View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal Reserve Bank of Dallas
F I S 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
C ir c u la r N o . 6 9 - 1 7 9
J u ly 2 3 , 1969

N E W OFFERING — TREASURY BILLS
To A ll Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:
Y our attention is invited to the follow ing statement giving details of tw o issues of Treasury bills:
T h e T r e a s u r y D e p a r t m e n t , b y th is p u b lic n o tic e , in v it e s t e n d e r s fo r t w o se r ie s o f T r e a s u r y b ills t o t h e a g g r e g a t e a m o u n t
o f $ 2 ,7 0 0 ,0 0 0 ,0 0 0 , or th e r e a b o u ts , fo r c a sh a n d in e x c h a n g e fo r T r e a s u r y b ills m a tu r in g J u ly 3 1 , 1 9 6 9 , in t h e a m o u n t o f
$ 4 ,4 0 9 ,4 6 8 ,0 0 0 , a s fo llo w s:
9 1 - D A Y B I L L S ( t o m a t u r it y d a t e ) t o b e is s u e d J u ly 3 1 , 1 9 6 9 , in t h e a m o u n t o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 , o r th e r e a b o u ts ,
r e p r e s e n t i n g a n a d d i t i o n a l a m o u n t o f b i l l s d a t e d M a y 1, 1 9 6 9 , a n d t o m a t u r e O c t o b e r 3 0 , 1 9 6 9 , o r i g i n a l l y
is s u e d in t h e a m o u n t o f $ 1 ,0 9 9 ,9 2 1 ,0 0 0 , t h e a d d it io n a l a n d o r ig in a l b ills to b e f r e e ly in te r c h a n g e a b le .
1 8 2 - D A Y B I L L S fo r $ 1 ,1 0 0 ,0 0 0 ,0 0 0 , or th e r e a b o u ts , to b e d a te d J u ly 3 1 , 1 9 6 9 , a n d t o m a tu r e J a n u a r y 2 9 , 1 9 7 0 .
T h e b ills o f b o t h se r ie s w ill b e is s u e d o n a d is c o u n t b a s is u n d e r c o m p e t it iv e a n d n o n c o m p e t it iv e b id d in g a s h e r e in a fte r
p r o v id e d , a n d a t m a t u r it y th e ir fa c e a m o u n t w ill b e p a y a b le w it h o u t in te r e s t. T h e y w ill b e is s u e d in b e a r e r fo r m o n ly , a n d in
d e n o m in a tio n s o f $ 1 ,0 0 0 , $ 5 ,0 0 0 , $ 1 0 ,0 0 0 , $ 5 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 a n d $ 1 ,0 0 0 ,0 0 0 ( m a t u r it y v a lu e ) .
T e n d e r s w ill b e r e c e iv e d a t F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s u p to th e c lo sin g
D a y lig h t S a v in g T im e , M o n d a y , J u ly 28, 1 9 6 9 . T e n d e r s w ill n o t b e r e c e iv e d a t th e T r e a su r y
t e n d e r m u st b e fo r a n e v e n m u lt ip le o f $ 1 ,0 0 0 , a n d in c a s e o f c o m p e t it iv e te n d e r s th e p r ic e
t h e b a s is o f 1 0 0 , w it h n o t m o r e t h a n t h r e e d e c i m a ls , e.g ., 9 9 .9 2 5 . F r a c t io n s m a y n o t b e u s e d . I t
o n th e p r in te d fo r m s a n d fo r w a r d e d in th e s p e c ia l e n v e lo p e s w h ic h w ill b e su p p lie d b y F e d e r a l
a p p lic a t io n th e r e fo r .

h o u r , o n e - t h ir t y p .m ., E a s te r n
D e p a r tm e n t, W a sh in g to n . E a c h
offered m u st b e e x p re ssed on
is u r g e d t h a t t e n d e r s b e m a d e
R eserve B anks or B ranches on

B a n k in g in s titu tio n s g e n e r a lly m a y s u b m it te n d e r s for a c c o u n t o f c u sto m e r s p r o v id e d th e n a m e s o f th e c u sto m e r s a r e
s e t f o r t h in s u c h t e n d e r s . O t h e r s t h a n b a n k i n g i n s t i t u t i o n s w i l l n o t b e p e r m i t t e d t o s u b m i t t e n d e r s e x c e p t f o r t h e i r o w n a c c o u n t .
T e n d e r s w ill b e r e c e iv e d w it h o u t d e p o s it fr o m in c o r p o r a te d b a n k s a n d tr u s t c o m p a n ie s a n d fr o m r e sp o n s ib le a n d r e c o g n iz e d
d e a le r s in in v e s t m e n t s e c u r itie s . T e n d e r s fr o m o th e r s m u s t b e a c c o m p a n ie d b y p a y m e n t o f 2 p e r c e n t o f t h e f a c e a m o u n t o f
T r e a s u r y b ills a p p lie d fo r, u n le s s t h e te n d e r s a r e a c c o m p a n ie d b y a n e x p r e s s g u a r a n ty o f p a y m e n t b y a n in c o r p o r a te d b a n k or
tru st com p an y.
I m m e d ia te ly a fte r th e c lo sin g hour, te n d ers w ill b e o p e n e d a t th e F e d e r a l R e s e r v e B a n k s a n d B ra n c h e s, fo llo w in g w h ic h
p u b lic a n n o u n c e m e n t w ill b e m a d e b y t h e T r e a s u r y D e p a r t m e n t o f t h e a m o u n t a n d p r ic e r a n g e o f a c c e p t e d b id s. T h o s e
s u b m ittin g te n d e r s w ill b e a d v is e d o f th e a c c e p ta n c e o r r e je c tio n th ere o f. T h e S e c r e ta r y o f t h e T r e a su r y e x p r e ss ly re se r v e s th e
r i g h t t o a c c e p t o r r e j e c t a n y o r a ll t e n d e r s , i n w h o l e o r in p a r t, a n d h i s a c t i o n in a n y s u c h r e s p e c t s h a ll b e fin a l. S u b j e c t t o
t h e s e r e se r v a tio n s , n o n c o m p e t it iv e t e n d e r s fo r e a c h is s u e fo r $ 2 0 0 ,0 0 0 o r le s s w it h o u t s t a t e d p r ic e fr o m a n y o n e b id d e r w ill b e
a c c e p t e d in f u ll a t t h e a v e r a g e p r ic e ( i n t h r e e d e c i m a l s ) o f a c c e p t e d c o m p e t i t i v e b id s fo r t h e r e s p e c t i v e is s u e s . S e t t l e m e n t fo r
a c c e p t e d te n d e r s in a c c o r d a n c e w ith th e b id s m u s t b e m a d e o r c o m p le te d a t th e F e d e r a l R e s e r v e B a n k o n J u ly 3 1 , 1 9 6 9 ,
in c a sh or o th e r im m e d ia t e ly a v a ila b le fu n d s or in a lik e fa c e a m o u n t o f T r e a su r y b ills m a tu r in g J u ly 3 1 , 1 9 6 9 . C a sh a n d
e x c h a n g e te n d e r s w ill r e c e iv e e q u a l tr e a tm e n t. C a sh a d ju s t m e n t s w ill b e m a d e fo r d iffe r e n c e s b e t w e e n t h e p a r v a lu e o f m a tu r ­
i n g b ills a c c e p t e d in e x c h a n g e a n d t h e is s u e p r ic e o f t h e n e w b ills.
T h e in c o m e d e r iv e d fr o m T r e a s u r y b ills, w h e t h e r in t e r e s t o r g a in fr o m t h e s a le o r o t h e r d is p o s itio n o f t h e b ills, d o e s n o t
h a v e a n y e x e m p t i o n , a s s u c h , a n d lo s s f r o m t h e s a le o r o th e r d is p o s i t i o n o f T r e a s u r y b i l l s d o e s n o t h a v e a n y s p e c i a l t r e a t m e n t ,
a s su c h , u n d er th e In te rn a l R e v e n u e C o d e o f 1 954. T h e b ills are s u b je c t to e s ta te , in h erita n c e, g ift or o th e r e x c ise ta x es, w h e th e r
F e d e r a l o r S t a t e , b u t a r e e x e m p t fr o m a ll t a x a t io n n o w or h e r e a f te r im p o s e d o n t h e p r in c ip a l o r in t e r e s t t h e r e o f b y a n y S t a t e ,
o r a n y o f th e p o s s e s s io n s o f th e U n it e d S ta te s, o r b y a n y lo c a l ta x in g a u th o r ity . F o r p u r p o s e s o f ta x a tio n th e a m o u n t o f d is c o u n t
a t w h i c h T r e a s u r y b i l l s a r e o r i g i n a l l y s o l d b y t h e U n i t e d S t a t e s is c o n s i d e r e d t o b e i n t e r e s t . U n d e r S e c t i o n 4 5 4 ( b ) a n d
1 2 2 1 ( 5 ) o f th e I n te r n a l R e v e n u e C o d e o f 1 9 5 4 t h e a m o u n t o f d is c o u n t a t w h ic h b ills is s u e d h e r e u n d e r a re s o ld is n o t c o n ­
s id e r e d t o a c c r u e u n t il s u c h b ills a re s o ld , r e d e e m e d o r o th e r w is e d is p o s e d o f, a n d s u c h b ills a r e e x c lu d e d fr o m c o n s id e r a t io n a s
c a p ita l a sse ts. A c c o r d in g ly , th e o w n e r o f T r e a su r y b ills (o th e r th a n life in su r a n c e c o m p a n ie s ) issu e d h e r e u n d e r n e e d in c lu d e
in h is in c o m e t a x r e tu r n o n ly t h e d if f e r e n c e b e t w e e n t h e p r ic e p a id fo r s u c h b ills, w h e t h e r o n o r ig in a l is s u e o r o n s u b s e q u e n t
p u r c h a se , a n d th e a m o u n t a c tu a lly r e c e iv e d e ith e r u p o n sa le or r e d e m p tio n a t m a tu r ity d u r in g th e ta x a b le y e a r fo r w h ic h th e
r e t u r n is m a d e , a s o r d in a r y g a in o r lo ss .
T r e a s u r y D e p a r t m e n t C ir c u la r N o . 4 1 8 ( c u r r e n t r e v is io n ) a n d t h is n o t ic e , p r e s c r ib e t h e t e r m s o f t h e T r e a s u r y b ills a n d
g o v e r n t h e c o n d it io n s o f t h e ir issu e . C o p ie s o f t h e c ir c u la r m a y b e o b t a in e d fr o m a n y F e d e r a l R e s e r v e B a n k o r B r a n c h .

In accordance with the above announcement, tenders w ill be received a t this b a n k and its branches a t El Paso,
Houston an d San Antonio up to tw elve-thirty p.m ., Central Daylight Saving Time, M o n d a y , July 28 , 1969. Tenders may
not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m o u n t, R a n g e a n d A p p ro x im a te Y ie ld o f A c c e p te d T en d ers
9 1 -D a y B ills
D u e O cto b er 23, 1 9 6 9

1 8 2 -D a y B ills
D u e January 22, 1970

$ 2 , 5 9 0 , 6 3 8 , 0 0 0 ------------- --------------------------------------------------T o t a l A p p l i e d F o r _________________________________________ $ 2 , 2 8 4 , 3 0 3 , 0 0 0
$ 1 , 6 0 0 , 0 2 8 , 0 0 0 — ----------------------------------------------------- T o t a l A c c e p t e d ___________________________________________ $ 1 , 1 0 0 , 2 9 9 , 0 0 0

Price
9 8 .1 9 0
9 8 .1 7 0
9 8 .1 7 5
t h e | *[.''r]

Yield

Price

y ield '

7 . 1 6 0 % ---------------------------------------------------- H i g h ---------------------------------------------9 6 . 2 4 8 _______________ 7 . 4 2 2 %
7 . 2 4 0 % ----------------- ----------------------------------- L o w ______________________________9 6 . 2 2 4 _______________ 7 . 4 6 9 %
7 . 2 2 0 % ( 1 ) — ------ ----------------------------- A v e r a g e ------------------------------------------ 9 6 . 2 2 9 _______________ 7 . 4 5 9 %
Th !rP ° n 8 *>ank discount basis. T h e eq u iv a le n t coupon issue y ie ld s are 7 . 4 6 % for t h e 9 1 -d a y b ills

(1 )

an d 7 . 8 6 % for

( S e e r e v e r s e s id e f o r t e n d e r f o r m )

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
Dated May 1,1969

Maturing October 30,1969

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

Houston 77001

San Antonio 78206

(Date)

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.

NONCOMPETITIVE TENDER $_

JSfOT 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.
_

(_

$
£

COMPETITIVE TENDERS

C)
n
(
a)

Prices should be ex­
pressed on the basis of
100, with no: more than
th ree decim al p la ce s,
e. g., 99.925. Fractions
must not be used.

%

$

V

85^* TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT

Denominations Desired
N um be r of
Pieces

M a tu r ity Value

<Sl $

1,000 $.
5,000 ?-

.(a) $

10,000 $-

(at $

50,000 $-

fit $

□
□
□

(n> $ 100,000 $(a) $ 500,000 $-

□

By maturing bills
held by_____________________
Payment to be made by_
Charge our reserve account on payment
date
Draft enclosed I Efr*.:tu.lde1lve>T o f enclowd d r a f t
shall be on la test day which will p e rm it p re s en tm en t in
order to obtain irrevocably collected funds on p a y m e n t

(ft) $1 ,000,000 $-

dnt^)

Delivery Instructions:
□

(Subscriber's full nam e or coTBorate title)

Hold in Custody Account— Member
banks for own account only

□

Pledge to secure Treasury Tax and
Loan Account

□

Ship to----------------------------------------

(A d d r e s s )

By_

I Authorised official sic n a tu re and title)

( 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 for less than $1,000 will be considered and each tender must be for an amount in multiples of ?1,000 (maturity
value).
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 re­
ceived with this legend will not be opened until after the closing time specified m 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 m ate­
rial, the tender may be disregarded.

(See reverse for announcement)

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