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F e d e r a l R e s er v e Ba n k o f D allas F ISC A L A G E N T O F T H E U N IT E D ST A T E S DALLAS. TEXAS 7 5 2 2 2 Circular No. 69-17 January 22, 1969 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O th e r s C o n c e r n e d in t h e E le venth F e d e r a l Reserve District: Y our a t t e n t i o n is in v ited to th e fo llo w in g s t a t e m e n t g iv in g d e t a i l s o f tw o iss u e s o f T re as u ry bills: T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing January 30, 1969, in th e am ount of $2,704,032,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued January 30, 1969, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated October 31, 1968, and to m ature M ay 1, 1969, originally issued in the am ount of $1,101,238,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S (to m aturity date) to be issued January 30, 1969, in the am ount of $1,100,000,000, or thereabouts, representing an additional am ount of bills dated July 31, 1968, and to m ature July 31, 1969, originally issued in th e am ount of $1,000,963,000 (an additional $501,533,000 was issued O ctober 31, 1968), the additional and original bills to be freely interchangeable. T h e bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and a t m aturity their face am ount will be payable without interest. T hey will be issued in bearer form only, and in denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern S tandard Tim e, M onday, January 27, 1969. T enders will not be received a t the T reasury D epartm ent, Washington. Each tender m ust be for an even m ultiple of $1,000, and in the case of competitive 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 De used. I t is urged th a t tenders be made on th e printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve B anks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of th e customers are set forth in such tenders. Others th a n 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 trust companies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of th e face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately after the closing hour, tenders will be opened a t th e Federal Reserve B anks and Branches, following which public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Those subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves the rig ht 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 each issue for $200,000 or less without stated price from any one bidder will be accepted in full a t the average price (in three decim als) of accepted competitive bids for the respective issues. S ettlem ent for accepted tenders in accordance with th e bids m ust be m ade or completed a t the Federal Reserve B ank on Janu ary 30, 1969, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing January 30, 1969. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e par value of m atur ing bills accepted in exchange and the issue price of the new bills. T he income derived from T reasury bills, w hether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from th e sale or other disposition of Treasury bills does not have any special treatm ent, as such, under the Internal Revenue Code of 1954. T he 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 imposed on the principal or interest thereof by any State, or an y of the possessions of th e U nited States, or by any local taxing authority. For purposes of taxation the 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 the Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not con sidered to accrue 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 (other th a n life insurance com panies) issued hereunder need include in his 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 sale or redem ption a t m aturity during the taxable year for which the retu rn is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (curren t revision) and this notice, prescribe the term s of th e T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. In a c c o r d a n c e w ith t h e a b o v e a n n o u n c e m e n t , t e n d e r s will b e r e c e iv e d a t this b a n k a n d its b r a n c h e s a t El P aso , Houston a n d San A n to n io up to tw e l v e - th ir ty p.m .. Central S t a n d a r d Time, M o n d a y , J a n u a r y 27, 1969. T e n d e rs m a y not b e e n t e r e d b y t e l e p h o n e . Y ours v e r y truly, P. E. Co ldw ell P re sid e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and A pproxim ate Yield of Accepted T enders 9 1-Day Bills 182-Day Bills D ue April 24, 1969 D ue Ju ly 24. 1969 $2,663,201,000.................................... .........................Total Applied F o r_______________________________ $2,590,551,000 $ 1,600,034,000________________________________ .Total Accepted________________________ ____ $ 1,100,391,000 Price Yield Price Yield 98.471____________6.049% _________________________ .High_____________________ 96.853....___ _______6.225% 98.456 6.108% ______ ________ __________Xow____ _________________96.844____________ 6.243% 98.464 6.076% ( 1 ) ____________________ .Average___________________ 96.849____________ 6.233% (1 ) ( 1 ) T h ese rates are on a bank discount basis. T h e eq u ivale n t coupon issue y ie ld s are 6 .2 6 % for the 9 1 - d a y bills, an d 6 .5 2 % for th e 182 -d ay bills. (See reverse sid for tender form e ) 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 91 DAYS TO MATURITY D ated October 31,1968 M aturing May 1,1969 To: Federal R eserve Bank, S tation K, Dallas, Texas 75222 o r— The_________________________________Branch El Paso 79999 Houston 77001 San Antonio 78206 (D a te ) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the public announcement 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. JSTOT TO E X C EED $200,000 NONCOM PETITIVE T E N D E R $_ Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. COM PETITIVE TEN D ER S (* $ $ Go - Prices should be e x pressed on the basis of 100, with not more than th ree decim al p la ce s, e. g., 99.925. Fractions must not be used. % @ UST TEN DERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY WIRE, IP RECEIVED BEFORE TH E CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Denominations Desired N um ber of P ie c e s M a t u r i t y V a lu e METHOD OF PAYMENT (ft) $ (a) $ 1,000 $5,000 $L □ (rti $ Ja). $ 10,000 $50,000 $- □ By m a tu rin g bills held by _____________________ _ P a y m en t to be m ade by______________ □ Charge our reserve account on p a y m e n t date I | D ra ft enclosed ( E f f e c t u a l delivery of enclosed draft A $ 100,000 ?(a). $ 500,000 $(a) $1 ,000,000 shal] be o n l a t e s t d ay w h ic h w ill p e r m i t p r e s e n t m e n t i n o r d e r to o b t a i n ir r e v o c a b ly co llec ted f u n d s o n p a y m e n t d a te ) Delivery In stru ctio n s: ( S u b s c r i b e r ’s f u ll n a m e o r c o r p o r a t e t i t l e ) □ Hold in Custody Account— M ember banks fo r own account only □ Pledge to secure T reasu ry T ax and Loan Account □ (A d d re ss) By_ ( A u t h o r i z e d official s i g n a t u r e a n d t i t l e ) Ship to ________________________ __ ( F o r th e a c c o u n t o f, if t e n d e r is f o r a n o t h e r s u b s c r i b e r ) (A d d r e s s ) IMPORTANT 1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (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 OFFERING.” Since envelopes re ceived 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 obtained from thia bank or appropriate branch. 3. 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 th e tender and at the signing of the form by an officer of the corporation will be construed as a representation by him that h e has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, w ho should sign in the f o j il “.................................................. . 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 m a te rial, the tender may be disregarded. (See reverse for announcement) 4
@FedFRASER