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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, TEXAS 7 5 2 2 2
Circular No. 70-115
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 follo w in g sta tem 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 21, 1970, in the am ount of
$3,002,992,000, as follows:
91-DAY BILLS (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 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, 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 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 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 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 m ade
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 names 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 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 Treasury 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 lees w ithout stated price from any one bidder will
be accepted in full at 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 F ederal 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 par value of m atu r­
ing bills accepted in exchange and the issue price of the new bills.
T he income derived from T reasury 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 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 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 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 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, 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 th e 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 th e circular m ay be obtained from any F ederal Reserve B ank or Branch.

In accordance 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,
H u s t o n an d San Antonio up to tw e lv e - thirty p.m., Central Daylight Saving Time, M on d a y, M a y 18, 1970. Tenders may
be 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 Yield of Accepted Tenders
91-Day Bills
Due August 13, 1970
$2,865,060,000________________
$1,800,470,000________________
P rice
Yield
98.292___________ 6.757% _____
98.203___________ 7.109% _____
98.232___________ 6.994% ( 1 ) .

-T o ta l Applied For_
T otal Accepted—
-H ig h ._Low_
-Average..

182-Day Bills
D ue N ovem ber 12, 1970
-$2,595,800,000
..$1,300,160,000
Price
Yield
-96.514­
6.895%
-96.314­
7.291%
-96.3597.202% (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 .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 TREASURY BILLS

182 DAYS TO MATURITY
Dated May 21,1970

Maturing November 19,1970

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 th e
public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am o unt
shown below, and agrees to pay fo r th e am ount allotted, on or before the issue date, by the m ethod 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 at the av e rag e
price (in three decimals) of accepted competitive bids.
( £

COMPETITIVE TENDERS

I
$

%

-

<>
8

$
T

@

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.

$

1

"

a s r 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 D esired
Number of
Pieces

Paym ent lo r th is issue of bills cannot be m ade
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 $ ____________

By maturing bills
held by-----------------------------------------Payment to be made by______________

□

Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□ Ship to________________________

Charge our reserve account on payment
date
| I Draft enclosed (Effectual delivery o f enclosed d r a ft
shall be on latest day which w ill permit presentm ent in
order to obtain irrevocably collected funds on p aym en t
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)

IM PORTANT
1. No tender fo r less th a n $10,000 will be considered and each tender m ust be for 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 this bank or appropriate branch as Fiscal A gent of th e
U nited S tates, w ith notation on the envelope readin g “ 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 th is legend will not be opened until a fte r the closing time specified in the public announcem ent, com m uni­
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 appropriate branch.
3. A ny qualified or conditional tender will be rejected.
4. I f a corporation m akes th e tender, the form should be
signed by an officer
of th e corporation authorized to m ake
tend er 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
has been so authorized. If th e tend er is m ade by a partnersh ip it should be signed by a m em ber of th e firm, w ho
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 in v e st­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity v alue)
of the T reasu ry 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 reasu ry is
m aterial, the ten der m ay be disregarded.

(See reverse for announcement)

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