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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, TEXAS 75222

Circular No. 70-50
M arch 4, 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 h e 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 12, 1970, in the am ount of
$3,001,333,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued M arch 12, 1970, in the am ount of $1,800,000,000, or th ere­
abouts, representing an additional am ount of bills dated D ecem ber 11, 1969, and to m ature Ju n e 11, 1970,
originally issued in the am ount of $1,200,323,000, 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 12, 1970, and to m ature Septem ber 10, 1970.
T h e 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 F ederal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
S tandard Tim e, M onday, M arch 9, 1970. T enders will not be received a t the T reasury D epartm ent, Washington. 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 th an three decimals, e.g., 99.925. Fractions m ay not be used. It 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 Banks or B ranches on
application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided th e 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 accompanied by paym ent of 2 percent of the 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 the closing hour, tenders will be opened a t the F ederal Reserve Banks and Branches, following which
public announcem ent will be m ade 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 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
je ct 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 w ith the bids m ust be m ade or com pleted a t the Federal Reserve B ank on M arch 12, 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 12, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
T h e 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 R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ederal 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. For purposes of taxation the am ount of discount
a t 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 R evenue 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 th e taxable year for which the
retu rn is m ade, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and
govern the conditions of th eir issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In accordance with the above 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, Monday, March 9, 1970. Tenders may not
be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Y ield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue June 4, 1970
D ue Septem ber 3, 1970
$2,457,520,000
T otal Applied F or_______________________________ $2,190,890,000
$1,800,190,000________________________________ .Total A ccepted________________________________ $1,300,419,000
P rice
Y ield
Price
Yield
98.283____________ 6.793% _______________
H igh__
96.602____________ 6.721%
98.249______
6.927% __________________________ Low______________________ 96.564________
6.796%
98.264____________ 6.868% ( 1 ) ____________________ Average____________________ 96.576___________ 6.773% (1 )
( 1 ) T hese ra te s are on a bank discount basis. T h e equivalen t coupon issue yields are 7 .0 9 % for th e 91-day bills, and 7 .1 1 % for
th e 182-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
Dated December 11, 1969

Maturing June 11,1970

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or—
The_________
Branch
El Paso 79999

Houston 77001

San Antonio 78206

(D ate)

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

NONCOMPETITIVE TENDER $________________________________ NOT TO EXCEED $200,000

$

-

(cb
@

....

$

$
r
$

-

■ 1 1T
1 "

■■

■■

Prices 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.

E g 3 TEND ERS MAY NOT BE E N TER ED BY TELEPH O N E. TEND ERS BY W IRE, IF RECEIVED BEFO RE T H E
CLOSING HOUR, A RE ACCEPTABLE.
Denominations D esired
N u m b er of
Pieces

-@

by

M a tu rity V alu e

$

10,000 $_

□

□

□
□

By maturing bills
held by____________________
Payment to be made by_____

C Charge our reserve account on payment

(cb$1 000 000 $
O p liv p r v T n c trn p tin n Q •
l_C li v C I v J.UO 1,1 UI-I-IUIIO .
__, -r-r -i i
^
i i
a

Paym ent fo r th is issue of bills cannot be m ade
credit to T reasury Tax and Loan Account.
J
METHOD OF PAYM ENT

□

$ 50,000 $-------------------$ 100,000 $-------------------_@ $ 500,000 $_

D Draft enclosed (Ew hich wi]] p e rm ito p re s e n tm e ndtrain
ffectual delivery f enclosed
ft
shal] be on ]a te st day
i

mr

i

Hold m Custody Account—Member
banks for own account o
n
l
Pledge to secure Treasury Tax and
Loan Account
Ship to-------------------------------------

order to obtain irrevocably collected funds on paym ent

y

date)
_______________________________________________
(S u b scrib er’s fu ll na m e o r co rp o ra te title )

----------By_____

(A ddress)

(A uthorized official s ig n a tu re a n d title )

PLEASE

NOTE TENDER

MUST B $10,000 O MULTIPLE
E
R

T H ER E O F

Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t the av erage
price (in three decimals) of accepted com petitive bids.

(F o r th e acco u n t of, if te n d e r is fo r a n o th e r subscriber)

(A ddress)

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 atu rity
value).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appro priate branch as Fiscal A gent of th e
U nited S tates, w ith notation on the 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 th is legend will not be opened until a fte r the closing tim e specified in the public announcem ent, communi­
cations relatin 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 appropriate branch.
3. A ny qualified or conditional tender will be rejected.
4. If a corporation m akes the tender, th e form should be signed by an officer of the corporation authorized to m ake th e
tender and the signing of th e form by an officer of the corporation will be construed as a representation by him th a t he
has been so authorized. If the tender is made by a p artn ership it should be signed by a m em ber of the firm, who
should sign in the form “
, a copartnership, by__________________________________________ ,
a m em ber of the 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 atu rity value)
of the T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an
incorporated bank or tr u s t company.
6. If th e language of this form is changed in any respect, which, in th e opinion of the S ecretary of the T reasury is
m aterial, the tender m ay be disregarded.

(See reverse for announcement)

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