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Federal reserve Bank of Dallas 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 DALLAS. TEXAS 75222 C ircular No. 69-286 N o v e m b er 19, 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 o f Treasury bills: T h e T re a su ry D e p a rtm e n t, by this p u b lic notice, in v ites 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 of $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 28, 1969, in th e a m o u n t of $2,900,235,000, as follows: 90-D A Y B IL L S (to m a tu rity d a te ) to be issued N ovem ber 28, 1969, in th e a m o u n t of $1,800,000,000, o r th e re abouts, re p 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 28, 1969, a n d to m a tu re F e b r u a ry 26, 1970, originally issued in th e a m o u n t of $1,201,022,000, th e a d d itio n al a n d original bills to be freely in terch an g eab le. 181-D A 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 28, 1969, a n d to m a tu re M a y 28, 1970. T h e bills o f b o th series will b e issued o n 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 a s h e rein afte 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 be p a y able w ith o u t interest. T h e y w ill be issued in b e a re r fo rm only, and in d e n o m in a tio n s of $1,000, $5,000, $10,000, $50,000, $300,000, $500,000 a n d $1,000,000 ( m a tu rity v a lu e ). T e n d e rs will b e received a t F e d e ra l R eserve B a n k s a n d B ranches up 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 ond ay, N o v e m b er 24, 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 fo r a n even m u ltip le o f $1,000, a n d in th e case of c o m 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 ree 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 ad e on th e p rin te d form s a n d fo rw arded in th e special envelopes which will be supplied by F e d e ra l R e se rv e B anks 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 a y su b m it te n d e rs for a cc o u n t o f 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 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 account. T e n d e rs will be receiv ed w ith o u t d e p o sit from in co rp o ra ted banks a n d tru s t com panies a n d fro m responsible a n d recognized d e ale rs in in v estm e n t securities. T e n d e rs fro m o th ers m u st be a ccom 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 te n d e rs a re a cc o m p an ied b y a n express g u a ran ty o f p a y m e n t by a n in co rp o ra ted b a n k or t r 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 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 ra n g e 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 rejection thereof. T h e S ec retary of th e T re a su ry expressly reserves th e r ig h t to a cc ep t or re je c t a n y o r 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 ese reservations, n o n c o m p e titiv e ten d e rs fo r each issue fo r $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 av erag e 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 cc ep te d ten d ers in accordance w ith th e bids m u st be m ad e or c o m p leted a t th e F e d e ra l R eserv e B a n k on N o v e m b e r 28, 1969, in cash o r 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 28, 1969. Cash a n d exchange ten d e rs w ill receive e qual tre a tm e n t. Cash a d ju s tm e n ts will be m ad e for differences betw een th e p a r v alue 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 e r in te re st or gain from th e sale or o th er disposition of th e bills, does n o t h a v e a n y exem ption, a s 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 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 e n u e C ode of 1954. T h e bills are su b je c t to e state, in h eritan ce, gift o r o th er excise taxes, w h eth er F e d e ra l or S tate, b u t a re e x em p t from all ta x a tio n now or 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, or a n y o f 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 purposes 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 are originally sold b y th e U n ite d S tates is considered to be in te re st. 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 discount a t which bills issued h e reu n d e r a re sold is n o t con sid ered to accrue u n til such bills a re sold, re d ee m e d o r otherw ise disposed of, and such bills a re excluded fro m co n sid eratio n as c ap ital 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 rn only th e difference betw een th e price p a id for such bills, w h e th er on original issue or on subsequent p urchase, 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 fo r which th e re tu rn is m ade, as o rd in ary gain o r loss. T re a s u ry D e p a rtm e n t C ircu lar No. 418 (c u r re n t revision) a n d th is notice, pre sc rib e th e term s of th e T re a su ry bills a n d govern th e conditions of th e ir issue. C opies 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 a cco rd an 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 an d its b ranches at El Paso, Houston a n d San Antonio up to twelve-thirty p .m ., Centra! Standard Time, M o n d a y , N o v e m b e r 24, 196 9. T en d e rs m a y not be en tered b y tele p h on 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 o f A ccepted T en d e rs 91-D ay Bills D u e F e b ru a ry 19, 1970 $2,654,430,000________________ $1,800,139,000________________ P ric e Y ield 98.206_______ .7 .0 9 7 % ____ 9 8.184_______ .7 .1 8 4 % ____ 98.195_______ .7.141% ( 1 ) . --------T o ta l A p p lied For_ ---------- T o ta l A c c ep ted .... JH igh.. .L o w -A verage.. 182-D ay B ills D u e M a y 21, 1970 ---------------------------$2,265,255,000 -------------------------- $1,200,424,000 P ric e Y ield -96.212_____________ 7.493% -9 6 .1 9 2 ........................ ..7.532% -96 .1 9 9 _____________ 7 .518% (1 ) ( 1 ) T h e s e rates are on a bank d iscou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 7 .3 7 % for th e 9 1 -d a y bills a n d 7 .9 2 % for th e 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 181 DAYS TO MATURITY Dated Novem ber 2 8 ,1 9 6 9 M aturing May 28, 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 to n io 78206 (Date) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated. NO NCOMPETITIVE T E N D E R $_____________________________________NOT TO E X C E E D $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, w ill be accepted in full at the average price (in three decimals) of accepted competitive bids. /_ _ @ _--------------------------------------------- Prices should be ex ?-------------------------------------- pressed on the basis of COMPETITIVE T E N D E R S < $--------------------------@ ------------- ?--------------------------------- th rlJ ^ Y rL T p la te ^ I $ ___________________ @ __________$ ________________________ e. g., 99.925. Fractions must not be used. \ dfi ^ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of PieceB Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT Maturity Value <3> $ 1,000 $ (5) ? (a) $ 5,000 ? □ --------------- 10,000 $ □ 50,000 ? (a) $ 100,000 $ □ B y m aturing held by________________________________ P aym en t to be m ade by_ (a) $ (a) $ 500,000 $ (a) $ 1 ,000,000 $ □ Bhall he o n la te s t day w h ic h w ill p e r m i t p r e s e n t m e n t in o r d e r to o b t a i n ir r e v o c a b ly c o lle c te d f u n d s o n p a y m e n t d a te ) D elivery Instructions: □ □ ( S u b s c r i b e r ’s f u l l n a m e o r c o r p o r a t e t i t l e ) Hold in Custody Account— Member banks for own account only _______________________________ (Address) Pledge to secure Treasury Tax and By. L o a n □ Charge our reserve account on paym ent date D ra ft enclosed ( E f f e c t u a l d e l i v e r y o f e n c l o s e d d r a f t A c C O lin t ( A u t h o r i z e d o f fi c ia l s i g n a t u r e a n d t i t l e ) Ship to------------------------------------------- (For the account of, if tender is for another subscriber) (A ddress) IM P O R T A N T 1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING.” Since envelopes re ceived with this legend will not be opened until after the closing time specified in the public announcement, communi cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank or appropriate branch. 3. Any qualified or conditional tender w ill be rejected. 4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the tender and the signing of the form by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who should sign in the form “....................................... ......, a copartnership, by................... .............................................................................. , a member of the 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. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is mate rial, the tender may be disregarded. (See reverse for announcement)
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