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F ederal R eserve 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. 70-102
April 29, 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 follow in g statem ent 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 M ay 7, 1970, in the am ount of
$3,002,349,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued M ay 7, 1970, in the am ount of $1,800,000,000, or thereabouts,
representing an additional am ount of bills dated February 5, 1970, and to m ature August 6, 1970, originally
issued in the am ount of $1,202,619,000, 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 ay 7, 1970, and to m ature Novem ber 5, 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 without interest. They 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
D aylight Saving Tim e, Monday, M ay 4, 1970. Tenders will not be received a t the T reasury D epartm ent, W ashington. Each
tender must 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 B anks or Branches on
application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided th e 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 without 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 R eserve 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 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 must be m ade or com pleted a t the F ederal Reserve B ank on M ay 7, 1970, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M ay 7, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the p ar value of m atu r
ing bills accepted in exchange and the issue price of the new bills.
T h e income derived from Treasury 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 th e am ount of discount
at which Treasury 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 Treasury 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, 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 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 the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve Bank or Branch.
In a ccordance with the a b o v e an n ou n c em en t, tenders will b e received at this b ank a n d its branches at El Paso,
Houston an d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M on d ay , M a y 4, 1970. Tenders m ay
not b e entered by tele p h o n e .
Yours very truly,
P. E. Coldwell
_________________
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and A pproxim ate Y ield of Accepted T enders
91-Day Bills
182-Day Bills
Due July 30, 1970
D ue O ctober 29, 1970
$2,444,190,000
T otal A pplied F o r_______________________________ $2,894,650,000
$1,800,070,000------------------------------------------------ .T otal A ccepted________________________________ $1,300,150*000
P rice
Y ield
Price
Yield
98.306----------------- 6.702% ---------------------------------------H igh______________________ 96.398___________ 7.125%
98.225------------------7.022% ------------------------------------ ---Low______________________ 96.324___________ 7.271%
98.262------------------6.876% ( 1 ) -------------------------------Average____________________ 96.333___________ 7.253% (1 )
( 1 ) These rates are on a b an k discount basis. T h e equivalent coupon issue yields are 7 .0 9 % for th e 9 1-day bills, and 7 6 3 % 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 ADDITION TO TREASURY BILLS
91 DAYS TO MATURITY
Maturing August 6,1970
Dated February 5,1970
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or—
The_____________________________ Branch
El Paso 79999
H ouston 77001
San Antonio 78206
(D ate)
P u rsu a n t to the provisions of T reasury D epartm ent C ircular No. 418 (cu rren t 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 ajnount
shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by th e method and a t the ra te indicated.
JNOT 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.
{ &
sz*
&
$
(a)
$
.
$
! *
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.
TEN D ERS MAY NOT BE A CCEPTED BY TELEPH O N E. TEN D ERS BY W IRE, IF RECEIV ED BEFO RE TH E
CLOSING HOUR, A RE ACCEPTABLE.
D enom inations D esired
Number of
Pieces
P aym ent fo r th is issue of bills cannot be made
by credit to T reasury 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 presentment in
order to obtain irrevocably collected fundfl on paym ent
date)
(Subscriber’s full name 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 an $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 this bank or appropriate branch as F iscal 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 this legend will not be opened until a fte r the closing tim e specified in the public announcem ent, communi
cations relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this
bank or approp riate 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 th e corporation authorized to m ake 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 th e tender is m ade by a partnersh ip it should be signed by a m em ber of the firm, who
should sign in the form “_____________________________ a copartnership, by—
a m ember of the firm ”.
5. Tenders 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 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 reasury is
m aterial, the tender m ay be disregarded.
(See reverse for announcement)
@FedFRASER