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F ederal R eserve Bank o f D allas FIS C A L A G EN T O F T H E UN ITED S T A T E S DALLAS, TEXAS 7 5 2 2 2 Circular No. 69-100 April 23, 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 th e E le venth F e d e r a l R eserv e District: Your 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 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 M ay 1, 1969, in th e am ount of $2,701,238,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued M ay 1, 1969, in the am ount of $1,600,000,000, or thereabouts, representing an additional am ount of bills dated Ju ly 31, 1968, and to m ature Ju ly 31, 1969, orig in a"" issued in the am ount of $1,000,963,000 (additional amounts of $501,533,000, $1,103,254,000, and $200,365,000 were issued October 31, 1968, January 30, 1969, and M arch 3, 1969, respectively), 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 M ay 1, 1969, and to m ature O ctober 30, 1969. T he bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at m aturity their face am ount will be payable w ithout 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 aturity value). T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving Tim e, Monday, April 28, 1969. Tenders will not be received a t th e 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 must 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 an d forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. B anking institutions generally may subm it tenders for account of customers provided th e 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 th eir 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. T enders 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 th e Federal Reserve Banks and Branches, following which public announcem ent will be m ade by the Treasury 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 h e Secretary of th e Treasury expressly reserves the righ 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 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 th e 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 M ay 1, 1969, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M ay 1, 1969. Cash and exchange tenders will receive equal tre a tm e n t Cash adjustm ents will be m ade for differences between th e p ar value of m atur ing bills accepted in exchange and the issue price of the 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 h e bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but are exempt 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 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 th a n life insurance com panies) issued hereunder need include in his income tax return only the difference between th e 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 retu rn 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 a so , H o u sto n a n d San A n to n io u p to t w e l v e - th ir ty p .m ., Central D a ylig ht S av in g Time, M o n d a y , April 2 8 , 1 9 6 9 . T e n d e rs m a y not b e 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. Co ldw ell P r e s id e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approxim ate Yield of Accepted Tenders 91-Day Bills D ue Ju ly 24 ,1969 $2,628,406,000_ $1,600,981,000.. Price Yield 98.445________ .6.152% ____ 98.436________ ..6.187% ____ ..6.175% ( 1 ) . 98.439________ -T o tal Applied For_ __ T otal A ccepted__ ....High..... __ Low_ _ -Average.. 182-Day Bills D ue October 23, 1969 -$2,502,190,000 ..$1,102,571,000 Price Yield __96.892_ ___6.148% _.96.881__ ___6.169% _.96.884_. ___6.164% (1) ( 1 ) T h e s e rates are on a bank d iscount basis, The equivalent coupon issue yields are 6.36% for the 91-day bills, and 6.4 5% for th e 182-day b i ll s . (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 31,1969 D ated July 31,1968 T o: Federal R eserve Bank, Station K, Dallas, T exas 75222 or— T he__________________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 (D a te ) P u rsu a n t to th e provisions of T reasu ry 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 unuersigned 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 the ra te indicated. NONCOMPETITIVE T E N D E R $___________________________________ _NOT TO E X C E E D $200,000 Noncompetitive tenders fo r $200,000 or less from any one bidder, without stated price, will be accepted in full a t the average price (in three decimals) of accepted competitive bids. ($ . COMPETITIVE T E N D E R S < f (5 - Prices should be ex ________ @ _________ $ _________________________pressed on the basis of „ q, 100, w ith not more than ------------ © --------------'P--------------------------------------t h r e e d ecim al p laces, ________ @ _________ &_________________________ e. g., 99.925. F ractions m ust not be used. J S r TEN D ERS MAY NOT BE E N T E R E D BY TE L EPH O N E . T EN D ERS BY W IRE, I F RECEIV ED BEFO RE TH E CLOSING HOUR, ARE ACCEPTABLE. P aym ent fo r this issue of bills cannot be made D enominations Desired by credit to T reasu ry Tax and Loan Account. N um ber of M aturity Value P ie c e s <> ? £ <> ? S (a) $ 5,000 ¥ 10,000 ? (ft) $ METHOD OF PAYM ENT 1,000 $ 50,000 $ □ □ a» $ 500,000 $ (a) $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 a te ] D e liv e ry I n s tr u c tio n s : □ P a y m e n t to b e m a d e by_ □ (5) $ 100,000 $. B y m a t u r i n g b ills h e l d b y ____________ D r a f t e n c l o s e d ( E f f e c t u a l d e l iv e r y o f e n c lo s ed d r a f t 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 to o b t a i n irr 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) ( 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 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. S h i p t o _______________________________ ( A u th o r iz e d official s i g n a t u r e a n d ti tle ) ( 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 ddress) IMPORTANT 1. No tender fo r less th a n $1,000 will be considered and each tender m ust be for an am ount in m ultiples of $1,000 (m atu rity value). 2. Tenders should bs forw arded in an envelope clearly addressed to this bank or app ropriate branch as Fiscal A gent of the U nited S tates, w ith notation on the envelope reading “T EN D ER FOR TREASURY O FFERIN G .” Since envelopes re ceived w ith this legend will not be opened until a fte r th e closing time specified in th e 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 this bank or ap p ro p 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 th e 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 tend er is made by a partnership it should be signed by a mem ber of th e firm, who should sign in the form “.................................................. , a copartnership, by............................................................................................ , a member of the firm.” 5. Tenders from those other than 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 aturity value) of the 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 th e language of this form is changed in any respect, which, in the opinion of the S ecretary of the T reasury is m ate rial, the tender m ay be disregarded. (See reverse fo r announcem ent)