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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)