View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal R eserve Bank of Dallas



Circular No. 69-259
October 17, 1969


To A ll Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:

Y our attention is invited to the follow ing statem ent giving details of an issue of Treasury bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for $3,000,000,000, or thereabouts, of 236-day T re asury
bills, to be issued on a discount basis under com petitive and noncompetitive bidding as hereinafter provided. T h e bills of this
series will be dated October 29, 1969, and will m ature June 22, 1970. T hey will be accepted a t face value in paym ent of income
taxes due on June 15, 1970, and to th e extent they are n ot presented for this purpose the face am ount of these bills will be
payable w ithout interest a t m aturity. Taxpayers desiring to apply these bills in paym ent of Ju n e 15, 1970, income taxes may
subm it the bills to a Federal Reserve B ank or Branch or to the Office of the T reasurer of th e U nited States, Washington, not
m ore th a n fifteen days before th a t date. In the case of bills subm itted in paym ent of income taxes of a corporation they shall be
accompanied by a duly completed Form 503 and the office receiving these items will effect the deposit on Ju ne 15, 1970. In
th e case of bills subm itted in paym ent of income taxes of all other taxpayers, the office receiving the bills will issue receipts
therefor, the original of which th e taxpayer shall subm it on or before Ju n e 15, 1970, to the D istrict D irector of Internal
R evenue for the D istrict in which such taxes are payable. T he bills will be issued in bearer form only, and in denominations 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 Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving Tim e, Thursday, October 23, 1969. Tenders will not be receivod 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 com petitive 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. I t is urged th at 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 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 th eir 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 accom panied by paym ent of 2 percent of the face am ount of T reas­
ury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or trust
All bidders are required to agree not to purchase or to sell, or to m ake any agreements with respect to the purchase
or sale or other disposition of any bills of this issue a t a specific rate or price, until after one-thirty p.m., E astern D aylight
Saving Tim e, Thursday, October 23, 1969.
Im m ediately after th e closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which
public announcem ent will be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. Those sub­
m itting tenders will be advised of the acceptance or rejection thereof. T h e 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 reser­
vations, noncompetitive tenders for $400,000 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 com petitive bids. Paym ent of accepted tenders a t the prices offered m ust be made
or completed a t the Federal Reserve B ank in cash or other im m ediately available funds on October 29, 1969. Any qualified
depositary will be perm itted to m ake settlem ent by credit in its T reasury T ax and Loan account for T reasury bills allotted
to it for itself and its customers.
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 the possessions of the U nited States, or by any local taxing authority. For purposes of taxation th e 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 R evenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not considered 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, whether 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.
T reasury D ep artm ent Circular No. 418 (curren t revision) and this notice, prescribe th e term s of the T reasury bills and
govern th e conditions of th eir issue. Copies of th e circular may 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 at El Paso,
San Antonio, up to tw leve-thirty p.m., Central D aylight Saving Time, Thursday, October 23, 1969. Tenders
entered by telephone.

Houston and
may n t be

Yours very tu y
P. E. Coldwell

(S e e reverse side for tender form )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (

T his issue of Treasury bills will be accepted at face value in paym ent o f income ta x es due
on June 15,1970

D ated October 2 9,1969


M aturing June 2 2 ,1 9 7 0

To: Federal R eserve Bank, Station K, Dallas, T exas 75222
Or —

The---------------------------------------------------------- Branch
E l P a so


H o u sto n


S a n A n to n io




Pursuant to the provisions o f Treasury Departm ent Circular No. 418 (current revision) and to t h e
provisions of th e public announcem ent, as shown on reverse side, as issued by the Treasury Department
th e undersigned offers to purchase Treasury bills in the amount shown below, and agrees to pay for t h e
amount allotted, on or before th e issu e date, by th e m ethod and a t th e rate indicated.
NONCOM PETITIVE T E N D E R $_____________ ___________________

NO T TO E X C E E D $400,000

N o n c o m p e titiv e ten d ers fo r $400,000 or le s s from a n y one bidder, w ith o u t sta te d price, w ill be accep ted in
fu ll a t the a v e r a g e price (in th r e e d e c im a ls) o f accep ted c o m p e titiv e bids.

--- -------------COMPETITIVE T E N D E R S S


I -_ _
$ ------



. $



P ric es should be e x ­
pressed on the basis o i
100, with not more th a n
th ree decimal p la c e s ,
e. g., 99.925. Fractions
must not be used.

la s ' T E N D E R S M A Y N O T B E E N T E R E D B Y T E L E P H O N E . T E N D E R S B Y W IR E , I F R E C E IV E D B E F O R E T H E
C L O SIN G H O U R , A R E A C C E P T A B L E .
D e n o m in a tio n D esired
N um ber of


Maturity Valna

<> ?
-< ?


B y c h a r g e to our T r ea su r y T a x and L oan A cco u n t


1,000 $-

P a y m e n t t o b e m a d e b y ...........................................................

5,000 ?-


10,000 $-

-(a) ?

50,000 ?-


B y c h a r g e to our r eser v e acco u n t on p a y m e n t date.

$ 100,000 S-


B y d r a ft en clo sed (effe c tu a l d eliv ery of enclosed draft
sh a ll be on la te s t d a y w h ich w ill p erm it p r e se n tm e n t i n
order to obtain irrev o ca b ly co llected fu n d s on payment



(N a m e o f B a n k )

.(5) ? 500,000 %
(ffl $1:,000,000 ?-


W e c e r tify th a t w e, a s w e ll a s our cu sto m ers, if any, lia teH
hereon h a v e a g reed not to pu rchase or to se ll, or to m a k e a n y
a g r e e m e n ts w ith resp ect to th e purchase or s a le o f other d isp o s i .
tio n o f a n y bills o f th is issu e at a specific rate or price, u n t i l
a fte r o n e -th ir ty p.m., E a s te r n D a y lig h t S a v in g Tim e, Thurs­
day, O ctober z3, 1969.

D elivery Instructions:

(Subscriber’s full name or corporate title)

Hold in Custody Account — Member
banks for own account only


Pledge to Secure Treasury Tax and
Loan Account




Ship to _ ____________________________

(Authorized official signature and title)

(For the account of. If tender ia for another subscriber)


1. N o ten d er f o r l e s s th a n $1,000 w ill b e con sid ered and e a ch te n d e r m u s t be f o r an a m o u n t in m u ltip le s o f $1,000 ( m a t u r i t y
v a lu e ).
2. T enders should be forw ard ed in an e n v e lo p e c le a r ly a d d re ssed to th is bank or a p p ro p ria te branch a s F is c a l A g e n t o f t h e
U n ite d S ta te s, w ith n o ta tio n on th e en v elo p e r ea d in g “T E N D E R F O R T R E A S U R Y O F F E R I N G ” . S in ce e n v e lo p es r e c e iv e d
w ith t h is le g e n d w ill n o t b e opened u n til a ft e r th e c lo s in g tim e specified in th e pu blic an n o u n cem en t, c o m m u n ic a tio n s
r e la tin g to o th er m a tte r s should n o t b e enclosed . E n v e lo p e s f o r su b m ittin g te n d e r s m a y be r eq u e ste d fr o m t h is b a n k o r
a p p rop riate branch.
3. A n y qualified or con d ition al te n d e r w ill b e rejected .
4. I f a co rp o ra tion m a k e s t h e te n d e r th e fo r m should b e sign ed b y an officer o f th e corp oratio n au th orized to m a k e t h e
tender and th e s ig n in g o f th e fo r m b y a n officer o f th e corp oration w ill b e ccnstrupd " 3 a r ep re se n ta tio n b y h im th a t ’
h a s been so au th orized . I f th e te n d e r i s m a d e b y a p a r tn e r sh ip it should be sig n e d by a m e m b er o f th e firm , w h 0
should s ig n in th e fo r m “ ....................................................................., a cop a rtn ersh ip , b y ...........................................................................................
a m em b er o f th e firm ” .
5. T en d ers fr o m th o s e o th er th a n incorp orated b a n k s and tr u s t c o m p a n ie s_o r r esp o n sib le and rec o g n iz ed d ea lers in i n v e s t ­
m e n t se c u r itie s w ill be d isregard ed , u n le ss accom p anied by a d e p o sit o f 2 p e r ce n t o f th e to ta l am ou n t ( m a t u r i t v
v a lu e ) o f t h e T r e a s u r y b ills ap p lied fo r , or u n le s s t h e te n d e r s ar e accom p an ied b y an e x p r e s s g u a r a n ty o f fu ll p a y m e n t
b y an in co rp o ra ted bank or tr u s t com pany.
6. I f the la n g u a g e o f th is fo rm is ch a n g ed in a n y r e s p e c t, w h ich , in t h e opinion o f th e S e c r e ta r y o f th e T r ea su r y , is m a t e r i a l
t h e te n d e r m a y b e d isregard ed .

(S reverse for announcem

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