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Federal Reserve Ban k of Dallas
FISCA L AGENT O F TH E UNITED STATES

D ALLAS, TE X A S 7 5 2 2 2
Circular No. 70-240
October 20, 1970

N EW OFFERING — TREASURY BILLS

To A ll 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 o f tw o issues o f Treasury bills:
T h e Treasury D epartm ent, by this public notice, in vites tenders for two series o f Treasury b ills to th e aggregate am ount of
$1,700,000,000, or thereabouts, for cash and in exchange for Treasury b ills m aturing October 31, 1970, in the am ount of
$1,504,368,000, as follow s:
271-D A Y B IL L S (to m aturity d ate) to be issued N ovem ber 2, 1970, in the am ount o f $500,000,000, or thereabouts,
representing an additional am ount of bills dated July 31, 1970, and to m ature July 31, 1971, originally
issued in the am ount o f $1,202,410,000, the additional and original b ills to be freely interchangeable.
365-D A Y B IL L S for $1,200,000,000, or thereabouts, to be dated O ctober 31, 1970, and to m ature O ctober 31, 1971
(C U S IP NO . 912793 K T 2 ).
T h e bills o f both series w ill 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 w ill be payable w ithout interest. T h ey w ill be issued in bearer form only, and in
denom inations o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity va lu e).
Tenders w ill be received a t F ederal R eserve B anks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard T im e, Tuesday, O ctober 27, 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 o f $10,000. Tenders over $10,000 m ust be in m ultiples o f $5,000. In th e case of com petitive
tenders the price offered m ust be expressed on th e basis o f 100, w ith not m ore than three decim als, e.g., 99.925. Fractions m ay not
be used. (N otw ithstanding th e fact th at th e one-year bills w ill run for 365-days, the discount rate w ill be com puted on a bank dis­
count basis o f 360-days, as is currently the practice on all issues o f Treasury b ills.) It is urged that tenders be m ade on the printed
form s and forwarded in th e special envelopes w hich w ill be supplied b y F ederal R eserve B anks or Branches on application therefor
Banking institutions generally m ay subm it tenders for account o f custom ers provided th e nam es o f th e custom ers are
set forth in such tenders. Others than hanking institutions w ill not be perm itted to subm it tenders except for their own account.
Tenders w ill be received w ithout deposit from incorporated hanks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accom panied by p aym ent o f 2 percent o f the face am ount of
Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust com pany.
Im m ediately after the 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 the Treasury D epartm en t of the am ount and price range of accepted bids. O nly those sub­
m ittin g com petitive tenders w ill be advised of the acceptance or rejection thereof. T h e Secretary of 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 at the average price (in three decim als) of accepted com petitive bids for th e respective issues.
Settlem en t for accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t the Federal R eserve B ank on N ovem ber
2, 1970, in cash or other im m ediately available funds or in a like face am ount o f Treasury bills m aturing O ctober 31, 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
o f maturing bills accepted in exchange and th e issue price of th e new bills.
Under Sections 454 (b ) and 1221 ( 5 ) of the Internal R even u e Code o f 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 th e bills are excluded
from consideration as capital assets. Accordingly, th e 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 th e 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 a t m aturity during the
taxable year for which the return is made.
Treasury D epartm ent Circular N o. 418 (current revision) and this notice, prescribe the term s o f th e Treasury bills and
govern the conditions of their issue. Copies o f the circular m ay be obtained from any F ederal R eserve B ank or Branch.

In accordance w ith the ab o v e 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 Antonio up to tw e lv e -th irty p.m ., Central Standard Time, Tuesday, October 27, 1970. Tenders m ay
not be entered by telephone.
Yours very truly,
P. E. C oldw ell

President
(S e e 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 TREASURY BILLS

365 DAYS TO MATURITY
Dated October 31, 1970

Maturing October 31, 1971

To: Federal Reserve Bank, Station K, 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 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 full a t the average
price (in three decimals) of accepted competitive bids.
_j»
<
Prices should be ex@
nvpocpH o n flip h n n f

t

COMPETITIVE TENDERS

---------------------- @---------- $----------------------------<
p
^

fif.

q.

~

tT re ^ d e c ta a T p fa c e T ,
e. g., 99.925. Fractions
m n a f nn f H o ucod
must not be used.

I S ^ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um ber of
Pieces

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

M aturity V alue

.<a $
< $
s>

METHOD OF PAYMENT

10,000 $15,000 $-

□

<> $ 50,000 $a
(5) $ 100,000 $(5) $ 500,000 $-

By maturing bills
held by_________
Payment to be made by_

□
□

0) $1 ,000,000 $.

.

Charge our reserve account on payment
date

I I D r a f t e n c l o s e d (Effectual delivery of enclosed d ra ft
shall be on latest day which will perm it presentm ent in

Delivery Instructions:
□
□

SX) to obtain irrevocably collected funds on paym
ent

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

I | S h i p t o _______________________________________

(Subscriber's fu ll nam e or corporate title)

—
By-

(Address)
(Authorized official sign ature and title)
(F or th e account of, if tender is fo r another subscriber)
(Address)

IMPORTANT
1. No tender fo r 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 m atters 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 tru st companies or responsible and recognized dealers in invest­
m ent 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
m aterial, 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