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FEDERAL RESERVE BANK OF DALLAS
FISC A L AG EN T O F T H E UNITED STATES

D A LL A S, T E X A S 7 5 2 2 2
Circular No. 69-79
April 2, 1969
NEW OFFERING — TREASURY BILLS
To All B a n k in g In stitutions a n d O th e r s C o n c e r n e d
in t h e Eleventh 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 ited to the 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 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 April 10, 1969, in the am ount of
$2^707,655,000, as follows:
91-DAY B U .L S (to m aturity date) to be issued April 10, 1969, in the am ount of $1,600,000,000, or there­
abouts, representing an additional am ount of bills dated Janu ary 9, 1969, and to m ature Ju ly 10, 1969,
originally issued in the am ount of $1,101,815,000, 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 10, 1969, and to m ature October 9, 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
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
Standard Tim e, Monday, April 7, 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 th e 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 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 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 R eserve B anks and Branches, following which
public announcem ent will be m ade by the T reasury D epartm ent of th e am ount and price range of accepted bids. Those
subm itting tenders will be advised of th e acceptance or rejection thereof. T he Secretary of the Treasury expressly reserves the
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 th e 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 R eserve B ank on April 10, 1969,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing April 10, 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 he income derived from T reasury 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 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 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 interest. 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, redeemed or otherwise disposed of, and such bills are excluded from consideration as
c a p i t a l 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 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 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 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 aso,
Houston a n d San A n to n io up 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 , April 7, 1969. T end ers m a y not
be e n t e r e d b y t e l e p h o n e .
Y ours v e r y truly,
P. E. C oldwell
P re sid e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approximate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue July 3, 1969
D ue October 2, 1969
$2,382,434,000______ __
________ T otal Applied For.................. ................................-.......... $2,165,000,000
$1,601,309,000_______________ . . . _____________T otal Accepted_____________________ ____ ___ -....$1,100,454,000
Price
Yield
Price
Yield
98.475____________ 6 .0 3 3 % . ... _____________________ H igh____________________96.906____________ 6.120%
98.459____________ 6.096%
_______________ ____ Low_______________ ....96.892______________ 6.148%
98.467____________ 6.065% ( 1 ) ___________________ Average__________________ 96.898____________ 6.136%
(1 )
( 1 ) T h e s e r a te s a r e o n a b a n k d is c o u n t b asis. T h e e q u i v a le n t cou p o n issue y ie ld s a r e 6 .2 4 % fo r t h e 9 1 - d a y b ills , a n d 6 . 4 2 %
t h e 1 8 2 -d a y bills.

fo r

(See reverse aide for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

TENDERS FOR TREASURY BILLS

182 DAYS TO MATURITY
D ated April 10, 1969

M aturing October 9, 1969

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

NONCOMPETITIVE T E N D E R ?_

_NOT TO EXC E E D $200,000

Noncompetitive tenders fo r $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 decim al p la c e s,
e. g., 99.925. F ra ctio n s
m ust not be used.

COMPETITIVE T E N D E R S < S_
‘

45

/$ _

-

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 CC EPT A B L E .
P aym ent fo r this issue of bills cannot be m ade
by credit to T reasury T ax and Loan Account.

D enominations Desired
Number of
Pieces

m
m

Maturity Value

METHOD OF PAYM ENT

$

1,000 $-

?

5,000 $-

<) ?
S
-(5) ¥

10,000 ?.

J ?
®

100,000 ?.

□

? 500,000
$1 ,000,000 *

□

□
□

B y m aturing bills
held b y _____________________
P aym ent to be m ade by_

50,000 $Charge our reserve account on p aym ent
date
D raft enclosed (Effectual dellY.rr of entlOMd draft

shall be on latest day which will permit presentment In
order to obtain irrevocably collected funds on paym ent
date)

Delivery Instructions:
( Subscriber's full nam e or corporate title)

□

Hold in Custody Account— Member
banks for own account only

□

Pledge to secure Treasury Tax and
Loan Account

□

( A ddresa)

B y-

(Authorized official signature and title)

Ship to___________________________
(For the account of, i f tender is for another aubacriber)

(A d d rea a)

IMPORTANT
1. No tender fo r less than $1,000 will be considered and each tender m u st be fo r an am ount in m ultiples of $1,000 (m a tu rity
value).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or approp riate branch as Fiscal A gent of th e
United S tates, w ith notation on the envelope reading “TENDER FOR TREA SU R Y O FFE R IN G .” Since envelopes r e ­
ceived w ith th is legend will not be opened until a fte r the closing tim e specified in the public announcement, com muni­
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 th is
bank or appropriate branch.
3. Any qualified or conditional tender will be rejected.
i. If a corporation m akes the tender, th e form should be signed by an officer of the corporation authorized to m ake th e
tender and a t th e signing of the form by an officer of the corporation will be construed as a representation by him th a t h e
has been so authorized. If the tender is made by a partnership it should be signed by a mem ber of th e firm, who
should sign in th e 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 in in vest­
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 reasu ry bills applied for, o r unless the tenders are accompanied by an 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 th is form is changed in any respect, which, in the opinion of th e S ecretary of the T reasu ry is m a te ­
rial, the tender m ay be disregarded.
(See reverse for announcem ent)

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