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F ederal R eserve Bank of Dallas F IS C A L A G EN T O F T H E UN ITED STA T E S DALLAS, TEXAS 7 5 2 2 2 C ir c u la r N o. 6 9 -2 96 D e c e m b e r 3, 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 tem ent giving details of 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 te n d e rs for two series of T re a s u ry bills to th e a ggregate a m o u n t o f $3,000,000,000, o r 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 D e c e m b e r 11, 1969, in th e a m o u n t of $2,900,826,000, a s follows: 91-D A Y B IL L S ( to m a tu rity d a te ) to b e issued D e c em b er 11, 1969, in th e a m o u n t of $1,800,000,000, o r 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 S e p te m b e r 11, 1969, a n d to m a tu re M a rc h 12, 1970, originally issued in th e a m o u n t o f $1,201,360,000, th e a d d itio n al a n d original bills to be freely in terch an g eab le. 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 11, 1969, a n d to m a tu re J u n e 11, 1970. T h e bills o f 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 n o n c o m p e titiv e b id d in g as 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 y ab le 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 de 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 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 e m b e r 8, 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. E 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 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 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 be su p p lied 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 g enerally 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 se t fo rth in such te n d e rs. 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 ex cep t for th e ir own account. T e n d e rs w ill b e re ce iv e d w ith o u t deposit fro m in co rp o ra ted b a n k s a n d tr u s t com panies a n d from responsible a n d recognized d e a le rs in in v e s tm 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 cc om panied by 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 opened 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 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 p rice range o f 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 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 c c e p t or re je c t a n y or all tenders, in w hole o r in p art, 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 c o 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 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 D e c em b er 11, 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 D e c em b er 11, 1969. Cash a n d exchange te n d e rs w ill receive e q u al tre a tm e n t. C ash a d ju s tm e n ts w ill b e m a d e for differences b etw een th e p a r v alue of m atu rin g b ills 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 er in te re st o r gain fro m 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 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, a s 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 ct to estate, in h eritan ce, gift o r o th e r 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 o r h e re a fte r im posed on th e p rin cip a l or in te re st th ere 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 p urposes 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 be in terest. 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 w hich bills issued h e re u n d e r are sold is n o t con sid e re d 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 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 h is incom e tax re tu r n only th e difference b e tw ee n th e price p a id for such bills, w h e th er o n original issue or on su b seq u e n t pu rch 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 a r for w hich th e re tu r n is m ade, a s o rd in ary gain or loss. T re a su ry D e p a rtm e n t C ircu lar No. 418 (c u rre n t re v isio n ) 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 bills a n d govern th e c onditions o f th e ir issue. Copies 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 an n ou n c em en t, tenders will b e received a t this b ank 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, Decem ber 8, 1 9 69. Tenders m a y not be en ter ed 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 ie ld o f A ccepted T e n d e rs 91-D ay Bills 182-D ay Bills D u e M a rc h 5, 1970 D u e J u n e 4, 1970 $2,867,806,000-------------------------------------------------- T o ta l A p p lied F o r ----------------------- -------------------------- $2,151,668,000 $1,800,331,000----------------------- ----- ------------------------ T o ta l A c c ep ted ---------------------------------------------- ---- $1,200,050’000 P ric e Y ie ld P ric e Y ie ld 98.132------------------- 7 .3 9 0 % ------------------------------------------ H ig h ------------------------ ------- 96.182______ ___7.552% 98.109------------------- 7.481 % -------------------- ----- -----------------L ow ----------------------------------- 9 6 .1 3 2 ...___________ 7.651 % 98.116------------------- 7.453% ( 1 ) ----------------------------------A verage-------------------------------- 96.151______________7.613% ( 1 ) ( 1 ) T h e s e rates are on a b ank d iscou nt basis. T h e e q u iv a le n t coupon issue y ie ld s are 7 .7 0 % for th e 9 1 -d a y bills, and 8 0 3 % for th e 1 82 -d a y bills. ( 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 91 DAYS TO MATURITY D ated Septem ber 11,1969 M aturing March 1 2 ,1 9 7 0 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 (Date) S a n A n to n io 78206 P u r s u a n t to th 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 ) an d t h e p r o v isio n s o f th e p u blic a n n o u n ce m 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 o ffers to p u rc h a se T r e a s u r y b ills in th e a m o u n t sh o w n below, a n d a g r e e s to p a y f o r t h e a m o u n t allo tted , o n or b efore th e issu e date, b y th e m ethod a n d a t th e r a te in d ic a ted . NONCOM PETITIVE 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 o n e bidder, w ith o u t s ta te d price, w ill be a c ce p te d in fu ll a t th e a v e r a g e p rice (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 (n) $ I P r ic e s sh ou ld be e x p r e sse d on th e b a s is o f 100, w ith n ot 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 be used. 9 $ J g ir 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 , IF R E C E IV 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 sir e d Number of Piece3 P a y m e n t f o r t h is is s u e o f b ills c a n n o t be m ad e by c r e d it to T r e a s u r y T a x a n d L o an A ccou n t. Maturity Value (a) 9 (a) 9 @ 9 M ETHOD OF PA Y M E N T 1,000 9 □ 5,000 ? 10,000 9 □ 50,000 9 (a) 9 (S> 9 100,000 9 □ <g> 9 500,000 9 D elivery Instructions: □ □ Charge our reserve account on p aym ent date |__] D r a f t e n c l o s e d (Effectual delivery of enclosed draft Bhall be on latest day which will permit presentment in order to obtain irrevocably collected funda on payment date) (a) 91 ,000,000 9 □ B y m aturing bills held by_______________________ P aym ent to be made by_ (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 Account (Address) B y- Ship t o _ ---------------------------------------- (Authorized official signature and title) (For the account of, if tender is for another subscriber) (Addresa) IM P O R T A N T 1. N o te n d e r f o r le s s th a n $1,000 w ill be considered an d e a ch te n d e r m u s t be fo r a n a m o u n t in m u ltip le s o f $1,000 ( m a t u r it y v a lu e ) . 2. T en d ers sh ou ld be fo r w a rd ed in an en v elo p e c le a r ly a d d re ssed to th is b an k or a p p r o p r ia te b ran ch a s F is c a l A g e n t o f th e U n ite d S ta te s , w it h n o ta tio n on t h e e n velo 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 receiv ed w it h t h i s legen 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 specified in th e pu blic an n ou n cem en t, c o m m u n i ca tio n s r e la t in g to o th er m a tte r s sh ou ld n o t be en closed . E n v e lo p e s f o r s u b m ittin g te n d e r s m a y be o b tain ed f r o m t h is b a n k or a p p ro p ria te branch. 3. A n y qu alified o r co n d itio n a l te n d e r w ill be rejected . 4. I f a co rp o ra tion m a k e s th e ten d er, th e fo r m sh ould be sig n ed b y a n officer o f t h e co rp o ra tion au th orized to m ak e t h e ten d er and th e s ig n in g o f th e fo r m by a n officer o f t h e corp oration w ill be con 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 b een so au th o rized . I f th e te n d e r is m ade b y a p a r tn e r sh ip i t should be sig n e d by a m em ber 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 ber 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 co rp o ra ted b a n k s a n d t r u s t c o m p a n ies or r esp o n sib le and rec o g n iz ed dealers in in v e s t m e n t se c u r itie s w ill be d isreg a rd ed , u n le ss a ccom p an ied b y a d ep o sit o f 2 p e r c e n t o f th e to ta l a m o u n t (m a t u r it y 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 less 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 t y o f fu ll 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 l a 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 esp e ct, w h ic h , in th e o p in io n o f th e S e c r e ta r y o f t h e T r e a s u r y is m a te r ia l, th e te n d e r m a y b e disreg ard ed . (See reverse for announcement)
@FedFRASER