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FEDERAL RE SE R V E 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

DALLAS, TEX A S 7 5 2 2 2

Circular No. 70-34
February 11, 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 Treasury bills to the aggregate am ount
of $3,000,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing F ebruary 19, 1970, in the am ount of
$3,003,574,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued February 19, 1970, in the am ount of $1,800,000,000, or th ere­
abouts, representing an additional am ount of bills dated November 20, 1969, and to m ature M ay 21, 1970,
originally issued in the am ount of $1,200,408,000, 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 F ebruary 19, 1970, and to m ature August 20, 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 their face am ount will be payable without interest. They 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 a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, M onday, February 16, 1970. T enders will not be received a t the T reasury 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 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 Federal 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 th eir own account.
Tenders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of
Treasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust company.
Im m ediately after the closing hour, tenders will be opened a t the F ederal R eserve 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 th e 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 completed a t the Federal Reserve B ank on February 19, 1970, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing F ebruary 19, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made 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, bu 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 or purposes of taxation th e am ount of discount
at 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 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 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 th e 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 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 and its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, February 16, 1970. Tenders may
not be entered by telephone.
Yours very truly,
P. E, Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Yield of Accepted Tenders
90-Day Bills
181-Day Bills
D ue M ay 14, 1970
Due August 13, 1970
$2,906,546,000_______________________________T otal Applied F o r_______________________________ $2,367,225,000
$1,800,062,000________________________________ T otal A ccepted________________________________ $1,200,067,000
Price
Yield
Price
Yield
98.186
7.256% _________________________ H igh______________________ 96.294___________ 7.371%
98.164
7.344% __________________________ Low______________________ 96.278___________ 7.403%
98.172
7.312% ( 1 ) ____________________ Average____________________ 96.286____________ 7.387% (1 )
( 1 ) These ra te s are on a ban k discount basis. T h e eq uivalent coupon issue yields are 7 .5 5 % for th e 90-day bills, and 7 .7 8 % for th e
181-day bills.

(See reverse for ten d er 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 February 19,1970

Maturing August 20,1970

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

Houston 77001

(D ate)

S an 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 the
public announcem ent issued by the T reasu ry D epartm ent, th e 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 th e issue date, by th e method and a t the ra te indicated.

NONCOMPETITIVE TENDER $_______________________________ NOT TO EXCEED $200,000
N oncompetitive 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 com petitive bids.

COMPETITIVE TENDERS $
$

@
@

$
$

...

P rices 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 ce s,
e. g., 99.925. F ractio ns
m ust not be used.

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 .
P aym ent fo r this issue of bills cannot be made
by credit to T re asu ry Tax and Loan Account.
M ETHOD O F PA Y M E N T

Denominations Desired
N u m b er of
Pieces

M atu rity V alue

$
_@ $

1,000 $_

5,000 $_

_@ $

1 0 ,0 0 0 $_

$ 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
date
| | Draft enclosed (E ffectual delivery o f enclosed d r a f t
shall be on la te st day w hich will p e rm it p re s e n tm e n t in
o rd er to o bta in irrevocably collected fu n d s on p a y m e n t
date)
(S u bscrib er's fu ll n a m e or co rp o ra te title)

(A ddress)

By_
(A u th orized official s ig n a tu re a n 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)

IM PO RTA N T
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 a tu rity
value).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or ap pro priate branch as Fiscal A gent of th e
U nited States, 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 th is legend will not be opened until a f te r th e closing tim e specified in th e public announcem ent, communi­
cations relatin 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 appro 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 the signing of the form by an officer of th e corporation will be construed as a rep resentation by him th a t he
has been so authorized. I f the tender is made by a partn ersh ip it should be signed by a member of th e firm, who
should sign in th e form
___________________________-, a copartnership, by.
..
,
a member 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 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 reasury bills applied for, or unless the tenders are accompanied by an express g u a ra n ty of full paym ent by an
incorporated bank o r tr u s t company.
6. If th e language of th is form is changed in any respect, which, in th e opinion of th e S ecretary of the T re asu ry is
m aterial, th e tender m ay be disregarded.

(See reverse for announcement)

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