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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)