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Reserve Bank



Da lla s


DALLAS, TEXAS 7 5 2 2 2
Circular No. 70-116
M ay 20, 1970

o 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 st atem 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 28, 1970, in the am ount of
$3,002,293,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued M ay 28, 1970, in the am ount of $1,800,000,000, or thereabouts,
representing an additional am ount of bills dated F ebruary 26, 1970, and to m ature August 27, 1970, originally
issued in the am ount of $1,300,775,000, the additional and original bills to be freely interchangeable.
183-DAY B IL L S for $1,300,000,000, or thereabouts, to be dated M ay 28, 1970, and to m ature Novem ber 27, 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 $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
D aylight Saving Tim e, Monday, M ay 25, 1970. T enders will not be received a t the T reasury D epartm ent, Washington. Each
tender m ust be for an even m ultiple of $10,000, and in th e case of com petitive tenders the price offered m ust be expressed on
the basis of 100, with not more th an 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.
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. 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 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 a t 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 with the bids m ust be m ade or completed at the Federal Reserve B ank on M ay 28, 1970, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M ay 28, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the p ar value of m atu r­
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 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, w hether
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 the U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount
at 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 Treasury 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 the 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 accord ance with the a b o v e a n n ou n c em en t, tenders will b e received at this b a nk 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 25, 1970. Tenders m ay
W be en tered by t ele p h o n e .
Yours very truly,
P. E. Coldwell
Amount, Range and Approxim ate Y ield of Accepted T enders
91-Day Bills
182-Day Bills
D ue August 20, 1970
D ue N ovem ber 19, 1970
$2,976,520,000_______________________________ T otal Applied F or._________ _____________________$2,604,050,000
$1,800,300,000________________________________ T otal Accepted________________________________ $1,301,870,000
P rice
6.749% _________________________ H igh______________________96.496___________6.931%
6.852% _________________________ Low______________________ 96.450___________ 7.022%
6.828% ( 1 ) ____________________ Average____________________ 96.463___________ 6.996% (1 )
( 1 ) These ra te s are on a b an k discount basis. T h e equivalen t coupon issue yields are 7 .0 4 % for th e 91-day bills, an d 7 .3 5 % for
th e 182-day bills.

(See reverse for tender form )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Maturing August 27,1970

Dated February 26,1970
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________ Branch
El Paso 79999 Houston 77001 San Antonio 78206


P u rsu an t to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of t h e
public announcem ent issued by the T reasury D epartm ent, th e undersigned offers to purchase T reasury bills in the am o u n t
shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by the method and a t th e 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 at the a v e ra g e
price (in three decimals) of accepted com petitive bids.







Prices should be e x ­
pressed on the basis o f
100, w ith not more th a n
th r e e d ec im a ls p la c e s
e. g., 99.925. F ra c tio n s
m ust not be used.


Denominations Desired
Number of

Paym ent fo r this issue of bills cannot be m ade b y
credit to T reasury Tax and Loan Account.

M aturity V alue

-@ $

10,000 $_

-@ $





_@ $ 100,000 $_
_@ $

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

5 0 0 ,0 0 0 $ -


Charge our reserve account on payment
I I Draft enclosed (Effectual delivery of enclosed d r a ft

_@ $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 will perm it presentm ent i n
order to obtain irrevocably collected funds on p a y m en t
(Subscriber’s fu ll name or corporate title)


(Authorized official signature and title)
(For the account of, if tender is for another subscriber)
( A ddress)

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 a tu rity
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of th e
U nited States, w ith notation on the envelope reading “TEN D ER FOR TREASURY O FF 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 announcement, com m uni­
cations relatin g to other m a tte rs should not be enclosed. Envelopes for subm itting tenders m ay be obtained from t h i s
bank or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation m akes th e tender, the form should be signed by an officer of th e 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 h e
has been so authorized. If the tender is made by a p artnersh ip it should be signed by a m em ber of the firm, w h o
should sign in the form “____________________________, a copartnership, by.................................................................... .......
a m e m b e r o f t h e f ir m .”
5. T e n d e r s f r o m t h o s e o t h e r t h a n i n c o r p o r a t e d b a n k s a n d t r u s t c o m p a n i e s o r r e s p o n s i b l e a n d r e c o g n iz e d d e a l e r s in i n v e s t ­
m e n t s e c u r itie s w ill b e d isre g a rd ed , u n le ss a cco m p a n ied b y a d e p o sit o f 2 p e r c e n t o f th e to ta l a m o u n t ( m a t u r ity v a l u e )
o f t h e T r e a s u r y b il l s a p p lie d f o r , o r u n l e s s t h e t e n d e r s a r e a c c o m p a n ie d b y a n e x p r e s s g u a r a n t y o f f u l l p a y m e n t b y a n
in c o r p o r a t e d b a n k o r t r u s t c o m p a n y .

6. If the language of this form is changed in any respect, which, in the opinion of the S ecretary of the T re asu ry
m aterial, th e tender m ay be disregarded.

(See reverse for announcement)

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