Ju ly 30, 1970 $2,773,975,000 T otal Applied F o r_______________________________ $2,263,718,000 $1,800,093,000________________________________ T o tal_Accepted________________________________ $1,200,191,000 Price Y ield Price Y ield 98.018 7.841% ________________________ H igh______________________ 96.090___________ 7.734% 97.998 7.920% _________________________Low_______________________96.061___________ 7.791% 98.006 7.888% _______________________.Average_____________________96.069------------------ 7.776% (1 ) ( 1 ) T hese ra te s are on a b a n k discount basis. T h e equivalent coupon issue yields are 8 .1 6 % for th e 91-day bills, an d 8 .2 1 % for th e 182-day bills. (S e e 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 91 DAYS TO MATURITY Dated November 6,1969 Maturing May 7,1970 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 th e provisions of T reasu ry D epartm ent C ircular No. 418 (cu rre n t revision) and the provisions of t h e public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasu ry bills in the am o u n t shown below, and agrees to pay for the am ount allotted, on or before the issue date, by th e method and a t the ra te in d icated . NONCOMPETITIVE TENDER $_______________________________ 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 a v e ra g e price (in three decimals) of accepted com petitive bids. Prices should be e x pressed on the basis o f 100, w ith not more t h a n ------------------------------ th r e e d ec im a l p la c e s ____________________ e. g., 99.925. F ra c tio n s m ust not be used. ------------------------------ $- COMPETITIVE TENDERS <V - @. 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 CLOSING HOUR, A R E A C C EPT A B L E . P aym ent fo r this issue of bills cannot be made by credit to T reasu ry T ax and Loan Account. ~ M ETH OD O F PA Y M E N T Denominations Desired N u m b e r of Pieces M a tu rity V alue @ @ @ @ @ @ @ 1,000 $ 5,000 $ $ 10,000 $ 50,000 $ 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 date Draft enclosed (E ffectual delivery of enclosed d r a f t □ s h all be on la te st day w hich will p e rm it p re s e n tm e n t i n ord er to o b tain irrevocably collected fu nd s on p a y m e n t d ate) ' (S u b sc rib e r’s fu ll n a m e o r c o rp o ra te title ) (A ddress) By_ (A u tho rized official s ig n a tu re and 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 b scriber) 1 (A ddress) IM PORTANT 1. No tend 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 r ity v alue). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or approp riate branch as Fiscal A gent of t h 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 this legend will not be opened until a fte r the closing time specified in the public announcem ent, com m un j. 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 t h i s bank or app ro p riate 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 t h e tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t h e 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, w h o should sign in the form “___ , a copartnership, by------------------------------------------------------------- _ a member of the firm ”. 5. Tenders from those other th an incorporated banks and tr u s t companies or responsible and recognized dealers in in v e s t m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m a tu rity valu©) of the T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by a n incorporated bank or tr u s t company. 6. If th e language of th is form is changed in any respect, which, in the opinion of the S ecretary of th e T re asu ry j 8 m aterial, the tend er m ay be disregarded. (See reverse for announcement)
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