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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 75222 Circular No. 70-143 June 17, 1970 Y NEW OFFERING — TREASURY BILLS All D Banking Institutions and Others Concerned ln the Eleventh Federal Reserve District: y© Ur attention is invited to the following statement g iving details of two issues of Treasury bills: 0f * ^ l e Treasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount ’100>000,000, or thereabouts, for cash and in exchange for Treasury bills maturing June 25, 1970, in the am ount of > 3 ,2 0 5 ,0 0 0 , a s fo llo w s : 91-DAY BILLS (to m aturity date) to be issued June 25, 1970, in the am ount of $1,800,000,000, or thereabouts, representing an additional am ount of bills dated March 26, 1970, and to m ature Septem ber 24, 1970, originally issued in the am ount of $1,302,370,000, the additional and original bills to be freely interchangeable. 182-DAY B ILLS for $1,300,000,000, or thereabouts, to be dated June 25, 1970, and to m ature Decem ber 24, 1970. Prov* * °* both series will be issued on a discount basis under com petitive and noncompetitive bidding as hereinafter ,3g ICied, 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 n°minations of $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). Davv Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern lend1 Saving Tim e, Monday, Ju n e 22, 1970. Tenders will not be received at the T reasury D epartm ent, Washington. Each the jf1 Jfcust 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 on tuasis ,°f 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 anrki*e Printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on ^Plication therefor. Set f banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are in such tenders. Others th a n banking institutions will not be perm itted to subm it tenders except for their own account, deal 8rS. be received without deposit from incorporated banks and tru st companies and from responsible and recognized T're0FS *n investm ent securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of tn, asury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or ust company. put . Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which sub 10 announcem ent will be made by the Treasury D epartm ent of the am ount and price range of accepted bids. Only those rese*11^ 11^ com petitive tenders will be advised of the acceptance or rejection thereof. T he Secretary of the T reasury expressly j right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subb60 these reservations, noncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder will acceCf0^ tec* *n a t the average price (in three decimals) of accepted com petitive bids for the respective issues. S ettlem ent for Ca&hPted tenders in accordance with the bids m ust be made or completed a t the Federal Reserve B ank on Ju ne 25, 1970, in e*ch °r ot^ er im m ediately available funds or in a like face am ount of Treasury bills m aturing June 25, 1970. Cash and ipg tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atur1 Is accepted in exchange and the issue price of the new bills, have *ncome derived from T reasury bills, w hether interest or gain from the sale or other disposition of the bills, does not as Sll exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatm ent, F6(j >under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether Or anra* ° r State, but are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State, at the possessions of the U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount l22i Treasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454 (b ) and sid6r ^ ^ °f the Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not conCaPita] t0 accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as in .assets. Accordingly, the owner of T reasury bills (other than life insurance companies) issued hereunder need include PUrch lncome tax return only the difference between the price paid for such bills, w hether on original issue or on subsequent retur-a^6’ and the am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the u made, as ordinary gain or loss. (K' govern ^ reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and lrj t^ 6 conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. h0gs*OnaCC° rc*ance a k ° ve announcement, tenders will be received at this bank and its branches a t El Paso, be SQn Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Monday, June 22, 1970. Tenders may er©d by telephone. Yours very truly, P. E. Coldwell _______________ President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approxim ate Yield of A ccepted Tenders 91-Day Bills 182-Day Bills D ue Septem ber 17, 1970 Due D ecem ber 17, 1970 |3 ,061,425,000______________________________T otal Applied F or-------------------------------------------- .—$2,112,930,000 ^1,800,370,000 T otal A ccepted------------------------------------- T __ ___$1,300,670,000 r*ce Yield P rice Y ield ----------------6.678% --------------------------------------H igh-------------------------------- 96.524____________6.876% Qftono------------------ 6.745% -------------------------------------- Low--------------------------------- 96.466____________6.990% •298------------------ 6.733% ( 1 ) ------------------------------ Average------------------------------ 96.488________ 6.947% (1 ) Hil2-- ttiV iT o eSe rates are on a b an k discount basis. T h e equivalent coupon issue yields are 6 .9 4 % for th e 91-day bills and 7 .7 0 % for ■l o2-day bills. (See 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 December 24,1970 Dated June 25,1970 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 (D ate) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of t h e public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount 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 avera g e price (in three decimals) of accepted competitive bids. COMPETITIVE TENDERS x *r $ ".. (a) v— 1 @ Prices should be e x pressed on the basis of 100, with not more th a n th ree decim als p la c e s e. g., 99.925. Fractions’ must not be used. $ $ a ® 3 TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N um b er of Pieces Payment for this issue of bills cannot be made b y credit to Treasury Tax and Loan Account. METHOD OF PAYMENT M a tu rity V alue 10,000 $_ 50,000 $_ _@ $ $ 100,000 $_ _@$ 500,000$-@ $ □ □ □ Charge our reserve account on payment date | | Draft enclosed (E ffectual delivery o f enclosed d r a f t $1,000,000 $_ Delivery Instructions: □ Hold in Custody Account— Member □ Pledge to secure Treasury Tax and □ Ship to By maturing bills held by---------------------------------------. Payment to be made by____________ shall be on la te st day w hich will p e rm it p re s e n tm e n t in o rd e r to o b ta in irrevocably collected fu n d s on p a y m e n t d ate) ' (S u b scrib er’s fu ll n am e o r c o rp o ra te title ) L1 /rv Ona vi ll AAC/iCn O 11 U yi II4* l (A ddress) Bv -U J -----(A uthorized official s ig n a tu re a n d title ) (F o r the a ccount of, if te n d e r is fo r a n o th e r subscriber) (A ddress) IMPORTANT 1. No tender for less than $10,000 will be considered and each tender must be for an amount in multiples of $10,000 (m aturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of th e 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, com m uni cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from th is 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 th e tender and the signing of the form by an officer of the corporation will be construed as a representation by him th at he has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, w ho 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 in v e st ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity v alu e) 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 js material, the tender may be disregarded. (See reverse for announcement) _
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