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F ed er a l r e s e r v e Ba n k o f 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 Circular No. 69-248 October 1,1969 N EW OFFERING — TREASURY BILLS To A ll Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Y ou r attention is invited to the follow ing statement giving details o f tw o issues of Treasury bills: T he Treasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $3,000,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing October 9, 1969, in th e am ount of $3,003,927,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued October 9, 1969, in the am ount of $1,800,000,000, or there abouts, representing an additional am ount of bills dated Ju ly 10, 1969, and to m ature January 8, 1970, originally issued in the am ount of $1,102,021,000, 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 9, 1969, and to m ature April 9, 1970. T he 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 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). 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 T im e, Monday, October 6, 1969. Tenders will not be received a t the T reasury D epartm ent, Washington. Bach tender m ust be for an even multiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. I t 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. Banking institutions generally may subm it tenders for account of customers provided the names of the 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 without 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 tiu s t company. Im m ediately after th e closing hour, tenders will be opened a t the Federal Reserve B anks and Branches, following which public announcem ent will be m ade 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 th e 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 w ithout stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted competitive bids for th e respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted a t the Federal Reserve B ank on O ctober 9, 1969, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing October 9, 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 he 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 or purposes of taxation the am ount of discount a t which Treasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 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 T reasury bills (other than 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 th e taxable year for which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe th e term s 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 w ith the above announcement, tenders w ill be received a t this b a nk a n d its branches a t El Paso, Houston an d San Antonio up to tw elve-thirty p.m ., Central D aylight Saving Time, M o n d a y , October 6, 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 Y ield of A ccepted Tenders 92-Day Bills D ue January 2, 1970 182-Day Bills D ue April 2, 1970 $2,495,396,000____________________________ .Total A pplied F o r _____________________________ $2,211,157,000 $1,800,253,000______________________________ .T otal Accepted _______________________________$1,200,148,000 Price Y ield Price Yield 98.195____________7.063%______________________ H igh _____________________96.306___________7.307% 98.173____________7.149%________________________ Low _____________________ 96.2G2___________7.354% 98.184____________7.106% ( 1 ) __________________ Average ___________________ 96.289___________7.340% (1) ( 1 ) T h e s e r a t e s a r e o n a h a n k d i s c o u n t b a s is . T h e e q u i v a l e n t c o u p o n i s s u e y i e l d s a r e 7 . 3 4 % t h e 1 8 2 - d a y b i ll s . fo r t h e 9 2 - d a y bills, a n d 7 .7 3 % 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 July 10,1969 Maturing January 8,1970 To: Federal Reserve Bank, Station E, Dallas, Texas 75222 or— The_________________________________Branch El Paso 79999 Houston 77001 San Antonio 78206 (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, 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 $_ _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. (^ __ pressed on the basis of 100, with not more than th r ee decim al p laces, e. g., 99.925. Fractions must not be used. • ’----------------------------- ^ ------- COMPETITIVE TENDERS $ $ @ @ $ % jpgP 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 Number of Pieces M a tu r ity V alu e $ <l $ f) 1,000 $L □ () $ a 10,000 .a $ () j held by______________________________ 50,000 ? - □ $ - <a $ <> 5 Charge our reserve account on payment date | | Draft enclosed (Effectual delivery of enclosed draft 500,000 $ ■ 000,000 $1, shall be on la te st day which will p erm it p re s en tm en t in order to o b ta in irrevocably collected fu n d s on p a y m e n t date) ?- Delivery Instructions: □ □ P a y m e n t to be m a d e by_____________ □ ■ > ? 100,000 0 □ By maturing bills 5,000 $ ■ ( S u b s c r i b e r ’s f u ll 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 L oa n Account (A ddress) By(A uthorized official s ig n a tu re an d title) Ship to_ (F o r the account of, if te n d e r is fo r a n o th e r su b scrib er) (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 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 mate rial, the tender may be disregarded. (See reverse for announcement) Prices sh
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