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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. 70-110
M ay 6, 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 f o 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
of $3,100,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M ay 14, 1970,
$2,993,940,000, as follows:

to the
aggregate am ount
in the am ount of

91-DAY B IL L S (to m aturity date) 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 November 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 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 aturity value).
T enders will be received at Federal R eserve 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, 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. It is urged th a t tenders be made
on the prin ted 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. 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 th e Federal Reserve Banks and Branches, following which
public announcem ent will be m ade 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 m ust be made or com pleted a t the 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 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 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 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
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. For 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 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, th e owner of T reasury 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 at m aturity during th e taxable year for which the
return is m ade, as ordinary gain or loss.
T reasury D ep artm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and
govern th e conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch.

In acc ord an c e with the a b o v e an n o u n c em en t, ten ders wiil b e received at this b ank a n d its branches at El Paso,
louston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M on d ay, M ay 11, 1970. Tenders m ay
>ot be entered by t e le p h o n e .

Yours very truly,
P. E. Coldwell
_________________

President

LAST PREVIOUS OFFERING OF TREASURY BILLS
A mount, Range and A pproxim ate Yield of A ccepted T enders
91-Day Bills
182-Day Bills
D ue August 6, 1970
D ue November 5, 1970
$2,868,790,000
T otal Applied F o r____________________
$2,845,412,000
$1,800,050,000------------------------------------------------- .Total A ccepted________________________________ $1,300,412,000
Price
Y ield
P rice
Yield
98.243
6.951% ---------------------------------------H igh_______________
96.294____________ 7.331%
98.168
7.247% __________________________ Low______________________ 96.188___________ 7.540%
98.184
7.184% ( 1 )
----------------------- Average___________________ ^96.212___________ 7.493% (1 )
( 1 ) T h ese ra te s are on a b an k discount basis. T h e equivalent coupon issue yields are 7 .4 2 % for th e 91-dav bills, an d 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated May 14,1970

Maturing November 12,1970

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 reasu ry D epartm ent Circular 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 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 $_

N oncompetitive 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.
------------------------------

COMPETITIVE TENDERS <
'

'

_@ _

------------------------------

" (* -

------------------------------

Prices should be ex­
pressed on the basis of
100, w ith not more th a n
th r e e d ecim al p la c e s,
e. g., 99.925. F ractions
m ust not be used.

i f 3 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 Desired
Number of
Pieces

Paym ent fo r this issue of bills cannot be m ade
by credit to T reasu ry 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
| I Draft enclosed (Effectual delivery o f enclosed d raft
shall be on latest day which w ill 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-

(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 for 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 appro priate branch as Fiscal A gent of th e
U nited States, w ith notation on th e 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 un til 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 th is
bank or app ropriate branch.
3. Any 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 th e
tender and the signing of the form by an officer of th e corporation will be construed as a representatio n by him th a t he
h as been so authorized. If th e tend er 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 the firm”.
5. Tenders from those other th an 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 the total am ount (m atu rity valu
of the T reasury 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 th e 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