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F ederal reserve Bank of Dallas F IS C A L A G E N T O F T H E U NITED S T A T E S DALLAS, TEXAS 75222 Circular No. 70-279 N ovem ber 18, 1970 TREASURY OFFERS $2.1 BILLION STRIP OF WEEKLY BILLS To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of a strip of outstanding Treasury bills: T he T reasury D epartm ent, by this public notice, invites tenders for additional am ounts of seven series of T reasury bills to th e aggregate am ount of $2,100,000,000, or thereabouts, for cash. T h e additional bills will be issued D ecem ber 2, 1970, will be in the am ounts, and will be in addition to the bills originally issued and m aturing, as follows: 1971 Days from December 2, 1970 to Maturity Amount Currently Outstanding (in millions) Jan uary 7 Jan u ary 14 Janu ary 21 Jan u ary 28 February 4 F ebruary 11 February 18 36 43 50 57 64 71 78 $3,113 3,107 3,101 3,101 3,129 3,105 3,098 Amount of Additional Issue Original Issue Dates Maturity Dates 1970 300,000,000 300,000,000 300,000,000 300,000,000 300,000,000 300,000,000 300,000,000 Ju ly 9 Ju ly 16 Ju ly 23 Ju ly 30 August 6 A ugust 13 A ugust 20 $2,100,000,000 Average — 57 T he additional and original bills will be freely interchangeable. Each tender submitted must be in the minimum amount of $70,000. Tenders over $70,000 must be in multiples of $35,000. Oneseventh of the amount tendered will be applied to each of the above series of bills. T h e bills offered hereunder will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and a t m aturity their 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 Federal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern Standard Tim e, W ednesday, N ovem ber 25, 1970. T enders will not be received a t the T reasury D epartm ent, W ashington. In th e case of com petitive tenders the price offered m ust be expressed on th e basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. A single price m ust be subm itted for each tender. It is urged th a t tenders be m ade on the printed forms and forwarded in the special envelopes which will be supplied by F ederal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. O thers than banking institutions will not 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 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 the face am ount of T reasury bills applied for, unless the 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 no t 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 these additional issues a t a specific rate or price, until after one-thirty p.m., E astern S tandard Tim e, Wednesday, N ovem ber 25, 1970. Im m ediately after th e closing hour, tenders will be opened a t the F ederal R eserve B anks and Branches, following which public announcem ent will be m ade by th e 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 he Secretary of the T reasury expressly reserves th e 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 $420,000 or less (in am ounts as set forth in the second p aragraph) w ithout stated price from any one bidder will b e accepted in full a t th e average price (in three decimals) of accepted com petitive bids. Settle m ent for accepted tenders in accordance with th e bids m ust be m ade or com pleted a t th e Federal R eserve B ank in cash or other im m ediately available funds on D ecem ber 2, 1970. Any qualified depositary will be perm itted to m ake settlem ent by credit in its T reasury tax and loan account for T reasury bills allotted to it for itself and its customers. U nder Sections 454 (b ) and 1221 (5 ) of th e Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is considered to accrue when th e bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, th e owner of T reasury bills (other than life insurance com panies) issued here under m ust include in his income tax return, as ordinary gain or loss, the 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 aturity during the taxable year for which th e return is made. Purchasers of a strip of the bills offered hereunder should, for tax purposes, take such bills on to their books on the basis of their purchase price prorated to each of th e seven outstanding issues using as a basis for proration the closing m arket prices for each of th e issues on D ecem ber 2, 1970. (F ederal R eserve Banks will have available a list of these m arket prices, based on the m ean between th e bid and asked quotations furnished by the Federal Reserve B ank of New York.) T reasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal R eserve B ank or Branch. In accordance with the ab o v e announcement, tenders wili be received at this bank and its branches at El Paso, Houston and San Antonio, up to twelve-thirty p.m.. Central Standard Time, W ednesday, November 25, 1970. Tenders may not be 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 Maturing January 7, January 14, January 21, January 28, February 4, February 11, and February 18,1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The____________________________________ Branch El Paso 79999 Houston 77001 ----------------------------------------(Date) San Antonio 78206 P ursuant to the provisions of Treasury D epartm ent 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 a t the rate indicated. NONCOMPETITIVE TENDER $ ________ _____ ______ ________ NOT TO EXCEED $420,000 (Minimum $70,000 — over th at multiples of $35,000, for each subscriber) Noncompetitive tenders for $420,000 or less (in multiples of $35,000 over $70,000 minimum) without stated price one bidder will be accepted in full a t the average price (in three decimals) of accepted competitive bids. / COMPETOTVE TENDERS \ $------------------------- @----------t -------------------- ----ft. a ® ® * $ ___________________ @ _______ $____________________ J a. (minimum $70,000 — over th a t \ multiples of $35,000, for each subscriber) j ^ from any Prices Bhould be expressed on the basis of 100, with not more than three decimal places, e. g., 99.925. Fractions must not be UBed. A single price must be submitted for each tender. 2 ^ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. METHOD OF PAYMENT □ By charge to our reserve account on payment date, □ 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). Q Payment to be made by______________________ ________________ _________ _________________ Delivery Instructions: denominations By charge to our Treasury Tax and Loan Account. □ delivered in convenient D®scrib® by issue, if more than one of the following met o s ot e ivery is esired. D Hold in Custody Account—Member banks fo r own account only 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 sale or other disposition of any bills of these additional issues at a specific rate w price until after -"e-th irty p.m.. Eastern Standard Time, Wednesday, November 25,19,0. □ Pledge to Secure Treasury Tax and Loan Account □ (Subscriber’s full name or corporate title) (Address) Shipto. By----------- (Authorised official signature and title) (F o r the account of, if tender is for another subscriber) (Address) IMPORTANT 1. No tender for less than $70,000 will be considered and each tender over $70,000 must be for an amount in multiples of $35,000 (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 requested from this bank or appropriate branch. v 3. Any qualified or conditional tender will be rejected. signed by anofficerof 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”. 4. If a corporation makes the tender the form should be 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 per cent 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)
