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F ed er a l R eser ve Ba n k o f D allas 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 7 5 2 2 2 Circular No. 69-65 March 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 t h e E le venth F e d e r a l R eserve District: Y ou r a t t e 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 in g d e t a i l s of tw o issu es of T re asury bills: T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to th e aggregate am ount of $2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M arch 27, 1969, in th e am ount of $ 2 , 709,020 ,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued M arch 27, 1969, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated Decem ber 26, 1968, and to m ature June 26, 1969, originally issued in the am ount of $1,104,988,000, the 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 27, 1969, and to m ature Septem ber 25, 1969. T h e bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and a t m aturity their face am ount will be payable without interest. T hey will be issued in bearer form only, and in denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard Tim e, M onday, M arch 24, 1969. Tenders will not be received a t the T reasury D epartm 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. 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 tenderB for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their 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. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied 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 the 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 th e Treasury expressly reserves th9 rig ht 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, noncompetitive 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 competitive bids for th e respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or completed a t the Federal Reserve B ank on M arch 27, 1969, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing M arch 27, 1969. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur ing bills accepted in exchange and the issue price of the new bills. T h e income derived from Treasury bills, w hether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the 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, whether Federal or State, b u t are exem pt from all taxation now or hereafter imposed on th e principal or interest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount a t which Treasury 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 th e 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 than life insurance com panies) issued hereunder need include in his income tax return only the difference between th e 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 aturity during th e taxable year for which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (curren t revision) and this notice, prescribe th e 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 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 ElP 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 ., Central S t a n d a r d Time, M o n d a y , M arch 24, 19 69 . T en d e rs m a y n o t be en tered by telephone. Y ours v e r y truly, P. E. Co ldw ell P re s id e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and A pproxim ate Yield of Accepted T enders 91-Day Bills 82-Day Bills D ue Ju n e 19, 1969 D ue Septem ber 18, 1969 $2,828,882,000---------------------------------------------- T otal Applied F o r_______________________________ $2,783,116,800 $1,600,567,000-------------------------------------------------T otal Accepted________________________________ $1,100,334,000 Price Yield Price Yield 98.463 6.08 0% _________________________ H igh______________________ 96.868___________ 6.195% 98.454____________6.116% ________ ____________ ____Low______________________96.850____________6.231% 98.456 6.108% ( 1 ) ------ --- --------------------- Average_____________________96.855___________ 6.221% (1 ) ( 1 ) T h e s e rates are o n a b ank d iscount basis. T h e eq u iva le n t cou p o n issue y ie ld s are 6 .2 9 % for t h e 9 1 -d a y b ills, and 6 .5 1 % for the 18 2 -d a y bills. (See revene 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 Decem ber 26,1968 M aturing June 2 6 ,1 9 6 9 To: Federal R eserve Bank, Station K, Dallas, T exas 75222 or— The___________________________________Branch El Paso 79999 Houston 77001 San Antonio 78206 (D ate) P u rsu an t to the provisions of T reasury D epartm ent Circular No. 41S (current revision) and the provisions of th e public announcement issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am ount shown below, and agrees to pay for the am ount allotted, on o r before the issue date, by the method and a t the ra te indicated. _NOT TO EXCEED $200,000 NONCOM PETITIVE T E N D E R Noncompetitive tenders fo r $200,000 or less from any one bidder, without stated price, will be accepted in full a t the average price (in three decimals) of accepted competitive bids. COMPETITIVE T E N D E R S (a) @ % ? - - .................. - P rices should be ex pressed on the basis of 100, w ith n o t mori’ th a n t h r e e d ec im a l p la c e s, e. g., 99.925. F ra ctio n s m u st not be used. HCW T E N D E R S MAY NOT BE E N T E R E D BY T E L E P H O N E . T E N D E R S BY W IR E , I F R E C E IV E D B E F O R E T H E ‘ CLOSING HOUR, A R E A C C EPT A B L E . P aym ent fo r this issue of bills cannot be m ade by credit to T reasury Tax and L oan Account. Denominations Desired Number of Pieces Maturity Value (a) $ (a), $ 5,000 $. (a) $ 10,000 ?. .% $ METHOD OF PAYM ENT 1,000 ?- 50,000 $ □ B y m a t u r i n g b ills h e l d b y ______________________ _ □ P a y m e n t to b e m a d e by_ (a) $ 100,000 $- □ C h a rg e o u r re se rv e acco u n t on p a y m e n t d ate (a> $ 500,000 $. □ D r a f t e n c lo s e d (Effectual delivery o f enclosed d ra ft shall be on latest day which will permit presentment In order to obtain irrevocably collected funda on paym ent date) (a $1 ,000,000 $. D e liv e ry I n s tr u c ti o n s : (Subscriber’s full name or corporate title) □ H o ld i n C u s t o d y A c c o u n t — M e m b e r b a n k s f o r o w n a c c o u n t o n ly □ P le d g e to s e c u r e T r e a s u r y T a x a n d L oan A ccount □ (Address) B y(Authorized official signature and title) S h i p t o ---------------- -------------------------------(For the account of, i f tender is for another subscriber) (A d d r e s a ) IMPORTANT 1. No tender fo r less th a n $1,000 will be considered and each tender m u st be fo r an am ount in multiples of $1,000 (m atu rity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or app ropriate branch as Fiscal A gent of th e U nited S tates, w ith notation on th e envelope reading “TEND ER FO R TREA SU RY O FFE R IN G .” Since envelopes re ceived w ith this legend will not be opened until a fte r the closing tim e specified in th e public announcement, communi cations rela tin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank or ap p ro p riate branch. 3. Any qualified or conditional tender will be rejected. 4. If a corporation makes the tender, th e form should be signed by an officer of the corporation authorized to m ake th e tender and a t the signing of the form by an officer of the corporation will be construed as a representation by him th a t he has been so authorized. If th e tender is made by a partn ership it should be signed by a mem ber of th e firm, who should sign in the form “............................... .................. , a copartnership, by .............................................................. .........................., a mem ber of the firm.” 5. Tenders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m atu rity value) of th e T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an incorporated bank or tru s t company. G. If the language of th is form is changed in any respect, which, in the opinion of the S ecretary of the T reasury is m a te rial, the ten der m ay be disregarded. (See reverse for announcem ent)