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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 AS 7 5 2 2 2
Circular No. 70-230
October 2, 1970

NEW OFFERING — TREASURY BILLS
To All 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 issu e s of Treasury bills:
T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury 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 BILLS (to m aturity d ate) 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 Janu 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 October 15, 1970, and to m ature A pril 15, 1971
(C U SIP No. 912793 K D 7 ).
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 Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Friday, O ctober 9, 1970. T enders will not be received a t the T reasury D epartm ent, Washington. Each
tender m ust be for a minim 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 m ade on the printed forms and forwarded in the special envelopes which will be supplied by
F ederal 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. Others than banking institutions will not be perm itted to subm it tenders except for their own account.
T enders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognised
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 the 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 he 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 decim als) of accepted com petitive bids for the respective issues. S ettlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted a t the F ederal 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 p ar 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 w hen th e 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 tha n 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 th e term s of th e T reasury bills and
govern the conditions of th eir issue. Copies of the circular may be obtained from any Federal R eserve B ank or Branch.

In accord ance with the a b o v e an n o u n c em en t, tenders will be received at this b an k a n d its branches at El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, Friday, October 9, 1970. Tenders
m ay not b e entered b y t ele p h o n e .
Yours very truly,
P. E. Coldwell
________________

President

Figures co n cern in g offering o f 9 1 -D ay Treasur y Bills maturing J a n u a r y 7, 1 9 7 1 , a n d 1 8 2 -D a y Treasury Bills matu ri ng April 8,
1 9 7 1 , n o t a v a i l a b l e w h e n this circular w a s printe d.

(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 1 4 ,1 9 7 1

Dated July 16,1970
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 o f 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 $____________________________________

JNOT 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.

I

$-

COMPETITIVE TENDERS )$_

-@

-

_@ _

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

<-----------------------------------p

)$2 ^

$
v

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 m ade 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 $.
@ $

□
□
□

By maturing bills
held by-------------------------------------- Payment to be made by------------------ Charge our reserve account on paym ent
date
Draft enclosed (Effectual delivery of enclosed d ra ft
shall be on latest day which will perm it p resen tm en t in
order to obtain irrevocably collected funds on P aym ent
date)

Delivery Instructions:
□

Prices should be expressed on the b a sis of
100, with not more than
th ree decim al p la c e s,
e. g., 99.925. Fractions

Hold in Custody Account— Member
banks for own account only

□

Pledge to secure Treasury Tax and
Loan Account

□

Ship to-----------------------------------------

(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 m ultiples 0f
$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, com m uni­
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 m ake 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, 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 i n v e s t ­
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)

I


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102