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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 ST A T E S

DALLAS, TEXAS 75222
C ircular N o. 69-291
N o v e m b er 26, 1969

NEW OFFERING — TREASURY BILLS
To All Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follo w in g state m e n t giving details of tw o issues 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 te n d e rs 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 s u ry bills m a tu rin g D e c e m b e r 4, 1969, in th e a m o u n t of
$2,903,767,000, a s follows:
91-D A Y B IL L S (to m a tu r ity d a te ) to b e issued D ecem b er 4, 1969, in th e a m o u n t o f $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 S e p te m b e r 4, 1969, a n d to m a tu re M a rc h 5, 1970,
originally issued in th e a m o u n t o f $1,201,020,000, th e a d d itio n al a n d original bills to be freely in terchangeable.
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 D e c e m b e r 4, 1969, a n d to m a tu re J u n e 4, 1970.
T h e bills of b o th series w ill b e issued on a disco u n t basis u n d e r c o m p e titiv e a n d no 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 r ity th e ir face a m o u n t w ill be p a y ab le w ith o u t in terest. T h e y w ill 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 anks 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, D e c em b er 1, 1969. T e n d e rs w ill 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.
B a c h te n d e r m u st be for a n even m u ltip le of $1,000, a n d in th e case of co m p e titiv e te n d e rs th e price 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 be m ad e
o n th e p rin te d form s a n d fo rw arded in th e special envelopes w hich will b e supplied b y F e d e ra l R e se rv e B a n k s or 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 account of custom ers p ro v id ed th e nam es of th e custom ers are
s e t fo rth in such ten d e rs. O th ers 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 ten d e rs e xcept for th e ir ow n account.
T e n d e rs will be receiv ed w ith o u t deposit from inco 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 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 panied 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
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 w hich
p u b lic an n o u n ce m en t will b e m ade b y th e T re a s u 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 w ill be ad v ised of th e a cc ep tan ce or 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 c c e p t o r 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 s e 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 e r will be
a c c e p te d in full a t th e a v erage p rice (in th re e d ecim als) of a c c e p te d co 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 b e m ad e o r c o m p le te d a t th e F e d e ra l R e se rv e B a n k on D e c e m b e r 4, 1969,
in cash or 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 D e c em b er 4, 1969. Cash a n d
exchange te n d e rs will receive eq u al tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e for differences b etw een th e p a r value of m atu rin g
b ills a ccep ted 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 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, a s such, a n d 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,
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 estate, 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 r e e x em p t from all ta x a tio n now o r h e re a fte r im posed on 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 o f 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 p urposes 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 are originally sold b y th e U n ite d S tates is considered to be in terest. 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 C ode of 1954 th e a m o u n t of disco u n t a t w hich bills issued h e reu n d e r a re sold is n o t con­
sid e red to accrue u n til such bills a re sold, re d ee m e d or otherw ise disposed of, a n d such bills a re excluded from consideration as
c a p ita l assets. A ccordingly, th e o w 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 n e ed include
in his incom e tax r e tu r n o n ly th e difference b e tw ee n th e price p a id for such bills, w h e th e r on original issue or o n su b seq u en t
p u rc h ase, 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 ar for w hich th e
re tu r n is m ade, as o rd in a ry 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 rev isio n ) a n d th is notice, pre sc rib e th e term s o f th e T re a s u ry bills a n d
govern th e c o nditions of th e ir issue. C opies of th e c irc u la r 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 accord ance with the a b o v e a n nou ncem en t, tenders will be 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 a y, Decem ber 1, 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 o f A ccepted T en d e rs
9 0-D ay B ills
181-D ay Bills
D u e F e b ru a ry 26, 1970
D u e M a y 28, 1970
$2,733,250,000_________________________________ T o ta l A p p lied F o r _________________________________ $3,392,456,000
$1,800,458,000__________________________________ -T otal A c c ep ted ___________________________________$1,201,344,000
P ric e
Y ield
P ric e
Y ield
98.178
7 .2 8 8 % ___________________________ H ig h —............. ................ .......... .95.968____________ 8.019%
98.119
7 .5 2 4 % ------------------------------------------L ow ------------------------------------ 95.962_________________ 8.031 %
98.131
7.476% ( 1 ) -------------------- ------------------Average.......... ..................................95.964_____________8 .0 2 7 % ( 1 )
( 1 ) T h e s e rates a re on a b ank d iscount basis. T h e eq u iv a le n t coupon issue y ie ld s are 7 .7 2 % for th e 9 0 -d a y bills, and 8 .4 8 % for th e
1 81 -d a y bills.

(See reverse side 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 TREASURY BILLS

182 DAYS TO MATURITY
D ated Decem ber 4 ,1 9 6 9

M aturing June 4 ,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

(Date)

78206

P u r s u 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 C ircu lar N o. 418 (c u r r e n t r e v isio n ) and t h e p r o v isio n s o f th e
p u b lic a n n o u n ce m en t issu e d by the 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 offers to p u rc h a se T r e a s u r y b ills in the a m o u n t
sh o w n below , an d 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 date, b y th e m eth o d and a t th e r a te in d ica ted .

NONCOMPETITIVE T E N D E R $.

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

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 one bidder, w ith o u t sta te d price, w ill b e a ccep ted in f u 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 a ccep ted c o m p e titiv e bid s.

COMPETITIVE T E N D E R S

f

_

?
$

_

<
s>
@

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 ore t h 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.

$

\

2 ^ = 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 I V E D B E F O R E T H E
C L O S IN 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 s ir e d
Number of
Pieces

P a y m e n t f o r t h is issu e o f b ills c a n n o t b e m ad e
b y c re d it to T r e a s u r y T a x a n d L oan A ccount.

Maturity Value

<® $
$

M ETHOD OF PA Y M EN T

1,000 $
5,000 ?
10,000 $

(a) $

□
□

(® ?
50,000 $
100,000 ?
@) ?
< > $ 500,000 $
H

B y m aturing bills
held by_____________________________ _
_
P aym ent to be made by______________

□

Charge our reserve account on paym ent
date

□

D r a f t e n c lo s e d

(Effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected fu nds on payment
date)

(5) $1.,000,000 ?
Delivery Instructions:
□
□
□

(Subscriber’s full name or corporate title)

Hold in Custody Account— Member
banks for own account only
Pledge to secure Treasury Tax and
Loan Account

(Addresa)

B y(Authorized official signature and title)

Ship to ____________________________

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

IM P O R T A N T
1. N o te n d e r f o r le s s t h a n $1,000 w ill be considered a n d e a ch te n d e r m u s t be f o r a n a m ou n t in m u ltip le s o f $1,000 ( m a tu r it y
v a lu e ) .
2. T en d ers sh ould be fo r w a r d e d in an en v elo p e c le a r ly a d d ressed to th is ban k 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 ta t e s , w it h n o ta tio n on t h e en v elo 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 es
r eceived w it h t h is leg e n d w ill n o t he opened u n til a f t e r th e c lo sin g tim e specified in th e p u blic an n o u n cem en t, c o m m u n i­
c a tio n s r e la tin g t o o th er m a tte r s sh o u ld n o t be enclosed . E n v e lo p e s f o r su b m ittin g te n d e r s m a y be ob ta in ed fr o m t h i s
b a n k or a p p r o p r ia te branch.
3. A n y qualified or co n d itio n al te n d e r w ill be rejected .
4. I f a corp oration m a k e s th e ten d er, th e fo r m sh ou ld be sig n e d b y a n officer o f th e corp oration au th orized to m ak e t h e
te n d e r a n d t h e s ig n in g of th e fo r m b y a n officer o f t h e corp oration w ill be co n str u e d 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 been so au th o rized . I f th e te n d e r i s m ade b y a p a r tn e r sh ip i t should be sig n e d b y a m em b er o f th e firm , w h o
sh o u ld 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 ”.
5. T e n d e r s fr o m th o s e other th a n in corp orated b a n k s an d t r u s t c om p an ies or resp o n sib le a n d rec o g n iz ed d ea lers in i n v e s t ­
m e n t se c u r itie s w ill be disrega rd ed , u n le ss accom p an ied b y a dep osit o f 2 p e r ce n t o f th e to ta l am ou 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 ap p lied fo r , or u n le ss th e te n d e r s are accom p anied b y a n e x p r ess g u a r a n t y o f f u l l p a y m e n t b y a n
in c o rp o ra te d b a n k or t r u s t com pany.
6. I f th e la n g u a g e o f th is fo r m is c h a n g e d in a n y r e s p e c t, w h ich , in t h e o p in io n o f th e S e c r e ta r y o f th e T r e a s u r y i s
m a te ria l, t h e te n d e r m a y be d isregard ed .

(See reverse for announcement)

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