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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)
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