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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, TEX AS 7 5 2 2 2
Circular No. 70-109
M ay 6, 1970

NEW OFFERING — TREASURY BILLS
lo 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 state m e n t giving details of t w o issues of Treasury bills:
T h e 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 14, 1970, in the am ount of
$2,993,940,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued M ay 14, 1970, in the am ount of $1,800,000,000, or thereabouts,
representing an additional am ount of bills dated February 13, 1970, and to m ature August 13, 1970, originally
issued in the am ount of $1,200,664,000, 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 14, 1970, and to m ature Novem ber 12, 1970.
T h e 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. T hey will be issued in bearer form only, an d 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
D aylight Saving Tim e, Monday, M ay 11, 1970. T enders will not be received a t the T reasury 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 th e price offered m ust be expressed on
th e basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay 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 F ederal Reserve Banks or Branches on
application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided the nam es of th e customers are
set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for th eir own account.
T enders will be received w ithout deposit from incorporated banks and tru st com panies and from responsible and recognized
dealers in investm ent securities. Tenders 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 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
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 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 th e Federal Reserve B ank on M ay 14, 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 14, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
T he 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
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 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 R evenue 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 aturity during th e taxable year for which the
retu rn is m ade, 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 th e conditions of th eir issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch.

In a cc o rd ance with the a b o v e an n o u n c em en t, ten ders will b e received at this b a nk a n d its branches at El Paso,
ouston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d ay , M ay 11, 1970. Tenders m ay
ot be en tered by t e le p h o n e .
Yours very truly,
P. E. Coldwell
____________
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and A pproxim ate Yield of A ccepted Tenders
91-Day Bills
182-Day Bills
D ue August 6, 1970
D ue Novem ber 5, 1970
$2,868,790,000
T otal Applied F o r_______________________________ $2,845,412,000
$1,800,050,000________________________________ T otal A ccepted________________________________ $1,300,412,000
P rice
Y ield
Price
Yield
98.243
6.951% _________________________ .H igh_____________________ 96.294__________
7.331%
98.168
7.247% _________________________ l o w _____________________ 9 6 .1 88 ____________7.540%
98.184
7.184% ( 1 ) ____________________ A v erag e____________________ 96.212___________ 7.493% (1 )
( 1 ) T hese ra te s are on a b a n k discount basis. T h e equivalen t coupon issue yields are 7 .4 2 % for th e 91-day bills, and 7 .9 0 % 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
Dated February 13,1970

Maturing August 13,1970

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 the provisions of T reasury D epartm ent Circular No. 418 (current revision) and th e provisions of the
public announcem ent issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasury bills in the am ount
shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by the 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 competitive bids.
(

/^s
(a)

COMPETITIVE TENDERS
%

®
?

@

Prices should be ex­
pressed on the basis of
100, w ith not m ore th an
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.

$

J S T TEN D 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, A RE ACCEPTABLE.
Denominations D esired
Number of
Pieces

P aym ent fo r this issue of bills cannot be m ade
by credit to T reasury T ax and Loan Account.
METHOD OF PAYM ENT

M aturity Value

$

10,000 $_

□

-@ ?

50,000 $_
100,000 $_
$
-@ $ 500,000 $_

□
□

Charge our reserve account on payment
date
| | Draft enclosed (Effectual delivery o f eneloMd d raft

.<§> $ 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-------------------

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)

IMPORTANT

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 atu rity
value).
2. Tenders should be forw arded in an envelope clearly addressed to th is bank or appropriate branch as F iscal A gent of th e
U nited States, w ith notation on the envelope reading “ T E N D E R FO R 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 u ntil 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 for subm itting tenders m ay be obtained from th is
bank or appropriate branch.
3. Any qualified or conditional tend er 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 th e
tender and the signing of the form by an officer of th e corporation will be construed as a rep resentation by him th a t he
has been so authorized. If th e tender is m ade by a partn ership 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 the firm”.
5. Tenders from those other th a n 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 th e to tal am ount (m atu rity value
of the T reasury bills applied for, or unless th e 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)

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