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F ed er a l R e s e r v e Ba n k o f D alla s F IS C A L A G E N T O F T H E UNIT ED S T A T E S DALLAS, TEXAS 7 5 2 2 2 Circular No. 70-295 D ecem ber 11, 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 statement giving details of two issues of Treasury bills: The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $3,300,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing December 24, 1970, in the amount of $3,107,630,000, as follows: 91-DAY BILLS (to maturity date) to be issued December 24, 1970, in the amount of $1,900,000,000, or there abouts, representing an additional amount of bills dated September 24, 1970, and to mature March 25, 1971 (CUSIP No. 912793 K A 3), originally issued in the amount of $1,395,160,000, the additional and original bills to be freely interchangeable. 182-DAY BILLS for $1,400,000,000, or thereabouts, to be dated December 24, 1970, and to mature June 24, 1971 (CUSIP No. 912793 K P0). The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard Time, Friday, December 18, 1970. Tenders will not be received at the Treasury Department, Washington. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor Banking institutions generally may submit tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only those submitting competitive tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury 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, noncompetitive tenders for each issue for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on December 24, 1970, in cash or other immediately available funds or in a like face amount of Treasury bills maturing December 24, 1970. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of matur ing bills accepted in exchange and the issue price of the new bills. Under Sections 454 (b ) and 1221 (5 ) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued here under must include in his income tax return, as ordinary gain or loss, the difference between the price paid for the bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made. Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. In accordance with the above 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 Standard Time, Friday, December 18, 1970. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell _______________ President Figures concerning offering of 91-Day Treasury Bills maturing March 18, 1971, and 182-Day Treasury Bills maturing June 17, 1971, not available when this circular was printed. (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 TREASURY BILLS 182 DAYS TO MATURITY PLEASE OBSERVE CLOSING DATE — FRIDAY, DECEMBER Maturing June 24, 1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________ Branch E Paso 79999 Houston 77001 San Antonio 78206 l 18, 1970 Dated December 24, 1970 (D ate) Pursuant t t e p o i i n o Treasury Department C r u a No. 418 ( u r n r v s o ) and t e p o i i n o t e o h rvsos f iclr cret eiin h rvsos f h p b i announcement i s e by t e Treasury Department, t e undersigned o f r t purchase Treasury bls i t e amount ulc sud h h fes o il n h shown b l w and agrees t pay f r t e amount a l t e , on o b f r t e i s e d t , by t e method and a t e r t i d c t d eo, o o h lotd r e o e h su ae h t h a e niae. _NOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $_________________________________ Noncompetitive t n e s f r $ 0 , 0 o l s from any one b d e , without s a e p i e w l be a ce t i f l a t e average e d r o 2 0 0 0 r es idr t t d rc, il c p ed n u l t h p i e ( n t r e de i a s o a e e c m e i i e b d . r c i h e c m l ) f cc pt d o p t t v i s P i e s o d be ex r c s h ul pr essed on t e b s s o h ai f 100 , with not more than COMPETITIVE TENDERS .. 1 V .. Y T three decimal plac , es e g, 9 . 2 . F a t on . . 995 r c i s must not be u e . sd $ @ ? ET* TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment f r t i i s e o bls cannot be made by o h s s u f il Number of c e i t Treasury Tax and Loan Account. rdt o pieces M aturity Value METHOD OF PAYMENT 10,000 $_ -@ $ □ By maturing bills $ 15.000 $_ held by_--------------------------------------50.000 $_ □ Payment to be made by---------------------@ $ x $ 100,000 $_ □ Charge our reserve account on payment ~ date $ 500,000 $_ @ $1,000,000 $_____________ Delivery Instructions: □ Hold in Custody Account— Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to------------------------------------- | | D r a f t e n c l o s e d (E ffectual delivery o f enclosed draft shall be on latest day which w ill perm it presentm ent in order to obtain irrevocably collected funds on paym ent date) (Subscriber’s fu ll 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 te de f r l s than $ 0 0 0 w l be c n i e e and each t n r over $ 0 0 0 must be f r an amount i m l i l s o . n r o es 1 , 0 il osdrd e de 1,0 o n utpe f $ , 0 (maturity v l e . 500 au) 2 Tenders s o ld be forwarded i an e . hu n nvelope c e r y addressed t t i bank o a r lal o hs r pp opriate branch a F s a Agent o t s icl f he United S a e , with n t t o on th enve p reading “TENDER FOR TREASURY OFFERING”. S n e e velopes tts oain e lo e ic n r c i e with t i legend w l not be opened u t l a t r th c o i g time s e i i d i t e p b i announcement, communi eevd hs il ni f e e l s n pcfe n h u l c c t o s r l t n t o h r matters s u d not be e c o e . Envelopes f r submitting t n e s may be ob a n d from t i ain eaig o te ho l nlsd o edr tie hs bank o a r pr at b a c . r pp o i e r n h 3 Any q a i i do c n i i n lt . u l f e r o d t o a enderw l be r j c e . il eetd 4 I a c r o a i n makes t e t n e , t e form s o l be s g e by an o fcr o t e c r o a i n au h r z d t make t e . f oprto h edr h hud ind fie f h o p r t o t o i e o h tender and t e s g i g o t e form by an of c r o t e c r o a o w l be con tr ed a a r p e e t t o by him t a he h inn f h fi e f h o p r ti n i l s u s ersnain ht has been s a t o i e . I t e ten er i made by a par e h p i s o ld be si ne by a member o t e f r , who o uhrzd f h d s tn rs i t h u g d f h im sho ld s g i t e form “ u in n h __________________ ,a c p r n r h p by---------------------------- , oatesi, a member o t e f r . f h im” 5 Tenders from t o e o h r than i c r o a e banks and t u t companies o r s o s b e and reco n e d a e s i i v s . hs te noprtd rs r epnil g iz d e l r n n e t 'ment s c r t e w l be d s e a d d u l s accompanied by a d p s t o 2 p r e t o t e t t l amount (maturity v l euiis il irgre, nes e o i f e c n f h oa a ue) o t e Treasury bls a p i d f r o u l s t e t n e s ar accompanied by an exp s guaranty o f l payment by an f h il p l e o , r n e s h e d r e re s f ul i c r o a e bank o t u tcompany. noprtd r rs 6 .I t e language o t i form i changed i any r s e t wh c i t e o i i n o th S cretary o t e Treasury i f h f hs s n e p c , i h, n h p n o f e e f h s ’m t r a , t e tender may be d s e a d d aeil h irgre. (See reverse for announcement)