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F e d er a l R eser ve Ba n k

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. 70-196
August 19, 1970

NEW OFFERING — TREASURY BILLS

To All Banking Institutions and 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 T reasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of
$1,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing A ugust 31, 1970, in th e am ount of
$1,701,192,000, as follows:
273-DAY B IL L S (to m aturity d ate) to be issued A ugust 31, 1970, in the am ount of $500,000,000, or thereabouts,
representing an additional am ount of bills dated M ay 31, 1970, and to m ature M ay 31, 1971, originally
issued in th e am ount of $1,200,170,000, the additional and original bills to be freely interchangeable.
365-DAY B IL L S for $1,200,000,000, or thereabouts, to be dated A ugust 31, 1970, and to m ature A ugust 31, 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 B anks and Branches up to th e closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Tuesday, A ugust 25, 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 th a n three decimals, e.g., 99.925. Fractions m ay not be used. (N otw ithstanding the fact th a t th e oneyear bills will run for 365-days, the discount rate will be com puted on a bank discount basis of 360-days, as is currently the
practice on all issues of T reasury bills.) I t is urged th a t tenders be m ade on the prin ted forms and forwarded in th e special
envelopes which will be supplied by F ederal R eserve B anks or Branches 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. 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. T enders from others m ust be accom panied 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 th e closing hour, tenders will be opened a t th e Federal R eserve Banks and Branches, following which
public announcem ent will be m ade by the T reasury D epartm ent of th e am ount and price range of accepted bids. Only those sub­
m 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 p art, and his action in any such respect shall be final.
Subject 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 decim als) of accepted com petitive bids for the respective issues.
Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t th e Federal R eserve B ank on August
31, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing A ugust 31, 1970.
Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value
of m aturing bills accepted in exchange and th e 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 th e bills, does not
have any exem ption, as such, and loss from th e sale or other disposition of T reasury bills does not have any special treatm ent,
as such, under th e Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
Federal 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 th e U nited States, or by any local taxing authority. F o r purposes of taxation th e am ount of discount
a t which T reasury bills are originally sold by th e U nited States is considered to be interest. U nder Sections 454 (b ) and 1221 (5 )
of the Internal Revenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is not considered 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 (o th er than life insurance com panies) issued hereunder need include in his
income tax retu rn only the difference between th e price paid for such bills, w hether on original issue or on subsequent purchase,
and th e 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 (cu rren t revision) and this notice, prescribe th e term s of th e T reasury bills and
govern th e conditions of th eir issue. Copies of th e circular m ay be obtained from any F ederal Reserve B ank or Branch.

In accordance with the ab ove announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Tuesday, August 25, 1970. Tenders may
not be entered by telephone.

Yours very truly,
P. E. Coldwell
President
(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 ADDITION TO TREASURY BILLS

273 DAYS TO MATURITY
Maturing May 31,1971

Dated May 31,1970
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or—
The_______________________________ Branch
Ei Paso 79999

Houston 77001

(Date)

San Antonio 78206

P ursuant 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 a t the rate indicated.

_NOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $.

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.
(_
_
Prices should be ex­
pressed on the basis of
►
100, with not more than
$
COMPETITIVE TENDERS < $
three decimal places,
i
t
e. g., 99.926. Fractions
$
must not be used.
BSP TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um ber of
Pieces

Payment fo r this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M aturity Value

(a> $
< %
3)

METHOD OF PAYMENT

10,000 $.
□

□

50,000 $.

By m aturing bills
held by_____________________________
□P a y m e n t to be made by_____________
Charge our reserve account on payment
date

@ $ 100,000 $.
$ 500,000 $.
@ $1,000,000 $

| | D r a f t e n c l o s e d (Effectual delivery of enclosed d raft
Bhall be on latest day which will perm it presentm ent in
order to obtain irrevocably collected funds on paym ent
date)

Delivery Instructions:
□

Hold in Custody Account—Member
banks for own account only

□

Pledge to secure Treasury Tax and
Loan Account
Ship to_________________________

□

(Subscriber’s full nam e o r corporate title)
(Address)

By-

(Authorized official signature and title)
(For th e account of, if tender is for another subscriber)
(Address)

IMPORTANT
1. No tender fo r less than $10,000 will be considered and each tender must be for an amount in multiples of $10,000
(m aturity 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 OFFERIN G ”. 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 m atters 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 th a t 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 th an incorporated banks and tru s t 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 (m aturity 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 tru s t 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