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F ed er a l R e se r v e Ba nk

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, T EX A S 7 5 2 2 2
Circular No. 70-114
M ay 13, 1970

NEW OFFERING — TREASURY BILLS
All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the f o llow in g statem ent giving details of t w 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 21, 1970, in the am ount of
$3,002,992,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued M ay 21, 1970, in the am ount of $1,800,000,000, or thereabouts,
representing an additional am ount of bills dated February 19, 1970, and to m ature August 20, 1970, originally
issued in the am ount of $1,197,585,000, 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 21, 1970, and to m ature Novem ber 19, 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. 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 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 18, 1970. T enders will not be received a t the Treasury 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 m ade
on the printed forms and forwarded in the special envelopes which will be supplied by F ederal R eserve B anks or B ranches on
application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided th e nam es of the customers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for th e ir 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 a fter the closing hour, tenders will be opened a t the Federal Reserve B anks 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 he Secretary of th e 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 21, 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 21, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p a r 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
F ederal or State, b u t are exem pt from all taxation now or hereafter imposed on th e 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
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 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 atu rity 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 (cu rren t revision) and this notice, prescribe th e term s of th e T reasury bills and
govern the conditions of th eir issue. Copies of the circular m ay be obtained from any F ederal Reserve B ank or Branch.

.
In a cc ord a nce with the a b o v e an n o u n c em en t, tenders will b e received at this b an k a n d its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d ay , M a y 18, 1970. Tenders may
be entered 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 Y ield of Accepted T enders
91-Day Bills
182-Day Bills
D ue August 13, 1970
D ue N ovem ber 12, 1970
$2,865,060,000
T otal Applied F or_______________________________ $2,595,800,000
$1,800,470,000________________________________ T o tal A ccepted________________________________ $1,300,160,000
Price
Yield
Price
Yield
98.292____________ 6.757% ________________________ .H igh______________________ 96.514___________ 6.895%
98.203___________ 7.109% __________________________ Low______________________96.314
_ 7.291%
98.232------------------- 6.994% ( 1 ) ------------------------------ Average____________________ 96.359___________ 7.202% (1)
( 1 ) T h ese rates are on a b an k discount basis. T h e equ iv alent coupon issue yields are 7 .2 2 % for th e 91-day bills, and 7 .5 8 % 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 19,1970

Maturing August 20,1970

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 (curren t revision) and the provisions of th e
public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am oun t
shown below, and agrees to pay fo r the am ount allotted, on or before th e issue date, by the m ethod and a t the ra te indicated.

NONCOMPETITIVE TENDER $_

_NOT TO EXCEED $200,000

N oncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t the av e rag e
price (in three decimals) of accepted competitive bids.
<
p

a

COMPETITIVE TENDERS

$
$

...

Prices should be e x ­
pressed on the basis of
100, w ith not m ore th a n
th r e e d ec im a l p la c e s ,
e. g., 99.925. F ra ctio n s
m ust not be used.

$
@

?

TEND 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, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

P aym ent fo r th is 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 enekaed d r a ft
shall be on latest day which w ill permit presentm ent ln
order to obtain irrevocably collected funds on paym «nt
date)
(Subscriber's fu ll nam e or corporate title)
(Address)

By_

(Authorized official signature and title)

(For the account o f, if tender is for another subscriber)
(Address)

IMPORTANT
1. No tender fo r less th a n $10,000 will be considered and each tender m ust be fo r an am ount in m ultiples of $10,000 (m a tu rity
value).
2. Tenders should be forw arded in an envelope clearly addressed to th is bank or app ropriate branch as Fiscal A gent of th e
U nited States, w ith notation on th e envelope read ing “ 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 until a f te r the closing tim e specified in the public announcem ent, com m uni­
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 appro priate branch.
3. A ny qualified or conditional tender will be rejected.
4. If a corporation m akes the tender, th e form should be signed by an officer of th e corporation authorized to m ake th e
tender and the signing of th e form by an officer of th e corporation will be construed as a rep resentation by him th a t h e
has been so authorized. If th e tender is m ade by a partnership it should be signed by a m em ber of the firm, w ho
should sign in the form
— .— , a copartnership, by------------------------------------------------------------- t
a member of th e firm”.
5. Tenders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers in in v e st­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of th e to tal am ount (m atu rity v alu e)
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 a n
incorporated bank or tr u s t company.
6. I f the language of this form is changed in any respect, which, in the opinion of the S ecretary of the T reasu ry j s
m aterial, th e tender m ay be disregarded.

(See reverse for announcement)

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