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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. 70-179 Ju ly 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 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 August 6, 1970, in the am ount of $3,003,349,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued August 6, 1970, in the am ount of $1,800,000,000, or thereabouts, representing an additional am ount of bills dated M ay 7, 1970 and to m ature November 5, 1970, originally issued in the am ount of $1,301,030,000, 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 August 6, 1970, and to m ature F ebruary 4, 1971. 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 th eir 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 aturity 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, August 3, 1970. T enders will not be received a t the T reasury D epartm ent, W ashington. Each te n d er 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 th e basis of 100, with not m ore than three decimals, e.g., 99.925. Fractions may not be used. I t is urged th a t tenders be m ade on the printed forms and forwarded in the special envelopes which will be supplied by F ederal Reserve B anks or B ranches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided th e names of th e customers are set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for their own account. T en d ers 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 accom panied by paym ent of 2 percent of^ the face am ount of T reasu ry bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or tru s t company. Im m ediately after th e closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which p ublic announcem ent will be made 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 h e 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 je c t to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will b e accepted in full at 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 com pleted a t the F ederal Reserve B ank on August 6, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing August 6, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m atur ing bills accepted in exchange and the issue price of the new bills. T he income derived from Treasury bills, w hether interest or gain from th e sale or other disposition of the bills, does not h av e 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, whether F ed eral 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 a t which T reasury bills are originally sold by the U nited States is considered to be in te re st U nder Sections 454 (b ) and 1221 (5 ) of the Internal R evenue 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 cap ital 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 re tu rn is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies of th e circular m ay be obtained from any Federal Reserve B ank or Branch. In accordance with the above announcement, tenders will be received a t this bank an d its branches a t El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Monday, August 3, 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 Yield of Accepted T enders 91-Day Bills 182-Day Bills D ue O ctober 29, 1970 D ue Jan u ary 28, 1971 $2,662,840,000_______________________________ T otal Applied F or----------------------------------------------- $2,464,590,000 $1,801,540,000________________________________ T otal A ccepted------------------------------------------------- $1,300,200,000 Price Yield P rice Yield 98.408 6.298% _________________________ High-------------------------------- 96.767____________ 6.395% 98.387 6.381% _________________________ -Low-------------------------------- 96.746____________ 6.436% 98.396 6.345% ( 1 ) ____________________ Average------------------------------ 96.750____________ 6.429% (1 ) ( 1 ) These ra te s are on a b ank discount basis. T h e equ ivalen t coupon issue yields are 6 .5 4 % for th e 9 1-day bills a n d 6 .7 4 % for th e 182-day bills. (S e e 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 ADDITION TO TREASURY BILLS 91 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 Houston 77001 San Antonio 78206 (D ate) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount 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 average price (in three decimals) of accepted competitive bids. COMPETITIVE TENDERS \ $ $ ........ ............ j —■ @ Prices should be ex pressed on the basis of 100, with not more than th ree decim als p la ce s, e. g., 99.925. Fractions must not be used. $ $ TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b er o f Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT M a tu rity V alue 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 | | D r a f t e n c l o s e d (E ffectual delivery o f enclosed d r a f t shall be on la te st day w hich w ill 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 funda on p a y m e n t date) (S u b sc rib e r’s fu ll n am e o r e o rp o ra te title ) (A ddress) By- (A uthorized official s ig n a tu re a n d title ) (F o r th e 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 the 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, communi cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this 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 the tender and the signing of the form by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who 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 invest ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value) 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 is material, the tender may be disregarded. (See reverse for announcement)
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