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C ircular No. 70-164
Ju ly 10, 1970

To All Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statem ent giving details of an issue of Treasury bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for $2,250,000,000, or thereabouts, of 273-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 Ju ly 23, 1970, and will m ature A pril 22, 1971. T hey will be accepted a t face value in paym ent of
income taxes due on A pril 15, 1971, and to the extent they are not presented for this 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 April 15, 1971, income
taxes may subm it the bills to a F ederal Reserve B ank or Branch or to the office of th e T reasurer of th e U nited States, W ashing­
ton, not more than fifteen days before th a t date. In the case of bills subm itted in paym ent of income taxes of a corporation they
shall be accom panied by a duly com pleted F orm 503 and the office receiving these item s will effect th e deposit on April
15, 1971. In th e case of bills subm itted in paym ent of income taxes of all other taxpayers, the office receiving th e bills will issue
receipts therefor, the original of which the taxpayer shall subm it on or before A pril 15, 1971, to the D istrict D irector of
Internal R evenue for the D istrict in which such taxes are payable. T he 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 Reserve Banks and B ranches up to th e closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, T hursday, July 16, 1970. T enders will not be received a t th e T reasury D epartm ent, W ashington. Each
ten d er m ust be for an even m ultiple of $10,000, and in the 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. Fractions may not be used. 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 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 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 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 reas­
ury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or tru st
All bidders are required to agree n ot to purchase or to sell, or to m ake any agreem ents w ith respect to th e purchase
or sale or other disposition of any bills of the issue for which they are bidding a t a specific rate or price, until a fter one-thirty p.m.,
E astern D aylight Saving Tim e, T hursday, Ju ly 16, 1970.
Im m ediately after the closing hour, tenders will be opened a t th e F ederal R eserve B anks and Branches, following which
public announcem ent will be m ade by the T reasury D epartm 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 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.
Subject to these reservations, noncom petitive tenders for $400,000 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. P aym ent of accepted tenders a t th e
prices offered m ust be m ade or com pleted a t th e F ederal Reserve B ank in cash or other im m ediately available funds on
Ju ly 23, 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 interest or gain from th e sale or other disposition of th e bills, does not
have any exem ption, 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 R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, b u t are exem pt from all taxation now or hereafter im posed on th e principal or interest thereof by any State,
or any of the possessions of the U nited States, or by any local taxing authority. F or purposes of taxation th e am ount of discount
a t which T reasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454 (b ) and 1221
(5 ) of th e Internal Revenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is n o t considered to
accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, the owner of T reasury bills (other th an life insurance com panies) issued hereunder need include in hia
income tax return only the difference between th e price paid for such bills, w hether on original issue or on subsequent purchase,
and the am ount actually received either upon tale or redem ption a t m aturity during the taxable year for which th e retu rn is
made, as ordinary gain or loss.
T reasury D epartm ent C ircular No. 418 (cu rren t revision) and this notice, prescribe th e term s of th e T reasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any F ederal R eserve B ank or Branch.

In accordance with the above announcement, tenders will be received a t this bank and its branches a t El Paso,
Houston and San Antonio, up to twelve-thirty p.m., Central Daylight Saving Time, Thursday, July 16, 1970. Tenders may
not be entered by telephone.

Yours very truly,
P. E. Coldwell

(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 April 15,1971

Dated July 23,1970


Maturing April 22, 1971

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 $400,000
Noncompetitive tenders for $400,000 or less from any one bidder, without stated price, will be accepted in
fuil 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
th re e decim al places,
e. g., 99.925. Fractions
must not ba used.

Denominations Desired
Number of


M aturity Values



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


By charge to our reserve account on payment date.


$ 100,000 $
$ 500,000 *

By charge to our Treasury Tax and Loan Account


10,000 $
50,000 I

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

(Name of Bank)

<> $1,,000,000

We certify that 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 Bale of other disposi­
tion of any bills of this issue at a specific rate or price, until
after one-thirty p.m., Eastern Daylight Saving Time, Thursday, July 16, 1970.

Delivery I n

s t r



t i o


s : ----------------------------------------------------------(S u b sc rib e r’s fu ll n a m e o r c o rp o ra te title )

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

(A ddress)

□ Pledge .to Secure Treasury Tax and
Loan Account


j | S h i p t o ______________________________ — ______________________

(A u th orized official s ig n a tu re a n d title)

(F o r th e acco u n t of, if te n d e r is f o r a n o th e r sub scrib er)


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 OFFERINC”. Since envelopes received
with this legend will not be opened until after the closing time specified in the public announcement, communications
relating to other m atters 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 th at 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 tru st 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 (m aturity
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 tru st 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