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 ST A T E S DALLAS, TEXAS 75222 C ircular No. 69-297 D e c em b er 3, 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 follow in g state m e n t giving details of tw o issu e s o f Treasury bills: T h e T re a s u ry D e p a rtm e n t, b y th is p u b lic notice, in v ites ten d e rs for tw o series o f T re a s u ry bills to th e a ggregate a m o u n t o f $3,000,000,000, or th ere ab o u ts, fo r 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, as follows: 91-D A Y B IL L S (to m a tu r ity d a te ) to b e issued D e c em b er 11, 1959, in th e a m o u n t of $1,800,000,000, or th e re a bouts, 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 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 of $1,201,360,000, th e ad d itio n al a n d original bills to be freely interchangeable. 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 co m p e titiv e a n d n o n c o m p e titiv e bid d in g as 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 be p a yable w ith o u t in te re st. 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 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 an ks a n d B ranches u p 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 onday, D e c em b er 8, 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 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 t h 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 a d 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 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 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 account o f custom ers pro v id ed th e n a m rs of th e custom ers a re s e t fo rth in such te n 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 te n d e rs e xcept for th e ir ow n account. T e n d e rs will b e receiv ed w ith o u t deposit from in co 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 e a le rs in in v e stm e n t securities. T e n d e rs fro m o th ers m u st be a cc om 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 r y bills a p p lie d for, unless th e ten d e rs a re a ccom p anied b y a n express g u a ran ty of p a y m e n t b y 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 b e 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 will b e m ad e 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 will be advised of th e a cc ep ta n ce o r reje ctio n thereof. T h e S ec 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 actio n in a n y such re sp e ct 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 or less w ith o u t sta te d p rice from a n y one b id d e r w ill be a c c e p te d in fu ll a t th e average p rice (in th re e d e cim 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 e rs 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 eserve B a n k on D e c e m b e r 11, 1969, in cash or o th e r im m e d ia te ly a v ailab le funds o r 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 receiv e eq u al tre a tm e n t. C ash a d ju s tm e n ts w ill b e m ad e for differences b etw een th e p a r v a lu e of m atu rin g b ills a cc ep te d in exchange a n d th e issue price 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 e r in te re st or 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 o f T re a s u 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 en u e Code of 1954. T h e bills are su b je ct to e state, 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 e re o f by 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 pu rp o ses of ta x a tio n th e a m o u n t o f discount a t w hich T re a su ry bills a re originally sold by th e U n ite d S ta te s is considered to be interest. 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 discount 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 a ccrue u n til such bills a re sold, re d ee m e d or otherw ise disposed of, a n d such bills are excluded fro m consideration as c a p ita l assets. A ccordingly, th e ow ner of T re a s u 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 his incom e tax re tu rn only th e difference b e tw ee n th e price p a id for such bills, w h e th er 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 a r for w hich th e r e tu r n is m ade, a s o rd 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 rre n t rev isio n ) a n d th is notice, pre sc rib e th e te rm s o f th e T re a su ry bills a n d g o vern th e c o nditions o f th e ir issue. C opies of th e c irc u la r m ay be 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 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 o n d ay, D ecem ber 8, 196 9. 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 of A ccep ted T e n d e rs 91 -D ay Bills D u e M a rc h 5, 1970 __T o ta l A p p lied F o r ..... $2,867,806,000_______________ ___ T o ta l A c c ep ted ____ $1,800,331,000__________ ____ P ric e Y ield — H ig h . . 98.132_____________7.3 9 0 % — 98.109.____________ 7.481% ..,.. __L ow __ 98.116____________ 7.453% ( 1 ) __________ _____ A verage.. 182-D ay B ills D u e J u n e 4, 1970 -------------- --------------$2,151,668,000 ---------------------------- $1,200,050,000 P ric e Y ield .-9 6 .1 8 2 __ ______________ 7.552% ...96.132________ ___7.651% - 9 6 .1 5 1 ............ ...............7.613% ( 1 ) ( 1 ) T h e s e rates are on a b ank d iscount 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 8 2 -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 Dated Decem ber 11,1969 M aturing June 1 1 ,1 970 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 (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 ) a n d th e p r o v isio n s o f th e pu blic a n n ou n cem 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 e rsig n ed offers to p u rc h a se T r e a s u r y b ills in th e am 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 a llo tte d , on or b efore th e issu e d ate, b y th e m ethod a n d a t th e r a te in d ica 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 for $200,000 or le s s from a n y on e bidder, w ith o u t s ta te d price, w ill be a ccep ted in fu ll a t th e a v e r a g e price (in th ree d e c im a ls) o f a ccep ted c o m p e titiv e bids. COMPETITIVE T E N D E R S / . -----------------------------------_ -----------------------------------------------------------------------P r ic e s should be e x p r e sse d on the b a s is o f -------------------------(W ----------------$ ------------------------------------------(fa $ 100, w ith not m ore th a n ($ _ ^ t h r e e d e c im a l p la c e s , ________________ fa)__________ $ ____________________________ 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 , 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 ed 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 ade by cred it to T r ea s u r y T a x and L oan A ccount. Maturity Value (5) 1,000 $ (5) ¥ (5) $ 5,000 $ METHOD OF PA Y M EN T □ 10,000 ? 50,000 ? □ (5) $ 100,000 $ □ <® $ <® $ 500,000 $ Charge our reserve account on paym ent date I I D raft enclosed (Effectual delivery o f enclosed draft (a) $1:,000,000 $ shall be on latest day which will permit presentment in order to obtain irrevocably collected funda on payment d ate) Delivery Instructions: □ □ □ 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 Tax and Loan Account (Address) 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 th a n $1,000 w ill b e considered an d e a c h 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 t u r it y v a lu e ) . 2. T en d ers sh o u ld be fo r w a rd ed in an e n velo p e c le a r ly a d d re ssed to th is b an k or a p p ro p ria te b ra n ch a s F is c a l A g e n t o f th e U n ite d S ta t e s , w ith n o ta tio n o n 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 received w ith t h is leg en d w ill n o t be opened u n til a f te 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 ation 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 su b m ittin g te n d e r s m a y be ob ta in ed fr o m th is b a n k or a p p ro p ria te branch. 3. A n y qualified or co n d itio n al te n d e r w ill b e rejected . 4. I f a corp oration m a k e s th e ten d er, the fo r m should 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 and t h e s ig n in g o f th e fo r m b y a n officer o f t h e co rp o ra tion w ill be con str u e d a s a r ep r e se n ta tio n b y him t h a t h e h a s been so au th orized . I f t h 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 ber o f th e firm , w h o sh ou ld s ig n in t h e fo r m “_________________________________ , a cop artn ersh ip , by______________________________________________ > a m em ber o f th e firm ”. 5. T en d ers fr o m th o s e oth er th a n in co rp o ra ted b a n k s an d t r u s t co m p a n ies o r resp o n sib le and r eco gn ized d ea lers in i n v e s t m e n t se c u r itie s w ill be d isregard ed , u n le ss accom p an ied by a d ep o sit of 2 p e r ce n t o f th e to ta l a m o u n t (m a tu 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 , o r u n le ss th e te n d e r s a r e accom p anied by a n e x p r e s s g u a r a n t y o f f u 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 t h 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 op in ion o f t h e S e c r e ta r y o f t h e T r e a s u r y i s m a te ria l, th e te n d e r m a y be disreg ard ed . (See reverse for announcement)
@FedFRASER