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F ederal r e s er v e Ban k o f D allas
F ISC A L A G E N T O F T H E

U N IT E D

STATES

DALLAS, TEXAS 7 5 2 2 2
Circular No. 69-55
March 5, 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 leventh F e d e r a l Reserve District:
Your a t t e n t i o n is in vited to t h e fo llo w in g s t a t e m e n t g iv in g d e t a il s of tw o is s u e s of T re as u ry bills:
T h e T re a s u ry D e p a rtm e n t, b y this p u b lic notice, in v ites ten d e rs for two series of T re a su ry bills to th e a ggregate a m o u n t of
$2,700,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g M a rc h 13, 1969, in th e a m o u n t of
$2,700,536,000, a s follows:
91-D A Y B IL L S ( to m a tu rity d a te ) to be issued M a rc h 13, 1969, in th e a m o u n t of $1,600,000,000, o r th e re ­
abouts, re p rese n tin g a n add itio n al a m o u n t of bills d a te d D e c em b er 12, 1968, a n d to m a tu re J u n e 12, 1969,
originally issued in th e a m o u n t of $1,100,831,000, th e a d d itio n al a n d original b ia s to be freely interchangeable.
182-D A Y B IL L S for $1,100,000,000, or th ere ab o u ts, to b e d a te d M a rc h 13, 1969, a n d to m a tu re S e p te m b e r 11, 1969.
T h e bills of b o th series w ill b e issued o n a d isc o u n t basis u n d e r co m p e titiv e a n d no n co m p etitiv e b id d in g as h e rein afte r
provided, a n d a t m a tu r ity th e ir face a m o u n t w ill b e p a y ab le w ith o u t in terest. T h e y w ill b e issued in b e a re r fo rm only, a n d in
d e n o m in a tio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu rity v a lu e ).
T en d e rs will b e received a t F e d e ra l R e se rv e B a n k s a n d B ran ch es u p to th e closing hour, o n e -th irty p.m ., E a s te rn
S ta n d a rd T im e , M onday, M a rc h 10, 1969. T e n d e rs will n o t be received a t th e T re a su ry D e p a rtm e n t, W ashington. B ach
te n d e r m u st be for a n even m u ltip le of $1,000, a n d in th e case of c o m p e titiv e ten d e rs th e price offered m u st b e expressed on
th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay n o t be used. I t is u rged t h a t te n d e rs be m ad e
on th e p rin te d form s a n d forw arded in th e special envelopes w hich will b e su p p lied by F e d e ra l R e se rv e B a n k s o r B ran ch es on
a p p lic a tio n therefor.
B an k in g in stitu tio n s generally m a y su b m it te n d e rs for a ccount of custom ers p ro v id e d th e nam es of th e custom ers are
se t fo rth in such tenders. O th ers th a n banking in stitu tio n s will not be p e rm itte d to su b m it te n d e rs except fo r th e ir ow n account.
T e n d e rs will be received w ith o u t d e p o sit fro m in co rp o ra ted b a n k s a n d tr u s t com panies a n d from responsible a n d recognized
de ale rs in in v e stm e n t securities. T e n d e rs from o th e rs m u st b e a cc om panied by p a y m e n t o f 2 p e rc e n t of th e face a m o u n t of
T re a s u ry bills a p p lie d for, unless th e te n d e rs a re a cc o m p an ied b y a n express g u a ran ty of p a y m e n t b y a n in co rp o ra ted b a n k or
tr u s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs will b e opened a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich
p u b lic a n n o u n ce m en t w ill be m ad e b y th e T re a s u ry D e p a rtm e n t of th e a m o u n t a n d p rice range o f a c c e p te d bids. T h o se
su b m ittin g te n d e rs w ill be advised of th e a cc ep ta n ce o r re je ctio n thereof. T h e S ecretary of th e T re a su ry expressly reserves th e
rig h t to a cc ep t o r re je c t a n y o r all ten d ers, in w hole or in p a rt, a n d h is a ction in a n y such resp ect shall be final. S u b je c t to
th ese reservations, n o n c o m p e titiv e ten d e rs for each issue for $200,000 o r less w ith o u t sta te d price from a n y one b id d e r will be
a c c e p te d in full a t th e average p rice (in th re e de cim als) of a ccep ted c o m p e titiv e bids for th e re sp e ctiv e issues. S e ttle m e n t for
a c c e p te d te n d e rs in accordance w ith th e bids m u st b e m ad e or c o m p le te d a t th e F e d e ra l R e se rv e B a n k on M a rc h 13, 1969,
in cash or o th e r im m e d ia tely a v ailab le funds o r in a lik e face a m o u n t of T re a su ry bills m a tu rin g M a rc h 13, 1969. Cash a n d
exchange te n d e rs w ill receive e qual tre a tm e n t. C ash a d ju stm e n ts will b e m ad e fo r differences betw een th e p a r v a lu e o f m a tu r­
ing bills a cc ep te d in exchange a n d th e issue p rice of th e new bills.
T h e incom e d e riv e d from T re a su ry bills, w h e th er in te re st or gain from th e sale o r o th e r disposition of th e bills, does n o t
h a v e a n y exem ption, as such, a n d loss from th e sale o r o th e r disposition of T re a su ry bills does n o t have a n y special tre a tm e n t,
as such, u n d e r th e In te rn a l R e v en u e Code of 1954. T h e b ills a re su b je ct to estate, inheritan c e, g ift or o th e r excise taxes, w h eth er
F e d e ra l or S ta te , b u t a re e x em p t from all tax a tio n now or h e re a fte r im p o sed on th e p rin c ip a l o r in te re st th e re o f b y a n y S ta te ,
or a n y of th e possessions of the U n ite d States, o r b y a n y local taxing a u th o rity . F o r pu rp o ses of ta x a tio n th e a m o u n t of discount
a t w hich T re a s u ry b ills a re o riginally sold b y th e U n ite d S ta te s is considered to b e interest. U n d e r Sections 454 ( b ) a n d
1221 ( 5 ) of th e In te rn a l R e v en u e C ode of 1954 th e a m o u n t of d isc o u n t a t w hich bills issued h e re u n d e r a re sold is n o t con­
sid e red to accru e u n til such bills a re sold, re d ee m e d o r otherw ise disposed of, a n d such bills are excluded from consideration as
c a p ita l assets. A ccordingly, th e ow ner of T re a s u ry bills (o th e r th a n life insurance c om panies) issued h e re u n d e r n e ed include
in his incom e tax re tu rn only th e difference b etw een th e price p a id for such bills, w h e th er on original issue o r o n subsequent
purchase, a n d th e a m o u n t a c tu a lly received e ith e r u p o n sale o r re d e m p tio n a t m a tu rity d u ring th e tax a b le y e a r fo r w hich th e
re tu rn is m ade, a s o ru in a ry gain or loss.
T re a su ry D e p a rtm e n t C ircular No. 418 (c u rre n t revision) a n d th is notice, pre sc rib e th e term s o f th e T re a su ry bills a n d
govern th e conditions of th e ir issue. C opies of th e c irc u lar m ay be o b tain e d from a n y F e d e ra l R eserve B a n k or B ran ch .

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 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 ,
H ou ston a n d San 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 arch 10, 1969. T e n d e rs m a y not
be en tered by telephone.
Y ours v e r y truly,
P. E. Coldw ell
P re sid e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R a n g e a n d A p p ro x im ate Y ield of A ccepted T e n d e rs
91-D ay B ills
182-D ay B ills
D u e J u n e 5, 1969
D u e S e p te m b e r 4, 1969
$2,522,585,000______ ______ _____ _____________ T o ta l A p p lie d F o r _ ............... .............................................. $2,164,783,000
$ 1 ,6 0 0 ,0 6 3 ,0 0 0 -.
------------------------------- T o ta l A c c ep ted _________________ ______ _____ ___ $1,100,537,000
P ric e
Y ield
P ric e
Y ield
98.436------------------- 6 .1 8 7 % ------------------------------ ----H i g h ___ ____________________ 96.797...................... _.6.336%
98.424. ___
____6 .2 3 5 % ___________________________ JLow_________________ ...__.96.788_______________ 6.353%
98.429
6 .215% ( 1 ) --------------- ------------A verage------------------------ -- ---- 96.794_____________ 6.342% ( 1 )
( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t basis. T h e e q u i v a le n t c o u p o n issue y ie ld s ar e 6 . 4 0 % fo r t h e 9 1 - d a v bills, a n d 6 6 4 %
th e 1 8 2 - d a y bills.
'
7

for

( S e e r e v e r s e a id e fo r t e n d e r f o r m )

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
Maturing September 11, 1969

Dated March 13,1969
To: Federal Reserve Bank, Station K, Dallas, Texas 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.

JNOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $_

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(<
R
(a)
essed on the basis of
§
100, with not more than
(a)
$
COMPETITIVE TENDERS
th re e decim al places,
S
e. g., 99.925. Fractions
IS
(a)
must not be used.
V
TENDERS MAY NOT BE ENTERED BY TELEPH ON E. TENDERS BY W IRE, 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.
N u m b e r of
M a tu rity V alu e

Pieces

METHOD OF PAYMENT

.(a) ?
(a). $

1,000 $5,000 $.

(a) *
.(a). $

10,000 $50,000 ?-

□

(a), $ 100,000 ?M ? 500,000 ?(a) $1 ,000,000 ?■

□

□

By m aturing bills
held b y ____________________
Paym ent to be made by_

Charge our reserve account on payment
date
I I D raft enclosed (Effectual delivery of enclosed draft
shall be on latest day which will p e rm it p re s e n tm e n t in
order to ob ta in irrevocably collected fun d a on p a y m e n t
date)

Delivery Instructions:
(S ubscriber's full n a m e o r c o rp o ra te title )

□

Hold in Custody Account—Member
banks for own account only

□

Pledge to secure Treasury Tax and
Loan Account

□

(A ddress)

By_
(A uthorized official sig n a tu re a n d title )

Ship to---------------------------------------(F o r th e a cco unt of, i f te n d e r is f o r a n o th e r su b scriber)

(A ddress)

IMPORTANT

1. No tender for less than $1,000 will be considered and each tender m ust 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 m atters 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 (m aturity 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.
G 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 announcement)

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