View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

federal

Reser ve Bank

of

Dallas

F IS C A L A G E N T O F T H E U NIT E D S T A T E S

DALLAS. TEXAS 7 5 2 2 2
Circular No. 70-278
N ovem ber 17, 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 sta te m e n t 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 T reasury bills to th e aggregate am ount of
$1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing N ovem ber 30, 1970, in th e am ount of
$1,501,273,000, as follows:
274-DAY B ILLS (to m aturity d ate) to be issued N ovem ber 30, 1970, in the am ount of $500,000,000, or thereabouts,
representing an additional rm ou nt of bills dated August 31, 1970, and to m ature August 31, 1971, originally
issued in the am ount of $1,203,620,000, the additional and original bills to be freely interchangeable.
365-DAY B IL L S for $1,200,000,000, or thereabouts, to be dated November 30, 1970, and to m ature N ovem ber 30,
1971 (C U S IP NO. 912793 K U 9).
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 atu rity value).
T enders will be received a t Federal Reserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern
Standard Time, Tuesday, November 24, 1970. Tenders 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. (N otw ithstanding the fact th a t the one-year bills will ru n for 365-days, the discount rate will be com puted on a bank dis­
count basis of 360-days, as is currently the practice on all issues of Treasury bills.) It is urged th a t tenders be m ade on th e printed
forms and forwarded in th e special envelopes which will be supplied by F ederal R eserve B anks or B ranches on application therefor
Banking institutions generally may subm it tenders for account of customers provided th e nam es of th e customers are
set forth in such tenders. Others 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 accom panied 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
trust company.
Im m ediately after the closing hour, tenders will be opened a t th e Federal R eserve B anks and Branches, following which
public announcem ent will be m ade by the T reasury D epartm ent of the am ount and price range of accepted bids. Only those sub­
m itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary of th e 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.
Subject 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.
Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted a t the F ederal R eserve B ank on N ovember
30, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing N ovem ber 30, 1970.
Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value
of m aturing bills accepted in exchange and the issue price of th e 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 th e 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 their issue. Copies of the circular may be obtained from any Federal R eserve B ank or Branch.

In accordance with the above announcement, tenders will b e received at this bank and its branches at El Paso,
Houston and San Antonio up Jo twelve-thirty p.m., Central Standard Time, Tuesday, November 24, 1970. Tenders may
not be entered by telephone.

Yours very truly,
P. E. Coldwell
President
(See 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

274 DAYS TO MATURITY
Dated August 31,1970

Maturing August 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 at the average
price (in three decimals) of accepted competitive bids.
(<&
(7i\
&
Prices should be ex_
pressed on the basis of
COMPETITIVE TENDERS ’ $ ------------------------ @-----------$------------------------------- K M S M S S
($ l_
(a)
$
e- £;> 9?-925. Fractions
v
■'= ‘
w
must not be used.
33^* TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m ber of

by

Pieces

M aturity Value

$

METHOD OF PAYMENT

10,000
i * non *
15,000 $---------------------

^ $

□

i.

T

,

Paym ent to be made by-

□

50,000 $--------------------$ 100,000 $____________
______ (a) ® 500 000 $______________
^
@ $1,000,000 $

maturing bills
heldby

□

$

t -.

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

Charge our reserve account on paym ent
date
D raft enclosed (Effectual delivery of enclosed d ra ft

__________________
□

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

>.

Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
| | S h i p t o ______________________________________

date)

(Subscriber’s full nam e or corporate title)

---------------------------------(Address)
By-

(A uthorized official sig n atu re 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 at 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
material, the tender may be disregarded.
(See reverse for announcement)

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