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F ederal R eserv e Bank

of

Dallas

F I S 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, T EX AS 7 5 2 2 2

Circular No. 70-45
February 25, 1970

NEW OFFERING — TREASURY BILLS
To All Banking Institutions an d 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 $3,100,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M arch 5, 1970, in the am ount of
$3,000,814,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued M arch 5, 1970, in the am ount of $1,800,000,000, or there­
abouts, representing an additional am ount of bills dated D ecem ber 4, 1969, and to m ature June 4, 1970,
originally issued in the am ount of $1,200,237,000, the additional and original bills to be freely interchangeable.
182-DAY B ILLS for $1,300,000,000, or thereabouts, to be dated M arch 5, 1970, and to m ature Septem ber 3, 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 w ithout interest. T hey will be issued in bearer form only, and in
denom inations of $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity 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, M arch 2, 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 $10,000, 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 may 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 B anks or B ranches 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 their 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 percent of th e face am ount of
T reasury 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 Reserve Banks and Branches, following which
public announcem ent will be made by the Treasury 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 he 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 com pleted a t the Federal Reserve B ank on M arch 5, 1970, in
cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing M arch 5, 1970. Cash and
exchange tenders will receive equal tre a tm e n t 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, w hether
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 the possessions of the U nited States, or by any local taxing authority. F or purposes of taxation the 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 retu rn only the 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 th e 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, tenders will be received a t this bank and its branches a t El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, March 2, 1970. Tenders may not
be entered by telephone.
Yours very truly,
P. i . Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Yield of A ccepted T enders
91-Day Bills
182-Day Bills
D ue M ay 28, 1970
Due August 27, 1970
$2,572,138,000
.T otal Applied F o r_______________________________ $1,957,332,000
$1,800,078,000________________________________ T otal_A ccepted________________________________ $1,300,020,000
P rice
Y ield
Price
Y ield
98.289
6.769% __________________________H igh______________________96.497___________ 6.929%
98.268
6.852% __________________________ Low______________________ 96.450___________ 7.022%
98.278
6.812% ( 1 ) ____________________ Average____________________ 96.474___________ 6.975% (1 )
( 1 ) T hese ra te s are on a b an k discount basis. T h e equivalen t coupon issue yields are 7 .0 3 % for the 91-day bills, and 7 .3 3 % for
th e 132-day bills.

(S ee 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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Maturing June 4,1970

Dated December 4,1969
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or—
The______________________________Branch
El Paso 79999

Houston 77001

(Data)

San Antonio 78206

P u rsu a n t to the provisions of T reasu ry D epartm ent C ircular No. 418 (cu rre n t revision) and th e provisions of the
public announcem ent issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ount
shown below, and agrees to pay fo r th e am ount allotted, on or before the issue date, by the method and a t the ra te indicated.

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 fuU at the average
price (in three decimals) of accepted competitive bids.
___________________

COMPETITIVE TENDERS <$-

PLEASE

NOTE MINIMUM

TENDER

IS N W
O

$10,000

“

-----------------------------___________________

-@ -

(*-

“

P rices should be ex­
pressed on th e basis of
100, w ith not more th a n
th r e e d ecim al p la ce s,
e. g., 99.925. F raction s
m ust not be used.

2^=* 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 .
Paym ent fo r th is issue of bills cannot be made
by credit to T reasu ry T ax and Loan Account.
M ETHOD O F PA Y M E N T

Denominations D esired
Number of
Pieces

_@ $

M aturity Value

10,000 $____________

□

$ 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 (Effectual delivery of enclosed draft
shall be on latest day which w ill perm it presentm ent in
order to obtain irrevocably collected funds on paym ent
date)

(Subscriber’s fu ll nam e or corporate title)

(Address)

By-

(Authorized official signature and title)
(For the account of,

if tender is for another subscriber)
(Address)

IMPORTANT
1. No tender fo r less th a n $10,000 will be considered and each tender m ust be fo r an am ount in m ultiples of $10,000 (m atu rity
v alue).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or app ro p riate branch as Fiscal A gent of the
U nited S tates, w ith notation on the 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 un til a fte r th e closing tim e specified in th e public announcem ent, communi­
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 th is
bank or ap p ro p riate branch.
3. A ny qualified or conditional tend er 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 the
tender and th e signing of the form by an officer of th e corporation will be construed as a representation 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 the form “_____________________________ , a copartnership, by-------------------------------------------------------------- ,
a member of th e 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 reasu ry bills applied for, or unless th e tenders a re accompanied by an express g u a ra n ty of full paym ent by an
incorporated bank or tr u s t company.
6. I f 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