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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. 70-22
Jan u ary 28, 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 he T reasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount
of $3,000,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing February 5, 1970, in the am ount of
$3,004,928,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued F ebruary 5, 1970, in the am ount of $1,800,000,000, or there­
abouts, representing an additional am ount of bills dated Novem ber 6, 1969, and to m ature M ay 7, 1970,
originally issued in the am ount of $1,201,387,000, the additional and original bills to be freely interchangeable.
182-DAY B ILLS for $1,200,000,000, or thereabouts, to be dated F ebruary 5, 1970, and to m ature August 6, 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 th eir face am ount will be payable w ithout 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, February 2, 1970. T enders will not be received a t the T reasury 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 than three decimals, e.g., 99.925. Fractions m ay not be used. I t 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 B ranches on
application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided th e 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 acco un t
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 th e face am ount of
T reasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after th e closing hour, tenders will be opened a t th e 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. O nly 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 at 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 F ebruary 5, 1970, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing F ebruary 5, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e par value of m atur­
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 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 Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, bu 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 th e 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 th e U nited States is considered to be interest. U nder Sections 454 (b ) and
1221 (5 ) of th e Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is no t 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 th e
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 the circular m ay be obtained from any Federal Reserve B ank or Branch.

In accordance with the above announcement, tenders will be received a t this bank an d its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, February 2, 1970. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and A pproxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue A pril 30, 1970
D ue July 30, 1970
$2,773,975,000
T otal Applied F o r_______________________________ $2,263,718,000
$1,800,093,000________________________________-Total_Accepted________________________________ $1,200,191,000
Price
Yield
Price
Yield
98.018
7.841% _________________________ H igh______________________ 96.090___________ 7.734%
97.998
7.920% __________________________Low______________________ 96.061___________ 7.791%
98.006
7.888% ________________________ Average____________________ 96.069____________ 7.776% (1 )
( 1 ) T hese rates are on a b an k discount basis. T h e eq uivalent coupon issue yields are 8 .1 6 % for th e 91-day bills, an d 8 .2 1 % for th e
182-day bills.

(See 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 February 5,1970

Maturing August 6,1970

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or—
The______________________________Branch
El 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, the undersigned offers to purchase T reasu ry bills in the am o u n t
shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by th e method and a t the ra te indicated.

NONCOMPETITIVE TENDER $_______________________________ NOT TO EXCEED $200,000
N oncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t the av e ra g e
price (in three decimals) of accepted com petitive bids.
Prices should b« ex­
pressed on the basis o f
100, w ith not more th a n
th r e e d ec im a l p la c e s ,
___________________ e, g., 99.925. F ra c tio n s
m ust not be used.
----------------------------

-@ -

COMPETITIVE TENDERS

-@ -@ -

fSSg* 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 CC EPTA BLE.
P aym ent fo r th is issue of bills cannot be m ad e
by credit to T reasu ry T ax and Loan Account.
M ETHOD O F PA Y M E N T

Denominations Desired
Number o f
Pieces

M aturity Value

@
@
@
@
@
@
@

$
$
$
$
$
$

1,000
5,000
10,000
50,000
100,000
500,000
,000,000

?■
$■

By maturing bills
held by
_____________
Payment to be made by_

□

$.
$$.
$$.

Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□ Ship to------------------------------------"

□

□

Charge our reserve account on payment
date
Draft enclosed (E ffectual delivery o f enclosed d r a f t

□

shall be on la te st day w hich w ill p e rm it p re s e n tm e n t i n
o rd e r to o b ta in irrevocably collected fu n d s on p a y m e n t
date)
(S ub scrib er’s fu ll n a m e o r co rp o ra te title )

(A ddress)

Bv

.

............. —........... ..
(A u tho rized official s ig n a tu re a n d title)

(F o r the acco u n t of, if te n d e r is fo r a n o th e r su bscriber)

— —

(A ddress)

IM PORTANT
1. No tender fo r less th a n $1,000 will be considered and each tend er m ust be fo r an am ount in multiples of $1,000 ( m a tu rity
v alue).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or app ropriate branch as Fiscal A gent of t h 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 until a fte r the closing time specified in the public announcement, com m uni­
cations relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from t h i s
bank or ap p ro p riate branch.
3. A ny qualified or conditional tender will be rejected.
4. I f a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make t h e
tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t h e
has been so authorized. I f the ten der is made by a partn ersh ip it should be signed by a member of the firm, w h o
should sign in the 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 in v e s t­
m ent securities will be disregarded, unless accompanied by a deposit of
2 percent of the total am ount (m atu rity v a lu e )
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 a n
incorporated bank or tr u s t company.
6. If the language of this form is changed in any respect, which, in the opinion of the S ecretary of the T re asu ry j a
m aterial, th e tender may be disregarded.

(See reverse for announcement)

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