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F ederal




D allas


Circular No. 70-234
October 9, 1970


To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statement giving details of an issue of Treasury bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for $2,500,000,000, or thereabouts, of 244-day T reasury
bills, to be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided. T he bills of this
series will be dated O ctober 21, 1970, and will m ature June 22, 1971 (C U S IP No. 912793 M D 5 ). T hey will be accepted a t face
value in paym ent of income taxes due on Ju n e 15, 1971, and to the extent they are not presented for this purpose th e face am ount
of these bills will be payable w ithout interest a t m aturity. Taxpayers desiring to apply these bills in paym ent of Ju ne 15, 1971,
income taxes m ay subm it th e bills to a F ederal R eserve B ank or B ranch or to the Office of the T reasurer of th e U nited States,
W ashington, not more th a n fifteen days before th a t date. In th e case of bills subm itted in paym ent of income taxes of a corpora­
tion they shall be accom panied by a duly com pleted F orm 503 and the office receiving these item s will effect the deposit on
Ju n e 15, 1971. In th e case of bills subm itted in paym ent of income taxes of all other taxpayers, th e office receiving th e bills will
issue receipts therefor, th e original of which the taxpayer shall subm it on or before Ju ne 15, 1971, to the D istrict D irector of
Internal R evenue for th e D istrict in which such taxes are payable. T h e bills will be issued in bearer form only, and in denom ina­
tions 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 F ederal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Thursday, October 15, 1970. T enders will not be received a t th e T reasury 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 of $5,000. In the case of com petitive tenders
th e price offered m ust be expressed on th e basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions m ay not be used.
I t is urged th a t tenders be m ade on th e prin ted forms and forwarded in th e special envelopes which will be supplied by Federal
R eserve B anks or B ranches on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the nam es of th e 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 Treas­
ury bills applied for, unless th e tenders are accom panied by a n express guaranty of paym ent by an incorporated bank or tru st
All bidders are required to agree n o t to purchase or to sell, or to m ake any agreem ents w ith respect to th e purchase
or sale or other disposition of any bills of this issue a t a specific rate or price, u ntil after one-thirty p.m., E astern D aylight Sav­
ing Tim e, T hursday, October 15, 1970.
Im m ediately after th e closing hour, tenders will be opened a t th e Federal R eserve Banks and Branches, following which
public announcem ent will be m ade by th e T reasury D epartm en t of th e am ount and price range of accepted bids. Only those sub­
m itting com petitive tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of th e T reasury expressly
reserves th e right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final.
Subject to these reservations, noncom petitive tenders for $400,000 or less w ithout stated price from any one bidder will be
accepted in full a t th e average price (in three decim als) of accepted com petitive bids. S ettlem ent for accepted tenders in
accordance w ith the bids m ust be m ade or com pleted a t th e Federal R eserve B ank in cash or other im m ediately available funds
on October 21, 1970. A ny qualified depositary will be perm itted to m ake settlem ent by credit in its T reasury T ax and Loan
account for T reasury bills allotted to it for itself and its customers.
U nder Sections 454 (b ) and 1221 (5 ) of th e Internal Revenue Code of 1954 the am ount of 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 th e bills are excluded
from consideration as capital assets. Accordingly, th e 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, th e difference between the price paid for th e 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 a tu rity during
the taxable year for which th e return is made.
T reasury D epartm ent C ircular No. 418 (cu rren t revision) and this notice, prescribe the term s of the T reasury bills and
govern the conditions of their issue. Copies of th e circular m ay be obtained from any Federal R eserve B ank or Branch.

In accordance with the ab ove announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio, up to twelve-thirty p.m., Central Daylight Saving Time, Thursday, October 15, 1970. Tenders
may not be entered by telephone.

Yours very truly,
P. E. Coldwell

(See reverse side for tender form)

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

This issue of Treasury bills will be accepted at face value in payment of income taxes due
on June 15, 1971

Dated October 21,1970


To: Federal Reserve Bank, Station K, Dallas, Texas 75222
Or —
The----------------------------------------------------- Branch
El Paso 79999

Houston 77001

Maturing June 22,1971


San Antonio 78206


P ursuant to the provisions of Treasury D epartm ent Circular No. 418 (current revision) and to the
provisions of the public anouncement, as shown on reverse side, as 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 $400,000
Noncompetitive tenders for $400,000 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.
Prices should be ex­
pressed on the basis of
100, with not more than
$ $
th re e decim al places,
e. g., 99.925. Fractions
must not be used.
@ $
----- .....


Denominations Desired
Number of


M aturity Values

(5) $
(a) $

50,000 $(5) $ 100,000 $(a) $ 500,000 $.
(5) $1,000,000 ?-


By charge to our Treasury Tax and Loan Account


10,000 $15,000 $-

Payment to be made by __ ____ _________ ____
(Name of Bank)


By charge to our reserve account on payment date.


By draft enclosed (effectual delivery of enclosed draft
shall be on latest day which will perm it presentment in
order to obtain irrevocably collected funds on payment

We certify that we, as well as our customers, if any, listed
hereon have agreed not to purchase or to sell, or to make any
agreements with respect to the purchase or sale or other disposi­
tion of any bills of this issue at a specific rate or price, until
after one-thirty p.m., Eastern Daylight Saying Time, Thursday,
October 15^ 1970.

Delivery In structions:

---------------------------------------------------------(S u b sc rib e r’s fu ll nam e o r c o rp o ra te title)

□ Hold in Custody Account — Member
banks for own account only
□ Pledge . to Secure Treasury Tax and
Loan Account
□ Ship to

____ _________

(A ddress)



(A uth o rized official s ig n a tu re a n d title)

(F o r th e a ccou nt of, if te n d e r is f o r a n o th e r sub scrib er)
(A ddress)

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 (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, communications
relating to other m atters should not be enclosed. Envelopes for submitting tenders may be requested 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 tru st 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 (m aturity 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 tru st 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 m ay be disregarded.
(See reverse for announcement)

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