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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 75222
Circular No. 70-162
July 8, 1970

NEW OFFERING — TREASURY BILLS
To All Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the following statement giving details of two 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 Ju ly 16, 1970, in the am ount of
$3,007,674,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued July 16, 1970, in the am ount of $1,800,000,000, or thereabouts,
representing an additional am ount of bills dated A pril 16, 1970, and to m ature October 15, 1970, originally issued
in the am ount of $1,300,850,000, the additional and original bills to be freely interchangeable.
182-DAY B ILLS for $1,300,000,000, or thereabouts, to be dated Ju ly 16, 1970, and to m ature January 14, 1971.
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 th eir 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 a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, Ju ly 13, 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 made
on th e printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on
application therefor.
B anking 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 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 th e 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 Federal Reserve Banks and Branches, following which
public announcem ent will be made 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 Treasury 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 m ade or com pleted a t the F ederal Reserve B ank on Ju ly 16, 1970, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing July 16, 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 T reasury bills, w hether interest or gain from the sale or other disposition of th e 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 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 United 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 in te re st 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 th an 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 Treasury 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 accordance with the above announcement, tenders will be received at this bank and its branches a t El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Monday, July 13, 1970. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Yield of Accepted T enders
91-Day Bills
182-Day Bills
D ue October 8, 1970
D ue January 7, 1971
$2,380,230,000
T otal Applied For_______________________________ $2,159,410,000
$1,800,060,000________________________________ T otal Accepted________________________________ $1,300,130,000
Price
Yield
Price
Yield
98.360___________ 6.488% __________________________.H igh______________________96.704___________ 6.520%
98.300___________ 6.725 % __________________________ Low______________________ 96.612___________ 6.702%
98.321----------------- 6.642% ( 1 ) -------------------------------Average____________________ 96.635___________ 6.656% (1 )
( 1 ) T hese ra te s a re on a bank discount basis. T h e equ iv alent coupon issue yields are 6 .8 5 % for th e 91-day bills and 6 .9 8 % for
th e 182-day bills.

(See 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 July 16,1970

Maturing January 14,1971

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The-------------------------------------- Branch
El Paso 79999 Houston 77001 San Antonio 78206

(D ate)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.

NONCOMPETITIVE TENDER $_________________________________

_NOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.

COMPETITIVE _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _TENDERS

x

$-

>$

)

0

$

~
a
------------ ----------------------------------------

@

L
/ ----------------------------- (ty-------------« -------------------------------------p

Prices should be expressed on the basis of
100, with not more than
th ree d ecim als p la ce s,
e* g * 99-925* Fractions
’
must not be used.

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b er of
Pieces

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT

M a tu rity V alue

$

10,000 $_

-@ $

50,000 $_

□

By maturing bills
held by_________________________ _
Payment to be made by______________

□

-@ $ 100,000 $_

$ 500,000 $_
□

Charge our reserve account on payment
date
I I Draft enclosed (E ffectual delivery o f enclosed d r a f t

_@ $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________________________

shall be on la te st day w hich will p e rm it p re s e n tm e n t in
o rd e r to o b ta in irrevocably collected fu n d s on p a y m e n t
date)
"
(S u b scrib er’s fu ll n am e o r c o rp o ra te title )
(A ddress)

By(A uthorized official s ig n a tu re a n d title )
(F o r the acco u n t of, if te n d e r is fo r a n o th e r su b scrib er)
(A ddress)

IMPORTANT
1. No tender for less than $10,000 will be considered and each tender must be for an amount in multiples of $10,000 (maturity
value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes
received with this legend will not be opened until after the closing time specified in the public announcement, communi­
cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this
bank or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him that he
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who
should sign in the form “___________________________ , a copartnership, by_________________________________________
a member of the firm.”
5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or trust company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.

( See reverse for announcement)

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