View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal Reserve Ba nk of Dallas
F I S 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 N o. 69-58
M a rc h 12, 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 eserv e District:
Y ou r a t t e n t i o n is in vited 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 il s of t w o is s u e s of T re as u ry bills:
T h e T re a su ry D e p a rtm e n t, by th is p u b lic notice, invites te n d e rs for two series of T re a s u ry bills to th e a ggregate a m o u n t of
$2 700,000,000, o r 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 20, 1969, in th e a m o u n t of
$2,’701,387,000, 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 20, 1969, in th e a m o u n t o f $1,600,000,000, o r th e re ­
abouts, re p rese n tin g a n a d d itio n al a m o u n t of bills d a te d D e c e m b e r 19, 1968, a n d to m a tu re J u n e 19, 1969,
originally issued in th e a m o u n t of $1,101,293,000, th e a d d itio n al a n d original bills to be freely in terchangeable.
182-D A Y B IL L S for $1,100,000,000, or th ere ab o u ts, to be d a te d M a rc h 20, 1969, a n d to m a tu re S e p te m b e r 18, 1969.
T h e bills of b o th series will b e issued on a d isc o u n t basis u n d e r c o m p e titiv e a n d no n co m p etitiv e bid d in g a s h e rein afte r
pro v id ed , a n d a t m a tu rity th e ir face a m o u n t will b e p a y ab le w ith o u t in te re st. T h e y will be 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 e n 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 o n d a y , M a rc h 17, 1969. T e n d e rs w ill not be receiv ed a t th e T re a s u ry D e p a rtm e n t, W ashington. E ac h
te n d e r m u st be for a n e v en m u ltip le of $1,000, a n d in th e case of c o m p e titiv e ten d ers th e p rice offered m u st b e expressed on
th e basis of 100, w ith n o t m ore th a n th ree decim als, e.g., 99.925. F ra c tio n s m a y n o t be used. I t is urged 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 fo rw arded in th e special envelopes w hich w ill be supplied by F e d e ra l R e se rv e B a n k s o r B ranches on
ap p lic atio n therefor.
B a n k in g in stitu tio n s generally m a y su b m it te n d e rs for account of custom ers p ro v id ed th e nam es o f th e custom ers are
se t fo rth in such tenders. O th e rs th a n ban k in g in stitu tio n s will not be p e rm itte d to su b m it te n d e rs except for th e ir ow n a c c o u n t
T e n d e rs will be received w ith o u t dep o sit from inco rp o rated b a n k s e n d tr u s t com panies a n d fro m responsible a n d recognized
d ealers in in v e s tm e n t securities. T e n d e rs from o th e rs m u st b e a ccom panied by p a y m e n t of 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 ten d e rs a re a cco m panied by a n express g u a ran ty of p a y m e n t by 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 w ill 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 by 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 will be advised of th e a cc ep ta n ce o r re je ctio n thereof. T h e S e c retary 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 tenders, in w hole or in p a rt, a n d h is actio n 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 te n d e rs for each issue for $200,000 or less w ith o u t sta te d p rice 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 decim 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 o r 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 o n M a rc h 20, 1969,
in cash or o th e r im m e d ia te ly a v ailab le funds or in a like face a m o u n t of T re a su ry bills m a tu rin g M a rc h 20, 1969. Cash a n d
exchange te n d e rs w ill receive e qual tre a tm e n t. Cash a d ju stm e n ts will be m a d e for differences b etw een th e p a r v a lu e of m a tu r ­
ing bills a cc ep te d in exchange a n d th e issue price 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 the bills, does n o t
ha v e a n y exem ption, a s 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,
a s 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 bills a re su b ject to estate, in h eritan ce, gift or o th e r excise taxes, w h e th er
F e d e ra l or S ta te , b u t a re e x em p t from all ta x a tio n now or h e re a fte r im posed 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 S tates, or b y a n y local taxing a u th o rity . F o r p urposes 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 bills a re originally sold b y th e U n ite d S tates is considered to b e interest. U n d e r S ections 454 ( b ) a n d
1221 ( 5 ) of th e In te rn a l R e v en u e Code of 1954 th e a m o u n t of d isco 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 ered to a ccrue u n til such bills are sold, re d ee m e d o r otherw ise disposed of, a n d such bills are excluded from co n sid eratio n as
c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insurance c o m p an ies) 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 e tw ee n th e price p a id for such bills, w h e th er on original issue o r on subsequent
purchase, a n d th e a m o u n t a ctu ally 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 ar for w hich th e
re tu rn is m ade, a s o rd in ary 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 re v isio n ) a n d th is notice, p re sc rib e th e term s o f th e T re a su ry bills a n d
S ov em th e conditions of th e ir issue. Copies 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 e se rv e B a n k or B ranch.

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 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 o usto n a n d S an 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 , M a rc h 17, 1969. T en d e rs m a y n o t
be en tered by telep h o n e.
Yours very truly,
P. E. Coldwell
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 c c ep ted T e n d e rs
9 1 -D a y B ills
182-D ay B ills
D u e J u n e 12, 1969
D u e S e p te m b e r 11, 1969
$2,517,689,000________________________________ T o ta l A p p lied F o r ____________________________
*2,043,491,000
$ 1,600,189,000------------------------------------------------- T o ta l A c c ep ted__________________________________ $ 1,100,010,000
P ric e
Y ield
P ric e
Y ie ld
98.480------------------ 6 .0 1 3 % ------------------------ ----------------- H ig h _____ ___________ ..96,858__________________ 6 .215%
98.464------------------ 6 .0 7 6 % ------------------------------------------Low ________________________ 96.840 ____________ 6.251%
98.471------------------- 6.049% ( 1 ) --------------------------_------A verage_____________________ 96.849_____________6 .233% ( 1 )
( 1 ) T h e s e rates are o n a b a n k d iscount basis. T h e eq u ivalent cou p on issue y ie ld s are 6 . 2 3 % for th e 9 1 -d a y bills, a n d 6 . 5 2 % for
the 18 2 -d a y bills.

(See reverse side 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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated December 19, 1968

Maturing June 19, 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 a t the rate indicated.

NONCOMPETITIVE TENDER

_NOT TO EXCEED $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.
---------------------------

($ ­
COMPETITIVE TENDERS ($ -

--------------------------__________________

Prices should be ex­
pressed on the basis of
100, with not more than
th re e decim al places,
e. g., 99.925. Fractions
must not be used.

TENDERS MAY NOT BE ENTERED 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.
N um ber of
M a tu rity V alue

Pieces

(a) $

(a) $
(n), $

METHOD OF PAYMENT

1,000 ?5,000 $.

□

10,000 ?50,000 $-

□

m ?
(a) ? 100,000 $m $ 500,000 ?-

□
□

By maturing bills
held b y ______________________
Paym ent to be made by__________ ___
Charge our reserve account on payment
date
Draft enclosed (E ffectual delivery of enclosed d r a f t
shall be on latest day which will p e rm it p re s e n tm e n t in
ord er to o b ta in irrevocably collected fu n d s on p a y m e n t
date)

m ? i ,000,000 $Delivery Instructions:

(S u bscrib er's full nam e o r corp 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 and title )

Ship to__________________________
( F o r th e a ccount of, if te n d e r is fo r a n o th e r s u b scrib er)

(A ddress)

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 (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 a t the signing of the form by an officer of the corporation will be construed as a representation by him th at 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 ...................................... ,
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 tru st 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 ate­
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