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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, TEX A S 7 5 2 2 2 Circular No. 70-229 October 2, 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 $3,200,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing October 15, 1970, in the am ount of $3,104,180,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued October 15, 1970, in the am ount of $1,800,000,000, or there abouts, representing an additional am ount of bills dated Ju ly 16, 1970, and to m ature Jan u ary 14, 1971, originally issued in the am ount of $1,304,530,000, 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 O ctober 15, 1970, and to m ature A pril 15, 1971 (C U SIP No. 912793 K D 7). T he 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 atu rity value). T enders will be received a t F ederal Reserve Banks and B ranches up to the closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Friday, October 9, 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 the 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 e ir 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. Tenders from others m ust be accompanied 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 the closing hour, tenders will be opened a t th e Federal 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. S ettlem ent for accepted tenders in accordance with th e bids m ust be m ade or com pleted a t the Federal Reserve B ank on October 15, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing October 15, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur 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 the 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 the 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 ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and govern the conditions of th eir 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 and its branches a t El Paso, Houston an d San Antonio up to twelve-thirty p.m., Centra! Daylight Saving Time, Friday, October 9, 1970. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell ______________ President Figures concerning offering of 9 1 -Day Treasury Bills maturing January 7, 1971, an d 182-Day Treasury Bills maturing April 8, 1971, not available when this circular was printed. (See reverse for ten d er 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 April 1 5 ,1 9 7 1 Dated October 15,1970 To: Federal Reserve Bank, Station E , 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 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 PLEASE OBSERVE CLOSING DATE — FRIDAY, OCTOBER 9,1970 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. © ^ m *P-------------------------------------- COMPETITIVE TENDERS *P-------------------------------------- Prices should be expressed on the basis of 100, with not more than th ree decim al p la c e s. e. g., 99.925. Fractions must not be used. (5^= TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces Payment for this issue of bills cannot be m ade by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT M aturity Yalue @ $ 10,000 $- @ $ 15,000 $- @ $ 50,000 * @ $ 100,000 $- @ $ 500,000 □ □ 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 ft @ $1 ,000,000 shall be on latest day which will perm it p resen tm en t in order to obtain irrevocably collected funds on p ay m en t 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) (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 m ultiples of $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f 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 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 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 value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment b y 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)
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