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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 7 5 2 2 2
Circular No. 70-211
Septem ber 8, 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 Treasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount
of $3,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing Septem ber 17, 1970, in the am ount of
$3,105,940,000, as follows:
91-D A Y B IL L S (to m aturity date) to be issued Septem ber 17, 1970, in the am ount of $1,800,000,000, or there­
abouts, representing an additional am ount of bills dated June 18, 1970, and to mature Decem ber 17, 1970, orig­
inally issued in the am ount of $1,302,670,000, the additional and original bills to be freely interchangeable.
182-D A Y B IL L S for $1,400,000,000, or thereabouts, to be dated Septem ber 17, 1970, and to mature March 18, 1971
(C U S IP No. 912793 J Z 0 ).
T he 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 will be payable without interest. T h ey will be issued in bearer form only, and in
denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v alu e).
Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving T im e, M onday, Septem ber 14, 1970. Tenders w ill not be received at the Treasury Departm ent, W ashington. Each
tender m ust be for a m inim um of $10,000. Tenders over $10,000 m ust be in m ultiples of $5,000. 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 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 w ill not be permitted to subm it tenders except for their own account.
Tenders will be received without deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust 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 Departm 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 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 with the bids m ust be m ade or com pleted at the Federal Reserve B ank on Septem ber 17, 1970, in
cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing Septem ber 17, 1970. Cash and
exchange tenders w ill receive equal treatment. Cash adjustm ents will be m ade for differences betw een the par value of matur­
ing bills accepted in exchange and the issue price of the new bills.
Under Sections 454 (b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount of discount at which bills issued
hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued here­
under m ust include in his incom e tax return, as ordinary gain or loss, the difference between the price paid for the 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 made.
Treasury Departm ent Circular No. 418 (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 R eserve Bank or Branch.

In accordance with the above announcement, tenders will be received at this bank a n d its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Monday, September 14, 1970. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
__________
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and Approximate Y ield of A ccepted Tenders
91-D ay B ills
182-Day B ills
D u e D ecem ber 10, 1970
D u e March 11, 1971
$2,753,670,000
T otal Applied For_________________________________ $2,976,310,000
$1,800,335,000__________________________________ T otal Accepted___________________________________$1,400,795,000
Price
Y ield
Price
Y ield
98.408
6 .298% __________________________ H igh _______________________ 96.693____________ 6.541%
98.384
6.393% ___________________________ Low_______________________ 96.677____________ 6.573%
98.391
6.365% ( 1 ) ---------------------------------Average_____________________ 96.686____________ 6.555% ( 1 )
( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 6.56% for the 91-day bills and 6.87% for
182-day bills.

the

(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

182 DAYS TO MATURITY
Maturing March 18,1971

Dated September 17,1970
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.

I
1

COMPETITIVE TENDERS >$

-@ _

4-

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

Prices should be ex­
pressed on the basis of
100, with not more than
th ree decim al p la ces,
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
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 $$ 15,000 $$ 50,000 *
$ 100,000 $$ 500,000 ?,
@ $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------------------------------------@
@
@
@
@

□
□

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

□

Charge our reserve account on payment
date
I | Draft enclosed (Effectual delivery of enclosed d r a 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 over $10,000 must be for an amount in multiples of
$5,000 (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 i s
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