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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, TEXAS 7 5 2 2 2 Circular No. 70-76 M arch 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 the aggregate am ount of $3,100,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing A pril 2, 1970, in the am ount of $3,010,715,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued A pril 2, 1970, in the am ount of $1,800,000,000, or thereabouts, representing an additional am ount of bills dated Janu ary 2, 1970, and to m ature Ju ly 2, 1970, originally issued in the am ount of $1,201,671,000, the additional and original bills to be freely interchangeable. 182-DAY B ILLS for $1,300,000,000, or thereabouts, to be dated A pril 2, 1970, and to m ature October 1, 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, Monday, M arch 30, 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. 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. Banking 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 trust 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 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 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 Bank on April 2, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing A pril 2, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atu r ing bills accepted in exchange and the issue price of the 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 Treasury bills does not have any special treatm ent, as such, under the Internal Revenue Code of 1954. T h e 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. For 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 th e 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 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 the conditions of th eir issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch. In accordance with the above announcement, tenders wiSf 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 30, 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 Yield of Accepted T enders 91-Day Bills 182-Day Bills D ue Ju n e 25, 1970 Due Septem ber 24, 1970 $3,837,220,000 .T otal Applied F o r_______________________________ $2,382,010,000 $1,803,300,000-------------------------------------------------.Total Accepted________________________________ $1,301,070,000 P rice Yield Price Yield 98.421------------------6.247% --------------------------------------- H igh_____________________ 96.896____________ 6.140% 98.415----------------- 6.270% __________________________ Low_____________________ 96.858____________ 6.215% 98.417----------------- 6.262% ( 1 ) ------------------------------- Average___________________ 96.874____________ 6.183% (1 ) ( 1 ) T hese ra te s are on a bank discount basis. T h e equivalen t coupon issue yields are 6 .4 5 % for the 91-day bills, and 6 .4 7 % 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 TREASURY BILLS 182 DAYS TO MATURITY Maturing October 1,1970 Dated April 2,1970 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The_____________________________ Branch E l Paso 79999 H ouston 77001 San Antonio 78206 (Date) 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 the public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ount shown below, and agrees to pay for the am ount allotted, on or before the 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 competitive bids. ^ $ COMPETITIVE TENDERS \ (n) @ Prices should be ex pressed on the basis of 100, w ith not m ore than th r e e decim al p la c e s, e. g., 99.925. F ractions m ust not be used. ? * $ TEND ERS MAY NOT BE ACCEPTED BY TELEPH O N E. TEN D ERS BY W IRE, IF RECEIV ED BEFO RE T H E CLOSING HOUR, ARE ACCEPTABLE. Denominations D esired Number of Pieces Paym ent fo r th is issue of bills cannot be m ade by credit to T reasury Tax and Loan Account. METHOD OF PAYM ENT M aturity Value $ 10,000 $_____________ □ $ 50,000 $____________ _@ $ 100,000 $____________ $ 500,000 $____________ □ 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 $1,000,000 $_____________ shall be on latest day which will 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_ PLEASE NOTE TENDER MUST B $10,000 O MULTIPLE E R T H ER E O F / m (Authorized official sigmature and title) (For the account of, if tender is for another subscriber) (Address) IM PORTANT 1. No tender fo r less than $10,000 will be considered and each tender m u st 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 appropriate 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 this legend will not be opened until a fte r the closing time specified in the public announcement, communi cations relatin g to other m a tte rs should not be enclosed. Envelopes for 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, the form should be signed by an officer of the corporation authorized to m ake th e tend er and the signing of the 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 m ade by a partnership 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 th e firm ”. 5. Tenders from those other th an 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 to tal 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 th is form is changed in any respect, which, in the opinion of th e S ecretary of the T reasu ry is m aterial, the tender m ay be disregarded. (See reverse for announcement)