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F ederal R eserve Ba nk o f Dallas
F IS C A L A G EN T O F T H E U N ITED STA T E S

D A L L A S, T E X A S 7 5 2 2 2
Circular No. 69-91
April 16, 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 rn e d
in th e E leventh F e d e r a l Reserve District:
Y ou r a t t e n t i o n is in v ited to th e fo llo w in g s t a t e m e n t giving d e t a il s o f t w 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 the aggregate am ount of
$2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing April 24, 1969, in th e am ount of
$2,703,500,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued April 24, 1969, in the am ount of $1,600,000,000, or there­
abouts, representing an additional am ount of bills dated Jan uary 23, 1969, and to m ature Ju ly 24, 1969,
originally issued in the am ount of $1,097,452,000, 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 24, 1969, and to m ature October 23, 1969.
T h e 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 at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, April 21, 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 the price offered m ust be expressed on
th e 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 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 w ithout 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 th e face am ount of
T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by a n incorporated bank or
tru st company.
Im m ediately after th e closing hour, tenders will be opened a t the Federal R eserve B anks and Branches, following which
public announcem ent will be made 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 the acceptance or rejection thereof. T he Secretary of the T reasury expressly reserves the
rig h t 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 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 24, 1969,
in cash or other im mediately available funds or in a like face am ount of T reasury bills m aturing April 24, 1969. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par 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 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 he bills are subject to estate, inheritance, gift or other excise taxes, whether
F ederal 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. 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 in terest U nder Section 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 than 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 the taxable year for which the
return is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (curren t revision) and this notice, prescribe th e term s of th e 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,
H ou ston a n d S an 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 2 1 , 196 9. T e n d e rs m a y n o t
be e n t e r e d b y t e l e p h o n e .
Yours v ery truly,
P. E. Cold w ell
P re sid e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and Approximate Y ield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue Ju ly 17, 1969
D ue October 16, 1969
$2,605,224,000--------------------------------------------- .Total Applied F o r_______________________________ $2,142,770,000
$1,600,496,000------------------------------ ----------------- .Total A ccepted________________________________ $1,100,441,000
Price
Yield
P rice
Yield
98.447
6.144% ___________ ___________ H igh__________ ______ ____ 96.881___________ 6.169%
98.430____________6.211% _________________________ Low_______________________ 96.862___________ 6.207%
98.434____________6.195% ( 1 ) __________ ____ ____ A verage............... .................. ...... 96.870______ ____ .6.191% (1 )
( 1 ) T h e s e r a t e s a r e o n a b a n k d i s c o u n t b a s i s . T h e e q u i v a l e n t c o u p o n i s s u e y i e l d s a r e 6 .3 8 %
t h e 1 8 2 - d a y b ills .

f o r t h e 9 1 - d a y b i l l s , a n d 6 .4 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
D ated January 23 ,1 9 6 9
To

Maturing July 24, 1969

Federal R eserve Bank, Station K, Dallas, T exas 75222
or—
The__________________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78206

(D ate )

P u rsu a n t to th e provisions of T reasury D epartm en t Circular No. 418 (current revision) and th e provisions of the
public announcem ent issued by th e T reasury D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ount
shown below, and ag rees 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.

NONCOMPETITIVE T E N D E R $_

_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 at 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
t h r e e d ec im a l p la c e s ,
e. g., 99.925. F ractions
m ust not be used.

-(a )-

COMPETITIVE T E N D E R S

V
.

()
a

a

T EN D ERS MAY NOT BE E N T E R E D BY TELEPH O N E. T EN D ERS BY W IRE, IF RECEIV ED BEFO RE T H E
CLOSING HOUR, ARE ACCEPTABLE.
Paym ent fo r this issue of bills cannot be made
by credit to T reasury Tax and Loan Account.

Denominations Desired
Number of
Pieces

M aturity Value

$
$

5,000 $

(3) $

METHOD OF PAYM ENT

1,000 $ .
10,000 $

□
□

(5) $ 500,000 $
(® $1,000,000 $

□
□

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

I | D r a ft
d ate)

( S u b s c r i b e r ’s f u l l n a m e o r c o r p o r a t e 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 s e c u re T r e a s u r y T a x a n d
L oan A ccount

e n c l o s e d (Effectual delivery o f enclosed draft

s h a ll be o n la te s t d ay w h ic h w ill 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 ir r e v o c a b ly collected f u n d s o n p a y m e n t

D e liv e ry I n s tr u c ti o n s :
□

P a y m e n t t o b e m a d e b y ________________

□

(a) $ 50,000 $
(a) $ 100,000 $

B y m a t u r i n g b ills
h e l d b y ____________________________________

(A ddress)

B y_
(Authorized official signature and title)

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 s c r ib e r )

(Address)

IMPORTANT
1. No ten der fo r less th a n $1,000 will be considered and each tender m ust be fo r a n am ount in m ultiples of $1,000 (m atu rity
value).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appro priate branch as Fiscal A gent of th e
United S tates, w ith notation on th e envelope reading “T E N D E R FO R TREA SU RY O FFE R IN G .” Since envelopes re ­
ceived w ith th is legend will not be opened until a fte r th e closing tim e specified in the public announcement, communi­
cations relating to other m a tte rs should not be enclosed. Envelopes for subm itting tenders m ay be obtained from th is
bank or ap prop riate branch.
3. A ny 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 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 the ten der is made by a partnersh ip 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 tr u s t companies o r responsible and recognized dealers in invest­
m en t 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 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)

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