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F E D E R A L R E S E R V E B A N K O F D A LLA S 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 Circular No. 69-50 February 26, 1969 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O t h 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 R eserve District: Y our a t te 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 t w o iss u e s o f T re as 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 and in exchange for T reasury bills m aturing M arch 6, 1969, in the am ount of $2,702,733,000, as follows: 91-DAY B IL L S (to m a tu rity date) to be issued M arch 6, 1969, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated Decem ber 5, 1968, and to m ature Ju n e 5, 1969, originally issued in th e am ount of $1,100,082,000, 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 M arch 6, 1969, and to m ature Septem ber 4, 1969. The 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, and in denominations 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, Monday, M arch 3, 1969. T enders will not be received a t th e T reasury D epartm ent, Washington. Kach tender m ust 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 the basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions may no t 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 B ranches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided th e nam es of th e customers are set forth in such tenders. O thers th a n 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 trust 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 th e face am ount of T reasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent b y 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 an d price range of accepted bids. Those subm itting tenders will be advised of the acceptance or rejection thereof. T he Secretary of th e Treasury expressly reserves the 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 w ithout stated price from any one bidder will be accepted in full a t th e 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 th e Federal Reserve B ank on M arch 6, 1969, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M arch 6, 1969. Cash and exchange tenders will receive equal tre a tm e n t Cash adjustm ents will be made for differences between the p a r value of m atu r ing bills accepted in exchange and the issue price of the new bills. T he income derived from Treasury 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 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 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 th e possessions of the U nited States, or b y any local taxing authority. F or purposes of taxation th e 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 retu rn 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 atu rity during th e taxable year for which the return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (cu rrent 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 R eserve B ank o r 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 , 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, H o u sto n 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 , M a rc h 3, 1969. T e n d e rs m a y not b e en tered by telephone. Y ours v e r y truly, P. E. Coldw ell P re sid en t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approxim ate Y ield of Accepted T enders 91-Day Bills 182-Day Bills D ue M ay 29, 1969 D ue August 28, 1969 $2,494,165,000---------------------------------------------- T otal A pplied F o r________ ______________________ -$1,901,277,000 $ 1,600,361,000------------------------------------------------T o tal A ccepted_____________________________ ___ _$ 1,100,252,000 Price Yield Price Y ield 98.473.._.................... 6.041% ______ _____ _____________ H igh______________________96.848___________ 6.235% 98.455 6.112% ---------------------------------------Low--------------------------------- 96.822___________ 6.286% 98.463 6.080% ( 1 ) .— -------------------------- Average............................... ........ 96.836____________ 6.258% (1 ) ( 1 ) T h e s e rates are on a b an k discount basis. T h e eq u iv a len t cou p on issue y ie ld s are 6 . 2 6 % for th e 9 1 -d a y b ills, and 6 .5 5 % for the 182-<Jay 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 Dated December 5 ,1 9 6 8 M aturing June 5 ,1 9 6 9 To: Federal Reserve Bank, Station K, Dallas, T exas 75222 or— 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. NONCOMPETITIVE T E N D E R $_ _NCT TO E X C E E D $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full a t the a v e ra g e price (in three decimals) of accepted competitive bids. COMPETITIVE T E N D E R S / $ $ ((ft % @ $ - - ................ Prices should be ex pressed on the basis of 100. with not mora than th ree decim al p laces, e. g., 99.925. Fractions must not be used. 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 by credit to Treasury Tax and Loan Account. Denominations Desired Number of Pieces Maturity Value (a) $ (a) $ 5,000 ?. (3) $ METHOD OF PAYMENT 1,000 (ft) $ M $ □ B y m aturing bills held b y ___________________ _ 10,000 ?. 50,000 ?. □ P a y m en t to be made by_ 100,000 jp □ Charge our reserve account on paym ent date D ra ft enclosed (Effectual delivery o f enclosed draft (a) ? 500,000 $m $ i ,000,000 I I shall be on latest day which will p e rm it p re s e n tm e n t in order to o btain irrevocably collected fu n d s on payment date) Delivery Instructions: (Subscriber's full name or corporate title) □ Hold in Custody Account— Member banks fo r own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to__ __ ______________________ (Addresa) By_ (Authorized official signature and title) (For the account of, i f tender ia 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)