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F ederal

reserve

bank

of

Dallas

F IS 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. 70-94
April 16, 1970

NEW OFFERING — TREASURY BILLS

To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:

Your atten tio n is invited to the following sta te m e n t giving details of tw o issues of Treasury bills:
T h e Treasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of
$1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing April 30, 1970, in the am ount of
$4,502,320,000, as follows:
2 76-D A Y B IL L S (to m aturity d ate) to be issued April 30, 1970, in the am ount o f $500,000,000, or thereabouts,
representing an additional am ount of bills dated January 31, 1970, and to m ature January 31, 1971, orig­
inally issued in the am ount of $1,003,046,000, the additional and original bills to be freely interchangeable.
365-D A Y B IL L S for $1,200,000,000, or thereabouts, to be dated April 30, 1970, and to mature April 30, 1971.
T h e bills o f both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face am ount w ill be payable w ithout interest. T h e y w ill 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 v a lu e ).
T enders w ill be received at Federal R eserve B anks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard T im e, Thursday, April 23, 1970. Tenders w ill not be received at the Treasury 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, w ith not m ore than three decim als, e.g., 99.925. Fractions m ay not be used. (N otw ithstanding the fact that the oneyear bills w ill run for 365-days, the discount rate will be com puted on a bank discount basis of 360-days, as is currently the
practice on all issues o f Treasury bills.) It is urged that tenders be m ade on the printed forms and forwarded in the special
envelopes which w ill be supplied by Federal R eserve B anks or Branches on application therefor.
B anking institutions generally m ay subm it tenders for account of custom ers provided the nam es o f the custom ers are
set forth in such tenders. Others than banking institutions w ill not be perm itted to subm it tenders except for their own account.
T enders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of the face am ount of
Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust com pany.
Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which
public announcem ent will be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. O nly those sub­
m itting com petitive tenders w ill be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury expressly
reserves the right to accept or reject an y or all tenders, in whole or in part, and his action in any such respect shall be final.
Subject to these reservations, noncom petitive tenders for each issue for $200,000 or less without stated price from any one
bidder w ill be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues.
S ettlem ent for accepted tenders in accordance with the bids must be m ade or com pleted at the Federal R eserve Bank on April
30, 1970, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing April 30, 1970.
Cash and exchange tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een the par value
o f maturing bills accepted in exchange and the issue price of the new bills.
T h e incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not
have any exem ption, 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 R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but are exem pt from all taxation now or hereafter im posed on the principal or interest thereof by any State,
or any of the possessions of the U n ited States, or by any local taxing authority. For purposes of taxation the am ount o f discount
at which Treasury bills are originally sold by the U n ited States is considered to be interest. Under Sections 4 54 ( b ) and 1221 ( 5 )
of the Internal R evenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is not considered 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 Treasury bills (other than life insurance com panies) issued hereunder need include in his
incom e tax return only the difference betw een 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
m ade, as ordinary gain or loss.
Treasury D epartm ent Circular N o. 418 (current revision) and this notice, prescribe the term s o f the Treasury bills and
govern th e conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In acc o rd a n c e with the a b o v e a n n o u n ce m e n t, te nders will b e received a t this b a n k a n d its bran c h es a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central S ta n d a rd Time, Thursday, April 23, 1970. Tenders m a y not
b e e n te re d b y te le p h o n e .
Yours very truly,
P. E. Coldwell
President
(See reverse side 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

365 DAYS TO MATURITY
Dated April 30, 1970

Maturing April 30,1971

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or—
The--------------------------------------------- Branch
El Paso 79999

Houston 77001

(Date)

San Antonio 78206

P u rsu an t to the provisions of Treasury Departm ent Circular No. 418 (current revision) and the provisions of the
public announcement issued by the T reasury 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 a t the ra te indicated.

NONCOMPETITIVE TENDER $_

JNOT TO EXCEED $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.
( ^
_
Prices should be ex­
pressed on the basis of
100, with not more than
<a)
$
COMPETITIVE TENDERS <$!
th re e decim al places,
e. g., 99.925. Fractions
@
$
must not be used.
BSP TENDERS MAY NOT BE EN TERED BY TELEPH O N E. TENDERS BY W IRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.

¥

Denominations Desired
Num ber of
Pieces

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M aturity Value

METHOD OF PAYMENT

<> $ 10,000
5
(5) $ 50,000
(5) $ 100,000
(fib $ 500,000
.0 ) $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___________________________
□P a y m e n t to be made by____________
Charge our reserve account on payment
date

| | D r a f t e n c l o s e d (Effectual delivery of enclosed d raft
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-

(A uthorized official sig nature and title)
(For the account of, if tender is fo r another subscriber)
(Address)

IMPORTANT
1. No tender for less than $10,000 will be considered and each tender m ust be for an amount in multiples of $10,000
(m aturity 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 a fte r 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 th an incorporated banks and tru s t 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 s t company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the T reasury 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