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F ederal Reserve B ank of Dallas F IS C A L A G E N 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 87 N o v e m b e r 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 fo llow in g state 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 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 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, a s follows: 90-D A Y B IL L S ( to m a tu rity d a te ) to b s issued N o v em b er 28, 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 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 ru 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 b e freely in terch an g eab le. 181-D A Y B IL L S for $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 28, 1969, a n d to m a tu re M a y 28, 1970. T h e b ills of b o th series w ill b e issued o n a disco 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 pro 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 y ab le w ith o u t in te re st. T h e y will be issued in b e a re r fo rm 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 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 ran ch es 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 24, 1969. T e n d e rs will n o t b e 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 b e 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 ree decim als, e.g., 99.925. F ra c tio n s m a y n o t b e 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 envelop es 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 o r B ra n ch e s on a p p lic a tio n th ere fo r. B a n k in g in stitu tio n s generally m ay s u b m it te n d e rs for a cc o u n t of custom ers p ro v id ed th e nam es of th e custom ers are se t fo rth in such ten d ers. O thers 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 xcept for th e ir own account. T e n d e rs will b e re ce iv e d w ith o u t dep o sit 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 ealers in in v e stm e n t securities. T e n d e rs from 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 ccom p anied b y a n express g u aran 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 o p e n ed 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 s u ry D e p a rtm e n t o f 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 w ill be advised of th e a cc ep ta n ce or rejection 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 r e je c t a n y or a ll tenders, in whole o r in p art, a n d his a c tio n in a n y such re sp e c t 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 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 average p rice (in th re e decim als) o f a ccep ted co 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 cc ep 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 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 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 ers will receiv e e qual 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 v a lu e 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 d e riv e d from T re a su ry bills, w h e th er in te re st or gain from th e sale or o th e r disposition of th e bills, does n o t ha v e a n y exem ption, as such, a n d loss from th e sale or 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 C ode of 1954. T h e bills a re su b je c t to e state , in h eritan ce, gift o r 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 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 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 o f 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 ta te s is considered to b e in te re st. U n d e r S ections 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 n o t con sidered to accrue u n til such bills a re sold, red eem ed o r otherw ise disposed of, a n d such bills are excluded from consideration as c ap ital assets. A ccordingly, th e ow ner of T re a su ry b ills (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 n e ed include in his incom e tax re tu rn only th e difference b etw een th e price p a id for such bills, w h e th er on original issue or o n subsequent p urchase, a n d th e a m o u n t a ctu a lly received e ith e r upon sale or 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 r n is m ade, as o rd in a ry gain o r loss. T re a s u ry D e p a rtm e n t C ircu lar No. 4 1 8 ( c u r re n t revision) a n d th is notice, p re sc rib e th e te rm s of th e T re a s u ry b ills a n d govern th e conditions of th e ir issue. C opies of th e circular m ay 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 a ccord a n ce with the a b o v e a n 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 a n d San Antonio up to twelve-thirty p.m.. Central Standard Time, M on d ay, N ovem ber 2 4 , 1 969 . Tenders m a y noi be entered 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 o f A ccepted T en d e rs 91-D ay B ills D u e F e b r u a ry 19, 1970 $2,654,430,000-------------------------------------------------- T o ta l A p p lied For. $1,800,139,000---------------------------------------------------- T o ta l A c c ep ted _ P ric e Y ield 93.206__ ________ 7 .0 9 7 % ..-. ______________________ H ig h _______ 98.184.......... ........-....7 .1 8 4 % .____ ____ ___________ --Low_ 98.195____________ 7.141% ( 1 ) ________________ -Average.. 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 .9 6 .2 1 2 -.- .................7.493% .96.192..... .................7.532% -96.199.... ... .7 .5 1 8 % (1 ) ( 1 ) T h e s e rates ere on a bank d iscount basis. T h e eq u iv alen t coupon issue yie ld s are 7 .3 7 % for th e 9 1 -d a y bills, an d 7 .9 2 % for the 1 8 2 -day bills. ( S e e rev erse tid e fo r te n d e r f o rm ) 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 90 DAYS TO MATURITY D ated A u gust 28, 1969 M aturing February 26, 1970 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 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 en t C ircular N o . 418 (cu rren t r e v isio n ) an d th e p r o v isio n s o f th e public a n n o u n ce m en t issu e d b y th e T r e a s u r y D e p a r tm en t, the u n d e rsig n ed offers to p u rch ase T r e a s u r y b ills in th e am oun t sh o w n below , and a g r e e s t o p a y f o r th e a m o u n t a llo tte d , on or b efore th e issu e d a te, b y t h e m eth o d and a t t h e r a te ind 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 te n d e r s fo r $200,000 or le s s from a n y on e bidder, w ith ou t s ta te d price, w ill be accepted in fu ll a t the a v e r a g e price (in th ree d e c im a ls) o f accep ted c o m p e titiv e bids. (s COMPETITIVE T E N D E R S /$ P r ic e s should be e x p r e sse d on th e b a s is o f 100, w ith n o t 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 . (n) (n) @ g sg p 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 ca n n ot b e m ad e b y c r e d it to T r ea su r y T a x and L oan A ccou n t. D e n o m in a tio n s D e sir ed Number of Pieces Maturity Value METHOD OF PA Y M EN T 1,000 $'----------------------- □ 5,000 10,000 $_ □ B y m aturing bills held by________________________________ P aym en t to be m ade by______________ 50,000 $_ 100,000 □ $_ 500,000 $_ □ Charge our reserve account on paym ent date D ra ft enclosed (Effectual delivery o f enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date) $1,000,000 $_ Delivery Instructions: □ (Subscriber's fu ll name or corporate title) Hold in Custody Account— Member banks for own account only □ Pledge to secure Treasury T ax and Loan Account □ S h ip to _ _ --------------------------------------- (Address) B y- (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 an $1,000 w ill be con sid ered and e ach 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 b e fo r w a rd ed in a n 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 it h n o ta tio n on th 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 it h th is le g e n d w ill n o t be op en ed u n til a f te r t h e c lo s in g tim e specified in th e pu blic a n n ou n cem en t, c o m m u n i c a tio n s r e la t in g to o th e r m a tte r s should 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 ob ta in ed 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 a l 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 should be sig n e d by an officer o f th e corp oration au th orized to m a k e th e te n d e r and th e s ig n in g o f t h e fo r m b y a n officer o f th 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 b e e n so a u th orized . I f t h e te n d e r i s maHe b y a p a r tn e r sh ip i t should b e sig n e d b y a m em b er 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 em b er o f th e firm .” 5. T en d ers fr o m t h o s e oth er th a n in co rp o ra ted b a n k s and tr u st com p an ies o r r esp o n sib le and r ec 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 an ied b y a d e p o sit o f 2 p ercen t o f th e to ta l am o u n t (m a tu r ity v a lu e ) o f t h 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 b y 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 o r tr u s t co m pany. 6. I f th e la n g u a g e o f t h is form is c h a n g e d in a n y r esp 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 d isregard ed . (See reverse for announcement)
@FedFRASER