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F ederal reserve b a 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 75222
C ircu la r No. 69-282
N o v e m b er 12, 1969

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your attention is invited to the follow in g statem ent giving details of tw o issu e s of Treasury bills:
T h e T re a su ry D e p a rtm e n t, b y th is pu b lic notice, invites tenders fo r tw o series of T re a s u ry bills to th e aggregate a m 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 20, 1969, in th e a m o u n t of
$2,902,408,000, as follows:
91-D A Y B IL L S ( to m a tu r ity d a te ) to be issued N o v em b er 20, 1969, in th e a m o u n t of $1,800,000,000, or th e re ­
abouts, re p re se n tin g an a d d itio n al a m o u n t of bills d a te d A ugust 21, 1969, a n d to m a tu re F e b ru a ry 19, 1970,
originally issued in th e a m o u n t of $1,202,422,000, th e a d d itio n al a n d original bills to b e freely in terchangeable.
182-D A Y B IL L S fo r $1,200,000,000, o r th ere ab o u ts, to be d a te d N o v e m b er 20, 1969, a n d to m a tu re M a y 21, 1970.
T h e bills of b o th series will be issued on a discount basis u n d e r co m p e titiv e a n d no n c o m p e titiv e b id d in g a9 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 be p a y ab le w ith o u t interest. T h e y will be issued in b e are r form only, a n d in
d e 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 r ity v a lu e ).
T e n d e rs w ill b e received a t F e d e ra l R eserve 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 s te rn
S ta n d a rd T im e , M onday, N o v e m b er 17, 1969. T e n d e rs w ill n o t b e received a t th e T re a su ry D e p a rtm e n t, W ashington.
E a c h te n d e r m u st b e for a n e v en m u ltip le of $1,000, a n d in th e case of c om petitive ten d ers th e p rice offered m u st 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 u rged t h a t te n d e rs b e m ade
on th e p rin te d form s a n d fo rw arded in th e special envelopes w hich will b e su p p lied b y F e d e ra l R e se rv e B a n k s or B ra n ch e s 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 fo r account of custom ers pro v id ed th e nam es o f th e custom ers are
s e t fo rth in such tenders. O th e rs th a n ban k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it te n d e rs except fo r th e ir own account.
T e n d e rs will b e received w ith o u t d e p o sit from in co rp o ra ted banks 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 b e a ccom panied b y p a y m e n t o f 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 te n d e rs are a cc o m p an ied b y a n express g u a ran ty of p a y m e n t b y a n in co rp o ra ted b a n k o r
t r u s t com pany.
Im m e d iate ly a f te r th e closing hour, te n d e rs will b e o p e n ed a t th e F e d e ra l R eserve B a n k s a n d B ranches, follow ing which
p u b lic a n n o u n ce m en t will be m ad e by 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 c c e p te d bids. T h o se
su b m ittin g ten d e rs will b e advised 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 cc ep t o r re je c t a n y o r all ten d ers, in whole or in p a rt, a n d his a ctio n in a n y such re sp e c t shall be final. S u b je ct 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 o r less w ith o u t s ta te d p rice from a n y one b id d e r will b e
a cc ep te d in full a t th e av erag e price (in th re e d e cim 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 bids m u st be m a d e or c o m p leted 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 20, 1969,
in cash o r o th er im m e d ia tely a v ailab le funds o r in a lik e face a m o u n t o f T re a s u ry bills m a tu rin g N o v em b er 20, 1969. C ash a n d
e xchange te n d e rs will receive equal tre a tm e n t. C ash a d ju s tm e n ts will b e m a d e fo r differences b e tw ee n th e p a r v a lu e of m a tu r­
ing b ills a cc ep te d in exchange a n d th e issue price of th e new bills.
T h e incom e d e riv e d fro m T re a su ry bills, w h e th er in te re st o r gain from th e sale o r o th e r disposition of th e bills, does n o t
h a v e a n y exem ption, as such, a n d loss from th e sale or o th er disposition of T re a su ry bills does n o t h a v e a n y special tre a 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 C ode of 1954. T h e bills a re su b je ct to e state, in h eritan ce, g ift or o th er excise taxes, w h e th er
F e d e ra l o r S tate, b u t are e x em p t from a ll tax atio n now o r h e re a fte r im posed on th e p rin cip a l o r in te re st th e re o f b y a n y S tate,
o r a n y of th e possessions of th e U n it ,a States, or b y a n y local tax in g a u th o rity . F o r pu rp o ses of ta x a tio n th e a m o u n t of discount
a t w hich T re a su ry bills a re originally sold b y th e U n ite d S tates is considered to b e interest. 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 C ode of 1954 th e a m o u n t of discount a t w hich bills issued h e reu n d e r are sold is n o t con­
sid e re d to accrue u n til such bills a re sold, re d ee m e d o r otherw ise disposed of, a n d such bills a re 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 ta x 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 er on original issue o r on su b seq u en t
p u rch ase, a n d th e a m o u n t a ctu 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 r ity during th e tax a b le y e a r fo r w hich th e
re tu r n is m ad e , a s o rd in a ry gain or loss.
T re a su ry D e p a rtm e n t C ircu la r No. 418 (c u r re n t revision) a n d th is notice, pre sc rib e th e te rm s of th e T re a s u ry bills a n d
g overn th e conditions of th e ir issue. C opies o f th e c irc u lar m a y b e o b ta in e d from a n y F e d e ra l R e se rv e B a n k o r 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 a t 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 o n d ay, N o v em b e r 17, 1969. 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 ield of A ccepted T e n d e rs
9 2 -D a y B ills
D u e F e b r u a ry 13, 1970
$2,778,730,000.............................................. ................... T o ta l A p p lied F o r ___________
$1,800,440,000................................................ ..................... T o ta l A ccepted_____________
P ric e
Y ield
98.190_____________7 .0 8 3 % _____ _
_________________ H igh_________________
98.163_____________7.188 % ____________________________X o w _________________
98.171________ 7.157% ( 1 ) _________________________ A verage________________

182-D ay Bills
D u e M a y 14, 1970
--------------------------$2,593,042,000
-------------------------- $1,204,487,000
P ric e
Y ield
.96.250_________________ 7.418%
.96.235_________________ 7.447%
-96.241_____________ 7.435% ( 1 )

( 1 ) T h ese rates are o n a b ank d iscou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 7 .3 9 % for th e 9 2 -d a v b ills and 7 8 3 % for the
18 2 -d a y bills.
’
'
/0

(See reverse aide for tender form)

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
D ated A ugust 21, 1969

M aturing February 1 9 ,1 9 7 0

T o: Federal R eserve Bank, S tation K, Dallas, T exas 75222
or—
T he___________________________________Branch
£ 1 P a s o 79999

H o u sto n 77001

S a n A n to n io 78206

(Date)

P u r su a n t to t h e p r o v isio n s o f T r e a s u r y D e p a r tm e n t Circular N o . 418 (c u r re n t r e v isio n ) and th e p r o v isio n s o f the
public an n o u n cem en t issu e d b y t h e T r e a s u r y D e p a r tm en t, th e u n d e rsig n ed o ffers to p u rc h a se T r e a s u r y b ills in th e am ou n t
sh o w n b elow , 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 b efore t h e issu e d ate, b y t h e m eth o d and a t t h e r a te ind icated .

_NOT TO E X C E E D $200,000

NONCOM PETITIVE T E N D E R $_

N o n c o m p e titiv e te n d e r s fo r $200,000 or le s s from a n y o n e bidder, w ith ou t s ta te d price, w ill be a ccep 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.

(<R
<$

il

fa)
(a)
......... Cn)

P r ic e s sh o u ld be e x ­
p r e sse d on th e b a s is o f
100, w it h n o t m o r e 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 b e used.

s
..

5
R

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 JtE A C C E P T A B L E .
P a y m e n t f o r t h is issu e o f b ills can 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 sir ed
Number o f
Pieces

M a tu rity V alue

(a> $
?

5,000 ?-

.m $

10,000 $-

(5) $

M ETHOD OF PA Y M EN T

1,000 *

50,000 $-

□
□
□

.& $ 100,000 $m $ 500,000 $-

□

B y m aturing bills
held by________________________________
P aym ent to be m ade by_
Charge our reserve account on paym ent
date
D ra ft enclosed (Effectual delivery of enclosed draft
s h a l l be o n l a t e s t d a y w h i c h w i l l p e r m i t p r e s e n t m e n t i n
o r d e r to o b t a i n i r r e v o c a b l y c o l l e c t e d f u n d a o n p a y m e n t
d a te )

$ i ,000,000 $D elivery In stru ctio n s:
□

(Subscriber’s full name or corporate title)

Hold in Custody Account— Member
banks fo r own account only

□

Pledge to secure Treasury T ax and
Loan Account

□

(Address)

B y-

Ship t o _ ---------------------------------------

(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 f o r le s s t h a n $1,000 w ill be c on sid ered and e ach te n d e r m u s t b e fo r a n a m o u n t in m u ltip le s o f $1,000 (m a tu r ity
v a lu e ) .
2. T en d ers sh ou ld be fo r w a rd ed in a n e n v e lo p e c le a r ly a d d re ssed to t h is bank o r ap p ro p ria te branch a s F is c a l A g e n t o f th e
U n it e d S ta te s , w ith n o ta tio n o n t h e e n v e lo 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 eiv e d w ith t h is le g e n d w ill n o t be op en ed u n til a f te r th e c lo sin g tim e specified in th e public a n n ou n cem en t, co m m u n i­
c a tio n s r e la tin g to o th e r m a tte r s sh ould n o t be enclo sed . E n v e lo p e s f o r s u b m ittin g te n d e r s m a y b e ob ta in ed fr o m t h is
b an k or a p p ro p ria te branch.
3. A n y qualified or co n d itio n a l te n d e r w ill be rejected.
4. I f a corp oratio n m a k e s t h e te n d e r , th e fo r m should b e sig n e d b y a n officer o f th e corp oration 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 o f th e fo r m b y a n officer o f th e corp oratio n w ill be con stru ed a s a r e p r e se n ta tio n b y h im t h a t
h e h a s b e e n so au th o rized . I f th e te n d e r i s m a d e b y a p a rtn ersh ip it sh ould b e sig n e d b y a m e m b e r o f t h e firm , w h o
sh o u ld s ig n in th e fo r m ....................... ........................... , a co p artn ersh ip , b y .......................................................................................... .................
a m em b er o f th e 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. I f th e la n g u a g e o f t h is fo rm is c h a n g e d in a n y r esp e ct, w h ich , in t h e op in ion o f t h e S e c r e ta r y o f th e T r e a s u r y is m a te ­
rial, t h e te n d e r m a y be d isregard ed .

(See reverse for announcem
ent)

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