View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal 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 N o. 69-288
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 fo llo w in g sta te m e n t giving details of tw o issu e s of Treasury bills:
T h e T re a s u ry D e p a rtm e n t, b y this p u b lic notice, invites ten d ers for two series of T re a su ry bills to th e aggregate a m o u n t
of $1,500,000,000, 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 30, 1969, in th e a m o u n t of
$1,501,001,000, as follows:
273-D A Y B IL L S (to m a tu rity d a te ) to be issued D e c em b er 1, 1969, in th e a m o u n t of $500,000,000, 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 dated A ugust 31, 1969, a n d to m a tu re A ugust 31, 1970, origi­
nally issued in th e a m o u n t of $1,200,526,000, th e add itio n al a n d original bills to b e freely interchangeable.
365-D A Y B IL L S for $1,000,000,000, or th ere ab o u ts, to be d a te d N o v em b er 30, 1969, a n d to m a tu re N ovem ­
b e r 30, 1970.
T h e bills of b o th series w ill b e issued on a d isco u n t basis u n d e r co m p e titiv e and n o n c o m p e titiv e bid d in g as h e rein afte r
provided, and a t m a tu r ity th eir face a m o u n t will be p a y able w ith o u t interest. T h e y will be issued in b e a re r form only, a n d in
den o m in atio 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 will b e received a t F e d e ra l R eserve B anks a n d B ra n ch e s 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 , T u es d a y , N o v e m b er 25, 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 ac h
te n d e r m u st b e for a n even m u ltip le o f $1,000, a n d in th e case of co m p e titiv e ten d e rs th e p rice offered m u s t b e expressed on the
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. (N o tw ith sta n d in g th e fa c t th a t th e oney e a r bills will ru n for 365-days, th e discount r a te will be co m p u ted on a bank discount basis of 360-days, a s is cu rren tly th e
p ra ctice on a ll issues of T re a su ry bills.) I t is u rg e d th a t ten d e rs b e m ad e on the p rin te d form s a n d fo rw arded in th e special
envelopes w hich will b e 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 atio n therefor.
B a n k in g in stitu tio n s generally m ay su b m it ten d e rs for account of custom ers provided th e nam es of th e custom ers are
se t fo rth in such ten d ers. 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 ten d e rs except for th e ir own a c c o u n t
T e n d e rs will b e received w ith o u t deposit from in co rp o ra ted banks and tru st 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 other* m u st be a cc o m p an ied by p a y m e n t of 2 p e rce 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 tho te n d e rs a re accom panied 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 bank or
tru s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill be opened a t th e F e d e ra l R eserv e 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 w ill 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 price ra n g e of a cc ep te d bids. T hose
su b m ittin g ten d e rs will 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 or re je c t a n y or all tenders, in whole o r in p a rt, nnd his a ction in a n y such re sp e c t shall b e final. S u b je ct to
these reservations, n o n c o m p e titiv e ten d e rs fo r each issue for $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 price ( i n th ree d ecim als) of accepted co 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 e rs in accordance w ith th e bids m u st b e m ad e or com pleted a t th e F e d e ral R eserv e B a n k on D e c em b er 1, 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 30, 1969. Cash a n d
exchange ten d e rs w ill receive e qual tre a tm e n t. C ash a d ju stm e n ts will be m ad e for differences b etw een th e p a r v a lu e of m atu rin g
bills a cc ep te d in exchange a n d th e issue price 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 terest o r gain from th e sale or 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 o r o th e r disposition of T rea 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 Code of 1954. T h e bills are su b ject to e state, inheritance, gift or o th e r excise taxes, w h eth er
F e d e ra l o r S ta te , b u t a re exem pt from all ta x a tio n now or h e re a fte r im posed o n th e p rin c ip a l o r in te re st th e re o f b y a n y S tate,
or a n y of the possessions of th e U n ite d States, or by a n y local taxing au th o rity . F o r p urposes of taxation th e a m o u n t of discount
a t w hich T rea su ry bills a re originally sold by th e U n ite d Spates is considered to b e 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 C ode of 1954 th e a m o u n t of discount a t which bills issued h e reu n d e r are sold is n o t considered to
acc ru e 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 are excluded from consideration as capital
assets. A ccordingly, th e ow ner of T re a s u ry bills (o th e r th a n life insurance com panies) issued h e reu n d e r need include in his
incom e ta x re tu rn only th e difference b etw een th e p rice p a id for such bills, w h eth er on original issue or o n su b seq u e n t purchase,
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 o r re d e m p tio n a t m a tu r ity d u ring th e tax a b le year fo r w hich th e re tu rn is
m ad e , as ord 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 r re 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 b ills a n d
govern th e conditions of th e ir issue. Copies o f th e c irc u lar m a y b e 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 a n n o u ncem en t, tenders will be 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., Central Standard Time, Tuesday, N ovem ber 25, 1969. Tenders m a y nol
be en ter ed b y t ele p h o n e .

Yours very truly,
P. E. Coldwell
President
( 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 ADDITION TO TREASURY BILLS

273 DAYS TO MATURITY
Dated A ugust 3 1,19 69

Maturing A u gu st 31, 1970

To: Federal R eserve Bank, Station K, Dallas, T exas 75222
or —
Th e__________________________________ Branch
£1 Paso 79999

Houston 77001

San Antonio 78206

(Date)

P u r su a n t to th e p ro v isio n s o f T r e a s u r y D e p a r tm e n t C ircular N o . 418 (c u r re n t r ev isio n ) and th e p r o v isio n s o f th e
public an n ou n cem en t issu ed by th e T r ea su r y D e p a r tm en t, the u n d e rsig n ed offers to p u rc h a se T r ea su r y b ills in th e am o u n t
sh o w n below , 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 efo re th e issu e d a te , b y th e m eth od and a t th e r a te ind icated .

NONCOM PETITIVE T E N D E R $_

-NO T TO EXC E E D $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full a t the average
price (in three decimals) of accepted competitive bids.
_

COMPETITIVE T E N D E R S
......................... h

-

..

_

@
@

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.

?
$

: . " 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 .

Denominations Desired
Number of
Pieces

P a y m e n t f o r th is issu e o f b ills ca 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 oa n A ccount.

Maturity Yalua

_______ @ $
______ @ $

5,000 $______________

_______ (S> $

10,000 $______________

_______ @ $

M ETHOD OF P A Y M E N T

1,000 $_______________

50,000 ?______________

□

B y m aturing bills
held by_______________________________
Paym ent to be made by_______________

□
□

Charge our reserve account on paym ent
date
| | D raft enclosed ( E f f e c t u a l d e liv e r y o f e n c lo se d

_______ @ $ 100,000 $_______________
_______ @ $ 500,000 $_______________

d r a f t sh a ll be o n l a te s t d a y w h ic h w ill p e r m i t p r e s e n t ­
m e n t i n o r d e r t o 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 funda o n
p a y m e n t d a te )

_______ @ $1,000,000 $_______________
Delivery Instructions:
□
□

Pledge to secure Treasury T ax and
Loan Account

(Subscriber’s full name or corporate title)

Hold in Custody Account— Member
banks for own account only

□

(Addresa)

By_

Ship to____________________________

(Authorized official signature and title)

(For the account of, if tender ia for another subscriber)
(Address)

IM PORTANT

2.

5.

6.

N o ten d er fo r le s s th a n $1,000 w ill be co n sid ered and e a ch tender m u s t be fo r a n a m ou n t in m u ltip le s o f $1,000 ( m a tu r ity
v a lu e ).
T enders should be fo r w a rd ed in an e n v e lo p e c le a r ly ad d ressed 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 ited S t a t e s , w ith n o ta tio n on t h 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 I N G ” . S in ce e n v e lo p e s
received w ith th is le g e n d w ill n o t be opened u n til a f t e r th e c lo s in g tim e sp ecified in the public an n ou n cem en t, co m m u n ic at'o n s r e la tin g to oth er m a tt e r s should n o t be en closed . E n v e lo p e s fo r su b m ittin g te n d e r s m a y be o b ta in ed fr o m th is
bank or ap p ro p ria te branch.
A n y qualified or con d ition a l te n d e r w ill be rejected.
I f a corp oration m a k e s th e ten d er, t h e form should 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 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 an 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 b y him t h a t he
h a s been so au th o rized . I f th e te n d e r i s m ad e b y a p a r tn e r sh ip it should be s ig 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 a rtn ersh ip , b y ........................................................................................... ,
a m em b er o f th e firm ”.
T enders fr o m th o s e o th er th a n in co rp o ra ted b an ks and t r u s t c o m p a n ies or r esp o n sib le and r ec o g n iz ed d ea lers in in v e s t ­
m e n t se c u r itie s w ill be d isreg ard ed , u n le s s accom p anied by a dep osit o f 2 p ercen t o f th e to ta l am ou n t (m a tu r ity v a lu e )
o f the T r ea su r y b ills ap p lied fo r , or u n le s s th e te n d e r s a r e accom p an ied b y 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 an
incorp orated bank or tr u st com pany.

If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.

(See reverse for announcem
ent)

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