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F e d e r a l R e s er v e Ba n k o f D a lla s
FISC A L A G E N T O F THE UN ITED ST A T E S
DALLAS, TEXAS 75222
Circular No. 69-243
Septem ber 24, 1969
NEW OFFERING — TREASURY BILLS
To A ll Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follow ing statement giving details of tw o issues of Treasury bills:
T h e T reasury D epartm ent, b y this public notice, invites tenders for two series of T reasury bills to th e aggregate am ount
of $3,000,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing October 2, 1969, in the am ount of
$3,003,518,000, as follows:
92-DAY B IL L S (to m atu rity date) to be issued October 2, 1969, in th e am ount of $1,800,000,000, or there
abouts, representing an additional am ount of bills dated Ju ly 3, 1969, and to m ature January 2, 1970,
originally issued in the am ount of $1,099,668,000, 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 October 2, 1969, and m ature April 2, 1970.
T h e bills of both series will be issued on a discount basis under competitive and noncom petitive bidding as hereinafter
provided, and a t m aturity th e ir face am ount will be payable without 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 atu rity value).
Tenders 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, M onday, Septem ber 29, 1969. Tenders will not be received a t the Treasury D epartm ent, Washington.
E ach tender must be for an even m ultiple of $1,000, and in the case of competitive tenders th e price offered m ust be expressed on
the 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 th e names of th e customers are
set forth in such tenders. Others than banking institutions will not be p erm itted to subm it tenders except for their own account.
T enders will be received w ithout deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust 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 a t th e average price (in three decimals) of accepted com petitive bids for the respective issues. S ettlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal Reserve B ank on O ctober 2, 1969,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing October 2, 1969. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur
ing bills accepted in exchange and th e 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 th e 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 th e Internal Revenue Code of 1954. T he 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 th e possessions of the U nited States, or by any local taxing authority. For 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 Sections 454 (b ) and
1221 (5 ) of th e 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 T reasury bills (other th a n life insurance companies) 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 th e taxable year for which the
retu rn is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe the term s of the T reasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.
In accordance w ith the above announcement, tenders w ill be received a t this b a nk 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, M o n d a y , September 29, 1969. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and Approximate Yield of Accepted Tenders
92-Day Bills
182-Day Bills
D ue D ecem ber 28, 1969
D ue M arch 26, 1970
$2,767,336,000______________________________ .T otal Applied F o r________ ______________________ $2,329,658,000
$1,800,038,000_____________________. __________ T o tal Accepted----- ------------------------------------------- $1,200,873,000
Price
Yield
Price
Yield
98.181____________ 7.118% _________________________ H igh______________________96.288____________ 7.342 %
98.164____________ 7.184% _________________________ l o w ______________________ 96.274____________ 7.370%
98.170____________ 7.161% ( 1 ) ____________________ Average____________________ 96.278____________ 7.362% (1)
( 1 ) T h e s e r a t e s a r e o n a b a n k d i s 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 issu e y i e l d s a r e
7 .4 0 %
fo r t h e 9 2 - d a y b ills, a n d
7 .7 5 %
for
t h e 1 8 2 - d a y b i ll s .
(S ee 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
92 DAYS TO MATURITY
Dated July 3,1969
Maturing January 2,1970
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.
N ONCOMPETITIVE TENDER $___________________________________ NOT TO EXCEED $200,000
)00
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.
ted
f
_
_
Prices should be ex
pressed on the basis of
()
a
COMPETITIVE TENDERS { $------------------------------------------------------------------------------------------------------- @-$-------?
e. g., 99.925. Fractions
@
*------$
must not be used.
(
HSF* TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces
(a)
?
1,000 $
5,000 $
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT
Maturity Value
□
B y maturing bills
held by______________________________
10,000 $
50,000 $
□
P a y m e n t to be m a d e by
a t $ 100,000 $
□
500,000 $
?1.,000,000 $
□
Charge our reserve account on payment
date
Draft enclosed (Effectual delivery of enclosed draft
(ii) $
(a) $
(a) $
(a) ?
&
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment
date)
Delivery Instructions:
(Subscriber’s full name or corporate title)
□
Hold in Custody Account— M e m b e r
banks for o w n account only
_____________________________
(drs)
Ades
□
Pledge to secure Treasury T a x and
By_
L oan A ccount
(Authorized official signature and title)
(For the account of, if tender is for another subscriber)
[ ] Ship to
—
(Address)
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 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)
@FedFRASER