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F ederal

reserve

bank of

Dallas

F IS 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, TEX AS 7 5 2 2 2

Circular No. 70-4
January 7, 1970

NEW OFFERING — TREASURY BILLS
o 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:
T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount
of $3,000,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing January 15, 1970, in the am ount of
$2,905,533,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued January 15, 1970, in the am ount of $1,800,000,000, or there­
abouts, representing an additional am ount of bills dated October 16, 1969, and to m ature A pril 16, 1970,
originally issued in the am ount of $1,203,109,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,200,000,000, or thereabouts, to be dated January 15, 1970, and to m ature Ju ly 16, 1970.
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 without interest. T hey will be issued in bearer form only, and in
denom inations of $1,000, $5,000, $10,000, $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 the closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, January 12, 1970. T enders will not be received a t the Treasury D epartm ent, W ashington.
Each tender m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on
the basis of 100, with not more th an three decimals, e.g., 99.925. Fractions may not be used. It is urged th a t tenders be made
on the printed forms and forwarded in the special envelopes which will be supplied by F ederal Reserve Banks or Branches on
application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account.
T enders will be received w ithout deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of
Treasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which
public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T he 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. 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 th e average price (in three decimals) of accepted com petitive bids for the respective issues. S ettlem ent for
accepted tenders in accordance with the bids m ust be made or com pleted at the F ederal Reserve B ank on Jan uary 15, 1970, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing January 15, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the p ar value of m atu r­
ing bills accepted in exchange and the issue price of new bills.
T he income derived from T reasury bills, w hether interest or gain from the sale or other disposition of th e bills, does not
have any exemption, as such, and loss from the sale or other disposition of T reasury bills does not have any special treatm ent,
as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether
Federal or State, b u t are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State,
or any of the possessions of the U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount
a t which T reasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454 (b ) and
1221 (5 ) of the Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued hereunder need include
in his income tax return only the difference between the price paid for such 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, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any F ederal Reserve B ank 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, Monday, January 12, 1970. Tenders may
hot be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue April 9, 1970
Due Ju ly 9, 1970
$2,716,146,000____________________
—_____ .T otal A pplied F o r_______________________________ $2,507,337,000
$1,800,150,000________________________________ T otal A ccepted________________________________ $1,200,892,000
P rice
Y ield
Price
Yield
98.012___ -________ 7.865% _________________________ H igh____________________ ,95.966a!____________7.979%
97.982____________ 7.983% ________________
Low____________95.956_____________ 7.999%
97.988 ____________ 7.960% (1 ) _ _ _
_ _ _________________ Average___________________ 95.960
7.991% (1 )
( 1 ) These rates are on a b an k discount basis. T h e equivalent coupon issue yields are 8 .2 4 % fo r th e 91-day bills, and 8 .4 4 % for th e
182-day bills.

(S ee reverse side 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
Dated January 15,1 9 70

Maturing July 16,1970

T o : 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.
NON CO M PETITIVE T E N D E R $_________________________________________ N O T TO E X C E E D $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.
Prices should be ex­
pressed on the basis of
100, with not more than
three decimal places,
e. g., 99.925. Fractions
must not be used.

CO M PETITIVE T EN D ER S

fiSF TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

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

Maturity Value

@$

1,000

@

$

5,000 %

@

$

10,000

@

$

50,000

@

i

100,000

@
@

$

$

□
□

,000,000

$

Charge our reserve account on payment
date

□

500,000 $

Payment to be made by________________

□

$
$
$

By maturing bills
held by_____ _____________________________

D raft enclosed

(Effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment
date)

Delivery Instructions:
v

---------------------- (Subscriber s full name or corporate title)
, . ..-------------------------------- ,

□

Hold in Custody Account— Member
banks for own account only

____________________________________________ _

Pledge to secure Treasury Tax and
Loan AcCOUnt

By___________________________________________

□
□

(Address)

(Authorized official signature and title)

Ship to.

(For the account of, if tender is for another subscriber)

(Address)

IMPORTANT

1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity
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 matters 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 that 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 (maturity 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 trust 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