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F e d e r a l R e s e r v e Ba n k o f D a lla s
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. 69-253
October 6, 1969

N EW OFFERING — TREASURY BILLS
To A ll Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:
Y our attention is invited to the following statement giving details of 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 O ctober 16, 1969, in the am ount of
$3,005,470,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued October 16, 1969, in the am ount of $1,800,000,000, or there­
abouts, representing an additional am ount of bills dated Ju ly 17, 1969, and to m ature January 15, 1970,
originally issued in the am ount of $1,100,863,000, 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 16, 1969, and to m ature April 16, 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 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 aturity value).
Tenders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving Tim e, Friday, October 10, 1969. Tenders will not be received a t the T reasury D epartm ent, Washington.
Each tender m ust be for an even m ultiple 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 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 Banks or Branches on
application therefor.
Banking institutions generally m ay 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 perm 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 accompanied 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 R eserve Banks and Branches, following which
public announcem ent will be made by the Treasury 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, 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 competitive bids for th e respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be made or completed a t the Federal Reserve B ank on October 16, 1969,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing October 16, 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 the issue price of the new bills.
T he 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 h e bills are subject to estate, inheritance, gift or other excise taxes, whether
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. F or 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 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 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
return is made, as ordinary gain or loss.
Treasury D epartm ent Circular 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 may be obtained from any Federal Reserve B ank or Branch.
In accordance w ith the above announcement, tenders w ill be received at this b a nk an d its branches a t El Paso,
Houston an d San Antonio up to tw elve-thirty p.m., Central D aylight Saving Time, Friday, October 10, 1969. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
President

Figures co n cern in g offering of 9 1 -D ay Treasury Bills maturing J a n u a r y 8, 1 9 7 0 , a n d 1 8 2 -D a y Treasur y Bills maturing April
9, 1 9 7 0 , not a v a i la b l e w h e n this circular w as pri nte d.

( S e e r e v e r s e fo r 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated

October 16, 1969

Maturing April 16,1970

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or—
The_________________________ _______ Branch
El Paso

________________________________________

Houston 77001 San Antonio 78206

79999

(Date)

PLEASE

OBSERVE

CLOSING

DATE — FRIDAY, OCTOBER

10, 1969

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 bf'ow, 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.
{„

\ v------------------------------ (fiP-------

—p
<--------------------------------------

_Prices
pressed on the basis of

COMPETITIVE TENDERS < ?------------------------ @----------- $-------------------------------

t h ^ e ^ e A m S ^ la c e t

/ $ ------------------------------ @ ________ $ ________________________
\

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

TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.
METHOD OF PAYMENT
□
B y m a t u r in g
h eld b y ____________________________________

M a tu r ity V alue

(f $
fl

1,000

() $
3

5,000 $

$

(® $

10,000

() $
a

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

50,000 $

(i $
H

100,000

$

□ P a y m e n t to be m a d e by_
□

$

<> a 500.000 $
S
() $ 1,
a
000,000 $

□

Charge our reserve account on payment
date
Draft enclosed (Effectual delivery of enclosed draft
s h a ll be on la t e s t day w h ic h will 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 re v o c a b ly c o llec ted f u n d a o n p a y m e n t
d a te )

Delivery Instructions:

( S u b s c r ib e r 's f u l l n a m e o r c o r p o r a t e ti tle )

□

Hold in Custody Account— M e m b e r
banks for o w n account only

_____________________________
<d r s )
Ades

□

Pledge to secure Treasury T a x and
Loan Account

By_

□ Ship to---------------------------

(Authorized official signature and title)

----

( F o r t h e a c c o u n t of, i f t e n d e r is f o r a n o t h e r s u b s c r i b e r )

(A d d re s s)

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 arepresentation 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.
(S ee re v e rs e 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