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FEDERAL 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, TEXAS 7 5 2 2 2
Circular No. 70-277
N ovem ber 1 7 ,1 9 7 0

NEW OFFERING — TREASURY BILLS

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

Your attention is invited to the following statem ent giving details of two issues of Treasury bills:
T h e Treasury D epartm ent, b y this public notice, in vites tenders for tw o series of Treasury bills to the aggregate am ount of
$1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing N ovem ber 30, 1970, in th e am ount of
$1,501,273,000, as follows:
274-D A Y B IL L S (to m aturity date) to be issued N ovem ber 30, 1970, in the am ount o f $500,000,000, or thereabouts,
representing an additional am ount of bills dated August 31, 1970, and to m ature A ugust 31, 1971, originally
issued in the am ount of $1,203,620,000, the additional and original bills to be freely interchangeable.
365-D A Y B IL L S for $1,200,000,000, or thereabouts, to be dated N ovem ber 30, 1970, and to m ature N ovem ber 30,
1971 (C U S IP NO. 912793 K U 9 ).
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 at m aturity their face am ount w ill be payable w ithout in terest T h e y 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 v a lu e ).
Tenders w ill be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard T im e, Tuesday, N ovem ber 24, 1970. T enders w ill not be received at the Treasury D epartm ent, W ashington. Each
tender m ust be for a m inim um of $10,000. Tenders over $10,000 m ust be in m ultiples of $5,000. In the case o f com petitive
tenders the price offered m ust be expressed on the basis of 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 that 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
forms and forwarded in the special envelopes w hich w ill be supplied b y Federal R eserve Banks or Branches on application therefor
Banking institutions generally m ay subm it tenders for account o f custom ers provided the nam es of the custom ers are
set forth in such tenders. Others than banking 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 banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent o f 2 percent of th e face am ount of
Treasury bills applied for, unless th e tenders are accom panied by an express guaranty o f paym ent by an incorporated bank or
trust company.
Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve B anks and Branches, follow ing which
public announcem ent w ill be m ade by the Treasury D epartm ent of the am ount and price range o f accepted bids. O nly those sub­
m itting com petitive tenders w ill be advised of th e acceptance or rejection thereof. T h e Secretary of th e Treasury expressly
reserves th e right to accept or reject any or a ll 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 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 w ith the bids m ust be m ade or com pleted a t the Federal R eserve B ank on N ovem ber
30, 1970, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing N ovem ber 30, 1970.
Cash and exchange tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een th e par value
o f m aturing bills accepted in exchange and th e issue price o f th e new bills.
Under Sections 454 (b ) and 1221 (5 ) of the Internal R evenue Code of 1954 the am ount o f discount a t which bills issued
hereunder are sold is considered to accrue w hen the b ills are sold, redeem ed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the 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, w hether on
original issue or on subsequent purchase, and th e am ount actually received either upon sale or redem ption at m aturity during the
taxable year for which th e return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s o f th e Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any F ederal R eserve B ank or Branch.

In accordance with the above announcem ent, tenders will be received a t this bank an d its branches a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, Tuesday, November 24, 1970. Tenders may
not b e entered by telephone.
Yours very truly,
P. E. Coldwell
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 November 30,1970

Maturing November 30,1971

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 a t 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.
(q
»
^
a
*
Prices should be ex­
pressed on the basis of
100, with not more than
COMPETITIVE TENDERS $
$
th re e decim al p laces,
e. g. 99.925. Fractions
$
@
$
must not be used.
BSP TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N umber of
Pieces

Payment fo r this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M aturity Value

@

$

<a> $

1 5 , 0 0 0 $.

<a> $

METHOD OF PAYMENT

1 0 , 0 0 0 $-

5 0 , 0 0 0 $.

$

□

5 0 0 , 0 0 0 $.

By maturing bills
held by------------Payment to be made by_

1 0 0 , 0 0 0 $.

(5) $

□

@

@

□

Charge our reserve account on payment
date
I I Draft enclosed (Effectual delivery of enclosed d ra ft

$ 1 , 0 0 0 , 0 0 0 $.

Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□ Ship to-------------------------------------

shall be on latest day which will perm it presentm ent in
order to obtain irrevocably collected funds on paym ent
date)

(Subscriber’s full nam e or corporate title)
(Address)

By-

(Authorized official signature and title)
(For the account of, if tender is fo r another subscriber)
(Address)

IMPORTANT
1. No tender for 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 trust 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
m aterial, the tender may be disregarded.
(See reverse for announcement)

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