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F ederal r eser ve Bank of D allas
F ISC A L

AGENT

OF

THE

U N IT E D

STATES

DALLAS, TEXAS 7 5 2 2 2
C ir c u la r N o . 6 9 - 1 9 8
A u g u s t 6, 1 9 6 9

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O th ers C o n c e r n e d
in t h e E le venth F e d e r a l Reserve District:
Your a t te n t i o n is in v ited to th e f o llo w in g s t a t e m e n t giv ing d e t a il s of tw o iss u e s of T re asury bills:
T h e T r e a s u r y D e p a r t m e n t , b y t h 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 te a m o u n t
o f $ 2 ,8 0 0 ,0 0 0 ,0 0 0 , o r 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 su r y b ills m a tu r in g A u g u s t 14 , 1 9 6 9 , in t h e a m o u n t o f
$ 2 ,8 0 2 ,0 9 5 ,0 0 0 , as 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 A u g u s t 14, 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 tin g a n a d d itio n a l a m o u n t o f b ills d a te d M a y 15, 1 9 6 9 , a n d to m a tu r e N o v e m b e r 13, 1 9 6 9 , o r ig in a lly
is s u e d in t h e a m o u n t o f $ 1 ,3 0 0 ,4 7 4 ,0 0 0 , th e a d d itio n a l a n d o r ig in a l b ills t o b e f r e e ly in te r c h a n g e a b le .
1 8 3 -D A Y B I L L S fo r $ 1 ,2 0 0 ,0 0 0 ,0 0 0 , o r th e r e a b o u ts, to b e d a te d A u g u s t 14, 1 9 6 9 , a n d m a tu r e F e b r u a r y 13, 1 9 7 0 .
T h e b ills o f b o th se r ie s w ill b e issu e d o n a d is c o u n t b a sis u n d e r c o m p e titiv e a n d n o n c o m p e titiv 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 f a c e a m o u n t w ill b e p a y a b le w ith o u t in te r e s t. T h e y w ill b e is s u e d in b ea re 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 , A u g u s t 11, 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 s t 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 t e n d e r s t h 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 t h e p r in te d fo r m s a n d fo r w a r d e d in t h e s p e c ia l e n v e lo p e s w h ic h w ill b e s u p p lie d b y F e d e r a l
a p p lic a t io n th ere fo r .

h o u r, o n e -th ir ty 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 ch
offered m u st b e ex p r e sse d o n
is u r g e d t h a t t e n d e r s b e m a d e
R e se r v e B a n k s or B r a n ch es on

B a n k in g in stitu tio n s g e n e r a lly m a y s u b m it te n d e r s fo r a c c o u n t o f c u s to m e r s p r o v id e d t h e n a m e s o f th e c u s to m e r s are
s e t fo r th in su c h ten d ers. O th e r s th a n b a n k in g in s titu tio n s w ill n o t b e p e r m itte d to s u b m it te n d e r s e x c e p t fo r th e ir o w n a cc o u n t.
T e n d e r s w ill b e r e c e iv e d w ith o u t d e p o s it fro m in c o r p o r a te d b a n k s a n d tr u st c o m p a n ie s a n d fr o m r e sp o n sib le a n d r e c o g n iz e d
d e a le r s in i n v e s t m e n t s e c u r it ie s . T e n d e r s f r o m o t h e r s m u s t b e a c c o m p a n i e 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 su r y b ills a p p lie d for, u n le s s t h e te n d e r s a re a c c o m p a n ie d b y a n e x p r e ss g u a r a n ty o f p a y m e n t b y an 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 h our, te n d e r s 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 ch es, 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 th e T r e a s u r y D e p a r t m e n t o f th 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 te 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 or r e je c tio n th e r e o f. T h e S e c r e ta r y o f th e T r e a su r y e x p r e s s ly r e 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 l l t e n d e r s , i n w h o l e o r i n p a r t , a n d h i s a c t i o n i n a n y s u c h r e s p e c t s h a l l b e f in 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 te n d e r s fo r e a c h issu e fo r $ 2 0 0 ,0 0 0 o r le ss w ith o u t s ta te 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 ( in th r e e d e c im a ls ) o f a c c e p t e d c o m p e t i t iv e b id s fo r t h e r e s p e c tiv e is s u e s. S e t t le m e n t fo r
a c c e p t e d t e n d e r s in a c c o r d a n c e w it h t h e b id s m u s t b e m a d e or c o m p le t e d a t t h e F e d e r a l R e s e r v e B a n k o n A u g u s t 14 , 1 9 6 9 ,
in c a sh or o th e r im m e d ia te 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 A u g u st 14, 1 969. C a sh an d
e x c h a n g e t e n d e r s w ill r e c e iv e e q u a l t r e a t m 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 th e p a r v a lu e o f m a tu r ­
i n g b i l l s 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 f r 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 f r 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 t h e r d is p o s i t i o n o f T r e a s u r y b ill s d o e s n o t h a v e a n y s p e c ia 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 9 5 4 . T h e b ills are su b je c t to esta 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 or S ta te , b u t are e x e m p t fr o m a ll ta x a tio n n o w or h e r e a fte r im p o s e d o n th e p r in c ip a l o r in te r e st th e r e o f b y a n y S ta te ,
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 in a lly s o ld b y t h e U n i t e d S t a t e s is c o n s id e r e d t o b e in 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 t h e I n t e 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 i s c o u n t a t w h i c h b i l l s i s s u e d h e r e u n d e r a r e s o ld is n o t c o n ­
s id e r e d to a c c r u e u n t il su c h b ills a re so ld , r e d e e m e d o r o t h 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 as
c a p it a l a s se ts. A c c o r d in g ly , t h e o w n e r o f T r e a su r y b ills ( o t h e r th a n lif e in s u r a n c e c o m p a n ie s ) is s u 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 ta x r e tu r n o n ly t h e d iffe 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 th e r o n o r ig in a l issu e o r o n s u b s e q u e n t
p u r c h a s e , 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 s a le o r r e d e m p tio n a t m a tu r ity d u r in g t h 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 i e s o f t h e c ir c u la r m a y b e o b t a in e d f r o m a n y F e d e r a l R e s e r v e B a n k or B r a n c h .

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 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 ouston a n d S an A n to n io u p to tw e l v e - th ir ty p.m .. C e n tral D ayli ght S a v in g Time, M o n d a y , A u g u s t 11, 1 9 6 9 . T en 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. C oldwell
P re sid e n t
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 N o v e m b e r 6, 1969

1 8 2 -D a y B ills
D u e F e b r u a r y 5, 1970

$ 2 , 7 0 3 , 8 7 9 , 0 0 0 _________________________________________ T o t a ' A p p l i e d F o r _________________________________________ $ 2 , 4 4 1 , 9 2 3 , 0 0 0
$ 1 , 6 0 1 , 0 1 1 , 0 0 0 ___________________________________________ T o t a l A c c e p t e d ___________________________________________ $ 1 , 2 0 0 , 2 3 1 , 0 0 0
P r ic e

Y ie ld

P r ic e

Y ie ld

9 8 . 2 4 7 ------------------------ 6 . 9 3 5 % ---------------------------------------------------- H i g h ____________________________ 9 6 . 4 4 4 _________________7 . 0 3 4 %
9 8 . 2 2 6 ------------------------ 7 . 0 1 8 % _____________ ________ ____________ L o w ____________________________9 6 . 4 1 1 ________________ 7 . 0 9 9 %
9 8 . 2 3 2 -------------------------6 . 9 9 4 % ( 1 ) ------------------------------------------ A v e r a g e __________________________ 9 6 . 4 1 8 . . _____ _________ 7 . 0 8 5 %

(1 )

( 1 ) T h ese rates are o n a bank discount basis. T h e e q u iv a le n t coupon issue y ie ld s are 7 . 2 2 % for t h e 9 1 - d a y bills, a n d 7 . 4 5 % for
th e 1 8 2 -day bills.

( S e e r e v e r s e s i d e for 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
D ated May 15,1969

M aturing Novem ber 13,1969

To: Federal Reserve Bank, S tation K, Dallas, Texas 75222
or—
The_________________________________Branch
El Paso 79999

Houston 77001

San Antonio 78206

(Date)

P u rsu a n t to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of the
public announcem ent issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ount
shown below, and agrees to pay fo r the am ount allotted, on or before th e issue date, by th e method and a t th e ra te indicated.

NONCOM PETITIVE T E N D E R $_

_NOT TO EX CEED $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.

(» COM PETITIVE TEN D ER S <$----------------------K

J ciL

-$$-

---------------------------------------------------------- -

Prices should be ex­
pressed on the basis of
100, w ith not more than
th r e e d e c im a l p la c e s,
e. g., 99.925. Fractions
m ust not be used.

g?s£r’ TEND ERS MAY NOT BE E N TE R E D BY TELEPH O N E. TENDERS BY W IRE, IF RECEIVED BEFO RE THE
CLOSING HOUR, A RE ACCEPTABLE.
Denominations Desired
Number of

Paym ent fo r this issue of bills cannot be made
by credit to T reasu ry Tax and Loan Account.
METHOD OF PAYM ENT

M aturity Value

(a) ?
(oi $

1,000 ?.
5,000 $-

(a) ?
(a) $

10,000 $50,000 ?.

□

(ril $ 100,000 ?.
(a ? 500,000 $>
(S> ?1 ,000,000 $-

□

□

□

Delivery In stru c tio n s :
□
□
□

By m a tu rin g bills
held by_______________________________
P ay m en t to be m ade by______________
C harge our reserv e account on paym ent
date
D ra ft enclosed (E ffectu al delivery of enclosed d r a f t

shal] be on latest day which will permit presentment In
order to obtain irrevocably collected funds on p a y m e n t
date)

(Subscriber’s full name or corporate title)

Hold in Custody Account— M ember
banks fo r own account only
Pledge to secure T reasury T ax and
Loan Account
Ship to-------------- -—-----------------------

(Address)

By_
(Authorized official signature and title)

(For the account of, if tender is for another subscriber)

(Address)

IMPORTANT
1. No tender fo r less th a n $1,000 will be considered and each tender m ust be fo r an am ount in multiples of $1,000 (m aturity
value).
2. Tenders should be forw arded in an envelope clearly addressed to th is bank or ap prop riate branch as Fiscal A gent of the
United States, w ith notation on the envelope reading “T EN D ER FOR TREASURY O FFE R IN G .” Since envelopes re ­
ceived w ith this legend will not be opened until a fte r the closing tim e specified in the public announcement, communi­
cations rela tin 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 app ropriate branch.
3. Any qualified or conditional tender will be rejected.
4. I f a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to m ake the
ten der and the signing of th e form by an officer of th e corporation will be construed as a representation by him th a t
he has been so authorized. If the tender is made by a partnership 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 a re accompanied by an express g u ara n ty of full paym ent by an
incorporated bank o r tr u s t company.
6. I f the language of this form is changed in any respect, which, in the opinion of th e Secretary of the T reasury is m a te­
rial, the tender m ay be disregarded.
(See reverse for announcement)

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