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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. 70-91
A pril 15, 1970

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llo w in g sta te m e n t giving details of tw o 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 23, 1970, in the am ount of
$3,002,462,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued A pril 23, 1970, in the am ount of $1,800,000,000, or thereabouts,
representing an additional am ount of bills dated January 22, 1970, and to m ature Ju ly 23, 1970, originally
issued in the am ount of $1,204,197,000, 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 April 23, 1970, and to m ature O ctober 22, 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 B ranches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, A pril 20, 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. I t is urged th a t tenders be m ade
on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches 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 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 th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after th e closing hour, tenders will be opened a t the F ederal 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 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 at th e 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 April 23, 1970, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing April 23, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e 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 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. F or 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 th e 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 th e 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 atu rity during th e taxable year for which th e
retu rn is made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s of th e 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 a b o v e a n n o u n c em en t, tenders will b e received at this b ank a n d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, M on d ay, April 20, 1 970. Tenders m a y not
be entered by te le p h o n e .
Yours very truly,
P. E. Coldwell
_________________
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Y ield of Accepted T enders
91-Day Bills
182-Day Bills
Due July 16, 1970
Due O ctober 15, 1970
$3,086,280,000
T otal Applied F o r_______________________________ $2,446,020,000
$1,800,900,000_________________________________T otal A ccepted________________________________ $1,300,260,000
P rice
Yield
Price
Y ield
98.418___________ 6.258% __________________________ H igh_____________________ 96.849____________ 6.233%
98.402___________ 6.322% ___________________________Low_____________________ 96.837____________ 6.256%
98.405-----------------6.310% ( 1 ) ------------------------------- Average____________________96.842____________ 6.247% (1 )
(1 ) T h ese rates a re on a bank discount basis. T h e equ iv alen t coupon issue yields are 6 .5 0 % for th e 91-day bills, an d 6 .5 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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated January 22,1970

Maturing July 23,1970

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or—
The.
__
Branch
E l Paso 79999

H ouston 77001

San Antonio 78206

(D ate)

P u rsu a n t to th e provisions of T reasury D epartm ent C ircular 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 reasury bills in the am ount
shown below, and agrees to pay fo r th e am ount allotted, on or before the issue date, by the m ethod 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.
/

o
*

COMPETITIVE TENDERS

(n)

\

$

$

@

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

$

StSP TEN D ERS MAY NOT BE ACCEPTED BY TELEPH O N E. TEN D ERS BY W IRE, IF RECEIV ED BEFO RE TH E
CLOSING HOUR, A RE ACCEPTABLE.
Denom inations 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 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.

(Authorized official signature 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 aturity
value).
2. Tenders should be forw arded in an envelope clearly addressed to th is bank or appropriate branch as Fiscal A gent of the
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 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 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 the
ten d er and the 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. 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. T enders from those other th an incorporated banks and tru 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 th e 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 th e language of th is form is changed in any respect, which, in the opinion of the S ecretary of the T reasu ry 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