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F ed er a l r e s e r v e Ba n k o f D alla s 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. 69-82 April 9, 1969 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O th ers C o n c e r n e d in t h e E leventh F e d e r a l R eserve District: Y o u r a t te n t io 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 il s o f t w o iss u e s of T re a s 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 17, 1969, in the am ount of $2,703,296,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued April 17, 1969, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated Janu ary 16, 1969, and to m ature Ju ly 17, 1969, originally issued in the am ount of $1,100,670,000, 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 17, 1969, and to m ature October 16, 1969. T he bills of both series will be issued on a discount basis under com petitive 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 Banks and Branches up to the closing hour, one-thirty p.m., Eastern S tandard Tim e, M onday April 14, 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 may not be used. It 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 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 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 he Secretary of the T reasury 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 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 17, 1969, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing April 17, 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 the new bills. T he income derived from T reasury 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 T reasury 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. F or purposes of taxation the am ount of discount a t which T reasury bills are originally sold by the U nited States is considered to be interest. U nder Section 454 (b ) and 1221 (5 ) of the Internal Revenue Code of 1954 the am ount of discount at 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 companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether 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 retu rn is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms 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 , 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 ouston a n d San 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 , April 14, 1969. T en ders m a y not be e n t e r e d b y t e l e p h o n e . Yours very truly, P. E. Coldw ell P re sid e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approximate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue Ju ly 10, 1969 D ue October 9, 1969 $2,772,193,000------------------------- -------- ----------- T otal Applied F o r______________ _______ ________ $2,367,906,000 $ 1,600,109,000----------------------------------- ------------- T otal A ccepted__________________ __ ___________ $ 1,100,553,000 Price Yield Price Yield 98.446 6.148% _____ ____________________ H igh_____________________ 96.880___________ 6.171 % 98.438- __________ 6.179% __________ ____________ Low _____________________ 96.866___________ 6.199% 98.441__.__________6.167% ( 1 ) _________ ____ ______ Average____ ______________ 96.873___________ 6.185% (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 . 3 5 % fo r t h e 9 1 - d a y b ills, a n d 6 . 4 7 % fo r t h e 1 8 2 - d a y b ills . (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 aturing July 17, 1969 D ated January 16, 1969 T o: Federal R eserve Bank, S tation K, Dallas, T exas 75222 or— The__________________________________ Branch E l Paso 79999 Houston 77001 San Antonio 78206 (D ate) P u rsu a n t to th e provisions of T re asu ry D epartm ent Circular No. 418 (current revision) and th e provisions of the public announcement issued by th e 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 the am ount allotted, on or before the issue date, by the method and a t th e ra te indicated. _NOT TO E X C E E D $200,000 NONCOMPETITIVE 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 average price (in three decimals) of accepted competitive bids. Prices should be ex pressed on the basis of 100, w ith not m ore th a n (a) COMPETITIVE T E N D E R S ¥ t h r e e d ec im a l p la c e s , e. g., 99.926. F ractions $ $ • @ m ust not be used. TEN D ERS MAY NOT BE E N T E R E D BY TELEPH O N E. TEN D ERS BY W IRE, IP REC EIV ED BEFO RE T H E ~ CLOSING HOUR, ARE ACCEPTABLE. Paym ent fo r this issue of bills cannot be m ade D enominations Desired by credit to T reasury T ax and Loan Account. N um ber of M a t u r i t y V a lu e P ie c e s (ffi $ (5) ? (a) ? 5,000 ? 10,000 ? <a ? METHOD OF PAYM ENT 1,000 $ 50,000 $ □ □ P a y m e n t to b e m a d e by_ □ @ $ 100,000 $ (a) $ 500,000 $ B y m a t u r i n g b ills h e l d b y ____________ C h a rg e o u r re se rv e account on p a y m e n t d ate D r a f t e n c lo s e d ( E f f e c tu a l d e l iv e r y o f e n c lo se d d r a f t IH s h a ll b e o n l a t e s t d a y 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 t o o b t a i n i r r e v o c a b ly collected f u n d s o n p a y m e n t d ate) (a) $1 ,000,000 ? D e liv e ry I n s tr u c ti o 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 ddress) By(A u th o r iz e d official s i g n a t u r e a n d ti t l e ) S h i p t o ------------------------------------------------ ( F o r t h e a c c o u n t o f, i f t e n d e r is f o r a n o t h e r s u b s c r i b e r ) (A d d ress) IMPORTANT 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 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 U nited S tates, w ith notation on the envelope reading “TEND ER FOR TREASURY O FFERIN G .” Since envelopes r e ceived w ith this legend will not be opened until a fte r th e closing time specified in the public announcement, communi cations relatin 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. 4. 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 the signing of th e 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 member of the firm, who should sign in the form “.................................................., a copartnership, by............................................................................................ , a member of the firm.” 5. Tenders from those other th an incorporated banks and tru 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 aran ty of full paym ent by an incorporated bank or tru s t company. 6. If the language of this form is changed in any respect, which, in the opinion of the S ecretary of the T reasury is m a te rial, the tender m ay be disregarded. (See reverse fo r announcem ent)