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F ederal. R e s e r v e Ba n k o f D a l l a s
FIS C A L A G E N T O F T H E UN ITED STA T E S

DALLAS, TEX AS 7 5 2 2 2
C i r c u l a r N o . 6 9 -2 75
N o v e m b e r 5, 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 follo w 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 th is p u b lic notice, invites ten d ers fo r tw o series of T re a su ry bills to th e ag g reg a te am o u n t
o f $3,000,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g N o v e m b er 13, 1969, in th e a m o u n t of
$2,890,203,000, a s follows:
92-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 13, 1969, in th e a m o u n t of $1,800,000,000, o r th e re ­
a bouts, 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 14, 1969, a n d to m a tu re F e b ru a ry 13, 1970,
o riginally issued in th e a m o u n t o f $1,199,449,000, th e a d d itio n al a n d original bills to be freely interchangeable.
182-DA Y B IL L S for $1,200,000,000, or th ere ab o u ts, to be d a te d N o v e m b er 13, 1969, a n d to m a tu re M a y 14, 1970.
T h e bills of b o th series will b e issued o n a discount basis u n d e r c o m p e titiv e a n d no n c o m p e titiv e b id d in g as h e re in a fte r
p ro 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 a y ab le w ith o u t in terest. T h e y will b e issued in b e a re r form only, a n d in
d e n o m in a tio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu r ity 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 a n k s a n d B ranches u p to th e closing hour, o n e -th irty p.m ., E a ste rn
S ta n d a rd T im e , M onday, N o v e m b er 10, 1969. 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 for a n even m u ltip le o f $1,000, a n d in the case o f c om petitive te n d e rs th e price offered m u s t be 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 urged t h a t te n d e rs be m ad e
o n th e p rin te d form s a n d fo rw arded in the special envelopes w hich will b e su p p lied by 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 a tio n therefor.
B a n k in g in stitu tio n s generally m a y su b m it te n d e rs for a ccount of custom ers pro v id ed th e nam es of th e custom ers are
s e t fo rth in such tenders. O th ers 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 except for th e ir ow n account.
T e n d e rs will be receiv ed w ith o u t deposit from in co rp o ra ted b anks and tr u 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 e n 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 p anied by a n 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
tr u s t com pany.
Im m e d ia te ly a f te 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 u b lic an n o u n ce m en t will b e m ad e b y th e T re a su 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 ccep ted bids. T hose
su b m ittin g te n d e rs w ill be ad v ised of th e a cc ep ta n ce o r 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 c c e p t o r r e je c t a n y or a ll tenders, in w hole o r in p a rt, a n d his a c tio n in a n y such re sp e ct shall be final. S u b je c t to
th e se reservations, n o n c o m p e titiv e ten d ers for each issue for $200,000 o r less w ith o u t sta te d price from a n y one b id d e r will be
a c c e p te d in full a t th e average p rice (in th re e d ecim als) of a ccep ted 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 ten d e rs in accordance w ith th e b id s m u st b e m ad e or 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 13, 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 e m b er 13, 1969. Cash a n d
e xchange te n d e rs will receive e qual tre a tm e n t. C ash a d ju s tm e n ts will be m a d e for differences b etw een th e p a r v a lu e of m a tu r­
in g bills a cc ep te d in exchange a n d th e issue p rice o f 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
h a v e a n y exem ption, as 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 trea tm e n t,
a s such, u n d e r th e In te rn a l R e v en u e Code of 1954. T h e bills are su b je ct to estate, inheritance, gift o r o th e r excise taxes, w heth er
F e d e ra l or S ta te , b u t a re e x em p t from all tax a tio n now o r h e re a fte r im posed o n th e p rin cip al or in te re st th e re o f b y a n y S tate,
or a n y of th e possessions of th e U n ite d States, or by a n y local tax in g a u th o rity . F o r purposes of tax a tio n th e a m o u n t o f discount
a t w hich T re a su ry bills a re originally sold by th e U n ite d S ta te s is considered to be i n te r e s t U n d e r S ections 4 5 4 ( b ) a n d
1221 ( 5 ) of th e In te rn a l R e v en u e Code of 1954 th e a m o u n t of d isco u n t a t which bills issued h e reu n d e r are sold is not con­
sid e red to accrue 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 o m p an ies) issued h e re u n d e r n e ed include
in his incom e tax re tu r n only th e difference b e tw ee n th e p rice p a id for such bills, w h e th e r o n original issue or o n su b seq u en t
p u rc h ase, a n d th e a m o u n t a c tu a lly received e ith e r u p o n sale or re d e m p tio n a t m a tu rity d u rin g th e tax ab le y e a r for w hich th e
re tu rn is m ade, as o rd in ary gain o r loss.
T re a su ry D e p a rtm e n t C ircular 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 of th e T re a su ry bills a n d
govern th e conditions of th e ir issue. Copies of th e c ircu 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 a ccord a n ce with the a b o v e an n o u n c em en t, tenders will be received at this b a n k a n d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, M on d ay, N o vem b e r 10, 1 969 . Tenders m a y not
be entered b y 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 ield of A ccepted T en d e rs
91 -D ay Bills
D u e F e b ru a ry 5, 1970
$2,992,938,000________________
$1,800,271,000________________
P ric e
Y ield
98.245_______
_ 6 .9 4 3 % ____
_ 7 .026% ____
98.224_______
_6.998% ( 1 ) .
98.231_______

__ _______ T o ta l A p p lied For..
________ T o ta l A c c ep ted __
— H ig h ----___L ow __ _
A verage...

182-D ay Bills
D u e M a y 7, 1970
---------------------------$2,293,726,000
---------------------------$1,200,622,000
P ric e
Y ield
-96 .3 4 1 _________________ 7.238%
-9 6 .3 1 0 _________________ 7.299%
-9 6 .3 1 9 _____________ 7.281% ( 1 )

( 1 ) T h e s e rates are in a bank d iscou nt basis. T h e e q u iv a le n t co u p o n issue yie ld s are 7 .2 2 % for th e 9 1 -d a y bills and 7 6 6 % for th e
1 82 -d a y bills.

( 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated N ovem ber 13, 1969

M aturing May 14, 1970

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

H o u sto n 77001

S a n A n ton io 78206

(Date)

P u rsu a n t to th e p ro v isio n s o T r ea su r y D ep a rtm en t C ircular N o . 418 (cu rren t rev isio n ) and th e p ro v isio n s o f th e
public an n ou n 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 r ea su r y b ills in the am ount
sh ow n below, and a g r e e s to pay fo r th e a m o u n t a llo tted , on or before th e issu e d a te, b y th e m ethod and a t th e r a te indicated.

NONCOMPETITIVE T E N D E R $_

.N O T TO EX 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 ithout sta te d price, w ill be accepted in fu ll a t the a v e r a g e
price ( in three d e c im a ls) o f accepted co m p e titiv e bids.

COMPETITIVE T E N D E R S < $
-

_@.
_@.

(*

'

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

P r ic e s should be e x ­
p r e sse d on the b a s is o f

100, with not mors than
---------------------------------______________________

-$-

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.

S S T 1 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 .
P a y m e n t f o r th is issu e o f b ills c a n n o t b e m a d e
b y c re d it to T r ea su r y T a x and L oan A cco u n t.

D e n o m in a tio n s D e s ir e d
Number o f
Pieces

Maturity Value

$

$

M ETHOD OF PA Y M EN T

1,000
5,000 ?_

_(® $

$

10,000

□
□

$­

50,000 $_
□

$ 100,000 $_
? 500,000 $_

Charge our reserve account on paym ent
date

[ | D r a f t e n c l o s e d (Effectual delivery o f enclosed drmft
s h a ll be od l a t e s t day which will p e r m i t p r e s e n t m e n t in

$ 1,000,000 $_

o r d e r to o b t a i n i r r e v o c a b ly co llec ted fu n d * o n p a y m e n t
d a te )

D elivery In stru ctio n s:
□

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

(Subscriber’s full cam e or corporate title)

Hold in Custody Account— Member
banks for own account only

□

Pledge to secure Treasury T ax and
Loan Account

□

(Address)

B y-

Ship to____________________________

(Authorized official signature and title)
(For the account of, if tender is for another subscriber)

(Address)

IMPORTANT
1. N o te n d e r fo r le s s th a n $1,000 w ill be con sid ered an d e a c h te n d e r m u s t be f o r a n am ou n t in m u ltip le s o f $1,000 (m a tu r it y
v a lu e ) .
2. T enders sh o u ld be fo r w a rd ed in an e n v e lo p e c le a r ly a d d ressed 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 t e s , w ith n o ta tio n on th e e n 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 ­
ceived w ith th is le g e n d w ill n o t be opened u n til a f te 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
c a tio n s r e la tin g to other m a t te r s sh ou ld n o t be en clo sed . E n v e lo p e s fo r su b m ittin g ten d ers m a y be o b tained
fr o m t h is
ban k or a p p ro p ria te branch.
3. A n y qualified or co n d itio n al te n d e r w ill b e rejected .
4. I f a corp oration m a k e s th e tender, th e fo r m sh o u ld be sig n e d by an officer o f th e corp oratio n a u th o riz ed to m a k e t h e
te n d e r and th e s ig n in g of th e fo r m b y a n officer o f t h e corp oration w ill b e co n stru ed a s a r ep r e se n ta tio n b y h im t h a t
h e h a s been so a u th orized . I f t h e te n d e r is m a d e b y a pa rtn ersh ip i t should be sig n e d by a m em b er o f th e firm , w h o
should s ig n in th e fo r m “
................ ..........., a cop artn ersh ip , b y ................................................................................................................ f
a m e m b er o f th e firm .”
5. T en d ers fr o m th o s e oth er th a n incorp orated b a n k s and tr u s t com panies or resp o n sib le and rec o g n iz ed dea lers in i n v e s t ­
m e n t se c u r itie s w ill be disreg ard ed , u n le ss a ccom p anied b y a d ep o sit o f 2 p ercen t o f th e to tal 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 the te n d e r s a re accom p anied by 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 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 th is fo r m is ch an ged in a n y resp e ct, w h ich, in th e opin ion 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 ­
rial, th e te n d e r m a y be disregard ed .

(See reverse for announcem
ent)

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