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F ederal Reserve

bank of

Dallas

FISCAL AGENT OF THE UNITED STATES

DALLAS. TEXAS 7 5 2 2 2
C ircular No. 70-41
F eb ru ary 17, 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 th is public notice, invites tenders for two series of T reasury bills to th e aggregate am ount of
$1,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing F ebruary 28, 1970, in th e am ount of
$1,500,540,000, as follows:
273-D A Y B IL L S (to m a tu rity d ate) to be issued M arch 2, 1970, in th e am ount of $500,000,000, or there­
abouts, representing an additional am ount of bills dated N ovem ber 30, 1969, and to m ature N ovem ber 30, 1970,
originally issued in th e am ount of $1,001,199,000, th e additional and original bills to be freely interchangeable.
365-DAY B IL L S for $1,200,000,000, or thereabouts, to be dated F ebruary 28,1970, and to m ature F eb ru ary 28, 1971.
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 in te re s t T h ey 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 valu e).
T enders will be received a t F ed eral R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
Standard Tim e, Tuesday, F ebruary 24, 1970. T enders will not be received a t th e T reasury D epartm ent, W ashington. E ach
tender m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders th e price offered m ust be expressed on th e
basis of 100, w ith not m ore th a n three decimals, e.g., 99.925. Fractions m ay not be used. (N otw ithstanding th e fact th a t th e oneyear bills will run for 365-days, th e discount rate will be com puted on a bank discount basis of 360-days, as is currently th e
practice on all issues of T reasury bills.) I t is urged th a t tenders be m ade on th e p rin ted forms and forw arded in th e special
envelopes which will be supplied by F ederal R eserve B anks or Branches on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided th e nam es of th e customers are
set forth in such tenders. O thers th an banking institutions will not be perm itted to subm it tenders except for th e ir own account.
T enders will be received w ithout deposit from incorporated banks and tru st com panies 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 a fter th e closing hour, tenders will be opened a t th e Federal R eserve B anks an d Branches, following which
public announcem ent will be m ade by th e T reasury D epartm ent of th e am ount and price range of accepted bids. Only those sub­
m itting com petitive tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of th e T reasury expressly
reserves the right to accept or reject any or all tenders, in whole or in p art, 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 decim als) of accepted com petitive bids for th e respective issues.
Settlem ent for accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t th e F ederal R eserve B ank on M arch 2,
1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing F eb ru ary 28, 1970.
Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p a r value
of m aturing bills accepted in exchange and th e issue price of th e new bills.
T h e income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of th e bills, does not
have any exem ption, as such, and loss from th e sale or other disposition of T reasury bills does not have an y special treatm ent,
as such, under th e Internal R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ederal or State, b u t are exem pt from all taxation now or hereafter im posed on th e principal or in terest thereof by any State,
or any of the possessions of th e U nited States, o r by any local taxing authority. F o r purposes of taxation th e 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 the Internal R evenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is not considered to
accrue until such bills are sold, redeem ed o r otherwise disposed of, an d such bills are excluded from consideration as capital
assets. Accordingly, the owner of T reasury bills (o th er th a n life insurance com panies) issued hereunder need include in his
income tax retu rn only th e difference between th e price p aid for such bills, w hether on original issue or on subsequent purchase,
and the am ount actually received eith er upon sale or redem ption a t m a tu rity during th e taxable year for which th e retu rn is
m ade, as ordinary gain or loss.
T reasury D epartm en t C ircular No. 418 (cu rren t revision) and th is notice, prescribe th e term s of th e T reasury bills and
govern th e conditions of th e ir issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank or Branch.

In accordance with the a b o v e 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, Tuesday, February 24, 1970. Tenders m ay not
be entered by telephone.

Yours very truly,
P. E. Coldwell

President
(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 ADDITION TO TREASURY BILLS

273 DAYS TO MATURITY
Dated November 30,1969

Maturing November 30, 1970

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or—
The_______________________________ Branch
El Paso 79999

Houston 77001

(Date)

San Antonio 78206

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.

NONCOMPETITIVE TENDER $_

_NOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
/
Prices should be ex1$----------------------------@ ------------- $------------------------------------ pressed on the basis of
100, with not more than
@
COMPETITIVE TENDERS<$!
$
three decim al places,
e. g., 99.925. Fractions
$
$
must not be used.
TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Num ber of
Pieces

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

M aturity Value

(5) $
(S) $
(2) $

METHOD OF PAYMENT

1,000 $5,000 $.

□

By maturing bills
held by_____________________________
□P a y m en t to be made by_____________

□

Charge our reserve account on payment
date

10,000 $50,000 $.

(S) $
<> $ 100,000 $5
<> $ 500,000 $S

| | D r a f t e n c l o s e d (Effectual delivery of enclosed d ra ft
shall be on latest day which will perm it presentm ent in
order to obtain irrevocably collected funds on paym ent
date)

<> $1 ,000,000 $5
Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

(Subscriber’s fu ll nam e or corporate title)

Hold in Custody Account—Member
banks for own account only

□

(Address)

By.

Ship to_________________________

(Authorized official sign ature and title)
(For the account of, if tender is fo r 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