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F ederal Reserve Ba nk o f D allas FISC A L A G E N T O F T H E U N ITED ST A T E S DALLAS, TEXAS 7 5 2 2 2 Circular No. 69-43 February 19, 1969 NEW OFFERING — TREASURY BILLS To All B a n k in g In stitutio ns a n d O th e r s C o n c e r n e d in t h e E leventh F e d e r a l Reserve District: Y ou r a t te n t io n is invited to th e f o 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 as u ry bills: The 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 Treasury bills m aturing F ebruary 27, 1969, in the am ount of $2,704,300,000, as follows: 91-DAY B IL L S (to m aturity date) 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 Novem ber 29, 1968, and to m ature M ay 29, 1969, originally issued in th e 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 F ebruary 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 a t m aturity their face am ount will be payable w ithout interest. T hey will be issued in bearer form only, an d in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). T enders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern S tandard Tim e, Monday, F ebruary 24, 1969. Tenders will not be received a t the T reasury D epartm ent, Washington. E ach tender must be for an even m ultiple of $1,000, and in th e case of com petitive tenders the price offered m ust be expressed on th e basis of 100, with not more th an 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 Federal Reserve Banks or Branches on application therefor. Banking institutions generally may subm it tenders for account of customers provided th e names of th e customers are set forth in such tenders. Others 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. Tenders from others m ust be accom panied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied 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 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 he Secretary of the T reasury 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 without stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted a t the Federal Reserve Bank on F eb ru ary 27, 1969, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing F ebruary 27, 1969. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between th e p ar value of m atu r 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 th e 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 th e Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but 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 o r 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 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, the owner of T reasury bills (other th a n life insurance companies) 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 th e 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 en t 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 Reserve B ank or Branch. In a c c o r d a n c e w ith th 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 e n d its b r a n c h e s a t El P a so , H o uston 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 n tral S t a n d a r d Time, M o n d a y , F e b r u a r y 2 4 , 1969. T en 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. Coldw ell P re s id e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range an d Approxim ate Y ield of A ccepted T enders 91-Day Bills 182-Day Bills D ue M ay 22, 1969 D ue August 21, 1969 $2,400,187,000________ ______________ _______ .Total A pplied F o r_______________________________ $1,968,658,000 $ 1,600,24 7,000_______________________________ T otal A ccepted_________________________________$ 1,100,083,000 Price Yield P rice Y ield 98.475 6.033% -------------------------------------- H igh_____________________ 96.850............. ..........6.231% 98.446-----------------6.148% --------------------------------------- X ow ........ ....................................96.814___________ 6.302 % 98.460----------------- 6.092% ( 1 ) -------------------------------Average____________________ 96.831___________ 6.268% (1 ) ( 1 ) T h e s e r a t e s a r e o n a b a n k d i s c o u n t b a sis. T h e e q u iv a l e n t c o u p o n issu e y ie ld s e r e 6 . 2 7 % t h e 1 8 2 - d a y b i lls . fo r t h e 9 1 - d a y bills, a n d 6 . 5 6 % for (See reverse aide 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 TREASURY BILLS 182 DAYS TO MATURITY M aturing A u gu st 2 8 ,1 9 6 9 D ated February 27, 1969 To: Federal R eserve Bank, S tation K, Dallas, T exas 75222 or— T he__________________________________ 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 EX 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 _ $ Prices should be ex pressed on the basis of 100, with not more than th ree decim al places, e. g., 99.925. Fractions must not be used. (n) $ I TENDERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY WIRE, IP 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). ? 5,000 * (a) $ METHOD OF PAYMENT 1,000 □ B y maturing bills held by ____________________________ 10,000 * 50,000 ?- □ P a y m e n t to be m a d e by_____________ (a) ¥ 100,000 ?(n) $ 500,000 $. □ Charge our reserve account on payment date M (a). ? I | 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) ,000,000 $- Delivery Instructions: (Subscriber’s full name 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 □ (Address) By_ (Authorized official signature and title) Ship to__________________________ (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)