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F ederal Reserve Bank of Dallas
F IS C A L A G EN T O F T H E U N ITED STA T E S

DALLAS, TEXAS 7 5 2 2 2
C i r c u l a r N o . 6 9 -29 9
D e c e m b e r 10, 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 sta te m e n t 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 th is p u b lic notice, invites te n d e rs fo r tw o series o f T re a s u 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 atu rin g D e c e m b e r 18, 1969, in th e a m o u n t of
$2,901,799,000, 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 18, 1969, in th e a m o u n t of $1,800,000,000, o r th e re ­
abouts, rep 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 18, 1969, a n d to m a tu re M a rc h 19, 1970,
originally issued in th e a m o u n t of $1,200,698,000, th e a d d itio n al a n d original bills to be freely interchangeable.
182-DA Y B IL L S for $1,200,000,000, or th ere ab o u ts, to be d a te d D e c e m b e r 18, 1969, a n d to m a tu re J u n e 18, 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 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 w ill b e issued in b e a re r form only, a n d in
d e n o m in a tio n s o f $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 will 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 15, 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 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 be expressed on
t h 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 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 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 an 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 p ro v id ed th e nam es of th e custom ers are
se t fo rth in such ten d e rs. O th e rs th a n ban k in g in stitu tio n s will n o t b e p e r m itte d to su b m it te n d e rs e xcept fo r th e ir ow n account.
T e n d e r s w ill b e re ce iv e d 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 s tm e n t securities. T e n d e rs from o th ers m u s t 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 o m p an ied by an 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
tr u s t com pany.
Im m e d ia te ly a fte r th e closing hour, ten 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 w ill be 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 price range o f a cc ep te d bids. T hose
su b m ittin g te n d e rs w ill be a d v ised of th e a cc ep ta n ce or re je ctio n thereof. T h e S e c retary of th e T re a s u ry expressly reserves th e
rig h t to a cc ep t o r re je c t a n y or a ll ten d ers, in w hole o r in p a rt, a n d his a c tio n in a n y such re sp e ct shall b e final. S u b je c t to
th ese reservations, n o n c o m p e titiv e te n 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 average p rice (in th re e d ecim als) of a cc ep te d c o m p e titiv e bids for th e respective issues. S e ttle m e n t for
a cc ep te d te n d e rs in accordance w ith th e b id s 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 eserv e B a n k on D e c e m b e r 18, 1969,
in cash or o th e r im m e d ia te ly a v ailab le fun d s 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 18, 1969. Cash a n d
exchange te n d e rs w ill receive 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 p rice o f 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 o r gain fro m th e sale o r o th e r disposition of th e bills, does n o t
ha v e a n y exem ption, a s 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 h a v e 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 estate, inheritan c e, gift o r o th er excise taxes, w h eth er
F e d e ra l or S ta te , b u t a re ex 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 c ip 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 au th o rity . F o r p urposes of tax a tio n th e a m o u n t of discount
a t w hich T re a s u ry bills a re originally sold b y th e U n ite d S ta te s is considered to be in te r e s t U n d e r Sections 454 ( b ) a n d
1221 ( 5 ) of th e In te rn a l R e v en 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 ered 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 an ies) issued h e re u n d e r need inclu de
in his incom e ta x re tu rn only th e difference b e tw e e n th e p rice p a id fo r such bills, w h e th e r on original issue o r on su b seq u e n t
p urchase, a n d th e a m o u n t actu 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 a b le y e a r for w hich th e
re tu rn is m ade, a s o rd in a ry gain or loss.
T re a su ry D e p a rtm e n t C ircu la r No. 418 (c u rre n t re v 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
g o vern th e c o nditions of th e ir issue. C opies of th e c irc u la r m ay be o b tain e d from a n y F e d e ra l R eserv e B a n k o r B ranch.

In accordance 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 nk a n d its branches a t El Paso,
Houston a n d San A ntonio up to twelve-thirty p.m., Central Standard Time, M on d ay, Decem ber 15, 1 96 9. Tenders m a y not
be entered by tele 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
9 1 -D a y B ills
182-D ay Bills
D u e M a rc h 12, 1970
D u e J u n e 11, 1970
$2,380,312,000_________ ____ ___ — -------------- .T o tal A p p lied F o r -------------------------------------------------- $2,097,301,000
_
$1,800,338,000________________ ____ _____________ T o ta l A c c ep ted ----------------- ------------------ ---- ---- --------$1,200,293,000
P ric e
Y ie ld
P ric e
Y ield
98.068
7 .6 4 3 % ------------------------------------------ H ig h ------------------------------------9 6 .0 7 8 ____________ 7.758%
98.041
7 .7 5 0 % --------------------------------------------L ow ------------------------------------9 6 .032........ ........... 7.849%
98.053_______ - .......7 .702% ( 1 ) ---------------- ------------ ....A verage........................................... 96.055 ........... .7.803% ( 1 )
( 1 ) T h e s e r a t e s are on a b a n k d i s c o u n t b a s i s . T h e e q u i v a l e n t c o u p o n i s s u e y i e l d s a r e 7 .9 6 % f o r t h e 9 1 - d a y b i l l s , a n d 8 .2 4 % f o r t h e
1 8 2 - d a y b ills .

( 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated December 18,1969

Maturing June 18, 1970

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 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 ev isio n ) and th e p r o v isio n s o f th e
p u blic an 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 ou n t
sh o w n below , a n d a g r e e s to p a y f o r th e am o u n t a llo tted , on or b efore th e issu e d ate, b y th e m ethod an d a t th e r a te in d ic a 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 ten d ers fo r $200,000 or le s s from a n y on e bidder, w ith o u t sta te d price, w ill be accep 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
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.

B S 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 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 .

Denominations Desired
Number o f
Pieces

P a y m e n t f o r th is issu e o f b ills ca n n ot be m ad e
by cred it to T r e a s u r y T a x an d L o an A ccount.

M a tu rity V alu e

(ffl $
Iffl $

M ETHOD OF PAYM ENT

1,000 $
5,000 $

□

B y m aturing bills
held by_______________ _________________ .

10,000 $

□

P aym ent to be made by______________

<® ? 50,000 ?
(a) $ 100,000 $

□

Charge our reserve account on paym ent
date
| D ra ft enclosed (E ffectual delivery o f enclosed d r a f t

o

%

m $ 500,000 $
< > $1.,000,000 $
S

I

shall be on latest day which will permit preaentment in
order to obtain irrevocably collected funds on payment
date)

Delivery Instructions:
□
□
□

(Subscriber^ 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-

Ship to____________________________

(Authorized official signature and title)

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

IM PORTANT
1. N o te n d e r fo r le s s th a n $1,000 w ill be co nsidered 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 les o f $1,000 (m a tu 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 velop e c le a r ly a d d re ssed 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 th e
U n ite d S t a te s , w it h n o ta tio n on th e en velop 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 th is leg e n d w ill n o t be opened u n til a f t e r th e c lo sin g tim e sp ecified in the pu blic an n o u n cem en t, co m m u n i­
c a tio n s r e la tin g to o th e r m a tte r s should 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 o b ta in ed fr o m th is
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 ten d er w ill be rejected.
4. I f a co rp oration m a k e s the ten d er, th e fo r m sh ould be sig n e d b y an officer o f th e corp oratio n a u th o riz ed to m ak e th e
te n d e r a n d 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 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 him t h a t he
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 it should be sig n e d b y a m em ber o f th e firm , w h o
should s ig n in th e fo r m “_______________
_____ ____ , a cop artn ersh ip , b y ______________________________________________ ,
a m em ber o f t h e firm ” .
5. T en d ers fr o m th o se oth er t h a n in c o rp o ra te d b a n k s an d t r u s t com p a n ies o r r esp o n sib le and r ecog n ized d e a ler s in in 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 deposit o f 2 p ercen t o f th e to ta l a m 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 e s s g u a r a n ty o f f u l l p a y m e n t b y a n
in co rp orated b a n k or t r u s t com pany.
6. I f t h e la n g u a g e o f t h is fo r m i s c h a n g e d in a n y r e sp e c t, w h ich , in th 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 is
m a te ria l, t h e te n d e r m a y be disreg ard ed .

(See reverse for announcement)

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