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F ederal R eserve Ba n k o f D allas F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS. TEXAS 75222 C ircular No. 69-42 F ebruary 19, 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 Eleventh F e d e r a l R e serve District: Y ou r 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 i n g d e t a il s of tw o is s u e s of T re a s u ry bills: T he 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 an d in exchange for T reasury bills m aturing February 27, 1969, in the am ount of $2,704,300,000, as follows: 91-DAY B IL L S (to m atu rity d ate) to be issued F ebruary 27, 1969, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated N ovember 29, 1968, and to m ature M ay 29, 1969, originally issued in the am ount of $1,100,150,000, th e additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,100,000,000, or thereabouts, to be dated February 27, 1969, and to m ature August 28, 1969. T he bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m atu rity th eir face am ount will be payable w ithout interest. T h ey 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 atu rity value). Tenders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard Tim e, M onday, February 24, 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 com petitive tenders th e price offered m ust be expressed on the 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 made on the printed forms and forwarded in the special envelopes which will be supplied by F ederal Reserve Banks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others 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 trust 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 th e face am ount of Treasury 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 R eserve Banks 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 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 each issue for $200,000 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 for the respective issues. Settlem ent for accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t th e Federal R eserve B ank on F ebruary 27, 1969, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing February 27, 1969. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the p a r value of m atur ing bills accepted in exchange and the issue price of th e new bills. T he income derived from T reasury bills, w hether interest or gain from the sale or other disposition of th e bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury 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 F ederal 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 the U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount a t which T reasury bills are originally sold by th e 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 not con sidered to accrue un til 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 than 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 th e return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (curren t revision) and th is notice, prescribe the term s of th e T reasury bills and govern the conditions of their issue. Copies of th e circular may be obtained from any F ederal 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 , t e 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, H o u sto n a n d S a n A n to n io u p to tw e l v e - th ir ty p .m ., C e ntral S t a n d a r d Time, M o n d a y , F e b r u a r y 24, 1969. T e n d e rs m a y not b e en tered by telephone. Y ours very truly, P. E. Coldwell P re sid e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and A pproxim ate Y ield of Accepted Tenders 91-Day Bills 182-Day Bills D ue M ay 22, 1969 D ue August 21, 1969 $2,400,187,000--------------------------------------------- .Total Applied F o r_______________________________ $1,968,658,000 $ 1,600,247,000------------------------------------------------- T otal Accepted________________________________ $ 1,100,083,000 Price Y ield Price Yield 98.475 6.033% ------------------------------------- .H igh_____________________ 9 6 .850.____ ______ 6.231% 98.446 6.148% ------------------------------------- l o w _____________________ 96.814____________ 6.302% 98.460...................... __6.092% ( 1 ) ------------------------------Average____________________ 96.831________ ___ 6.268% (1) ( 1 ) T h e s e rates are on a b ank discount basis. T h e eq u iva le n t cou p on issue y ie ld s are 0 .2 7 % for th e 9 1 -d a y bills, and 6 .5 6 % for the 1 82-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 N ovem ber 2 9 ,1 9 6 8 M aturing M ay 29, 1969 To: Federal R eserve Bank, Station K, Dallas, T exas 75222 or— The__________________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 (D ate) 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 E E D $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. COMPETITIVE T E N D E R S $ $ () a @ $ $ _ . .. Prices should be ex pressed on the basis of 100, with not more than three decim al places, e. g., 99.925. Fractions must not be used. Kgr* TENDERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made Denominations Desired by credit to Treasury Tax and Loan Account. Number of Maturity Value Pieces (a) $ (a) $ METHOD OF PAYMENT 1,000 $□ □ (a) ? 10,000 $- ftr) $ P a y m e n t to be m a d e by_ □ 5,000 B y maturing bills held b y ____________________ Charge our reserve account on payment date 50,000 ?- 100,000 ?(a) $ 500,000 $(0) $ I I D r a f t e n c l o s e d (Effectual delivery o f enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date) (ft> ?1.,000,000 $. Delivery Instructions: (Subscriber’s full nam e or corporate title) □ Hold in Custody Account— M e m b e r banks for o w n account only □ Pledge to secure Treasury T a x and Loan Account □ (A ddress) Ship to-------------------------- By(Authorized official signature and title) (F or the account of, if tender is for another subscriber) (Address) 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 (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 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 this 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 the tender and at 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.” 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 mate rial, the tender may be disregarded. (See reverse for announcem ent)