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F ederal R eserv e 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, TEX AS 7 5 2 2 2
Circular No. 70-103
A pril 29, 1970

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llo w in g sta tem ent giving details of tw o 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 ay 7, 1970, in the am ount of
$3,002,349,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued M ay 7, 1970, in the am ount of $1,800,000,000, or thereabouts,
representing an additional am ount of bills dated February 5, 1970, and to m ature August 6, 1970, originally
issued in the am ount of $1,202,619,000, the additional and original bills to be freely interchangeable.
182-DAY B ILLS for $1,300,000,000, or thereabouts, to be dated M ay 7, 1970, and to m ature Novem ber 5, 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 at 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 F ederal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, M ay 4, 1970. T enders will not be received a t the Treasury D epartm ent, W ashington. Each
tender must 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 may 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.
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 without 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 F ederal 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 completed a t the Federal R eserve B ank on M ay 7, 1970, in
cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing M ay 7, 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 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 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, but 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. For purposes of taxation the am ount of discount
at which Treasury 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 th e 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
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 th e T reasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In a ccordance with the a b o v e an n o u n c em en t, tenders will be received at this b an k a n d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M on d ay, M ay 4, 1970. Tenders m ay
not be entered by t ele p h o n e .
Yours very truly,
P. E. Coldwell
_________________

President

LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Y ield of Accepted Tenders
91-Day Bills
D ue Ju ly 30, 1970
$2,444,190,000_____________
$1,800,070,000_____________
Price
Yield
-6.702%_.
98.306______
„7.022%_
98.225______
-6.876% (1 )98.262______

..Total Applied For_.
— T otal Accepted—.
— H igh—
— Low__
-A verage-

182-Day Bills
Due October 29, 1970
-------------------------$2,894,650,000
-------------------------$1,300,150,000
Price
Y ield
-96.398____________ 7.125%
-96.324------------------ 7.271%
-96.333------------------ 7.253% (1 )

th * l l ^ d V t r i l s are ° n a bank disCOUnt basis* The ec*uivalent coupon issue yields are 7.09% for the 91-day bills, and 7.63% for

(S ee reverse for ten der 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 November 5, 1970

Dated May 7,1970
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 th e provisions of T reasury D epartm ent C ircular 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.

NONCOMPETITIVE TENDER $_

_NOT TO EXCEED $200,000

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.
/ a*

xtn

$

rS)

$

@

COMPETITIVE TENDERS

&

Prices should be ex­
pressed on the basis of
100, w ith not m ore than
th r e e dec im a l p la ce s,
e. g., 99.925. F ractions
m ust not be used.

$

TEN D ERS MAY NOT BE ACCEPTED BY TELEPH O N E. TEN D ERS BY W IRE, IF RECEIV ED BEFO RE TH E
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

Paym ent fo r th is issue of bills cannot be made
by credit to T reasu ry Tax and Loan Account.
METHOD OF PAYM ENT

M aturity V alue

$ 10,000 $____________
-@ $ 50,000 $____________
$ 100,000 $_____________
$ 500,000 $____________

□
□
□

Charge our reserve account on payment
date
[~| 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________________________

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

shall be on latest day which w ill permit presentment 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 $10,000 will be considered and each tender m ust be for an am ount in m ultiples of $10,000 (m aturity
value).
2. T enders should be forw arded in an envelope clearly addressed to this bank or app ropriate branch as Fiscal A gent of the
U nited S tates, 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 for subm itting tenders m ay be obtained from this
bank or appropriate branch.
3. Any 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 the
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. If th e tender is made by a partnership 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 an incorporated banks and tru 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 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 the language of this form is changed in any respect, which, in the opinion of the Secretary of the T reasury 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