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F ederal R eserv e 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, TEXAS 7 5 2 2 2 C ircular No. 70-31 February 4, 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 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 F ebruary 13, 1970, in the am ount of $2,999,807,000, as follows: 9 0 -DAY B IL L S (to m aturity d ate) to be issued February 13, 1970, in the am ount of $1,800,000,000, or there abouts, representing an additional am ount of bills dated Novem ber 13, 1969, and to m ature M ay 14, 1970, originally issued in the am ount of $1,204,069,000, the additional and original bills to be freely interchangeable. 181-DAY B ILLS for $1,200,000,000, or thereabouts, to be dated February 13, 1970, and to m ature August 13, 1970. T he 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 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 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, M onday, F ebruary 9, 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 th a n 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 the special envelopes which will be supplied by Federal Reserve Banks or B ranches 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 tru st companies and from responsible and recognized dealers in investm ent securities. T enders 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 accom panied by an express guaranty of paym ent by an incorporated bank or trust company. Im m ediately after the closing hour, tenders will be opened a t the F ederal 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. 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 completed a t the F ederal Reserve B ank on F ebruary 13, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing February 13, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the 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 Treasury bills does not have any special treatm ent, as such, under th e Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether 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 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 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 T reasury 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, whether 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 Treasury bills and govern the conditions of their issue. Copies of the circular may 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 an d San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, February 9, 1970. Tenders may not be entered by telephone. Yours very truly, P. E. Caldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approxim ate Y ield of Accepted Tenders 91-Day Bills 182-Day Bills D ue M ay 7, 1970 D ue August 6, 1970 $2,823,917,000 T o tal A pplied F o r____________________ $2,648,272,000 $ 1,800,436,000________________________________ T o tal_A ccepted_________________________________$ 1,201,498,000 Price Yield Price Yield 98.049 7.718% _________________________ High_____________________ 9 6 .1 0 1 _ ________ 7.712% 97.036 7.770% _______________ Low________________ 1____ 96.096___________ 7.722% 98.040 7.754% ________________________ Average____________________96.098___________ 7.718% (1 ) ( 1 ) T hese ra te s are on a b ank discount basis. T h e equivalent coupon issue yields are 8 .0 2 % for the 91-day bills, and 8 .1 4 % for the 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 181 DAYS TO MATURITY Maturing August 13,1970 Dated February 13,1970 To: Federal Reserve Bank, Station E, Dallas, Texas 75222 or— The______________________________Branch El Paso 79999 Houston 77001 (D ate) San Antonio 78206 P u rsu a n t to the provisions of T reasury D epartm ent C ircular No. 418 (cu rre n t revision) and th e provisions of the public announcem ent issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ount shown below, and agrees to pay fo r the am ount allotted, on or before th e issue date, by the 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 average price (in three decimals) of accepted com petitive bids. P rices should be ex pressed on th e basis of 100, w ith not more th a n t h r e e d ec im a l p laces, ______________ e. g., 99.925. F ractions m ust not be used. ------------------------------ $- COMPETITIVE TENDERS v?^ _ .<§>_ j@ - T E N D E R S MAY N OT B E 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 HOU R, A R E A C C EPT A B L E . P aym ent fo r th is issue of bills cannot be made by credit to T reasu ry T ax and Loan Account. M ETH OD OF PA Y M E N T Denominations Desired Number of Pieces M aturity Value $ 1 ,0 0 0 $_ $ $ 5,000 $_ 10,000 $_ 50,000 $_ $ 1 0 0 ,0 0 0 $_ $ □ □ □ 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 (Effectual delivery of enclosed draft shall be on latest day which will perm it presentm ent in order to obtain irrevocably collected funds on paym ent date) (Subscriber’s fu ll nam e or corporate title) (Address) By- (Authorized official signature and title) (For the account of, if tender is for another subscriber) (Address) IM PORTANT 1. No tender 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 atu rity v alue). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or approp riate branch as Fiscal A gent of the 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 announcem ent, 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 this bank or app 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 the tender and the signing of the form by an officer of the corporation will be construed as a represen tation by him th a t he has been so authorized. I f the tender is made by a partn ersh ip it should be signed by a member of th e firm, who 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 invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu 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 or tr u s t company. 6. If the language of th is form is changed in any respect, which, in th e opinion of th e S ecretary of th e T re asu ry is m aterial, th e tender may be disregarded, (See reverse for announcement)
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