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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, TEX AS 7 5 2 2 2
Circular No. 70-237
October 13, 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 $3,200,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing October 22, 1970, in the am ount of
$3,104,290,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued October 22, 1970, in the am ount of $1,800,000,000, or th ere­
abouts, representing an additional am ount of bills dated Ju ly 23, 1970, and to m ature January 21, 1971,
originally issued in the am ount of $1,300,110,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,400,000,000, or thereabouts, to be dated O ctober 22, 1970, and to m ature April 22, 1971
(C U S IP No. 912793 K E 5 ).
T h e 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 h ey will be issued in bearer form only, and in
denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity value).
T enders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, October 19, 1970. T enders will not be received a t the Treasury D epartm ent, Washington. Each
tender m ust be for a m inim um of $10,000. T enders over $10,000 m ust be in m ultiples of $5,000. In the case of com petitive tenders
th e price offered m ust be expressed on the basis of 100, with not m ore 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 th e 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. O thers 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. T enders 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 th e closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which
public 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 th e 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 at the Federal Reserve B ank on O ctober 22, 1970, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing October 22, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
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 considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner of T reasury bills (o th er than life insurance com panies) issued here­
under m ust include in his income tax return, as ordinary gain or loss, the difference between the price paid for th e 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.
T reasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe th e term s of the T reasury bills and
govern the conditions of their 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 a t El Paso,
Houston an d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Monday, October 19, 1970. Tenders
hiaynot 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 A ccepted T enders
91-D ay Bills
182-Day Bills
Due Jan u ary 14, 1971
D ue A pril 15, 1971
$2,778,415,000
.T otal Applied For*.'._____________________________$3,441,400,000
$ 1,800,665,000------------------------------------------------ T otal-Accepted— ...----- ______________________ $ 1,402,045,000
P rice
Y ield
Price
Y ield
98.488
5.982 % ________________________ .H igh_____________________ 96.870_______ ;___ 6.191 %
98.466------------------ 6.069% ------------------------------------- L o w _______________________96.850_________
6.231%
98.476-------------------6.029% ( 1 ) ------------------------------ Average--------------------------------96.853___________ 6.225% (1 )

h
i

( 1 ) T hese ra te s are on a b an k discount basis. T h e equivalen t coupon issue yields are 6 .2 1 % for th e 9 1 -day bills and 6 5 2 % for the
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 April 22,1971

Dated October 22, 1970
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The____________________________Branch
El Paso 79999 Houston 77001 San Antonio 78206

(Date)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e
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 >$.

_

@ .

v-------------------------------------$--------------------------------------

)$■

Prices should be ex pressed on the basis o f
100, with not more than
th ree decim al p la c e s,
e. g., 99.925. Fractions
must not be used.

iW* TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING HOUR, ARE ACCEPTABLE.

~

Denominations Desired
Number of
Pieces

Payment for this issue of bills cannot be made b y
credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT

M aturity Value

@ $
@ $

10,000 $15,000 $-

□

50,000 *
@ ? 100,000 $@ $ 500,000 $@ ?

□
□

Charge our reserve account on paym ent
date
| | Draft enclosed (Effectual delivery of enclosed d r a f t

@ $1:,000,000
Delivery Instructions:
□

shall be on latest day which will perm it presentm ent in
order to obtain irrevocably collected funds on p ay m en t
date)
~

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---------------------------------------------Paym ent to be made by------------------- ___

(Subscriber’s full nam e or corporate title)
(Address)

By-

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

IMPORTANT
1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiples of
$5,000 (maturity 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, communi­
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 that h e
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 hi in vest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity valu 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 i s
material, the tender may be disregarded.

(See reverse for announcement)

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