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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

DALLAS, TEXAS 75222

C ircular No. 70-37
F ebruary 16, 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 $3,100,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing February 26, 1970, in th e am ount of
$3,001,646,000, as follows:

PLEASE

OBSERVE

CLOSING DATE — FRIDAY, FEBRUARY

20, 1970

91-DAY B ILLS (to m aturity d ate) to be issued F ebruary 26, 1970, in the am ount of $1,800,000,000, or there­
abouts, representing an additional am ount of bills dated N ovem ber 28, 1969, and to m ature M ay 28, 1970,
originally issued in the am ount of $1,201,189,000, th e additional and original bills to be freely interchangeable.
182-DAY B ILLS for $1,300,000,000, or thereabouts, to be dated F ebruary 26, 1970, and to m ature August 27, 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 atu rity th e ir 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 alu e).
T enders will be received a t Federal Reserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern
Standard T im e, Friday, F ebruary
20, 1970. T enders will not be received a t the T reasury D epartm ent, W ashington.
E ach tender m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders th e price offered m ust be expressed on
the basis of 100, w ith not more than three decimals, e.g., 99.925. F ractions m ay not be used. I t is urged th a t tenders be m ade
on the printed forms and forwarded in th e special envelopes which will be supplied by F ederal R eserve B anks or Branches 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 than banking institutions will not be p erm 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 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 p ercent 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 th e Federal R eserve B anks and Branches, following which
public announcem ent will be m ade by th e T reasury D epartm ent of th e 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 decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for
accepted tenders in accordance with th e bids m ust be m ade or com pleted a t th e F ederal R eserve B ank on F eb ru ary 26, 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 26, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences betw een th e 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 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 oth er 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, w hether
Federal or State, b u t are exem pt from all taxation now or hereafter imposed on th e principal or interest thereof by any State,
or any of the possessions of th e U nited States, or by any local taxing authority. F o r 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 In tern al R evenue Code of 1954 th e 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, th e owner of T reasury bills (other th an life insurance com panies) issued hereunder need include
in his income tax retu rn only the difference between th e 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 a tu rity during th e taxable year for which the
return is made, as ordinary gain or loss.
T reasury D ep artm en t C ircular No. 418 (curren t revision) and th is notice, prescribe th e term s of th e T reasury bills and
govern the conditions of th e ir issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank or Branch.

In accordance with the a b o v e 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 Sandard Time, Friday, February 20, 1970. Tenders m ay
not be entered by telephone.
Yours very truly,
P. E. Coldwell
President

Figures concerning offering of 91-Day Treasury Bills maturing May 21, 1970, and 182-Day Treasury Bills maturing August 20,
1970, not available when this circular was printed.

(See reverse 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 February 26, 1970

Maturing August 27,1970

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 rat© indicated.

PLEASE OBSERVE

CLOSING DATE — FRIDAY, FEBRUARY

20, 1970

NONCOMPETITIVE TENDER $_________________________________ NOT TO EXCEED $200,000
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
100, with not more than
r
(a)
$
COMPETITIVE TENDERS < ?;
three decimal places,
e. g., 99.925. Fractions
\
(ft
$
must not be used.

¥

BSP TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made
Denominations Desired
by credit to Treasury Tax and Loan Account.
Number of
M aturity Value
Pieces
METHOD OF PAYMENT

@ $

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 (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)

@ $1,000,000 $
Delivery Instructions:
□
□
□

(Subscriber’8 full nam e or corporate title)

Hold in Custody Account—Member
banks for own account only
Pledge to secure Treasury Tax and
Loan Account
Ship to_________________________

(Address)

By_

(Authorized official signatu re and title)
(For the 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.
8. 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)

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