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F ederal r eser ve Bank o f D allas
F IS C A L A G E N T O F T H E U NITED S T A T E S

DALLAS, TEXAS

75222
Circular No. 69-63
M arch 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 th e E leventh F e d e r a l R eserve District:

Y our a t t e n t i o n is in v ite d to t h e fo llo w in g s t a t e m e n t giv in g d e t a il s o f tw o iss u e s of T re a s u ry bills:

‘

T h e Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $1,500,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing M arch 31, 1969, in the am ount of
$1,500,447,000, as follows:
275-D A Y B IL L S (to m aturity date) to be issued March 31, 1969, in the am ount of $500,000,000, or there­
abouts, representing an additional am ount of bills dated D ecem ber 31, 1968, and to mature D ecem ber 31, 1969,
originally issued in the am ount of $999,152,000, the additional and original bills to be freely interchangeable.
365-D A Y B IL L S for $1,000,000,000, or thereabouts, to be dated M arch 31, 1969, and to mature M arch 31, 1970.
T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at maturity their face am ount will be payable without interest. T h ey 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 aturity v alu e).
Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard T im e, W ednesday, March 26, 1969. Tenders will not be received at the Treasury Departm ent, Washington. Each
tender m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on the
basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. (N otw ithstanding the fact that the oneyear bills will run for 365-days, the discount rate will be com puted on a bank discount basis of 360-days, as is currently the
practice on all issues of Treasury bills.) It is urged that tenders be m ade on the printed forms and forwarded in the special
envelopes which w ill be supplied by Federal R eserve Banks or Branches on application therefor.
Banking 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 w ill not be perm itted to subm it tenders except for their own account.
Tenders will be received without deposit from incorporated banks and trust com panies 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 accompanied by an express guaranty of paym ent by an incorporated bank or
trust company.
Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which
public announcement w ill be m ade by the Treasury 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 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 without stated price from any one bidder will be
accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted at the Federal R eserve Bank on March 31, 1969,
in cash or other im m ediately available funds or in a like face amount of Treasury bills maturing M arch 31, 1969. Cash and
exchange tenders w ill receive equal treatm ent. Cash adjustm ents will be made for differences betw een the par value of maturing
bills accepted in exchange and the issue price of the new bills.
T h e income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not
have any exem ption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment,
as such, under the Internal R evenue 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 im posed 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. For purposes of taxation the am ount of discount
at which Treasury bills are originally sold by the U n ited States is considered to be interest. Under Sections 454 ( b ) and 1221 ( 5 )
of the Internal R evenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not considered 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 Treasury bills (other than life insurance com panies) issued hereunder need include in his
income tax return only the difference betw een the price paid for such bills, whether on original issue or on subsequent purchase,
and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is
made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank 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 , 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 u sto n a n d S an A n to n io up to tw e l v e - th ir ty p .m ., C en tral S t a n d a r d Time, W e d n e s d a y , M a rc h 26, 1969. T e n d e rs m a y n o t
b e e n t e r e d b y te l e p h o n e .

Yours very truly,
P. E. C o ld w ell
P re s id e n t

(See r v r e s d f rt
e e s i e o ender 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

365 DAYS TO MATURITY
Dated March 31,1969

Maturing March 31,1970

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.

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.
/_
_
_
Prices should be ex­
pressed on the basis of
100, with not more than
COMPETITIVE TENDERS
(a)
three decimal places,
e. g., 99.925. Fractions
$
must not be used.

h
1
*

@

TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M aturity V alue

METHOD OF PAYMENT

$_

$

1,000

$

5,000 $_

$

10,000 $_

$

50,000 $_

□
□

By maturing bills
held by___________________________
Payment to be made by_____________

$_

□

500,000 $_

Charge our reserve account on payment
date

|

| D r a f t e n c l o s e d ( E f f e c t u a l d e liv e r y o f enclo sed
draft shall be on latest day which w ill permit p r e se n t
m ent in order to obtain irrevocably collected funds on
paym ent date)

$ 100,000

$1,000,000 $_

Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□ Ship to________________________

(Subscriber’s fu ll nam e or corporate title)

(Address)

By.

(Authorized official signature and title)

(For 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
received 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 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
material, the tender may be disregarded.
(See reverse for announcement)

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