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F ederal R eserve 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. 69-256 October 15, 1969 N EW OFFERING — TREASURY BILLS To A ll Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Y ou r attention is invited to the follow ing statem ent giving details o f tw o issues of Treasury bills: The T reasury D epartm ent, by this public notice, invites tenders for two series of Treasury 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 23, 1969, in the am ount of $3,006,230,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued October 23, 1969, in the am ount of $1,800,000,000, or there abouts, representing an additional am ount of bills dated Ju ly 24, 1969, and to m ature Jan u ary 22, 1970, originally issued in the am ount of $1,101,212,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,200,000,000, or thereabouts, to b e dated October 23, 1969, and to m ature April 23, 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). T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving Tim e, Monday, October 20, 1969. Tenders will not be received a t the T reasury D epartm ent, Washington. E ach tender must be for an even m ultiple of $1,000, and in the 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. I t is urged th at tenders be m ade 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 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 perm itted to subm it tenders except for their own account. T enders will be received without deposit from incorporated banks and tru st 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 th e tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately a fter th e 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 h e Secretary of th e Treasury expressly reserves the rig h t 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 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 the 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 23, 1969, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing October 23, 1969. Cash and exchange tenders will receive equal tre a tm e n t Cash adjustm ents will be m ade for differences between th e 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 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 the possessions of the U nited States, or by any local taxing authority. For 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 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 or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e terms of the 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 ab ove announcement, tenders w ill be received at this b a n k and its branches a t El Paso, Houston a n d San Antonio up to tw e lv e-th irty p.m., Central Daylight Saving Time, M o n d a y , October 20, 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 91-Day Bills 182-Day Bills D ue Jan u ary 15, 1970 D ue April 16, 1970 $2,573,508,000-----------------------------------------------T otal Applied F or________ ______________________ $2,290,226,000 $1,800,624,000-------------------------------------------------T otal Accepted_________________________________$1,200,568,000 Price Yield P rice Yield 98.231 6.998% __________________ __ ___ H igh_____________ ________ 96.304_____ ___ __7.311% 98.215 ............... 7.062% ---------------------------------------l o w _____________________ 96.292____________ 7.335% 98.220------------------7.042% ( 1 ) ---------------- -------------- Average— -------------------------- 96.296___________ 7.327% (1 ) ( 1 ) T h e s e r a t e s a r e on a h 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 ie ld s a r e 7 . 2 7 % t h e 1 8 2 - d a y b ills . fo r t h e 9 1 - d a y b ills, a n d 7 71% for ( S e e r e v e r s e sid e f o 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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated July 24,1969 Maturing January 22,1970 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. -g. <> COMPETITIVE T E N D E R S ------------------------------ -@ -@_ -----------------------------___________________ Prices should be ex pressed on the basis of 100, with not more than th ree decim al places, 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. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT Denominations Desired Number of Plcce* Maturity Value O ? (5) $ 1,000 $5,000 $- •(® $ .(a) $ 10,000 $. 50,000 ?■ □ □ |_] D r a f t e n c l o s e d □ (S ubscriber’s fu ll n am e or c o rp o ra te 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 (Effectual delivery of enclosed draft shall be on latest day which will p erm it p re sen tm en t in o rder to o btain irrevocably collected fu nd 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_____________ □ Charge our reserve account on payment date ? 100,000 ?. ■(3> ? 500,000 ?■ (® ?1 ,000,000 $- □ B y maturing bills held by______________________________ (A ddress) By(A uthorized official s ig n a tu re a n 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 dd re s a) 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)