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F ederal reserve


B ank o f


DALLAS, TEXAS 7 5 2 2 2
Circular No. 69-78
A pril 2, 1969



To AH Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the following statement giving dr . >


, issues of Treasury bills:
oi Treasury bills to the aggregate amount of

T he Treasury Departm ent, b y this public notice, invites tenders . ;
$2,700,000,000, or thereabouts, for cash and in exchange for T ,
$2,707,655,000, as follow s:

maturing A pril 10, 1969, in the am ount o f

9 1 -D A Y B IL L S (to m aturity date) to be issued A pril U
abouts, representing an additional am ount of bills da
originally issued in the amount o f $1,101,815,000, the ad

. !

18 2 -D A Y B IL L S for $1,100,000,000, or thereabouts, to be


T h e bills of both series will be issued on a discount basis u,
provided, and at maturity their face amount will be payable without:
denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,00;

i 69, and to mature O ctober 9, 1969.
; d noncompetitive bidding as hereinafter
ill be issued in bearer form only, and in
« (maturity valu e).
be closing hour, one-thirty p.m., Eastern
••asury Departm ent, Washington. Each
- the price offered must be expressed on
used. It is urged that tenders be made
Federal Reserve Banks or Branches on

Tenders will be received at Federal Reserve Banks and

Standard T im e, M on day, A pril 7, 1969. Tenders will not be
tender must be for an even m ultiple of $1,000, and in the case of
the basis of 100, with not more than three decimals, e.g., 99.925.
on the printed forms and forwarded in the special envelopes whir
application therefor.
Banking institutions generally m ay submit tenders for ne
set forth in such tenders. Others than banking institutions will not
Tenders will be received without deposit from incorporated bar"
dealers in investment securities. Tenders from others must be act
Treasury bills applied for, unless the tenders are accompanied hy trust company.
Immediately after the closing hour, tenders will be open„«i
public announcement will be made by the Treasury Departm .
submitting tenders will be advised of the acceptance or rejection tit right to accept or reject any or all tenders, in whole or in part,
these reservations, noncompetitive tenders for each issue for $200.
accepted in full at the average price (in three decimals) of accepts:..
accepted tenders in accordance with the bids must be made oi
in cash or other immediately available funds or in a like face
exchange tenders will receive equal treatment. Cash adjustments
ing bills accepted in exchange and the issue price of the new bills.

mount of $1,600,000,000, or there­
and to mature July 10, 1969,
bills to be freely interchangeable.

provided the names of the customers are
ibmit tenders except for their own account.
niea and from responsible and recognized
ryment o f 2 percent of the face amount of
of payment by an incorporated bank or


,■# Banks and Branches, following which
-;:d price range of accepted bids. Those
vry of the Treasury expressly reserves the
any such respect shall be final. Subject to
^ it stated price from any one bidder will be
bids for the respective issues. Settlem ent for
Fe deral Reserve Bank on April 10, 1969,
ills maturing A pril 10, 1969. Cash and
differences between the par value of matur­

The income derived from Treasury bills, whether interest o t
b v ,- ; ^ther disposition of the bills, does not
have any exemption, as such, and loss from the sale or other disposition ' Trc^tury. bills does not have any special treatment,
as such, under the Internal Revenue Code of 1954. T h e bills ar© sub." r ; »nce, gift or other excise taxes, whether
Federal or State, but are exempt from all taxation now or hereaF: : ; mo
: be principal or interest thereof by any State,
or any of the possessions of the United States, or b y any local ta:
purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United State;
interest. Under Sections 4 5 4 ( b ) and
1221 ( 5 ) of the Internal Revenue Code of 1954 the amount of dir.eotmt t
: h bill- issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redeemed or otherwise disport
such bills are excluded from consideration as
capital assets. Accordingly, the owner of Treasury bills (other than 5
-:"panies) issued hereunder need include
in his income tax return only the difference between the price paid for ?
bather on original issue or on subsequent
purchase, and the amount actually received either upon sale or redejr. '
hiring the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 4 1 8 (current revision) and b
govern the conditions of their issue. Copies o f the circular may be obts.hs

4us the terms o f the Treasury bills and
- deral Reserve Bank or Branch.

In accordance with the above announcement, tenders will be fee
Houston and San Antonio up to twelve-thirty p.m., Central Stcm Ji. b
be entered by telephone.

n? this bank and its branches at El Paso,
Monday, April 7, 1969. Tenders may not
-urs very truly,
P. E. Coldwell

Am ount, Range and Approximate ‘

91-D ay B ills
D ue July 3, 1969
$2,382,434,000___________________________________ T otal Applied i*
$1,601,309,000_____________________________________ T otal A c c e p t' 4

Y ield

182-D ay Bills
D u e O ctober 2, 1969
__________________ $2,165,000,000
.......... .................... .$1,100,454,000

98.475_______________ 6 .0 3 3 % ___________________________ Higia
98.459_______________ 6 .0 9 6 % ____________________________ Lov . .
98.467_______________ 6 .0 65 % ( 1 ) _____________________ Averafe?
(1 ) These rates are on a bank discount basis. The equivalent coups
the 182-day bills.

Y ield

96.906______________ 6.1 20 %
96.892_______________ 6 .1 48 %
96.898______________ 6 .136%

(1 )

" <■% for the 91-day bills, and 6.42% for

(S e e reverse side fov

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


M a tu rin g J u ly 1 0 ,1 9 6 9

D a t e d J a n u a r y 9, 1 9 6 9

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

El Paso 79999

Houston 77001

S an Antonio 78206

(D ate)

P ursu an t to th e provisions of T reasury D epartm ent Circular No. 418 (cu rren t revision) and th e provisions of th e
public announcem ent issued by the T reasu ry 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 or before the issue date, by the method and a t th e ra te indicated.
J N O T T O E X C E E D $ 2 0 0 ,0 0 0

N O N C O M P E T I T I V E T E N D E R $_

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full a t the averag e
price (in three decimals) of accepted competitive bids.



Prices should be ex­
pressed on the basis of
100, w ith not more th a n
t h r e e d ecim al p la c e s,
e. g., 99.925. F ra ctio n s
m ust not be used.

_@ _

£ 5 ^ 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
P aym ent fo r this issue of bills cannot be m ade
D enominations Desired
by credit to T reasury Tax and Loan Account.
Number of
M a t u r i t y V a lu e

.(ft $


5 ,0 0 0 s.

(a) $

1 0 ,0 0 0 $-

(a) ?

5 0 ,0 0 0 ?

m. ?
(a) ?


1 ,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_

1 0 0 ,0 0 0 $-


C h a rg e o u r rese rv e account on p a y m e n t
d ate

5 0 0 ,0 0 0 $.


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

(Effectual delivery o f enclosed d raft
ahaU be on latest day which will permit presentment in
order to obtain irrevocably collected funda o n paym ent

$1 ,0 0 0 ,0 0 0 ?-

D e liv e ry I n s tr u c ti o n s :
( Sub«criber*a 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




S h i p t o _______________________________

(Authorized official signature and title)

(F or the account of, if tender is 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 m ultiples of $1,000 (m a tu rity
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 FFER IN G .” Since envelopes r e ­
ceived with this legend will not be opened until a fte r the closing tim e specified in the public announcement, com muni­
cations relatin g to other m a tte rs should not be enclosed. Envelopes for subm itting tenders may be obtained from th is
bank or appropriate branch.
3. Any qualified or conditional tender will be rejected.
1. If a corporation m akes the tender, the 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 th e corporation will be construed as a representation by him th a t h e
has been so authorized. If the ten d er is made by a partnership it should be signed by a m em ber of the 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 tru s t companies or responsible and recognized dealers m in v est­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m atu rity value)
of the T reasury bills applied for, or unless the tenders are accompanied by a n express g u ara n ty of full paym ent by a n
incorporated bank or tru s t company.
6. If the language of this form is changed in any respect, which, in the opinion of th e S ecretary of the T reasury is m a te ­
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