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F ederal Reserve Bank of Dallas 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. 69-71 March 26, 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 eserv e District: Y ou 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 giv in g d e t a il s o f tw o iss u e s of T re as u ry bills: T he 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 T reasury bills m aturing A pril 3, 1969, in th e am ount of $2,704,130,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued April 3, 1969, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated January 2, 1969, and to m ature July 3, 1969, originally issued in the am ount of $1,102,883,000, 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 April 3, 1969, and to m ature October 2, 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 without interest. T hey 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 atu rity value). Tenders will be received a t Federal Reserve B anks and Branches up to the closing hour, one-thirty p.m., Eastern Standard Tim e, M onday, M arch 31, 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 competitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may 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 B anks or Branches on application therefor. Banking institutions generally may subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others th an 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 tru st 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 th e 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 trust 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 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 h e 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, noncompetitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted competitive bids for the 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 April 3, 1969, in cash or other im mediately available funds or in a like face am ount of T reasury bills m aturing April 3, 1969. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p a r 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 th e 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 he 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 te re st 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 Treasury bills (other than life insurance com panies) 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 the taxable year for which the return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of th e T reasury bills and govern the conditions of th eir 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 th e a b o v e a n n o u n c e m e n t , t e 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 , Houston a n d San A n to n io up to tw e lv e - th ir ty p .m ., Central S t a n d a r d Time, M o n d a y , M a rc h 3 1 , 1969. T e n d e rs m a y not be en te re d by telephone. Y ours v e r y truly, P. E. Cold w ell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approximate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue Ju n e 26, 1969 Due Septem ber 25, 1969 $2,812,713,000.................... ....................................... .T otal Applied F o r_______________ _______________ $2,244,400,000 $1,600,123,000________________________________ T otal A ccep ted ----------------------------------- ------------$1,100,616,000 Price Yield Price Yield 98.503_____ ___ 5.922% __________________________H igh______________________96.932___________ 6.069% 98.493 .....5.962% __________________________ Low......................................... -.96.912____________6.108% 98.497 5.946% ( 1 ) _____________________Average................................. ...... 96.918____________6.096% (1 ) ( 1 ) T h e s e r a te s a r e o n a b a n k d isc o u n t b a sis. T h e e q u iv a l e n t c o u p o n issue y ield s a r e 6 . 1 2 % t h e 1 8 2 - d a y b ills . f o r t h e 9 1 - d a y b ills, a n d 6 . 3 8 % for (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 M a tu rin g J u ly 3 ,1 9 6 9 D a t e d J a n u a r y 2, 1 9 6 9 To: Federal R eserve Bank, Station K, Dallas, T exas 75222 or— The___________________________ Branch E l P aso 79999 H o u sto n 77001 S a n A ntonio 78206 (D ate ) P u rsu an t to the provisions of T reasu ry D epartm ent Circular No. 418 (current revision) and th e 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 fo r th e am ount allotted, on o r before the issue date, by the method and a t the ra te indicated. N O N C O M P E T I T I V E T E N D E R $____________________________________________N O T T O E X C E E D $ 2 0 0 ,0 0 0 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full a t the price (in three decimals) of accepted competitive bids. (*" 4 ----------------------------- $_ C O M P E T IT IV E T E N D E R S -@ - _@_ 4 - ----------------------------___________________ $- average Prices should be ex pressed on the basis of 100, w ith not more th a n th r e e d ecim al p la ce s, e. g., 99.925. F ractio n s m ust not be used. IKs 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 T” * CLOSING HOUR, A RE A CC EPTA BLE. Paym ent for this issue of bills cannot be made D en o m in atio n s D esired by credit to T reasury T ax and Loan Account. N u m b er of M a t u r i t y V a lu e P ie c e s (a) $ (a), $ 5 ,0 0 0 $. (5) $ C) $ n METHOD OF PAYM ENT 1 ,0 0 0 $- 1 0 ,0 0 0 ?- □ 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) $ 1 0 0 ,0 0 0 $- □ 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) $ 5 0 0 ,0 0 0 ?- I I D r a f t e n c lo s e d (Effectual delivery of enelomd d ra ft 5 0 ,0 0 0 ?- s h a ll b e o n la te s t day w h ic h will p e r m i t p r e s e n t m e n t i n o r d e r to o b t a i n ir r e v o c a b ly co llected f u n d s o n p a y m e n t d ate) (a) ?1 ,0 0 0 ,0 0 0 t D e liv e ry I n s tr u c tio n s : ( S u b s c r i b e r ’s f u ll n a m e o r c o r p o r a t e t i t l e ) □ 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 □ ( A ddreaa) By_ ( A u t h o r i z e d official s i g n a t u r e a n d t i t l e ) S h i p t o ----------------------------------------------( F o r t h e a c c o u n t of, i f t e n d e r is f o r a n o t h e r s u b a c r i b e r ) (Addresa) IMPORTANT 1. No tender for 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 value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of th e United States, w ith notation on the envelope reading “TENDER FOR TREASURY O FFERIN G .” Since envelopes re ceived with th is 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 a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank or appropriate 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 partnership it should be signed by a m em 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. 6 . If th e language of th is form is changed in any respect, which, in the opinion of the S ecretary of th e T reasury is m a te rial, the ten d er m ay be disregarded. (See reverse for announcem ent)