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federal Reserve bank of Dallas FISCAL AGENT OF THE UNITED STATES DALLAS. TEX AS 7 5 2 2 2 C ircular No. 70-241 O ctober 20, 1970 NEW OFFERING — TREASURY BILLS To All Banking Institutions an 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 h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $1,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing October 31, 1970, in th e am ount of $1,504,368,000, as follows: 271-DAY B IL L S (to m aturity d ate) to be issued N ovem ber 2, 1970, in th e am ount of $500,000,000, or thereabouts, representing a n additional am ount of bills dated Ju ly 31, 1970, and to m ature July 31, 1971, originally issued in th e am ount of $1,202,410,000, th e additional and original bills to be freely interchangeable. 365-DAY B IL L S for $1,200,000,000, or thereabouts, to be dated O ctober 31, 1970, and to m ature O ctober 31, 1971 (C U S IP NO. 912793 K T 2 ). 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 th eir 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 a t F ederal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern Standard Tim e, Tuesday, October 27, 1970. T enders will not be received a t th e T reasury D epartm ent, W ashington. 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 th e case of com petitive tenders the price offered m ust be expressed on th e basis of 100, w ith not m ore th a n three decimals, e.g., 99.925. Fractions m ay not be used. (N otw ithstanding the fact th a t th e one-year bills will ru n for 365-days, th e discount rate will be com puted on a bank dis count basis of 360-days, as is currently th e practice on all issues of T reasury bills.) I t is urged th a t tenders be m ade on th e printed forms and forwarded in th e special envelopes which will be supplied by Federal Reserve B anks or B ranches on application therefor Banking institutions generally m ay subm it tenders for account of customers provided th e nam es of th e customers are set forth in such tenders. O thers than banking institutions will n o t be perm itted to subm it tenders except for th e ir own account. T enders will be received w ithout deposit from incorporated banks and tru st com panies 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 th e face am ount of T reasury bills applied for, unless th e 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 th e Federal R eserve Banks and Branches, following which public announcem ent will be m ade by th e T reasury D epartm en t of th e am ount and price range of accepted bids. Only those sub m itting com petitive tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of th e 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. S ubject 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 decim als) of accepted com petitive bids for th e respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t th e Federal R eserve B ank on N ovember 2, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing October 31, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m aturing bills accepted in exchange and th e issue price of th e 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 w hen the bills are sold, redeem ed or otherwise disposed of, and th e bills are excluded from consideration as capital assets. Accordingly, th e owner of T reasury bills (other th a n life insurance com panies) issued here under m ust include in his income tax return, as ordinary gain or loss, the difference betw een th e price paid for th e bills, w hether on original issue or on subsequent purchase, an d th e am ount actually received either upon sale or redem ption a t m a tu rity during th e taxable year for which th e retu rn is made. T reasury D ep artm en t Circular No. 418 (cu rrent revision) and this notice, prescribe the term s of th e T reasury bills and govern th e conditions of th e ir issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank or Branch. In accordance with the ab ove announcement, tenders will b e received at this bank and its branches at El Paso, Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Tuesday, October 27, 1970. Tenders may not b e entered by telephone. Yours very truly, P. E. Coldwell President (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 ADDITION TO TREASURY BILLS 271 DAYS TO MATURITY Dated July 31, 1970 Maturing July 31, 1971 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 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. ^ $ Prices should be ex^ pressed on the basis of a COMPETITIVE TENDERS /y ______ m % 1°°> wi*h n.ot ™ places, or? than — vv three decimal /«, (a) S t, e* S ‘t 99.925. Fractions \ " ^ must not be used. E g" TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. S' Denominations Desired N um ber of Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M aturity Value (3) $ (fib $ METHOD OF PAYMENT 10,000 $ 15,000 $ □ 50,000 $ (5) $ 100,000 $ (5) $ 500,000 $ □ @ $1 ,000,000 $ > By maturing bills held by_________ Payment to be made by- □ (fib $ □ Charge our reserve account on payment date Draft enclosed (Effectual delivery of enclosed d ra ft shall be on latest day which will perm it presentm ent in Delivery Instructions: Sfi) to obtain irrevocably collected fundB on paym ent □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account I I Ship to _______________________________________ (Subscriber’s full nam e or corporate title) — (Address) B y(A uthorized official signature and title) (F or the account of, if tender is fo r 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 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)