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fed er al Reserve b a n k of Dallas

Circular No. 70-219
September 1 , 1970


To A ll B anking 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 o f tw o issues o f Treasury bills:
T h e Treasury D epartm ent, by this public notice, invites tenders for tw o series of Treasury bills to the aggregate am ount of
$1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing Septem ber 30, 1970, in th e am ount of
$1,505,392,000, as follow s:
273-D A Y B IL L S (to m aturity d ate) to be issued Septem ber 30, 1970, in the am ount o f $500,000,000, or thereabouts,
representing an additional am ount of bills dated June 30, 1970, and to m ature June 30, 1971, originally
issued in the am ount of $1,201,430,000, 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 Septem ber 30, 1970, and to m ature Septem ber 30,
1971 (C U S IP NO . 912793 K S 4 ).
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 e y w ill 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 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 ayligh t Saving T im e, Thursday, Septem ber 24, 1970. Tenders w ill not be received a t the Treasury D epartm ent, W ashington.
Each tender m ust be for a m inim um of $10,000. T enders over $10,000 m ust be in m ultiples o f $5,000. In the case o f 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 one-year bills w ill run for 365-days, the discount rate w ill be com puted on a bank dis­
count 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 th e printed
forms and forwarded in the special envelopes which w ill be supplied by Federal R eserve B anks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account o f custom ers provided the nam es o f the custom ers are
set forth in such tenders. Others than banking institutions w ill n ot be perm itted to subm it tenders except for their own account.
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. Tenders from others m ust be accom panied by paym ent of 2 percent o f th e face am ount of
T reasury bills applied for, unless the tenders are accom panied b y express guaranty o f paym ent b y an incorporated bank or
trust company.
Im m ediately after th e 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 th e Treasury D epartm ent of the am ount and price range of accepted bids. O nly those sub­
m itting com petitive tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly
reserves the right to accept or reject any or all tenders, in w hole 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 a t the average price (in three decim als) o f accepted com petitive bids for the respective issues.
S ettlem 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 Septem ber
30, 1970, in cash or other im m ediately available funds or in a like face am ount o f Treasury bills m aturing Septem ber 30, 1970.
Cash and exchange tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een the par value
of maturing b ills accepted in exchange and the issue price o f th e new bills.
U nder Sections 454 (b ) and 1221 ( 5 ) o f the Internal R even u e Code of 1954 the am ount o f discount a t which bills issued
hereunder are sold is considered to accrue w hen the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner o f 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 betw een 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.
T reasury D epartm ent Circular N o. 418 (current revision) and this notice, prescribe th e term s o f the Treasury b ills and
govern th e conditions of their issue. C opies o f the circular m ay be obtained from any Federal R eserve B ank or Branch.

In accordance w ith the above 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 A ntonio up to tw e lv e -th irty p.m ., Central D aylig h t Saving Time, Thursday, Septem ber 2 4 , 1970. Tenders
m a y not be entered by telephone.

Yours very truly,
P. E. C oldw ell
(S e e reverse for tender form )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated September 30,1970

Maturing September 30,1971

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
The___________________ B r a n c h ___________________________________________ ___ _
El Paso 79999

Houston 77001

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.

NONCOMPETITIVE TENDER $________________________________NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in fall at the average
price (in three decimals) of accepted competitive bids.
Prices should be ex1$--------------------------- <§)-------------- $----------------------------------pressed on the basis of

COMPETITIVE TENDERS -------------------------@-----------?---------------------------f $ __________________ @ _________ $_______________________
e. g., 99.926. Fractions
must not be used.
Denominations Desired

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

Number of

M aturity V alue

<> $
(5) $
<> $

o $ 100,000
(5) $ 500,000
0 $1 ,000,000




By maturing bills
held by_____________________
□P a y m e n t to be made by_


Charge our reserve account on payment
| | Draft enclosed (Effectual delivery o f enclosed draft


shall be on latest day which w ill permit presentment in

Delivery Instructions:

S S to obtain irrevocably coU
ected ,nndB on * * * * * *

Hold in Custody Account—Member
banks for own account only
Pledge* to secure Treasury Tax and
Loan Account

I I Ship to---------------------------------------

(Subscriber's fu ll name or corporate title)


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

1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust be for an amount in multiples of
$5,000 (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 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