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Circular No. 70-302
D ecem ber 15, 1970


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
$1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing Decem ber 31, 1970, in the am ount of
$4,606,518,000, as follows:
273-DAY B IL L S (to m a tu rity d ate) to be issued Decem ber 31, 1970, in the am ount of $500,000,000, or there­
abouts, representing an additional am ount of bills dated Septem ber 30, 1970, and to m ature Septem ber 30, 1971
(C U S IP NO. 912793 K S 4 ), originally issued in the am ount of $1,202,480,000, 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 D ecem ber 31, 1970, and to m ature Decem ber 31,
1971 (C U SIP NO. 912793 K V 7).
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 hey 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 Reserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
Standard Tim e, W ednesday, D ecem ber 23, 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 the case of com petitive
tenders the price offered m ust be expressed on the basis of 100, w ith not more th an three decimals, e.g., 99.925. Fractions m ay not
be used. (N otw ithstanding the fact th a t the one-year bills will ru n for 365-days, the 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 the printed
forms and forwarded in th e special envelopes which will be supplied by Federal R eserve B anks or Branches on application therefor
Banking institutions generally m ay subm it tenders for account of customers provided th e nam es of the customers are
set forth in such tenders. O thers th an 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. 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 the closing hour, tenders will be opened a t the F ederal Reserve B anks and Branches, following which
public announcem ent will be m ade by the T reasury D ep artm ent of th e am ount and price range of accepted bids. Only those sub­
m itting com petitive tenders will be advised of the 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.
Subject 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 the respective issues.
Settlem ent for accepted tenders in accordance with th e bids m ust be m ade or com pleted a t the Federal Reserve B ank on Decem ber
31, 1970, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Decem ber 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 the 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 when the bills are sold, redeem ed or otherwise disposed of, and th e bills are excluded
from consideration as capital assets. Accordingly, the 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, th e difference between the price paid for the 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 a tu rity during the
taxable year for which the retu rn is made.
T reasury D epartm en t Circular No. 418 (cu rren t revision) and this notice, prescribe th e term s of the T reasury bills and
govern th e conditions of th eir issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In accordance with the ab ove announcement, tenders will be received at this bank and its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, W e d n e sd a y , December 23, 1970. Tenders may
not be entered by telephone.

Yours very truly,
P. E. Coldwell
(See reverse for tender form)

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


Dated September 30, 1970

M aturing September 30,1971

T o : Federal Reserve Bank, Station K, Dallas, Texas 75222
The________________________________ Branch
E l Paso 79999

Houston 77001

San Antonio 78206(D ate)

P u r s u a n t to th e p rovisions o f T re a s u r y D e p a rtm e n t C irc u lar No. 418 (c u r re n t rev isio n ) a n d th e p ro v isio n s of th e
public an n o u n cem e n t issued by th e T re a s u r y D e p a rtm e n t, th e u n d ersig n e d offers to p u rc h a s e T re a s u r y bills in th e am o u n t
show n below, an d a g re e s to p a y fo r th e a m o u n t a llo tted , on o r b efo re th e issue d ate, b y th e m e th o d a n d a t th e r a t e 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.






P rice s should be exp re sse d on th e b asis of


________________ @______ $____________________
-------------- «

e. g., 99.925. F ra c tio n s
m u s t n o t be used.

2S T 3 T E N D E R S M AY N O T B E E N T E R E D BY T E L E P H O N E . T E N D E R S BY W IR E , I F R E C E IV E D B E F O R E T H E
C LO SIN G H O U R , A R E A C C E P T A B L E .

Denominations Desired
N u m b e r of

P a y m e n t f o r th is issu e of bills c a n n o t be m a d e
by c re d it to T re a s u r y T a x a n d L o a n A ccount.

M a tu rity V alue

(5) $
(5) $

1 0 ,0 0 0




15,000 $50,000 $-

(a) $
(a) $ 1 0 0 ,0 0 0 $(a) $ 500,000 $■
(a) $1:000,000 $■

By m aturing bills
held by_________
Paym ent to be made by_


Charge our reserve account on paym ent
D raft enclosed (E ffectual delivery o f enclosed d ra ft


sh all be on la te s t day w hich w ill p e rm it p re s e n tm e n t in

Delivery Instructions:

to obt8in irrevocably collected funds on payment

Hold in Custody Account—Member
banks for own account only
Pledge to secure Treasury Tax and
Loan Account
Ship to __________________________________________

(S u bscriber’s fu ll n a m e o r c o rp o ra te title)


(A ddress)

(A u tho rized official s ig n a tu re a nd title )

(F o r th e a ccou n t of, if te n d e r is fo r a n o th e r su bscriber)
(A ddress)

1. No te n d e r f o r less th a n $10,000 w ill be considered an d each te n d e r ov er $10,000 m u s t be f o r a n a m o u n t in m u ltip les of
$5,000 (m a tu r ity v a lu e ).
2. T en d ers should be fo rw a rd e d in an envelope c lea rly ad d ressed to th is b an k o r a p p ro p r ia te b ra n c h a s F isc a l A g e n t of th e
U n ite d S ta te s, w ith n o ta tio n on th e envelope re a d in g “T E N D E R F O R T R E A S U R Y O F F E R IN G ”. Since envelopes
received w ith th is le gend w ill n o t be opened u n til a f t e r th e closing tim e specified in th e public an n o u n cem en t, co m m uni­
catio n s r e la tin g to o th e r m a tte r s should n o t be enclosed. E nvelopes f o r su b m ittin g te n d e rs m a y be o b ta in ed fro m th is
b a n k o r a p p ro p r ia te b ranch.
3. A n y qualified o r conditional te n d e r w ill be rejected .
4. I f a c o rp o ra tio n m a k e s th e te n d e r, th e fo rm should be signed by a n officer of th e c o rp o ra tio n a u th o riz e d to m a k e th e
te n d e r and th e sig n in g of th e fo rm b y a n officer of th e
c o rp o ra tio n w ill be co n stru ed as a re p re s e n ta tio n b y h im t h a t he
h a s been so au th o riz e d . I f th e te n d e r is m a d e b y a p a rtn e rs h ip it should be signed b y a m e m b e r of th e firm , w ho
should sig n in th e fo rm “ ...........................................................a co p a rtn e rsh ip , by.~.......................................................................................
a m e m b er o f th e firm ” .
5. T e n d e rs fro m th o se o th e r th a n in c o rp o rated b an k s and tr u s t com panies o r responsible an d recognized d ealers in in v e st­
m e n t secu rities will be d isreg ard ed , u n le ss accom panied b y a d ep o sit of 2 p e rc e n t o f th e to ta l am o u n t (m a tu r ity v alue)
of th e T re a s u r y bills ap plied fo r, o r u n le ss th e te n d e rs a re accom panied by a n ex p re s s g u a r a n ty of fu ll p a y m e n t b y an
in c o rp o rated b a n k o r t r u s t com pany.
6. I f th e la n g u a g e of th is fo rm is ch an g ed in a n y re sp ect, which, in th e opinion of th e S e c re ta ry o f th e T re a s u r y is
m a te ria l, th e te n d e r m a y be d isreg ard ed .

(See reverse for announcement)

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