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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, TEX AS 7 5 2 2 2
Circular No. 70-184
August 4, 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 following statement giving details of two issues of Treasury bills:
T he Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount
of $3,100,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing August 13, 1970, in the am ount of
$3,002,694,000, as follows:
91-D A Y B IL L S (to m aturity date) to be issued August 13, 1970, in the am ount of $1,800,000,000, or thereabouts,
representing an additional amount of bills dated M ay 14, 1970 and to mature Novem ber 12, 1970, originally
issued in the am ount of $1,301,580,000, the additional and original bills to be freely interchangeable.
182-DA Y B IL L S for $1,300,000,000, or thereabouts to be dated August 13, 1970, and to mature February 11, 1971.
T he bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face am ount will be payable without interest. T h ey 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 valu e).
Tenders w ill be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving T im e, M onday, August 10, 1970. Tenders will not be received at the Treasury Departm ent, W ashington. Each
tender must 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 that tenders be made
on the printed forms and forwarded in the special envelopes which will be supplied by Federal R eserve Banks or Branches on
application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the 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 their own account.
Tenders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others must be accom panied by paym ent of 2 percent of the face am ount of
Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust company.
Im m ediately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, follow ing 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 he 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 without stated price from any one bidder will
be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be made or com pleted at the Federal R eserve Bank on August 13, 1970, in
cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing August 13, 1970. Cash and
exchange tenders will receive equal treatment. Cash adjustm ents will be m ade for differences between the par value of matur­
ing bills accepted in exchange and the issue price of the new bills.
T he incom e derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not
have any exem ption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment,
as such, under the Internal R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but 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
at which Treasury bills are originally sold by the U nited States is considered to be in terest Under Sections 454 (b ) and
1221 ( 5 ) of the Internal R evenue Code of 1954 the amount of discount at 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 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 at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Departm ent Circular No. 41 8 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve Bank or Branch.

In accordance with the above announcement, tenders will be received at this bank an d its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Monday, August 10, 1970. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and Approxim ate Y ield of A ccepted Tenders
91-D ay Bills
D u e N ovem ber 5, 1970
$2,620,910,000________________
-T o ta l Applied For..
$1,800,200,000________________
— Total A ccep ted__
Y ield
Price
„6.345% _____________________
98.396_______
-High__
„6.448% ___________________________ L ow 98.370_______
-6.413% ( 1 ) ____________________ Average..
98.379_______

182-D ay B ills
D ue February 4, 1971
________________ $2,056,450,000
________________ $1,300,050,000
Price
Y ield
96.749­
_______6.431%
- 9 6 .6 9 0 .
6.547%
-9 6 .7 1 6 _______6.496% ( 1 )

( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 6.61% for the 91-day bills and 6.81% for
the 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
Maturing February 11,1971

Dated August 13,1970
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________ Branch
El Paso 79999 Houston 77001 San Antonio 78206

(Date)

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 >$.

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

)$

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

-$ -

Prices should be ex­
pressed on the basis of
100, with not more than
th ree decim als p la ces,
e. g., 99.925. Fractions
must not be used.

8 ^ = TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

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

M aturity Value

-@ $

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 of enclosed d ra ft
shall be on latest day which will perm it presentm ent in
order to obtain irrevocably collected funds on paym ent
date)
(Subscriber’s full name 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 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