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F ederal

reserve

Bank

of

Dallas

F I S 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

Circular No. 70-51
M arch 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 $3,100,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M arch 12, 1970, in the am ount of
$3,001,333,000, as follows:
91-DAY B ILLS (to m aturity date) to be issued M arch 12, 1970, in the am ount of $1,800,000,000, or th ere­
abouts, representing an additional am ount of bills dated D ecem ber 11, 1969, and to m ature Ju ne 11, 1970,
originally issued in the am ount of $1,200,323,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,300,000,000, or thereabouts, to be dated M arch 12, 1970, and to m ature Septem ber 10, 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 w ithout interest. T hey will be issued in bearer form only, and in
denom inations of $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity value).
T enders will be received at F ederal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, M arch 9, 1970. Tenders will not be received at the T reasury D epartm ent, W ashington. Each
tender m ust be for an even m ultiple of $10,000, and in the case of com petitive tenders the price offered m ust be expressed on
the basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged th a t tenders be m ade
on th e printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches 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 th a n 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
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 at the Federal Reserve Banks and Branches, following which
public announcem ent will be m ade 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 he 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 w ith the bids m ust be m ade or com pleted a t the F ederal R eserve B ank on M arch 12, 1970, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M arch 12, 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 the 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
have any exemption, as such, and loss from th e 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 he bills are subject to estate, inheritance, gift or other excise taxes, whether
F ederal 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 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 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, 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
retu rn is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s of the T reasury bills and
govern the conditions of th eir 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 at this bank and its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, March 9, 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 Approxim ate Y ield of Accepted T enders
182-Day Bills
91-Day Bills
D ue Septem ber 3, 1970
D ue Ju n e 4, 1970
_________________________ $2,190,890,000
$2,457,520,000_____________
__________ T otal Applied F o r­
_________________________ $1,300,419,000
$1,800,190,000_____________
___________ .Total Accepted__
Price
Y ield
P rice
Yield
_______ -—96.602____________ 6.721%
.-6.793%,
98.283______
..High..
_________ 96.564____________ 6.796%
98.249______
-6.927% -.
..Low..
98.264____________ 6.868% ( 1 ) ____________________ Average____________________ 96.576___________ 6.773% (1 )
( 1 ) T h ese rates are on a bank discount basis. T h e equivalent coupon issue yields are 7 .0 9 % for th e 91-day bills, and 7 .1 1 % for
th e 182-day bills.

(S ee reverse for tender form )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

not

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Maturing September 10,1970

Dated March 12,1970
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or—
The_____________________________ Branch
El Paso 79999

H ouston 77001

San Antonio 78206

(D ate)

P u rsu an t to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the^ provisions of the
public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am ount
shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by the method and a t the ra te indicated.

.NOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $_

Noncompetitive 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.
/-x

c
p

$
T
$

(cb
@

$
$

COMPETITIVE TENDERS

-

Prices should be ex ­
pressed on th e basis of
100, w ith not m ore th a n
th r e e d ec im a l p la c e s ,
e. g., 99.925. F ractio n s
m ust not be used.

TEN D ERS MAY NOT BE EN TE R E D BY TELEPH O N E. TEND ERS BY W IRE, IF RECEIVED BEFO RE T H E
CLOSING HOUR, A RE ACCEPTABLE.
Denominations Desired
Number of
Pieces

P aym ent fo r th is issue of bills cannot be m ade
by credit to T reasu ry T ax and Loan Account.
METHOD OF PAYM ENT

M aturity Value

$

-@ $
-@ $

10,000

$

­

□

50,000 $_

100,000

□

$ _

By maturing bills
held by-----------------------------------------Payment to be made by-------------------

500,000 $_

□

Charge our reserve account on payment
date
| I Draft enclosed (Effectual delivery o f enclosed draft

_@ $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________________________

shall be on latest day which w ill 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-

PLEASE

NOTE TENDER

MUST B $10,000 O MULTIPLE
E
R

T H ER E O F

/ a
*

(Authorized official signatu re and title)

(For the account of, if tender is for another subscriber)
(Address)

IM PORTANT
1. No tender fo r less th a n $10,000 will be considered and each tender m ust be fo r an am ount in m ultiples of $10,000 (m atu rity
value).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appro priate 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 this legend will not be opened until a fte r the closing time specified in the public announcem ent, communi­
cations relatin 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 appropriate branch.
3. A ny qualified or conditional tender will be rejected.
4. If a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to m ake th 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 he
has been so authorized. I f the tender is made by a partn ership it should be signed by a m em ber of the firm, who
should sign in the form “
, a copartnership, by---------------------------------------------------------------- ,
a m em ber 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 inv est­
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 reasury bills applied for, or unless th e 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 this form is changed in any respect, which, in the opinion of th e S ecretary of th e T reasu ry is
m aterial, the tender m ay be disregarded.

(See reverse for announcement)

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