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F ederal r eser ve Bank o f D allas FIS C A L A G E N T O F T H E U N ITED ST A T E S DALLAS, T E X A S 7 5 2 2 2 Circular No. 69-101 April 23, 1969 NEW OFFERING — TREASURY BILLS To All B a nk ing Institutions a n d O th e r s C o n c e r n e d in th e E leventh F e d e r a l Reserve District: Your a t t e n t i o n is in vited to t h e fo llo w in g s t a t e m e n t giv in g d e ta ils 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 Treasury bills m aturing M ay 1, 1969, in the 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 July 31, 1969, originally issued in th e 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 BILLS for $1,100,000,000, or thereabouts, to be dated M ay 1, 1969, and to m ature October 30, 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 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 atu rity value). Tenders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Monday, April 28, 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 competitive 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 at 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 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 their 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. 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 trust 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 Treasury 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 h e Secretary of the Treasury expressly reserves the right 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, noncom petitive 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 com pleted a t the Federal Reserve B ank on M ay 1, 1969, in cash or other im mediately 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 treatm ent. Cash adjustm ents will be made for differences between the par value of m atur ing bills accepted in exchange and the issue price of th e new bills. The income derived from Treasury bills, w hether interest or gain from the sale or other disposition of th e 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 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 United States, or by any local taxing authority. F o r 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, redeemed 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 (current revision) and this notice, prescribe the term s of th e T reasury bills and govern the conditions of their issue. Copies of the circular m ay 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 rec eiv 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 o u sto n a n d San A n to n io u p to tw e l v e - th ir ty p.m ., Central D a y ligh t S av ing Time, M o n d a y , April 2 8, 1969 . T en d e rs m a y not b e entered by telephone. Yours v e r y truly, P. E. Co ldw ell P re s id 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 Ju ly 24 ,1969 D ue October 23, 1969 $2,628,406,000-------------------------------- --------------Total Applied F o r_______________________________ $2,502,190,000 $1,600,981,000---------------------------------------- ------- .Total Accepted_________________________ _______$1,102,571,000 Price Yield Price Yield 98.445 6.152% _________________________H igh_________ ____ ________ 96.892___________ 6.148% 98.436 6.187% _______________ __________ Low_______________ __ ____ 96.881____________ 6.169% 98.439--------__6.175% ( 1 ) __________ ______ ___Average....... .................. ............... 96.884___________ 6.164% (1 ) ( 1 ) T h e s e ra t e 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 iv a le n t c o u p o n issue y ie ld s a r e 6 . 3 6 % fo r t h e 9 1 - d a y b ills, a n d 6 . 4 5 % fo r th e 1 8 2 - d a y bills. (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 TREASURY BILLS 182 DAYS TO MATURITY M aturing October 30 ,1 9 6 9 D ated May 1,1969 T o: Federal R eserve Bank, Station K, Dallas, T exas 75222 or— The__________________________________ Branch E l Paso 79999 Houston 77001 San Antonio 78206 (D a te ) P u rsu an t to the provisions of T re asu 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 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. 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 a t the average price (in three decimals) of accepted competitive bids. (*/ COMPETITIVE T E N D E R S * H- Prices should be ex pressed on the basis of 100, w ith not more th an ------------------------------ t h r e e d ec im a l p la c e s, ____________________ e. g., 99.925. F ractions m u st not be used. ____________________ -@ - @ . 5® = TEN D ERS MAY NOT BE E N T E R E D BY TELEPH O N E. TEN D ERS BY W IRE, IF RECEIV ED BEFO RE TH E CLOSING HOUR, ARE ACCEPTABLE. Paym ent fo r this issue of bills cannot be made by credit to T reasu ry Tax and Loan Account. Denominations Desired N um ber of P ie c e s Maturity Value (a) ? (® ¥ METHOD OF PAYM ENT 1,000 $ (Si ? $ B y m a t u r i n g b ills h e l d b y ____________ □ 5,000 ? 10,000 $ (Si □ P a y m e n t to be m a d e by_ 50,000 $ □ @ $ 100,000 $ (a) $ 500,000 $ C h a rg e o u r rese rv e accou nt 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 t u a l d e liv e r y o f enc losed d r a f t sh all be on la t e s t day w h ic h will p e r m i t p r e s e n t m e n t in o r d e r t o o b t a i n ir r e v o c a b ly co llected f u n d s o n p a y m e n t date) (5) $1:,000,000 $ D e liv e ry I n s tr u c tio n s : □ □ 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 ( S u b s c r ib e r ’s f u ll n a m e o r c o r p o r a t e ti tle ) 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 □ (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, if 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 for less th a n $1,000 will be considered and each tender m ust be for 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 the United S tates, w ith notation on the envelope reading “T EN D ER FOR TREA SU RY O FFE R IN G .” Since envelopes re ceived w ith this legend will not be opened until a fte r th e closing tim e specified in th e 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 this bank or ap pro priate branch. 3. Any qualified or conditional tender will be rejected. 4. If a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to make 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 partnprship it should be signed by a mem ber of the 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 tr u s t company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the T reasury is m a te rial, the tender m ay be disregarded. (See reverse for announcem ent)