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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 7 5 2 2 2

Circular No. 70-68
M arch 18, 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 the aggregate am ount
of $3,100,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M arch 26, 1970, in th e am ount of
$3,010,463,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued M arch 26, 1970, in the am ount of $1,800,000,000, or there­
abouts, representing an additional am ount of bills dated Decem ber 26, 1969, and to m ature Ju n e 25, 1970,
originally issued in the am ount of $1,209,135,000, 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 26, 1970, and to m ature Septem ber 24, 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 aturity 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, Monday, M arch 23, 1970. Tenders 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 p rinted forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches 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 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 Federal Reserve Banks and Branches, following which
public announcem ent will be made 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 h e Secretary of the Treasury 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 F ederal Reserve B ank on M arch 26, 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 26, 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 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 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 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, whether 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 the term s of the T reasury bills and
govern th e conditions of their issue. Copies of th e circular m ay be obtained from any Federal Reserve B ank or Branch.

In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso,
Houston an d San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, March 23, 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 A pproxim ate Yield of A ccepted T enders
91-Day Bills
182-Day Bills
D ue Ju n e 18, 1970
D ue S eptem ber 17, 1970
$3,049,170,000---------------------------------------------- .T otal Applied F o r
________________
$2,707,700,000
$1,800,910,000-------------------------------------------------.T otal A ccepted____________________
$1,301,280,000
P rice
Y ield
P rice
Y ield
98.285
6.785% -------------------------------------- .H igh_____________________ 96.613...
6.700%
98.268
6.852% -------------------------------------- X ow _______________ _______96.598____________6.729%
98.272
6.836% ( 1 ) -------------------------------Average____________________ 96.609
.* .6.707% (1 )
( 1 ) T h ese ra te s a re on a b a n k discount basis. T h e equivalent coupon issue yields a re 7 .0 5 % for th e 91-day bills, an d 7 .0 4 % for
th e 182-day bills.

(See 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated March 26,1970

Maturing September 24,1970

To: Federal Reserve Bank, Station E, Dallas, Texas 75222
or—
The_____________________________ Branch
E l Paso 79999

H ouston 77001

San Antonio 78206

(D ate)

P u rsu an t to th e provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of th e
public announcement 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.

_NOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $_

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

COMPETITIVE TENDERS /

e
(cb

$

@

Prices should be ex ­
pressed on the basis of
100, w ith not m ore th a n
th r e e d ec im a l p la c e s ,
e. g., 99.925. F raction s
m ust not be used.

$
$

TEN D ERS MAY NOT BE ACCEPTED BY TELEPH ON E. TEND ERS BY W IRE, IF RECEIV ED BEFO RE T H E
CLOSING HOUR, A RE ACCEPTABLE.
Denominations Desired
Number of
Pieces

_@ $

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.
METHOD OF PAYM ENT

M aturity 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 (Effectual delivery o f enclosed draft
shall be on latest day which w ill permit presentm ent in
order to obtain irrevocably collected funds on paym ent
date)
(Subscriber's fu ll nam e or corporate title)
(Address)

By-

PLEASE

NOTE TENDER

MUST B $10,000 O MULTIPLE
E
R

T H ER E O F

( <
n

(Authorized official signatu re and title)

(For the account of, if tender is for another 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 atu rity
value).
2. Tenders should be forw arded in an envelope clearly addressed to th is bank or approp riate branch as Fiscal A gent of th e
U nited States, 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 announcement, com muni­
cations relating 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 th e 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 th e tender is made by a partnership it should be signed by a m em ber of th e firm, who
should sign in the form “___________________________ , a copartnership, by--------------------------------------------------------------a m em ber of the firm”.
5. Tenders from those other th an 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 atu rity value)
of the T reasu ry 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 the language of this form is changed in any respect, which, in the opinion of the 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