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Federal

reserve bank of

Dallas

F IS C A L A G E N T O F T H E UN ITED S T A T E S

DALLAS, TEXAS 7 5 2 2 2
C ir c u la r N o. 6 9 -2 6 8
O c to b e r 29, 1969

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follow in g sta te m e n t giving details o f tw o issues of Treasury bills:
T h e T re a su ry D e p a rtm e n t, b y this p u b lic notice, invites ten d ers for two series of T re a su ry bills to th e ag g reg a te a m o u n t
of $3,000,000,000, or th ere ab o u ts, fo r cash a n d in exchange lo r T re a s u ry bills m a tu rin g N o v e m b er 6, 1S69, in th e a m o u n t of
$2,902,422,000, a s follows:
91-D A Y B IL L S (to m a tu rity d a te ) to b e issued N o v em b er 6, 1969, in th e a m o u n t of $1,800,000,000, o r th e re ­
abouts, rep rese n tin g a n a d d itio n al a m o u n t of bills d a te d A ugust 7, 1969, a n d to m a tu re F e b ru a ry 5, 1970,
originally issued in th e a m o u n t o f $1,203,246,000, th e a d d itio n al a n d original bills to be freely interchangeable.
182-D A Y B IL L S for $1,200,000,000, or th ere ab o u ts, to b e d a te d N o v e m b er 6, 1969, a n d to m a tu re M a y 7, 19 70.
T h e bills of b o th series will b e issued on a discount basis u n d e r co m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r
pro v id ed , a n d a t m a tu rity th e ir face a m o u n t will b e p ay ab le w ith o u t interest. T h e y w ill b e issued in b e a re r fo rm only, a n d in
de n o m in a tio n s o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu rity v a lu e ).
T en d e rs will b e received a t F e d e ra l R e se rv e B anks a n d B ranches u p to th e closing hour, o n e -th irty p.m ., E a s te rn
S ta n d a rd T im e , M onday, N o v e m b er 3, 1669. T e n d e rs will n o t be received a t th e T re a s u ry D e p a rtm e n t, W ashington.
E a c h te n d e r m u st be fo r a n even m u ltip le of $1,000, a n d in th e case of c om petitive te n d e rs th e p rice offered m u st b e expressed on
th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t be used. I t is u rged t h a t te n d e rs be m a d e
on th e p rin te d form s a n d forw arded in th e special envelopes w hich will be su p p lied b y F e d e ra l R e se rv e B a n k s o r B ranches on
a p p lic atio n therefor.
B anking in stitu tio n s generally m ay su b m it te n d e rs for a ccount of custom ers p ro v id ed th e nam es o f th e custom ers are
set fo rth in such tenders. O th e rs th a n ban k in g in stitu tio n s will n o t b e p e rm itte d to su b m it te n d e rs e x ce p t for th e ir ow n account.
Tenders, will b e received w ith o u t deposit from in co rp o ra ted banks a n d tru s t com panies a n d from responsible a n d recognized
d e ale rs in in v e stm e n t securities. T en d e rs from oth ers m u st be a cc om panied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of
T re a s u ry bills a p p lie d for, unless th e ten d e rs a re a ccom panied b y an express g u a ran ty of p a y m e n t by a n in co rp o ra ted b a n k or
tru s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill b e opened a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich
p uDlic an n o u n ce m en t w ill be m ad e b y th e T re a s u ry D e p a rtm e n t of th e a m o u n t a n d p rice range of a c c e p te d bids. T h o se
su b m ittin g te n d e rs w ill be advised of th e a cc ep ta n ce or re je ctio n thereof. T h e S e c retary of th e T re a su ry expressly reserves th e
rig h t to a cc ep t o r re je c t a n y or a ll tenders, in w hole o r in p a rt, a n d his a ctio n in a n y such re sp e ct shall b e final. S u b je c t to
th e se reservations, n o n c o m p e titiv e te n d e rs for each issue for $200,000 or less w ith o u t sta te d p rice from a n y one b id d e r will be
a cc ep te d in full a t th e average p rice (in th re e d ecim als) of a cc ep te d c o m p e titiv e bids for th e respective issues. S e ttle m e n t for
a c c e p te d te n d e rs in accordance w ith th e bids m u st b e m ade o r c o m p le te d a t th e F e d e ra l R e se rv e B a n k on N o v e m b er 6, 1969,
in cash or o th e r im m e d ia te ly a v ailab le funds or in a like face a m o u n t of T re a su ry bills m a tu rin g N o v em b er 6, 1969. Cash and
exchange te n d e rs w ill receive e qual tre a tm e n t. Cash a d ju s tm e n ts will b e m ad e for differences betw een th e p a r value of m a tu r ­
ing bills a cc ep te d in exchange a n d th e issue p rice of th e new bills.
T h e incom e deriv ed from T re a su ry bills, w h e th er in te re st or gain from th e sale o r o th e r disposition of th e bills, does not
ha v e a n y exem ption, a s such, a n d loss from th e sale o r o th e r disposition of T re a su ry bills does n o t have a n y special tre a tm e n t,
as such, u n d e r th e In te rn a l R e v en u e Code o f 1954. T h e b ills are su b je ct to estate, inheritan c e, gift or o th er excise taxes, w h e th er
F e d e ra l or S ta te , b u t a re e x em p t from all ta x a tio n now o r h e re a fte r im posed on th e p rin c ip a l o r in te re st th e re o f b y a n y S ta te ,
o r a n y of th e possessions o f th e U n ite d States, or b y a n y local tax in g a u th o rity . F o r purposes of ta x a tio n th e a m o u n t of discount
at w hich T re a su ry b ills a re originally sold b y th e U n ite d S tates is c onsidered to b e in te re st. U n d e r Sections 4 5 4 ( b ) a n d
1221 ( 5 ) of th e In te rn a l R e v en u e C ode of 1954 th e a m o u n t of discount a t which bills issued h e reu n d e r are sold is not con­
sid e red to a ccrue u n til such bills a re sold, re d ee m e d or otherw ise disposed of, a n d such bills are excluded from co n sid eratio n as
c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insurance c om panies) issued h e re u n d e r n e ed include
in his incom e tax re tu rn only th e difference b e tw ee n th e p rice p a id fo r such bills, w h e th e r o n original issue o r on su b seq u en t
pu rch ase, a n d th e a m o u n t a c tu a lly re ce iv e d e ith e r u p o n sale o r re d e m p tio n a t m a tu rity d u rin g th e tax a b le y e a r fo r w hich th e
re tu rn is m ade, as o rd in a ry gain o r losr
T re a su ry D e p a rtm e n t C ircu lar No. 418 (c u rre n t re v isio n ) a n d th is notice, pre sc rib e th e te rm s o f th e T re a s u ry bills a n d
govern th e conditions of th e ir issue. Copies of th e c irc u lar m ay be o b tain e d from a n y F e d e ra l R eserve B a n k or B ranch.

In accord ance with the a b o v e an n o u n c em en t, tenders will b e received at this b a n k a n d its branches a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.nv, Central Standard Time, M o n d ay , N o v em b e r 3, 196 9. Tenders m a y not
be entered by te le p h o n e .
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R a n g e a n d A p p ro x im ate Y ie ld of A ccep ted T en d e rs
91 -D ay Bills
182-D ay Bills
D u e J a n u a r y 29, 1970
D u e A pril 30, 1970
$2,946,070,000_________________________________T o ta l A p p lied F o r_____________________ _____ ____ ..$2,879,182,000
$1,800,104,000---------------------------------------------------- T o ta l A ccepted________________________________ ..$1,200,454,000
P ric e
Y ield
P ric e
Y ield
98.231-------6 .9 9 8 % -------- ---------------------------------H igh------------------------------------ 96.336____________ 7.247%
98.220------------------- 7.0 4 2 % ----------------------------------- L ow ____________ !_____ 96.322
7.275%
98.223
7.030% ( 1 ) ---------------------------------A verage----------------------------------96.328___
7.263% ( 1 )
( 1 ) T h e s e rates are on a bank discount basis. T h e eq u iva le n t cou p on issue y ie ld s are 7 .2 6 % for th e 9 1 -d a y bills, and 7 6 4 % for the
1 8 2-d a y bills.

( S e e r e v e r s e sid 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 N ovem ber 6 ,1 9 6 9

M aturing May 7 ,1 9 7 0

To: Federal R eserve Bank, Station K, Dallas, T exas 75222
or—
The------------- -— _______________________ Branch
E l P a s o 79999

H o u sto n 77001

____________________________

S a n A n to n io 78206

(Date)

P u rsu a n t to th e pro v isio n s o f T r ea su r y D e p a r tm en t Circular N o . 418 (cu rren t rev isio n ) and th e pro v isio n s o f the
public ann oun cem en t issu ed b y th e T rea su ry D ep a rtm en t, th e u n d ersig n ed offers to p u rch a se T rea su ry b ills in th e am ount
sh o w n below , and a g r e e s to p a y fo r th e a m o u n t a llo tte d , on or before th e issu e date, b y th e m ethod and a t th e r a te indicated.

NONCOMPETITIVE T E N D E R $_____________________________________NOT TO E X C EED $200,000
N o n co m p etitiv e ten d ers fo r $200,000 or le s s from a n y one bidder, w ithou t sta te d price, w ill be accepted in fu ll a t the a v e r a g e
price (in th ree d e c im a ls) o f accepted co m p etitiv e bids.

(S

_

_

(a)

¥

@

P ric es should be e x ­
p ressed on the b a sis o f
100, w ith not m ore th a n
t h r e e d e c im a l p l a c e s ,
e. g ., 99.925. F r a c tio n s
m u s t n o t be used.

¥
¥

11®*= 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 s D e sir ed
Number of
Pieces

P a y m en t fo r th is issu e o f b ills can n ot b e m a d e
b y cred it to T rea su ry T a x and L oan A ccount.
M ETHOD OF PA Y M EN T

Maturity Value

¥

1,000 ¥

& $
>
(3) ¥

5,000 ¥

□

10,000 ¥

□

(a) ¥ 50,000 ¥
(a) ¥ 100,000 ¥

B y m aturing bills
held by________________________________
P aym ent to be made by_

□

500,000 $

Charge our reserve account on paym ent
date
I ! D raft enclosed (Effectual delivery o f enclosed draft
-"

(a) ?1 ,000,000 ¥

shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment
date)

<> ¥
s

Delivery Instructions •
□
□

Pledge to secure Treasury T ax and
Loan

□

(Subscriber's fu ll name or corporate title)

Hold in Custody Account— Member
banks for own account only

(A
ddress)
By_

A c C O lin t

(Authorized official signature and title)

Ship to -------------------------------------------

(For the account of, if tender is for another subscriber)
(Address)

IMPORTANT
1. N o ten d er fo r le s s th a n $1,000 w ill be co n sid ered a n d e a ch te n d e r m u s t be fo r a n am o u n t in m u ltip le s o f $1,000 (m a t u r it y
v a lu e ).
2. T en d ers should b e fo r w a rd 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 t a te s , w ith n o ta tio n on th e e n v e lo p e rea 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 ­
ceived w ith t h is le g e n d w ill n o t be opened u n til a f t e r th e c lo s in g tim e specified in th e public an n ou n cem en t, c o m m u n i­
ca tio n s r e la tin g to other m a t te r s should n ot b e en closed . E n v e lo p e s fo r su b m ittin g te n d e r s m a y be obtained fr o m t h is
b an k or a p p ro p ria te branch.
3. A n y qualified or con d ition al te n d e r w ill be rejected.
4. I f a co rp oration m a k e s th e ten d er, t h e fo r m sh ou ld
be sig n e d b y a n officer o f th e co rp o ra tion a u th o riz ed to m a k e t h e
te n d e r and t h 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 con stru ed a s a r ep r e se n ta tio n by h im t h a t
h e h as b een so a u th orized . I f th e te n d e r is m a d e by a partn ersh ip i t should be s ig n e d by a m e m b e r o f th e firm, w h o
should s ig n in th e fo r m “.................. ....................... ........., a co p artn ersh ip , b y .................................................................................................................
a m e m b er o f the firm .”
5. T en d ers fr o m th o s e o th er t h a n incorp orated b a n k s a n d tr u s t com panies or r esp o n sib le and r ec o g n iz ed dealers in in v e s t ­
m e n t se c u r itie s w ill be disreg ard ed , u n le s s accom p anied b y a d e p o sit o f 2 p ercen t o f th e to ta l a m o u n t (m a tu r ity v a lu e )
o f th e T r e a s u r y b ills applied for, or u n le ss th e ten d ers a re accom panied b y an e x p r e s s g u a r a n ty o f f u ll p a y m e n t b y a n
incorp orated bank or tr u st com pany.
6. I f th e la n g u a g e o f t h is fo r m is ch a n g e d in a n y r e sp e c t, w h ich , in th e opin ion o f t h e S e c re ta ry o f th e T r ea su r y is m a t e ­
rial, th e ten d er m a y be d isregard ed .

(See reverse for announcement)

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