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F ed er a l R e se r v e Bank of Da l l a s 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 A S 7 5 2 2 2 Circular No. 70-227 Septem ber 29, 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 h e T reasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to th e aggregate am ount of $3,200,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing O ctober 8, 1970, in the am ount of $3,105,520,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued October 8, 1970, in the am ount of $1,800,000,000, or there abouts, representing an additional am ount of bills dated Ju ly 9, 1970, and to m ature January 7, 1971, orig inally issued in the am ount of $1,311,020,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,400,000,000, or thereabouts, to be dated October 8, 1970, and to m ature April 8, 1971 (C U S IP No. 912793 K C 9). 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 their 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, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). T enders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving Tim e, M onday, October 5, 1970. T enders will not be received a t the T reasury D epartm ent, Washington. Each tender m ust be for a m inim um of $10,000. T enders 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 th e basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged th a t tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names 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 th eir 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 accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately after the closing hour, tenders will be opened a t th e F ederal Reserve Banks and Branches, following which public announcem ent will be made by the T reasury 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 h e Secretary of the T reasury 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 w ithout stated price from any one bidder will be accepted in full a t the average price (in three decimals) 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 a t the Federal Reserve B ank on O ctober 8, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing O ctober 8, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atu r ing bills accepted in exchange and the issue price of the new bills. U nder Sections 454 (b ) and 1221 (5 ) of the Internal R evenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and th e bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other than life insurance com panies) issued here under m ust include in his income tax return, as ordinary gain or loss, the difference between the price paid for the 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. T reasury D epartm en t Circular No. 418 (cu rren t revision) and this notice, prescribe the term s of the Treasury bills and govern th e conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch. In accordance with the above announcement, tenders will be received at this bank a n d its branches a t El Paso, Houston an d San Antonio up to twelve-thirty p.m., Central Daylight Saving, Monday, October 5, 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 T enders 91-Day Bills 182-Day Bills D ue D ecem ber 31, 1970 D ue A pril 1, 1971 $2,453,060,000_______________________________T o tal A pplied F o r_______________________________ $2,485,130,000 $1,800,645,000_______________________________ _T otal A ccepted________________________________ $1,400,180,000 Price Yield Price Yield 98.553 5.724% -----------------------------High________________ 96.804___________ 6.322% 98.511 5.891% -------------------------------------- Low______________________ 96.766___________ 6.397% 98.532 5.807% ( 1 ) ___________________ -Average____________________ 96.778___________ 6.373% (1 ) ( 1 ) T hese ra te s are on a b a n k discount basis. T h e equivalent coupon issue yields are 5 .9 8 % for th e 91-day bills and 6 .6 8 % for the 182-day bills. * ~ (S ee 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 91 DAYS TO MATURITY Maturing January 7 ,1 9 7 1 Dated July 9,1970 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The____________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 (ae Dt) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount 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 $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. <^ 7 •$ @ % + $ COMPETITIVE TENDERS q » @ ? Prices should be e x pressed on the basis o f 100, with not more th an th ree decim al p la c e s e. g., 99.925. Fractions* must not be used. 9 ^ TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces Payment for this issue of bills cannot be made b y credit to Treasury Tax and Loan Account. METHOD OF PAYMENT M aturity Value @ $ @ $ 10,000 $. @ $ 50,000 $ □ @ $ 100,000 $ @ $ 500,000 $. □ □ 15,000 $ By maturing bills held by---------------------------------------------Paym ent to be made by------------------------ Charge our reserve account on paym ent date | I Draft enclosed (Effectual delivery of enclosed d r a f t @ $1,000,000 $. shall be on latest day which will perm it presentm ent i n order to obtain irrevocably collected funds on paynae ilt 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 or corporate title) (Address) By- (Authorized official signature and title) (For the account of, if tender is for another subscriber) (A dre d ss) 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 Qf $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of th e 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 th is 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 th e 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, w ho 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 in v est ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity valu e) 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 material, the tender may be disregarded. (See reverse for announcement)