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F ederal R eserve Bank of Da lla s 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 A S 7 5 2 2 2 Circular No. 70-13 Jan u ary 21, 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: T h e 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 $3,000,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing January 29, 1970, in the am ount of $2,900,641,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued Janu ary 29, 1970, in the am ount of $1,800,000,000, or there abouts, representing an additional am ount of bills dated A pril 30, 1969, and to m ature April 30, 1970, originally issued in the am ount of $1,000,634,000, (additional am ounts of $500,151,000, and $1,200,988,000 were issued Ju ly 31, 1969, and October 30, 1969, respectively), 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 Janu ary 29, 1970, and to m ature Ju ly 30, 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 v alu e). T enders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard Tim e, M onday, Jan u ary 26, 1970. T enders will not be received a t th e T reasury D epartm ent, Washington. 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 than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged th a t tenders be made on the printed forms and forwarded in th e 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 nam es of the customers are set forth in such tenders. O thers 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 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 tru st company. Im m ediately after the closing hour, tenders will be opened a t the Federal R eserve 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. Only those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the 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. Sub ject 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. S ettlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal Reserve B ank on Janu ary 29, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Jan u ary 29, 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 atur ing bills accepted in exchange and the issue price of new bills. T h e income derived from T reasury bills, w hether interest or gain from the sale or other disposition of the 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 R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, b ut are exem pt from all taxation now or hereafter imposed on th e 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 R evenue 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 T reasury bills (other th an life insurance com panies) issued hereunder need include in his income tax retu rn 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. T reasury 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 th e circular m ay be obtained from any Federal Reserve B ank or Branch. In accordance with the above announcement, tenders will be received at this bank and its branches a t El Paso, Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, January 26, 1970. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS A mount, R ange and A pproxim ate Y ield of Accepted T enders 91-Day Bills 182-Day Bills D ue April 23, 1970 D ue Ju ly 23, 1970 $3,158,021,000 T o tal A pplied F o r_________ $2,528,908,000 $1,800,184,000________________________________ T o tal-A ccepted------------------------------------------------- $1,200,785,000 Price Y ield P rice Y ield 98.041 7.750% _________________________ H igh______________________ 96.158___________ 7.600% 98.027 7.805% _________________________ Low_______________________96.120___________ 7.675% 98.031 7.789% ( 1 ) ____________________.Average____________________ 96.126____________ 7.663% (1 ) ( 1 ) These ra te s are on a b an k discount basis. T h e eq uivalent coupon issue yields are 8 .0 6 % for th e 91-day bills, an d 8 .0 8 % for the 182-day bills. (S e e 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 29,1970 Maturing July 30,1970 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The______________________________Branch E l Paso 79999 H ouston 77001 (D ate) San Antonio 78206 P u rsu a n t to the provisions of T reasu ry D epartm ent C ircular No. 418 (cu rre n t revision) and th e provisions of th e public announcem ent issued by the T reasu ry D epartm ent, th e undersigned offers to purchase T reasury bills in the am ount shown below, and agrees to pay fo r th e am ount allotted, on or before the issue date, by th e method and a t the r a te indicated. NONCOMPETITIVE TENDER $_______________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full at the average price (in three decimals) of accepted com petitive bids. / $ @ * B COMPETITIVE TENDERS @ P rices should be ex pressed on the basis of 100, w ith not more th a n th r e e decim al p la c e s, e. g., 99.925. F ractio n s m ust not be used. $ E g 2 T E N D E R S MAY NOT BE E N T E R E D BY T E L E P H O N E . T E N D E R S BY W IR E , I F R E C E IV E D B E F O R E T H E * CLOSING HOUR, A RE A C C EPT A B L E . P aym ent fo r th is issue of bills cannot be m ade by credit to T re asu ry T ax and Loan Account. M ETHOD O F P A Y M E N T Denominations D esired N u m b er of Pieces M aturity V alue @ $ 1,000 5,000 @ $ @ $ 10,000 @ $ 50,000 @ $ 100,000 @ $ 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------------------------------------- □ □ □ □ By maturing bills held by____________________ Payment to be made by_ Charge our reserve account on payment date Draft enclosed (E ffectual delivery of enclosed d r a f t shall be on la te st day w hich will p e rm it p re sen tm en t in ord er to ob ta in irrevocably collected fu n d s on p a y m e n t d ate) (S u b scrib er’s fu ll na m e o r co rp o ra te title ) (A ddress) By- (A uth o rized official s ig n a tu re an d title ) (F o r th e accou n t of, if te n d e r is fo r a n o th e r sub scrib er) (A ddress) IM PO RTA N T 1. No ten der fo r less th a n $1,000 will be considered and each tender m ust be fo r an am ount in m ultiples of $1,000 (m a tu rity v a lu e ). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or ap prop riate branch as Fiscal A gent of th e U nited States, w ith notation on the envelope reading “ T E N D E R FOR T R E A SU R Y O F F E R IN G ”. Since envelopes received w ith th is legend will not be opened un til a fte r th e closing tim e specified in the public announcement, communi cations rela tin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank or appro p riate branch. 3. A ny qualified or conditional tender will be rejected. 4. I f a corporation makes th e tender, the form should be signed by an officer of th e corporation authorized to make th e tender and th e signing of the form by an officer of th e corporation will be construed as a representation by him th a t h e has been so authorized. I f th e ten der is made by a partn ersh ip it should be signed by a member of the firm, who should sign in th e form “_____________________________ , a copartnership, by-------------------------------------------------------------^ a member of the firm ”. 5. Tenders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m a tu rity value) of the T reasu ry bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an incorporated bank o r tr u s t company. 6. I f the language of th is form is changed in any respect, which, in the opinion of the S ecretary of the T re asu ry i a m aterial, th e tender m ay be disregarded. (See reverse for announcement)