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F ederal

reserve

Bank

of

Dallas

F IS C A L A G EN T O F T H E U N ITED STA T E S

DALLAS, TEXAS 7 5 2 2 2
C ir c u la r N o. 6 9 -2 83
N o v e m b e r 12, 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 of tw o issues o f 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 fo r tw o series of T re a su 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 atu 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, a s follows:
91-D A Y B I L L S (to m a tu rity d a te ) to b e 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 rese n tin g a n ad 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,
o riginally 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 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 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 b e issued on a d isco u n t basis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g a s 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 w ill b e p a yable w ith o u t in terest. T h e y will be 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 rity v a lu e ).
T e n d e rs w ill 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 aste 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 will n o t be 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 fo r a n even m u ltip le of $1,000, a n d in th e case o f 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 urged t h a t te n d e rs be m ad e
on th e p rin te d form s a n d fo rw a rd ed in th e special envelo pes w hich will b e supplied b y F e d e ra l R eserv e B a n k s o r B ran ch es on
a p p lic a tio n therefor.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs for a cc o u n t o f custom ers p ro v id ed th e nam es of th e custom ers are
se t fo rth in such tenders. O thers th a n b a n 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 own a c c o u n t
T e n d e rs will be receiv ed w ith o u t dep o sit fro m in co rp o ra ted b a n k s 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 e n d e rs from o th ers m u st be a cc o m p an ied 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 te n d e rs a re a cc o m p an ied 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 be o p ened 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 which
p u b lic an n o u n ce m en t will be 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 cc ep te d bids. T hose
su b m ittin g te n d e rs will be ad v ised of th e a cc ep ta n ce o r reje ctio n thereof. T h e S ecretary of th e T re a su ry expressly reserves th e
rig h t to a ccep t or 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 c t 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 ten d e rs for each issue for $200,000 o r less w ith o u t sta te d p rice from a n y one b id d er will be
a c c e p te d in full a t th e average p rice (in three decim als) of a cc ep te d c o m p e titiv e bids fo r th e re sp e ctiv e 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 b e m ad e or c o m p le te d a t th e F e d e ra l R eserv e B a n k on N o v e m b er 20, 1969,
in cash or o th e r im m e d ia te ly available 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 20, 1969. Cash a n d
exchange te n d e rs w ill receive equal tre a tm e n t. Cash a d ju s tm e n ts will be m ad e for differences b e tw ee n th e p a r value of m a tu r­
in g bills accepted in exchange a n d th e issue p rice of th e new bills.
T h e incom e d e riv e d from T re a su ry bills, w h e th e r in te re st or gain from th e sale o r o th e r disposition of th e bills, does n ot
h a v e a n y exem ption, as such, and 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,
a s such, u n d e r th e In te rn a l R e v e n u e Code of 1954. T h e bills are su b je c t to e state, in h eritan ce, gift o r o th e r excise taxes, w h eth 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 a l or 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 ite d States, o r b y a n y local tax in g a u th o rity . F o r pu rp o ses of tax 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 be interest. U n d e r Sections 454 ( b ) a n d
1221 ( 5 ) of th e In te rn a l R e v e n u e Code of 1954 th e a m o u n t of disco u n t a t w hich bills issued h e re u n d e r a re sold is not con­
sid e re d to accrue u n til such bills are sold, red eem ed or o therw 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 a n ies) issued h e re u n d e r need include
in his incom e tax re tu rn only th e difference betw een th e p rice p a id for such bills, w h e th er on original issue o r o n subsequent
p u rc h 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 rity durin g th e tax ab le y e a r fo r w hich th e
re tu r n is m ad e , 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 irc u lar m ay be o b ta in 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 b e received at this b a n k a n d its branches at El Paso,
Houston an d San Antonio up to twelve-thirty p.m ., Central Standard Time, M on d ay, N o v em b e r 17, 1 969 . Tenders m a y not
be en tered b y t ele 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

92-D ay Bills
182-D ay Bills
D u e F e b ru a ry 13, 1970
D u e M a y 14, 1970
$2,778,730,000----------------------------------- -------------- T o ta l A p p lied F o r _________________________________ $2,593,042,000
$1,800,440,000___ _________ ____________ _________ T o ta l A ccep ted________
___________________ _ ..$1,204,487,000
_
P ric e
Y ield
P ric e
Y ield
98.190-------------------- 7.083 % __
________________________________________________________________________H ig h ____ 96.250___7.418 %
98.163__
________7 .1 8 8 % _______ ____ _______________ L ow _________________
96.235____________________
_________ _________ 7.4
98.17J
- .7 .1 5 7 % ( 1 ) . —
---------------------- A verage----------------------------------96.241
_ _____7 .435% (1 )
( 1 ) T h e s e rates are on a b ank discount basis. T h e eq u iv a le n t coupon issue y ie ld s a re 7 .3 9 % for th e 9 2 -d a v bills and 7 .8 3 % 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
D ated Novem ber 2 0 ,1 969

M aturing May 2 1 ,1 9 7 0

To: 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 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 ou n cem en t issu ed b y th e T r e a s u r y D e p a r tm en t, th e u n d ersign ed offers to p u rch a se T r e a s u r y b ills in th e am ou n t
sh o w n below , and a g r e e s to p a y f o r th e am o u n t a llo tte d , on or b efore th e issu e d ate, b y th e m eth o d an d a t t h e r a te in d icated .

NONCOMPETITIVE T E N D E R $_____________________________________NOT TO E X C E E D $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 on e bidder, w ithou t s ta te d price, w ill b e accep ted 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 a ccep ted c o m p e titiv e bids.

($

0T
)

(n)
S
■ $
COMPETITIVE T E N D E R S < ?--------------------------------- @ --------------- ? -------------------------------------------

h

@

$

P r ic e s should be e x ­
p r e sse d on the b a s is o f
100, w ith n o t m o r e th a n
th rU 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 .

1 3 = 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 oi
Pieces

P a y m e n t f o r th is issu e o f b ills ca n n ot be m a d e
by c re d it to T r ea su r y T a x an d L oan A cco u n t.
M ETHOD OF PA Y M E N T

Maturity Value

$

1,000 $-

(a) $

5,000 $.

(a) $

10,000 $-

□

50,000 $(a) $
(a) $ 100,000 $-

□

□

Charge our reserve account on paym ent
date
| | Dr3<ft enclosed (Effectual delivery o f enclosed d ra ft

§> $ 500,000 $.
(a) ?1.,000,000 $Delivery Instructions
□
□

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

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

.

(Subscriber's full name or corporate title)

Hold in Custody Account— Member
banks for own account only
Pledge to secure Treasury T ax and
Loan A ccount

(Address)
By_
(Authorized official signature and title)

I I Ship to --------- ----- ----------- -------------------------

(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 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 or a p p ro p ria te branch a s F is c a l A g e n t o f th 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 r e a 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 IN G .” S in ce e n v e lo p e s re ­
ceived w ith t h is le g e n d w ill n o t be open ed u n til a f te r t h e c lo s in g tim e specified in th e public an n ou n cem en t, co m m u n i­
c a tio n s r e la tin g to oth er m a tt e r s sh ou ld n o t be en closed . E n v e lo p e s fo r su b m ittin g ten d ers m a y be ob tain ed fr o m th is
bank 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 corp oration m a k e s the tender, t h e fo r m should be sig n e d b y an officer o f th e corp oration a u th o riz ed to m a k e th e
te n d e r an d t h e s ig n in g of th e fo r m b y a n officer o f th e corp oration w ill be co n stru ed a s a r ep re se n ta tio n by h im t h a t
he h a s b een so au th orized . I f t h e te n d e r is m a d e by a p artnership it should be s ig n e d by a m e m b er o f t h e firm , w h o
should s ig n 5n th e fo r m “ ...................................................., a cop a rtn ersh ip , b y ....
........................................................................................ ,
a m e m b er o f th e firm .”
5. T en d ers fr o m th o s e o th er t h a n in corp orated b a n k s and tr u s t com panies or resp o n sib le and r e c o g n iz ed d e a ler s in in v e s t ­
m e n t se c u r itie s w ill be disregard ed , u n le s s accom p anied b y a d ep 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 app lied fo r , or u n le s s th e te n d e r s a r e accom p anied by a n 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 an
incorp orated ban k or tr u st com p an y .
6. I f th e la n g u a g e o f t h is fo rm is ch a n g ed in a n y r esp e ct, w h ich, in th e opin ion o f th e S e c re ta ry o f th e T r ea su r y is m a te ­
rial, th e te n d e r m a y b e d isregard ed .

(See reverse for announcem
ent)

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