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F e d e r a l r e s e r v e Ba n k o f D alla s

DALLAS, TEXAS 7 5 2 2 2

Circular No. 69-18
January 22, 1969

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 R eserv e District:
Y our a t te n t io n is in v ite d 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 of tw o issues o f T re asury 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 the 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 the am ount of $1,000,963,000 (an additional $501,533,000 was issued October 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 com petitive 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
denominations 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 B anks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, M onday, January 27, 1969. Tenders 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 com petitive tenders the price offered m ust be expressed on
the basis of 100, w ith not more th an three decimals, e.g., 99.925. Fractions m ay not be 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 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. 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 tru st companies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless th e 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 the Federal Reserve B anks and Branches, following which
public announcem ent will be m ade 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 th e
righ t 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 th e average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the 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 Janu ary 30, 1969. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
T h e 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 the sale or other disposition of T reasury bills does not have any special treatm ent,
as such, under the Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
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 any 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 Treasury 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 th e am ount of discount a t which bills issued hereunder are sold is n ot 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, the owner of T reasury bills (other than life insurance com panies) issued hereunder need include
in his income tax return only the difference between the 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 (current revision) and this notice, prescribe the term s of th e T reasury bills and
govern the conditions of th e ir issue. Copies of the circular may be obtained from any Federal Reserve B ank 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 , te n d e r s will b e re 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 S an A n to n io u p 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, 196 9. 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 .
Yours v e r y truly,
P. E. Coldw ell
P re s id e n t
Amount, Range and A pproxim ate Yield of Accepted Tenders
9 1-Day Bills
182-Day Bills
D ue April 24, 1969
D ue Ju ly 24, 1969
$2,663,201,000__ _ _____________ ___________T otal Applied F o r_________
$ 1,600,034,000_____________________ ______ ___ .T otal A ccepted_______________ ____ __ _________ $ 1,100,391,000
P rice
6.049% ____________ ________ ___ High____________ _________ 96.853___________ 6.225%
6.108% .___ _____________________ X ow __________________ .....96.844________ ___ 6.243%
6.076% ( 1 ) ___________________ -Average______________ ______ 96.849........ .............. 6.233% (1)
( 1 ) T h ese rates are on a b ank d iscount basis. T h e eq u iva le n t coupon issue y ie ld s are 6 . 2 6 % for t h e 9 1 - d a y bills, and 6 . 5 2 % for
th e 182 -d ay bills.

(See the Federal Reserve Bank of
This publication was digitized and made available by reverse side for tender form) Dallas' Historical Library (


M a tu rin g Ju ly 3 1 ,1 9 6 9

D ated July 3 1 ,1 9 6 8
To: Federal Reserve Bank, Station K, Dallas, T exas 75222
o r—
The__________________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78206


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.

_NOT TO EXC E E D $200,000


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.
Prices should be ex ­
pressed on the basis o f
100, with not more than
th ree decim al p la c e s,
e. g., 99.925. Fractions
must not be used.





Payment for this issue of bills cannot be m ade
by credit to Treasury Tax and Loan Account.

Denominations Desired
N u m b e r of
P ie ce s

M a t u r i t y V a lu e


5 ,0 0 0 $-

M ?
M $


1 ,0 0 0 $-

1 0 ,0 0 0 $-



5 0 ,0 0 0 ?.


C harge our reserve account on p a y m e n t
I | D ra ft enclosed (Effectual delivery of enclosed draft

.(5) $ 1 0 0 ,0 0 0 *.

By m atu rin g bills
held b y _________
P aym ent to be m ade by_

5 0 0 ,0 0 0

sh all be o n la te s t d ay w h ic h will p e r m i t p r e s e n t m e n t i n
o r d e r t o o b t a i n ir r e v o c a b ly co llected f u n d a o n p a y m e n t

,0 0 0 ,0 0 0

Delivery Instructions:
( 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— Member
banks fo r own account only


Pledge to secure T reasury Tax and
Loan Account


(A ddress)

(Authorized official signature a nd title)

Ship to__________________________
( F o r t h e a c c o u n t o f , i f 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 ddress)

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
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 th is
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, -who
should sign in the form “.................................................., a copartnership, by ......................................................................................... f
a member of the firm.”
5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in vest­
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)

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102