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F ederal


Ba n k





Circular No. 70-63
March 13, 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 an issue of Treasury bills:
T he T reasury D epartm ent, by this public notice, invites tenders for $1,750,000,000, or thereabouts, of 180-day T reasury
bills, to be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided. T h e bills of this
series will be dated M arch 26, 1970, and will m ature Septem ber 22, 1970. T hey will be accepted a t face value in paym ent of
income taxes due on S eptem ber 15, 1970, and to th e extent they are not presented for th is purpose th e face am ount of these bills
will be payable w ithout interest a t m aturity. Taxpayers desiring to apply these bills in paym ent of Septem ber 15, 1970, income
taxes m ay subm it th e bills to a F ederal R eserve B ank or Branch or to th e office of the T reasurer of th e U nited States, Washing­
ton, not m ore th a n fifteen days before th a t date. In th e case of bills subm itted in paym ent of income taxes of a corporation they
shall be accom panied by a duly com pleted Form 503 and th e office receiving these item s will effect th e deposit on Septem ber
15, 1970. In th e case of bills subm itted in paym ent of income taxes of all other taxpayers, th e office receiving th e bills will issue
receipts therefor, th e original of which th e taxpayer shall subm it on or before Septem ber 15, 1970, to th e D istrict D irector of
In ternal R evenue for th e D istrict in which such taxes are payable. T h e bills will be issued in b earer form only, and in denom ina­
tions of $10,000, $50,000, $100,000, $500,000, and $1,000,000 (m atu rity value).
T enders will be received a t Federal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
Standard T im e, Thursday, M arch 19, 1970. T enders will n o t be received a t th e T reasury D epartm ent, W ashington. E ach
tender m ust be for an even m ultiple of $10,000, and in th e case of com petitive tenders th e price offered m ust be expressed on
th e basis of 100, with not more than three decimals, e.g., 99.925. F ractions m ay n o t be used. I t is urged th a t tenders be made on ;
the p rin ted forms and forw arded in th e special envelopes which will be supplied by Federal Reserve Banks or Branches oo
application therefor.
Banking institutions generally m ay subm it tenders for account of custom ers provided the nam es o f the custom ers are
set forth in such tenders. O thers th an banking institutions will not be p erm 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 an d recognized
dealers in investm ent securities. T enders from others m ust be accom panied by p aym ent of 2 p ercent of the face am ount of T reas­
ury bills applied for, unless th e tenders are accom panied by an express guaranty of p aym ent by a n incorporated bank or trust
All bidders are required to agree n o t to purchase or to sell, or to m ake an y agreem ents w ith respect to th e purchase
or sale or other disposition of any bills of th e issue for which th e y are bidding a t a specific rate or price, until a fte r one-thirty p^n.,
E astern Standard T im e, Thursday, M arch 19, 1970.
Im m ediately a fte r th e closing hour, tenders will be opened a t th e Federal R eserve B anks and Branches, following which
public announcem ent will be m ade by th e T reasury D epartm ent of the am ount and price range of accepted bids. O nly those sub­
m itting com petitive tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of the T reasury expressly
reserves th e right to accept or reject any o r 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 $200,000 or less w ithout stated price from any one bidder will be
accepted in full a t th e average price (in three decim als) of accepted com petitive bids. P ay m en t of accepted tenders a t th e
prices offered m ust be m ade or com pleted a t th e Federal Reserve B ank in cash or other im m ediately available funds on
M arch 26, 1970. Any qualified depositary will be perm itted to m ake settlem ent by credit in its T reasury T ax and Loan account
for T reasury bills allotted to it for itself and its customers.
T h e income derived from T reasury bills, w hether in terest or gain from th e sale or oth er disposition of th e bills, does not
have any exem ption, as such, and loss from th e sale or oth er disposition of T reasury bills does n o t have any special treatm ent,
as such, under th e In tern al R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ederal or State, b u t are exem pt from all taxation now or hereafter imposed on th e principal o r interest thereof by any State,
or any of th e possessions of th e U nited States, or by any local taxing authority. F o r purposes of taxation th e am ount of discount
a t which T reasury bills are originally sold by th e U nited States is considered to be interest. U nder Sections 454 ( b ) and 1221
(5 ) of th e Internal R evenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is n o t considered to
acorue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, th e owner of T reasury bills (o th er th an life insurance com panies) issued hereunder need include in his
income tax return only th e difference betw een th e price paid for such bills, w hether on original issue o r on subsequent purchase,
and th e am ount actually received eith er upon sale or redem ption a t m a tu rity during th e taxable y ear for which th e retu rn is
made, as ordinary gain or loss.
T reasury D ep artm en t C ircular No. 418 (cu rren t revision) and this notice, prescribe th e term s of th e T reasu ry bills
govern the conditions of th eir issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank or B ranch.

In accordance with the a b o v e announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio, up to twelve-thirty p.m., Central Standard Time, Thursday, March 19, 1970. Tenders may
not b e entered by telephone.

Yours very truly,
P. E. Cotdwell


(See reverse side for tender form)

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

This issue of Treasury bills will be accepted at face value in payment of income taxes due
on September 15,1970

Dated March 26,1970


Maturing September 22, 1970

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
Or —
The----------------------------------------------------- Branch
El Paso 79999

Houston 77001

San Antonio 78206


Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the
provisions of the public announcement, as shown on reverse side, as 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
faU at the average price (in three decimals) of accepted competitive bids.







Prices should be ex­
pressed on the basis of
100, with not more than
three decimal places,
e. g., 99.925. Fractions
must not be used.


Denominations Desired

Number of


Maturity Values



By charge to our Treasury Tax and Loan Account


1 0 .0 0 0 | l

Payment to be made by...................................... .......

50.000 $.

$ 100,000 $_

(Name of Bank)

By charge to our reserve account on payment date.


$ 500,000 $_

By draft enclosed (effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment

We certify thst we, as well as our customers, if any, listed
hereon have agreed not to purchase or to sell, or to make any
agreements with respect to the purchase or sale of other disposi­
tion of any bills of this iBsue at a specific rate or price, until
after one-thirty p.m., Eastern Standard Time, Thursday, March
19, 1970.

Delivery Instructions:

----------------------------------------------------------(Subscriber’s full nam e o r corporate title)

□ Hold in Custody Account — Member
banks for own account only


Pledge to Secure Treasury Tax and


L oan A ccount

□ Ship to______________________________ __ _

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

1. No tender for less than $10,000 will be considered and each tender must be for an amount in multiples of $10,000
(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, communications
relating to other matters should not be enclosed. Envelopes for submitting tenders may be requested from this bank or
appropriate branch.
8. 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)

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