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F e d e r a l R e s er v e Ba n k o f D a lla s

D A L L A S, T E X A S 7 5 2 2 2
Circular No. 69-66
M arch 19, 1969

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 o u r a t t e n t i o n is in v ite d 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 is s u e s of T re as u ry bills:
T h e 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 Treasury 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 D ecem ber 26, 1968, and to m ature Ju n e 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 he 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 w ithout 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 B anks and Branches up to the closing hour, one-thirty p.m., Eastern
S tandard Tim e, M onday, M arch 24, 1969. Tenders will not be received a t the T reasury D epartm ent, Washington. Each
tender must be for an even m ultiple of $1,000, and in the case of com petitive tenders th e 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 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 will not be perm itted to subm it tenders except for their own account
T enders will be received without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investm ent securities. Tenders from other* 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 made by the Treasury D epartm ent of th e 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 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, 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 R eserve 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 p ar value of m atur­
ing bills accepted in exchange and the issue price of th e 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 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, but are exem pt from all taxation now or hereafter imposed 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
a t which Treasury bills are originally sold by the U nited States is considered to be in terest U nder Sections 454 (b ) and
1221 (5 ) of the Internal Revenue Code of 1954 the 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 th a n life insurance companies) issued hereunder need include
in his income tax return 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 aturity during th e taxable year for which the
retu rn is made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe the 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 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 a so ,
H o usto n a n d San 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 arch 24, 1969 . T e n d e rs m a y n o t
be en tered by telep ho n e.
Yours v e r y truly,
P. E. Cold w ell
P re sid e n t
Amount, R ange and Approximate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue Ju n e 19, 1969
D ue Septem ber 18, 1969
$2,828,882,000---------------------------------------------- T otal Applied For_______________________________ $2,783,116,800
$1,600,567,000-------------------------------------------------T otal Accepted------------------------------------------------- $1,100,334,000
6.080% -------------------------------------- .High....................................____„96.868____________ 6.195%
6.116% ---------------------------------------Xow ______________________ 96.850___________ 6.231%
6.108% ( 1 ) ------------------------------- Average________________________________ 96.855_6.221% (1 )
( 1 ) T h e s e rates are on a b an k discount basis. T h e eq u iv a le n t cou p on issue y ie ld s are 6 .2 9 % for t h e 9 1 -d a y b ills, a n d 6 .5 1 % for
th e 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 (


Dated March 27, 1969

M aturing Septem ber 25, 1969

To: Federal R eserve Bank, S tation K, Dallas, T exas 75222
El Paso 79999

Houston 77001

San Antonio 78206

(D ate)

P u rsu a n t to the provisions of T reasury D epartm ent Circular No. 418 (cu rrent revision) and the provisions of the
public announcement issued by th e T reasu ry D epartm ent, the undersigned offers to purchase T reasury bills in the am ount
shown below, and agrees to pay fo r th e am ount allotted, on or before the issue date, by th e method and a t th e ra te indicated.

_NOT 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 average
price (in three decimals) of accepted competitive bids.
P rices should be ex­
pressed on the basis of
100, w ith not more th an
t h r e e d ecim al p la ce s,
e. g., 99.925. F ractions
m ust not be used.




-@ -

C'-gr’ T E N D E R S MAY NOT B E 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
Paym ent fo r this issue of bills cannot be made
by credit to T reasu ry T ax and Loan Account.

D enom inations Desired
Number of

Maturity Value

(ai ?
(n\ $

5,000 9-

(a) $

10,000 $-

(a) ?


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 t


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 a te

(a) $ 500,000

I ] D r a f t e n c lo s e d

(Effectual delivery o f enclosed draft
shall he on latest day which will permit presentment in
order to obtain irrevocably collected fund* on payment

(fp ?1 ,000,000
D e liv e ry I n s tr u c tio 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 se c u re T r e a s u r y T a x a n d
L oan A ccount


B y_
(Authorized official signature and title)

S h i p t o ----------------------------------------------(For the account of, if tender id for another subscriber)


1. No tender fo r less th an $1,000 will be considered and each tender m ust be fo r an am ount in multiples of $1,000 (m atu rity
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of th e
United S tates, w ith notation on th e envelope reading “TENDER FOR TREASURY O FFERIN G .” Since envelopes re­
ceived w ith this legend will not be opened until a fte r the closing tim e specified in the public announcement, communi­
cations rela tin g to other m atters should not be enclosed. Envelopes for subm itting tenders may 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 m akes the tender, th e form should be signed by an officer of the corporation authorized to m ake 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 a t he
has been so authorized. If th e tender is made by a partnership it should be signed by a m em ber of th e firm, who
should sign in the form “............................................. a copartnership, by ......................................................................................... ......,
a member 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 th e 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 tr u s t company.
6. If th e language of th is form is changed in any respect, which, in th e opinion of th e S ecretary of the T reasu ry is m ate­
rial, the tender m ay be disregarded.

(See reverse for announcem

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