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F ederal reserve 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. 70-46 F ebruary 25, 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 M arch 5, 1970, in the am ount of $3,000,814,000, as follows: 91-DAY B ILLS (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 Ju n e 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 IL L S 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 without 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 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 S tandard Tim e, Monday, 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 m ay not be used. It is urged th a t tenders be made on th e printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or B ranches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others 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. T enders from others m ust be accom panied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied 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 Federal Reserve Banks and Branches, following which public announcem ent will be m ade 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 he Secretary of the 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 at 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 made 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 T reasury bills m aturing M arch 5, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade 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 Treasury bills, whether 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, b u 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 the 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 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 th e term s of the T reasury bills and govern the conditions of th eir issue. Copies of the circular may be obtained from any Federal R eserve B ank or Branch. In accordance with the above announcement, Houston and San Antonio up to twelve-thirty p.m., be entered by telephone. tenders will be received a t this bank and its branches at ElPaso, Central Standard Time, Monday, March 2, 1970. Tenders may not Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approxim ate Yield of A ccepted Tenders 91-Day Bills 182-Day Bills Due M ay 28, 1970 D ue August 27, 1970 $2,572,138,000 _Total A pplied F o r_______________________________ $1,957,332,000 $1,800,078,000________________________________.T otal_A ccepted________________________________ $1,300,020,000 Price Yield Price Yield 98.289___________ 6 .7 6 9 % --_____________ 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 rates are on a bank discount basis. T h e equivalent coupon issue yields a re 7 .0 3 % for th e 91-day bills, and 7 .3 3 % for th e 182-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 March 5,1970 Maturing September 3,1970 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The___--------------------------------------- Branch E l Paso 79999 H ouston 77001 (D a t.) San 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 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 th e issue date, by th e 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, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. I ___________________ *- PLEASE NOTE MINIMUM TENDER IS N W O $10,000 COMPETITIVE TENDERS <$ .@ - -----------------------------___________________ _ 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 c e s, e. g., 99.925. F ractio n s 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 , 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 . P aym ent fo r th is issue of bills cannot be m ade by credit to T reasu ry T ax and Loan Account. M ETHOD OF PA Y M E N T Denominations Desired N um b er of Pieces M a tu rity V alue $ 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 (E ffectual delivery of enclosed d r a f t sh all be on la te s t day w hich w ill p e rm it p re s e n tm e n t in o rd e r to o b ta in irrevocably collected fu n d s on p a y m e n t date) (S u b scrib er’s fu ll na m e o r co rp o ra te title ) (A ddress) By- (A uthorized official s ig n a tu re an d title ) (F o r th e a cc o u n t of, if te n d e r is fo r a n o th e r subscriber) (Address) IM PORTANT 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 a tu rity valu e). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or app ropriate branch as F iscal A gent of th e U nited S tates, w ith notation on th e envelope reading “ T E N D E R FOR T R E A SU R Y O F F E R IN G ". Since envelopes received w ith this legend will not be opened u ntil a fte r the closing time specified in th e public announcem ent, com muni 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 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 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 ten der is made by a partn ersh ip it should be signed by a member of the firm, who , a copartnership, by---------------------------------------------------------------, should sign in the form “------------------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 in vest 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 the tenders are 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 the 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)