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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)

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