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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. 70-80 A pril 1, 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 A pril 9, 1970, in the am ount of $3,004,613,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued A pril 9, 1970, in the am ount of $1,800,000,000, or thereabouts, representing an additional am ount of bills dated Jan uary 8, 1970, and to m ature Ju ly 9, 1970, originally issued in the am ount of $1,207,360,000, 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 A pril 9, 1970, and to m ature October 8, 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 without 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 a t Federal Reserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern Standard Tim e, M onday, April 6, 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 $10,000, 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 the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. B anking 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 th eir 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. Tenders 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 accompanied 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 Reserve Banks and Branches, following which public announcem ent will be made by the Treasury 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 with the bids m ust be made or com pleted a t the Federal Reserve B ank on A pril 9, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing April 9, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur ing bills accepted in exchange and the issue price of the 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 Revenue Code of 1954. T he 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 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 th e 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 th e taxable year for which the retu rn is m ade, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the Treasury 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 an d its branches at El Paso, Houston an d San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, April 6, 1970. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approxim ate Y ield of Accepted T enders 91-Day Bills 182-Day Bills D ue Ju ly 2, 1970 Due O ctober 1, 1970 $2,604,010,000 ..T otal Applied F o r______ _ _ ..:_________ $2,096,820,000 $1,800,640,000------------------------------------------------- .Total Accepted____________________ $1,300,080,000 Price Y ield * Price Yield 98.435 6.191% _________________________ H igh._ ___________________ 96.779________ _ 6.371% 98.390 6.369% _________________________ :_Low______________________ 96.740__________ 6.448% 98.400 6.330% ( 1 ) ____________________ Average_____________________ 96.769__________ 6.391% (1 ) ( 1 ) These ra te s are on a bank discount basis. T h e equ iv alent coupon issue yields are 6 .5 2 % for th e 91-day bills, and 6 .7 0 % 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) TENDER FOR TREASURY BILLS 182 DAYS TO MATURITY Maturing October 8,1970 Dated April 9,1970 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 (cu rren t revision) and the provisions of the public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasu ry 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 m ethod 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 th ree decimals) of accepted com petitive bids. ( o » $ ! (a) Prices should be ex pressed on the 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 ractions m ust not be used. $ $ E S P TEN D ERS MAY NOT BE ACCEPTED BY TELEPH O N E. TEND ERS BY W IRE, IF RECEIV ED BEFO RE T H E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces P aym ent fo r this 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 $ 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 o f eneloMd 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 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 aturity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or ap pro priate 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 this legend will not be opened until a fte r the closing tim e 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 this bank or appropriate branch. 3. A ny qualified or conditional tender will be rejected. 4. If a corporation m akes the tender, th e form should be signed by an officer of the corporation authorized to m ake the tender and the signing of the form by an officer of th e corporation will be construed as a representation by him th a t he has been so authorized. If the tender is made by a partn ership it should be signed by a m em ber of th e 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 tru st companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of th e total am ount (m atu rity value) of the T reasury 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 th e language of this form is changed in any respect, which, in the opinion of the S ecretary of th e T reasu ry is m aterial, the tender m ay be disregarded. (See reverse for announcement)
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