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F ederal reserve b a n k of Dallas F ISC A L A G E N T OF THE UN ITED S T A T E S DALLAS, TEXAS 7 5 2 2 2 Circular No. 69-219 August 25, 1969 N E W OFFERING — TREASURY BILLS To A ll Banking Institutions an d Others Concerned PLEASE OBSERVE CLOSING DATE — FRIDAY, AUGUST 29, 1969 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 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 $2,800,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Septem ber 4, 1969, in the am ount of $2,802,014,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued Septem ber 4, 1969, in th e am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated June 5, 1969, and to m ature D ecember 4, 1969, origin ally issued in the am ount of $1,301,356,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,200,000,000, or thereabouts, to be dated Septem ber 4, 1969, and m ature M arch 5, 1970. T h e 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 in te re s t 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). Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Friday, August 29, 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 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 m ay not be used. It is urged th a t tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve B anks or Branches on application therefor. B anking institutions generally may subm it tenders for account of customers provided th e nam es of th e customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for th e ir own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accom panied 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 the Federal Reserve Banks and Branches, following which public announcem ent will be made by the T reasury 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 he Secretary of the T reasury 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 at 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 R eserve B ank on Septem ber 4, 1969, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Septem ber 4, 1969. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the p ar value of m atur ing bills accepted in exchange and the issue price of th e new bills. T h e 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 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 U nited States, or by any local taxing authority. F o r purposes of taxation the am ount of discount a t which T reasury 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 th a n life insurance companies) issued hereunder need include in his income tax return only th e 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 retu rn is m ade, as ordinary gain or loss. T reasury D epartm ent C ircular No. 418 (current revision) and this notice, prescribe th e terms 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 accordance with the above announcement, tenders w ill be received a t this b ank an d its branches a t El Paso, Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, Friday, August 29, 1969. Tenders m ay not be entered by telephone. Yours very truly, P. E. Coldwell President Figures c o n c e rn in g offerin g of 9 2 - D a y Treasur y Bills matu ri ng N o v e m b e r 2 8 , 1 9 6 9 , anc! 1 8 2 -D a y Treasury Bills matu ri ng F eb ru a r y 2 6 , 1 9 7 0 , not a v a i l a b l e w hen this circular w a s printe d . (S ee reverse for ten der 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 Dated June 5, 1969 Maturing December 4, 1969 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The-------------------------------------------------- Branch El Paso 79999 Houston 77001 San Antonio 78208 (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, tho undersigned offers to purchase Treasury bills in the amount shown below, and agrees to pay for the amount allotted, on or uefore the issue date, by the method and at the rate indicated. NONCOMPETITIVE TENDER $_ .NOT TO EXCEED $200,000 CLOSING DATE — FRIDAY, AUGUST 29, 1969 Noncompetitivc 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 - OBSERVE u \ ; _ _ -------------------------------------------------------------- Prices should be e x --------------------- (n]------------- <-------------------------------------p pressed on the basis of fa) « 100, with not more than r' „ th ree decim al p la c e s. --------------------- @ ?-------------------------------------e. g., 99.925. Fractions must not be used. TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b er of P ie c e s Payment for this issue of bills cannot be m ade by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT M a tu rity V alu e (a) ? (a) $ 1,000 £ □ 10,000 ra $ □ □ Charge our reserve account on p a y m e n t date I 1 Draft enclosed ( 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 ) Hold in Custody Account— M e m b e r banks for o w n account only Pledge to secure Treasury T a x and Loan Account Ship to-------------------------- (BfTectual delivery of enclosed draft sh all b e o n la te s t d a y w h ic h w ill p e r m i t p r e s e n t m e n t in o r d e r to o b t a i n ir r e v o c a b ly c o lle c te d f u n d a o n p a y m e n t d ate) w Delivery Instructions: □ P a y m e n t to be m a d e by_____________ 50,000 ? . $ (} $ 100,000 $a r, $ 500,000 ?r' COO,000 ?. () $1, a □ B y maturing bills held by___ _________________________ 5,000 $ () $ a □ PLEASE ------------------------------------------------- (!<£ (A ddress) By( A u t h o r i z e d official s i g n a t u r e a n d t i t l e ) ( F o r t h e a c c o u n t o f, if t e n d e r ia 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 (m aturity value). * 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f 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 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 th e 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 in v est ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity valu e) 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 a te rial, the tender may be disregarded. (See reverse for announcement)