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Ba n k





C ircular No. 70-43
F ebruary 18, 1970

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statem ent giving details of an issue of Treasury bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for $1,750,000,000, or thereabouts, of 50-day T reasury
bills (to m aturity d a te ), to be issued M arch 3, 1970, on a discount basis under com petitive and noncom petitive bidding as here­
inafter provided. T hese bills will represent an additional am ount of bills dated O ctober 14, 1969, to m ature A pril 22, 1970,
originally issued in th e am ount of $2,006,704,000 (an additional $1,007,472,000 was issued N ovem ber 26, 1969). T h e additional
and original bills will be freely interchangeable. T hey will be accepted a t face value in p aym ent of income taxes due on April 15,
1970, and to th e extent they are not presented for this purpose the face am ount of these bills will be payable w ithout interest a t
m aturity. Taxpayers desiring to apply these bills in paym ent of A pril 15, 1970, income taxes m ay subm it the bills to a Federal
R eserve B ank or B ranch or to the Office of th e T reasurer of th e U nited States, W ashington, not m ore th a n fifteen days before
th a t date. In the case of bills subm itted in paym ent of income taxes of a corporation they shall be accom panied by a duly com­
pleted Form 503 and th e office receiving these item s will effect th e deposit on A pril 15, 1970. In th e case of bills subm itted in
p aym ent of income taxes of all other taxpayers, the office receiving th e bills will issue receipts therefor, th e original of which the
taxpayer shall subm it on or before A pril 15, 1970, to th e D istrict D irector of Internal Revenue for th e D istrict in which such
taxes are payable. T h e bills 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 valu e).
T enders will be received a t Federal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
Standard Tim e, W ednesday, F ebruary 25, 1970. T enders will not be received a t th e T reasury D epartm ent, W ashington. Each
tender m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders th e 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 m ade on
th e printed forms and forw arded in th e special envelopes which will be supplied by F ed eral R eserve B anks or B ranches on
application therefor.
Banking institutions generally m ay subm it tenders for account of custom ers 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 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 p ercent of th e face am ount of Treas*
ury bills applied for, unless th e tenders are accom panied by an express guaranty of p aym ent by a n incorporated bank or tru st
All bidders are required to agree n o t to purchase o r to sell, or to m ake any agreem ents w ith respect to th e purchase
or sale or other disposition of any bills of th e issue for which th e y are bidding a t a specific rate or price, u ntil a fte r one-thirty p jn .,
E astern S tandard Tim e, W ednesday, F eb ru ary 25, 1970.
Im m ediately a fte r th e closing hour, tenders will be opened a t th e Federal R eserve B anks an d Branches, following which
public announcem ent will be m ade by the T reasury D ep artm en t of th e am ount and price range of accepted bids. Only those sub­
m itting com petitive tenders will be advised of th e 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.
Subject to these reservations, noncom petitive tenders 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. P aym ent of accepted tenders a t th e
prices offered m ust be m ade or com pleted a t th e Federal Reserve B ank in cash or other im m ediately available funds on
M arch 3, 1970. Any qualified depositary will be p erm itted to m ake settlem ent by credit in its T reasury T ax and Loan account
for T reasury bills allotted to it for itself and its customers.
T he income derived from T reasury bills, w hether in terest 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 R evenue Code of 1954. T h e 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 im posed 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 th e am ount of discount
a t which T reasury bills are originally sold by th e U nited S tates is considered to be interest. U nder Sections 454 (b ) and 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 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 (o th er th a n 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 eith er upon sale or redem ption a t m atu rity during th e taxable year for which th e retu rn is
m ade, as ordinary gain or loss.
T reasury D ep artm en t C ircular No. 418 (cu rren 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 the circular m ay be obtained from any F ed eral R eserve B ank or B ranch.

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 Standard Time, W ednesday, February 25, 1970. Tenders may
not b e entered by telephone.
Yours very truly,
P. E. Coldwell

(S e e reverse side for te n d er form )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (

This issue of Treasury bills will be accepted at face value in payment of income taxes due
on April 15,1970

Dated October 14,1969


To: Federal Reserve Bank, Station K, Dallas, Texas 75222
Or —
The----------------------------------------------------- Branch
El Paso 79999

Houston 77001

Maturing April 22, 1970


San Antonio 78206


Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the
provisions of the public announcement, as shown on reverse side, as 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 tenders for $200,000 or less from any one bidder, without stated price, will be accepted in
fuil 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
three decim al places,
e. g., 99.926. Fractions
must not be used.




b e e n t e r e d b y t e l e p h o n e , t e n d e r s b y w i r e , i f r e c e iv e d b e f o r e t h e

Denomination Desired
Number of


Maturity Values

<® $
@ $
(2) $


By charge to our Treasury Tax and Loan Account


1,000 $5,000 $L
10,000 t

Payment to be made by................................................
(Name of Bank)


By charge to our reserve account on payment date.


<> $ 50,000 $
(0> $ 100,000 %
<> $ 500,000 *
$ i ,000,000 $

By draft enclosed (effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment

We certify that we, as well as our customers, if any, listed
hereon have agreed not to purchase or to sell, or to make any
agreements with respect to the purchase or sale of other disposi­
tion of any bills of this issue at a specific rate or price, until
after one-thirty p.m., Eastern Standard Time, Wednesday, Feb­
ruary 25, 1970.

Delivery Instructions:

---------------------------------------------------------(Subscriber’s full name o r corporate title)

□ Hold in Custody Account — Member
banks for own account only


□ Pledge to . Secure Treasury Tax and
Loan Account

(Authorized official signature and title)

| | Ship tO____________________________ —___

(F o r the account of, if tender is fo r another subscriber)

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
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, communications
relating to other matters should not be enclosed. Envelopes for submitting tenders may be requested 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 a n d the signing of the form by an officer of the corporation will be construed as a representation by him that he
h a s 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