View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE BANK OF DALLAS
FIS C A L A G EN T O F T H E UN ITED ST A T E S

DALLAS, TEXAS 75222
C ircular N o . 70-92
A p ril 15, 1970

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O th e r s C o n c e r n e d
in t h e E leventh F e d e r a l R eserv e District:
Your a t te n t i o n is in vited to t h e f o llo w in g s t a t e m e n t giving d e t a il s o f tw o issu es of T re asu ry bills:
T h e T reasu ry D ep a r tm e n t, by th is p u b lic n o tice, i n \ i t e s ten d e rs for tw o series o f T r ea su ry b ills to th e a g g reg a te a m o u n t
o f $3 1 0 0 ,0 00 ,0 00 , or th ereab ou ts, for cash a n d in exch a n g e for T r ea su ry b ills m a tu rin g A p ril 23, 19 7 0 , in t h e a m o u n t o f
$ 3 ,0 0 2 ,4 6 2 ,0 0 0 , as fo llow s:
9 1 - D A Y B I L L S ( t o m a tu rity d a te ) to b e issu ed A p ril 23, 1970, in th e am o u n t o f $ 1 ,8 0 0 ,0 0 0 ,0 0 0 , or th ereab o u ts,
rep resen tin g an a d d itio n a l a m o u n t o f b ills d a ted J an u ary 22, 1970, and to m atu re J u ly 23, 1970, orig in a lly
issu ed in th e a m o u n t o f $ 1 ,2 0 4 ,1 9 7 ,0 0 0 , t h e a d d ition al an d origin al b ills to b e fr e e ly in terch a n g eab le.
1 8 2 -D A Y B I L L S for $ 1 ,3 0 0 ,0 0 0 ,0 0 0 , or th ereab ou ts, to b e d ated A p ril 23, 1970, an d to m atu re O cto b er 22, 1970.
T h e b ills o f b o th series w ill b e issu ed o n a d isco u n t b asis u n d er c o m p e titiv e an d n o n c o m p e titiv e b id d in g a s h erein a fter
p ro v id ed , a n d a t m a tu r ity th eir fa c e a m o u n t w ill b e p a y a b le w ith o u t in terest. T h e y w ill b e issu ed in b earer form o n ly , a n d in
d e n o m in a tio n s o f $ 1 0 ,0 0 0 , $ 5 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 and $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a lu e ) .
T e n d e r s w ill b e rece iv ed a t F e d e r a l R e s e r v e B a n k s an d B r a n c h e s u p to th e clo sin g hour, o n e-th irty p .m ., E astern
S ta n d a rd T im e , M o n d a y , A p ril 2 0, 1970. T e n d er s w ill not be r e c e iv e d a t th e T r ea su ry D ep a rtm e n t, W ash in gto n . E a c h
te n d e r m u st b e for a n e v e n m u ltip le o f $ 1 0 ,0 0 0 , an d in th e c a se o f c o m p e titiv e ten d e rs th e p rice offered m u s t b e exp ressed on
th e b asis o f 100, w ith n o t m ore th a n three d ecim a ls, e.g., 99.9 25. F ra ctio n s m a y n o t b e u sed. It is urged t h a t ten d e rs be m a d e
on th e p rin te d form s a n d forw ard ed in th e sp ecial e n v e lo p e s w h ich w ill b e su p p lied b y F e d e r a l R e s e r v e B a n k s or B r a n c h e s on
a p p lic a tio n therefor.
B a n k in g in stitu tio n s g en era lly m a y su b m it ten d e rs for acco u n t o f cu sto m ers p ro vid ed t h e n a m e s o f t h e cu sto m ers are
se t forth in su ch ten ders. O thers th a n b an k in g in stitu tio n s w ill n o t b e p e r m itte d to su b m it ten d e rs e x c e p t for th eir o w n account.
T e n d e r s w ill b e r e c e iv e d w ith o u t d ep o sit fro m in corp orated b an k s an d tru st co m p a n ie s an d from resp o n sib le a n d recogn ized
d ealers in in v e stm e n t secu rities. T e n d er s from o th ers m u s t b e acco m p a n ied b y p a y m e n t o f 2 p ercen t o f t h e fa c e a m o u n t of
T r ea su ry b ills a p p lie d for, u n less th e ten ders are a c co m p a n ied b y a n exp ress g u aran ty o f p a y m e n t b y a n in corp orated bank or
tru st co m p an y.
I m m e d ia te ly a fte r t h e clo sin g hour, ten d ers w ill b e o p en ed a t th e F e d e r a l R e s e r v e B a n k s and B ra n ch es, fo llo w in g w h ich
p u b lic a n n o u n c e m e n t w ill b e m a d e b y th e T r ea su ry D e p a r tm e n t o f th e a m o u n t an d p rice ra n ge o f a c c e p te d bids. O n ly th o se
su o m ittin g c o m p e tit iv e ten d ers w ill b e a d v ise d o f t h e a ccep ta n ce or rejectio n thereof. T h e S ecretary o f th e T r ea su ry exp ressly
reserv es th e righ t 1 0 a c c e p t or reject a n y or all ten ders, in w h ole or in part, and h is a ctio n in a n y su ch resp ect sh all b e final. S u b ­
je c t to th e se reservations, n o n c o m p e titiv e ten d e rs for each issu e for $ 2 0 0 ,0 0 0 or less w ith o u t sta ted price from a n y o n e b id d er w ill
b e a c c e p te d in fu ll a t th e a v era ge p rice (in th r ee d e c im a ls) o f a ccep ted c o m p e titiv e b id s for th e r e sp ectiv e issues. S e t tle m e n t for
a c c e p te d ten ders in acco rd an ce w ith th e b id s m u s t b e m a d e or c o m p le te d a t th e F e d e r a l R e s e r v e B a n k on A p ril 23, 1970, in
cash or oth er im m e d ia te ly a v a ila b le fu n d s or in a lik e face a m o u n t o f T r ea su ry b ills m a tu rin g A p ril 2 3 , 197 0. Cash an d
ex c h a n g e ten d e rs w ill r ece iv e eq u al trea tm en t. C ash a d ju stm en ts w ill b e m a d e for d ifferen ces b etw een th e par v a lu e o f m atu r­
in g b ills a ccep ted in ex ch a n g e and th e issu e p rice o f t h e n ew bills.
T h e in c o m e d eriv ed from T r ea su ry b ills, w h eth er in te rest or gain from th e sa le or o th e r d isp o sitio n o f t h e b ills, d o es n o t
h a v e a n y e x em p tio n , a s such, and loss from th e sa le or oth er d isp osition o f T r ea su ry b ills d o es n o t h a v e a n y sp ec ia l treatm en t,
as such, un d er th e In tern al R e v e n u e C o d e o f 1954. T h e b ills are su b ject to esta te, in h eritan ce, g ift or oth er e x c is e ta x es, w h eth er
F ed era l or S ta te, b u t are ex e m p t from all ta x a tio n n o w or hereafter im p o sed o n th e p rin cip a l or in te rest th e reo f b y a n y S tate,
or a n y o f th e p o ssessio n s of th e U n ite d S tates, or b y a n y loca l taxin g au th ority. F or p u rp oses o f ta x atio n t h e a m o u n t o f d iscou n t
a t w h ich T rea su ry b ills are o rigin a lly sold b y th e U n ite d S ta tes is co n sid ered to b e in terest. U n d er S ectio n s 4 5 4 ( b ) an d
12 21 ( 5 ) o f th e In tern a l R e v e n u e C od e o f 1 9 5 4 t h e a m o u n t o f d isco u n t a t w h ich b ills issu ed h ereu n d er are sold is n o t co n ­
sid ered to accrue u n til such b ills are sold, red eem ed or o th erw ise d isp o sed of, and such b ills are ex clu d ed from co n sid er a tio n as
ca p ital assets. A ccord in gly, th e o w n er o f T r ea su ry b ills (o th e r th a n life insu ran ce c o m p a n ie s) issu ed h ereu n d er n e e d inclu d e
in h is in co m e tax return o n ly th e d ifferen ce b e tw e e n th e price p a id for su ch b ills, w h eth er o n origin al issu e or o n su b seq u e n t
pu rch ase, an d th e a m o u n t a c tu a lly r ece iv ed eith er u p o n sa le or re d e m p tio n a t m a tu rity during t h e ta xa b le y e a r for w h ich th e
retu rn is m a d e, as ord in ary gain or loss.
T r ea su ry D e p a r t m e n t Circular N o. 4 1 8 (cu rren t rev isio n ) a n d th is n o tice, p rescrib e t h e term s o f th e T r ea su ry b ills an d
go vern th e co n d itio n s o f th eir issue. C op ies o f t h e circular m a y b e ob ta in ed fro m a n y F e d e r a l R e s e r v e B a n k or B ranch.

In a c c o r d a n c e w ith t h e a b o v e a n n o u n c e m e n t , t e n d e r s will b e r ec eive d a t this b a n k a n d its b r a n c h e s a t El P aso,
H o u sto n a n d San A n to n io u p to t w e l v e - th ir ty p.m ., Central S t a n d a r d Time, M o n d a y , April 20, 19 70. T e n d e rs m a y not
be entered by telephone.
Y ours v e r y truly,
P. E. Coldw ell
P re sid e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ou n t, R a n g e a n d A p p ro x im a te Y ie ld o f A cc e p te d T e n d er s
9 1 - D a y B ills
1 8 2 -D a y B ills
D u e J u ly 16, 1 970
D u e O ctob er 15, 1 ° 7 0
$ 3 ,0 8 6 ,2 8 0 ,0 0 0
T o t a l A p p lie d F or
....'_$ 2 ,4 4 6 ,0 2 0 ,0 0 0
$ 1 ,8 0 0 ,9 0 0 ,0 0 0 -------------------------------------------------------- .T o ta l A c c e p te d __________________________________
$ 1 ,3 0 0 ,2 6 0 ,0 0 0
P r ic e
Y ie ld
P r ic e
Y ie ld
9 8 .4 1 8 --------------------- 6 .2 5 8 % ________________________
.H ig h _________________________ 9 6 .8 4 9 ____________ 6 .2 3 3 %
9 8 .4 0 2 ---------------------6 .3 2 2 % -----------------------------------------------L o w ________________________ 9 6 .8 3 7 ____
....6 .2 5 6 %
9 8 .4 0 5 ------------ .... 6 .3 1 0 % ( 1 )
.A vera ge----------------.9 6 .8 4 2 __ _
6.247%( 1 )
( 1 ) T h e s e r a t e s a r e on a b a n k d isc o u n t basis. T h e e q u iv a l e n t c o u p o n issue y ie ld s a re 6 . 5 0 %
t h e 1 8 2 - d a y b i lls .
'

f o r t h e 9 1 - d a y b i lls , a n d

6 54%

fo r

( S e e reverse for ten der fo rm )

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 April 23, 1970

Maturing October 2 2 ,1 9 7 0

To: Federal R eserve Bank, Station K, Dallas, T exas 75222
or—
T he---------------------------------------------------Branch
El Paso 79999

Houston 77001

San Antonio 78206

(D at« )

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.

NONCOMPETITIVE T E N D E R 8

JNOT TO E X C E E D $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
----- V --------------------------------

r<i)

COMPETITIVE T EN D E R S
$ .....

$
$

Prices should be ex­
pressed on the basis of
100, with not more than
th re e decimal places,
e. g., 99.925. Fractions
must not be used.

SSF" TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b e r of
Pieces

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT
□ B y m a tu r in g bills
held by__________________________________

M atu rity V alue

-< > $
5

10,000

<> ?
a

50,000 *
< > ? 100,000 ?.
5
< > $ 500,000 $S

□
□

(a) $1 ,000,000 ?.

P le d g e to secu re T re a su r y T a x and
Loan A c c o u n t

□

S h ip to ______________________________

s h a ll b e on l a t e s t d a y w h i c h w ill p e r m i t p r e s e n t m e n t in
o r d e r to o b t a i n i rr e v o c a b l y c ollected f u n d a o n p a y m e n t
date)

Hold in C u stod y A ccou n t— M em ber
banks fo r ow n acco u n t only

□

C harge our r eserv e accou n t on p a y m en t
d ate

I I D r a f t e n c l o s e d (Effectual delivery of enclosed draft

D e liv e ry In str u c tio n s:
□

P a y m e n t to be m ad e b y _______________

( S u b s c r i b e r ’s f u l l n a m e o r c o r p o r a t e t i t l e )

(Address)

B y.
( A u t h o r i z e d of fi c ia l s i g n a t u r e a n d t i t l e )

( F o r t h e a c c o u n t o f, i f t e n d e r is f o r a n o t h e r s u b s c r i b e r )

(Address)

IMPORTANT
1. No tender for less than $10,000 will be considered and each tender must be for an amount in multiples of $10,000 (maturity
value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY O FFER IN G ”. Since envelopes
received with this legend will not be opened until after the closing time specified in the public announcement, communi­
cations relating to other m atters should not be enclosed. Envelopes for submitting tenders may be obtained from this
bank or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the
tender 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 the tender is made by a partnership it should be signed by a member of the firm, who
should sign in the form “__________________________ , a copartnership, by------------------------------------------------------------- ,
a member of the firm”.
5. Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or tru st company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.
(See reverse for announcement)

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