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F ederal Reserve b a n k of Dallas
F IS 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. 70-197
August 1 , 1970
9

N EW OFFERING — TREASURY BILLS

To A ll Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the fo llo w in g statem ent giving details of tw o issues of Treasury bills:
T he Treasury 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 Treasury bills maturing August 31, 1970, in the am ount of
$1,701,192,000, as follow s:
273-D A Y B IL L S (to m aturity d ate) to be issued August 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 the am ount of $1,200,170,000, the additional and original bills to be freely interchangeable.
365-D A Y B IL L S for $1,200,000,000, or thereabouts, to be dated August 31, 1970, and to m ature August 31, 1971.
T h e bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face am ount w ill be payable w ithout interest. T h ey w ill 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 v a lu e ).
Tenders w ill be received at F ederal R eserve Banks and Branches up to th e closing hour, one-thirty p.m ., Eastern
D aylight Saving T im e, Tuesday, August 25, 1970. T enders w ill not be received at 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, w ith not m ore than three decim als, e.g., 99.925. Fractions m ay not be used. (N otw ithstanding the fact that the oneyear bills w ill run for 365-days, the discount rate w ill be com puted on a bank discount basis of 360-days, as is currently the
practice on all issues o f Treasury b ills.) It is urged that tenders be m ade on the printed forms and forwarded in the special
envelop es which w ill be supplied b y F ederal R eserve Banks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account of custom ers provided the nam es of the custom ers are
set forth in such tenders. Others than banking institutions w ill not be perm itted to subm it tenders except for their own accou n t
Tenders w ill be received w ithout deposit from incorporated banks and trust com panies 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
Treasury bills app lied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust com pany.
Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which
public announcem ent w ill be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. O nly those sub­
m ittin g com petitive tenders w ill 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.
Subject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one
bidder w ill 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 w ith the bids m ust be m ade or com pleted at the 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 Treasury bills m aturing A ugust 31, 1970.
Cash and exchange tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een th e par value
of m aturing 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 o f 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 treatm ent,
as such, under the Internal R evenue Code of 1954. T h e 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 im posed on th e principal or interest thereof by any State,
or any of the possessions of th e U n ited States, or by any local taxing authority. For purposes of taxation th e am ount of discount
at which Treasury bills are originally sold by the U n ited States is considered to be interest. Under Sections 454 (b ) and 1221 (5 )
of the Internal R evenue Code of 1954 the am ount o f discount at which b ills 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, the owner of Treasury bills (other than life insurance com panies) issued hereunder need include in his
incom e tax return only th e difference betw een 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 m aturity during the taxable year for which the return is
m ade, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (current revision) and th is notice, prescribe the term s of th e Treasury bills and
govern th e conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch.

In accordance w ith the a b ove announcem ent, tenders w ill be received a t this b a n k a n d its branches a t El Paso,
Houston an d San Antonio up to tw e lv e -th irty p.m ., Central D aylight Saving Time, Tuesday, August 25, 1970. Tenders m ay
not be entered by telephone.
Yours very truly,
P. E. Coidw ell
President
(S e e 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

365 DAYS TO MATURITY
Maturing August 31,1971

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

Houston 77001

(D ate)

San Antonio 78206

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.

_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 decim al places,
e. g., 99.926. Fractions
$
@
$
must not be used.
B W TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um ber o f
Pieces

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

M aturity V alue

(5) $
(5) $

METHOD OF PAYMENT

10,000 $
50,000 $

□

O $ 100,000 $
(5> $ 500,000 $
(5) $1 ,000,000 $

□

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

|

Delivery Instructions:
□

By maturing bills
held by________________
□P a y m en t to be made by_

| D r a f t e n c l o s e d (E ffectual delivery o f enclosed draft
shall be on latest day which w ill perm it presentm ent in
order to obtain irrevocably collected funds on paym ent
date)

(Subscriber’s fu ll nam e or corporate title)
(Address)

By-

(A uthorized official signatu re and title)
(For th e account of, if tender is for another subscriber)

(Address)

IM PORTANT

1. No tender for 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 O FFERIN 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 than incorporated banks and tru st 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 st 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