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Reserve Ba n k





Circular No. 69-177
July 17, 1969


To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statement giving details of two issues of Treasury bills:
T h e T reasury D epartm ent, b y this public notice, invites tenders for tw o series o f Treasury bills to th e aggregate am ount
o f $1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing J u ly 31, 1969, in the am ount of
$4,409,468,000, as follow s:
273-D A Y B IL L S (to m aturity d a te) to be issued July 31, 1969, in the am ount o f $500,000,000, or thereabouts,
representing an additional am ount of bills dated April 30, 1969, and to m ature A pril 30, 1970, originally
issued in the am ount of $1,000,634,000, th e additional and original bills to be freely interchangeable.
365-D A Y B IL L S for $1,200,000,000, or thereabouts, to be dated J u ly 31, 1969, and to m ature Ju ly 31, 1970.
T he bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form only, and in
denom inations o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e ).
T enders w ill be received at Federal R eserve B anks and Branches up to the closing hour, one-thirty p.m ., E astern D a y­
ligh t Saving T im e, Thursday, July 24, 1969. T enders w ill not be received a t the Treasury D epartm ent, W ashington. Each
tender m ust be for an even m ultiple of $1,000, and in the case o f com petitive tenders the price offered m ust be expressed on the
basis of 100, w ith not m ore than three decim als, e.g., 99.925. Fractions m ay not be used. (N otw ith stand in g the fact th at th e oneyear bills w ill run for 365-days, the discount rate w ill be com puted on a bank discount basis o f 360-days, as is currently the
practice on a ll issues of Treasury b ills.) It is urged that tenders be m ade on th e printed form s and forwarded in th e special
envelop es which w ill be supplied by Federal R eserve Banks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account o f custom ers provided th e nam es o f th e custom ers are
set forth in such tenders. Others than banking institutions w ill not be perm itted to subm it tenders except for their own account.
Tenders w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others m utt be accom panied by paym ent o f 2 percent o f th e face am ount o f
Treasury bills app lied for, unless the tenders are accom panied by an express guaranty o f paym ent b y an incorporated bank or
trust com pany.
Im m ediately after th e closing hour, tenders w ill be opened a t th e Federal R eserve B anks and Branches, follow ing which
public announcem ent w ill be m ade by th e Treasury D epartm en t o f th e am ount and price range of accepted bids. T hose
subm itting tenders w ill be advised of the acceptance or rejection thereof. T he Secretary o f the Treasury expressly reserves the
right to accept or reject any or all tenders, in w hole or in part, and h is action in any such respect shall be final. Subject to
these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder w ill be
accepted in full a t the average price (in three decim als) o f accepted com petitive bids for the respective issues. S ettlem en t for
accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t the Federal R eserve B ank on July 31, 1969,
in cash or other im m ediately availab le funds or in a lik e face am ount o f T reasury bills m aturing J u ly 31, 1969. Cash and
exchange tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een th e par value o f m aturing
bills accepted in exchange and the issue price of the new bills.
T h e incom e derived from Treasury bills, w hether interest or gain from th e sale or other disposition o f th e bills, does not
have any exem ption, as such, and loss from the sale or other disposition o f Treasury b ills does not have any special treatm ent,
as such, under the Internal R evenue Code of 1954. T h e 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 im posed on th e 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 th e am ount o f discount
at which Treasury bills are originally sold by the U n ited States is considered to be interest. Under Sections 4 54 ( b ) and 1221 ( 5 )
of the Internal R evenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is not considered to
accrue until such bills are sold, redeem ed or otherwise disposed of, and such b ills are excluded from consideration as capital
assets. Accordingly, th e owner of Treasury bills (other than life insurance com panies) issued hereunder need include in his
incom e tax return only the difference betw een 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 th e taxable year for which th e return is
m ade, as ordinary gain or loss.
Treasury D epartm ent Circular No. 4 18 (current revision ) and th is notice, prescribe th e term s o f th e Treasury bills and
govern th e conditions of their issue. C opies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In accordance with the above announcement, tenders w ill be received at this bank and its branches a t El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Thursday, July 24, 1969. Tenders may
not be entered by telephone.

Yours very truly,
P. E. Coldwell

(S ee reverse side for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated July 31,1969

Maturing July 31,1970

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_______________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78206

(D ate)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.


NOT TO EXCEED $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, with not more than
-------------------------------------- ------v----------------------------------three decimal places,
/$ __________________ @ ________ $_______________________
e. g., 99.925. Fractions
must not be used.
Denominations Desired
N um ber of
P ieces

M a tu rity V alu e


Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.







By m aturing bills
held by___________________________
Payment to be made by_____________





Charge our reserve account on payment


| D r a f t e n c l o s e d ( E f f e c t u a l d e liv e r y o f e n e lo s e d
d r a f t s h all be on la te st d ay w hich w ill p e rm it p re s e n t­
m e n t in o rd e r to o b ta in irrevocably collected fu n d s on
p a y m e n t d a te )

$1,000,000 $_
Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□ Ship to______________________ __

(S u b scrib er’s fu ll n am e o r c o rp o ra te title )
(A ddress)


(A uthorized official s ig n a tu re a n d title )

(F o r th e acco u n t of, if te n d e r is f o r a n o th e r su b sc rib e r)

(A ddress)

1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes
received with this legend will not be opened until after the closing time specified in the public announcement, communi­
cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this
bank or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him that he
has been so authorized. If the 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 than incorporated banks and trust companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or trust company.
6 If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.

( e r v r ef ra n u c m n )
Se ees o n o n e e t

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