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federal reserve bank of Dallas F I S C A L A G E N T O F T H E U NIT E D S T A T E S DALLAS, TEXAS 75222 C ircular No. 70-164 Ju ly 10, 1970 OFFERING TREASURY BILL — TAX ANTICIPATION SERIES 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 company. 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 President (See reverse side for tender form) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) This issue of Treasury bills will be accepted at face value in payment of income taxes due on April 15,1971 TENDER FOR TREASURY BILLS TAX ANTICIPATION SERIES Dated July 23,1970 273 DAYS TO MATURITY Maturing April 22, 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 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. COMPETITIVE TENDERS < $ __ s $. $ . _ . 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. N° T BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces METHOD OF PAYMENT 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 date). (Name of Bank) <> $1,,000,000 B 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 u c t i o n 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 By. 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) (Address) IMPORTANT 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)