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F ed er a l

R es e r v e

b a 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, TEX AS 7 5 2 2 2
C ircular No. 70-296
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.

(S ee 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

91 DAYS TO MATURITY
Maturing March 25,1971

Dated September 24, 1970

PLEASE OBSERVE CLOSING DATE — FRIDAY, DECEMBER

18, 1970

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________ Branch
E Paso 79999 Houston 7
l
7001 San Antonio 78206

(Date)

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 the
o h rvsos f
iclr
cret eiin
h rvsos f
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 ae niae.
_NOT TO EXCEED $200,000
NONCOMPETITIVE TENDER $_________________________________
Noncompetitive t n e s f r $
e d r o 200,000 o l s from any one b d e , without s a e p i e w l be a cepted i f l a t e average
r es
idr
t t d rc, il c
n ul t h
p i e ( n t r e de i a s o acce e c m e i i e b d .
rc i he c m l ) f
pt d o p t t v i s
P i e s ou d be ex­
rcs h l
pre e on t e b s s o
ss d
h ai f
100 ,
with not more than
COMPETITIVE TENDERS i
_
_
*
-—
V^....
—
three decimal places,
e g, 9 . 2 . Fractions
. . 995
s
@
must not be u e .
sd
$
f 3 TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
i
t
®
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------------------------------------------.
□ Payment to be made by---------------------.
@ $ 50,000 $@ $ 100,000 $■
□ Charge our reserve account on payment
@ $ 500,000 ?date
| | Draft enclosed (Effectual delivery o f enclosed d ra ft
@ $1 ,000,000 $-

i

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 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 t
ender f r l s than $ 0 0 0 w l be c n i e e and each te d o er $10,000 must be f r an amount i m l i l s o
o es
1 , 0 il
osdrd
n er v
o
n utpe f
$ , 0 (maturity v l e .
500
au)
2 Tenders s ou d be forwarded i an envelope c e r y addressed t t i bank o ap ropriate branch a F s a Agent o the
.
h l
n
lal
o hs
r p
s icl
f
United S a e , with n t t o on t e en elope reading “TENDER FOR TREASURY OFFERING”. S n e envelopes
tts
oain
h
v
ic
r c i e with t i legend w l n be opened u t l a t r t e c o i g time s e i i d i t e p b i announcement, communi­
eevd
hs
i l ot
ni f e h l s n
pcfe n h u l c
c t o s r l t n t o h r matters sho d n be e c o e . Envelopes f r submitting t d r may be ob a n d from t i
ain eaig o te
ul ot
nlsd
o
en e s
tie
hs
bank o approp ia e b a c .
r
r t rnh
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 sh ul be s gned by an o f c r o t e c r o a i n a t o i d t make the
. f oprto
h edr h
o d
i
f i e f h o p r t o u h r ze o
t
ender and t e s g i g o t e form by an of c r o t c p r t o w l be const e a a r p e e t t o by him t at he
h inn f h
fi e f he or o a i n i l
ru d s e r s n a i n
h
has been s a t o i e . I t e t d r i made by a p
o u h r z d f h en e s
artnership i sh u d be s
t ol
igned by a member o t f r , who
f he i m
oatesi,
_
s u d s g i t e form “__________________ ,a c p r n r h p by_________________________ _ _
ho l i n n h
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 r c n e d a e s i i vest­
.
hs te
noprtd
rs
r epnil
e og iz d e l r n n
ment s c r t e w l b d s e a d d u l s accompanied by a d p s t o 2 p c n o t e t t l amount (maturity value)
euiis il e i r g r e , n e s
e o i f er e t f h o a
o t e Treasury b ls a p i d f r o u l s t e t n e s a accompanied by an e r ss guaranty o f l payment by an
f h
il p l e o , r n e s h e d r re
xp e
f ul
i o p r t d bank o t u tcompany.
nc r o a e
r rs
6 .I t e language o t i form i changed i any r s e t w i h, i t e o i i n o t e Secretary o t e Treasury i
f h
f hs
s
n
epc, h c n h p n o f h
f h
s
’m t r a , the tender may be d s e a d d
aeil
irgre.
(See reverse for announcement)

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