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federal

reserve

Ba n k o f D a llas

F ISC A L A G EN T O F THE UN ITED STA TES

DALLAS, TEXAS 75222
Circular No. 69-223
Septem ber 3, 1969
N E W O F F E R IN G — TREASURY BILLS
To A ll Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Y our attention is invited to the follow ing statem ent giving details of two issues of Treasury bills:
T h e 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 11, 1969, in the am ount of
$2,800,296,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued Septem ber 11, 1969, in the am ount of $1,600,000,000, or there­
abouts, representing an additional am ount of bills dated June 12, 1969, and to m ature December 11, 1969,
originally issued in the am ount of $1,300,610,000, 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 11, 1969, and m ature M arch 12, 1970.
T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive 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
denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value).
T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, Septem ber 8, 1969. Tenders will not be received a t th e T reasury D epartm ent, Washington. Each
tender m ust be for an even m ultiple of $1,000, and in case of competitive tenders th e 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. I t is urged th a t tenders be made
on the printed forms and forwarded in th e 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 the names of tho 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 without deposit from incorporated banka and tru st companies and from responsible and recognized
dealers in investm ent securities. T enders from others mu3t bo 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 a n incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t the Federal R eserve B anks 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 th e 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, noncompetitive 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 com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or completed a t the Federal R eserve B ank on Septem ber 11, 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 11, 1969. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
T h e income derived from T reasury 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 Treasury bills does not have any special treatm ent,
as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, b u t 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 th e United States, or by any local taxing authority. For purposes of taxation th e am ount of discount
a t which Treasury bills are originally sold by the U nited States is considered to be interest. Under 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, redeem ed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) 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
retu rn is made, as ordinary gain o r loss.
T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s of the T reasury bills and
govern th e conditions of their issue. Copies of th e circular may be obtained from any Federal Reserve B ank or Branch.
In accordance w ith the ab ove announcement, tenders w ill be received a t this b a n k and its branches at El Paso,
Houston an d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M o n d a y September 8, 1969. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and A pproxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue D ecem ber 4, 1969
D ue M arch 5, 1970
$2,681,721,000---------------------------------------------- T otal Applied F or____________ __________________ $2,103,545,000
$1,600,024,000-------------------------------------------------T otal A ccepted-------------------------------------------------$1,200,091,000
Price
Y ield
Price
Yield
98.244------------------6.947% --------------------------------------- H igh----------------------------...96.405______________ 7.111 %
98.222------------------7.034% —----- -------------- -----------------Low--------------------------------- 96.360____________ 7.200%
98.227------------------7.014% ( 1 ) ------------------------------- Average-------------------------------96.377____________7.166% (1)
( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t b a sis. T h e e q u iv a l e n t c o u p o n Issue y ie ld s e r e 7 . 2 4 %
th e 1 8 2 - d a y bills.
/w

f o r t h e 9 1 - d a y bills, a n d 7 . 5 4 %

for

(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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated June 1 2 ,19G9

Maturing December 11,1969

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

Houston 77001

San Antonio 78206

(D a te )

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.

N ONCOMPETITIVE TENDER $___________________________________ 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.
(_
COMPETITIVE T E N D E R S

_

_

Prices should be ex­
pressed on the basis of

---------------- € -------*------------------------------------------------- @ ------------ $ --------------------------------------\

e. g., 99.925. Fractions
must not be used.

£ 3 ^ TENDERS MAY NOT BE ENTERED B Y TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Num ber of
Pieces

(a $
)
(a $
)
fn $
)
(a $
)
(a $
)
(S ?
.
(5
1

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

M a tu r ity Value

M ETHOD OF PA Y M EN T

1,000 *5,000 ?.

□

B y maturing bills
held by_____________________

10,000 ?
.
50,000 $
-

□

P a y m e n t to be m a d e by_

100,000 $
500,000 $
-

□

Charge our reserve account on payment
date

I_j D r a f t e n c l o s e d (Effectual delivery of enclosed draft
shall be on latest day which will p erm it p re s e n tm e n t In
order to o btain irrevocably collected funda on payment
date)

31 ,000,000 ?
-

Delivery Instructions:
□
□
□

(S ubscriber’s full n a m e or c o rpo rate title)

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

(A ddress)

By
(A u th o rized official s ig n a tu re a n d title)

( F o r th e acc o u n t of, if te n d e r is for a n o th e r subscriber)

*

(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 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 Haider 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 re v e rse f o r a n n o u n cem en t)

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