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F ederal Reserve Bank of Dallas
F I S C A L A G E N T O F T H E U N IT E D S T A T E S

DALLAS, TEXAS 75222
C ircular No. 69-310
D e c em b er 22, 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 state 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 e rs for two series of 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, fo r cash a n d in exchange for T re a s u ry bills m a tu rin g J a n u a r y 2, 1970, in th e a m o u n t of
$2,911,209,000, as follow s:
'
90-D A Y B IL L S (to m a tu rity d a te ) to be issued Ja n u a ry 2,1970, 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 O cto b er 2, 1969, a n d to m a tu re A pril 2, 1970,
originally issued in th e a m o u n t o f $1,208,450,000, th e a d d itio n a l a n d original bills to be freely in terchangeable.
181-D A Y B IL L S for $1,200,000,000, or th ere ab o u ts, to be d a te d J a n u r r y 2, 1970, a n d to m a tu re J u ly 2, 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 n o n c o m p e titiv e b id d in g a s h e rein afte 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 b e p a y ab le 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 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 eserve 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 o n d a y , D e c em b er 29, 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 price offered m u st b e expressed on
th 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 th a t te n d e rs be m ad e
on 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 by 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 a ccount of 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 ers th a n b a n k in g in stitu tio n s will n o t be 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 d e p o sit from inco rp o ra ted b anks a n d tr u s t com panies a n d from responsible a n d recognized
d e ale rs in in v e stm e n t securities. T e n d e rs from o th ers m u st be a cc o m p an ied 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 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 will be op en ed 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 w ill b e m a d 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 ra n g e of a cc ep te d bids. T hose
su b m ittin g te n d e rs will b e ad v ised of th e a cc ep ta n ce o r rejection thereof. T h e S ec retary o f 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 o r a ll tenders, in w hole or in p a rt, a n d his a ctio n in a n y such re sp e ct shall b e final. S u b je c t to
th e se reservations, n o n c o m p e titiv e ten d e rs fo r each issue fo r $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
acc ep te d in full a t th e average p rice ( i n 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 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 or com pleted a t th e F e d e ra l R eserv e B a n k on J a n u a r y 2, 1970, in
cash or o th er im m e d ia te ly a v ailab le funds o r in a lik e face a m o u n t of T re a su ry bills m a tu rin g J a n u a r y 2, 1970. C ash a n d
exchange ten d ers w ill receive eq u al tre a tm e n t. C ash a d ju s tm e n ts w ill be m a d e for differences betw een th e p a r v alue of m a tu r­
in g bills a cc ep te d in exchange a n d th e issue p rice o f 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 je ct to e state , in h eritan ce, 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 e x em p t from all ta x a tio n now o r h e re a fte r im posed o n 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 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 pu rp o ses of tax a tio n th e a m o u n t of discount
a t w hich T re a su ry bills a re originally sold b y th e U n ite d S ta te s is considered to be i n 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 C ode o f 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 not c o n ­
sid ered to accrue u n til such bills are sold, re d ee m e d or otherw ise disposed of, a n d such bills a re excluded from co n sid eratio n 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 etw een th e price p a id for such bills, w h e th er on original issue or on su b seq u en t
p u 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 ar fo r w hich th e
re tu rn is m ade, as o rd in a ry gain or loss.
T re a su ry D e p a rtm e n t C ircu lar N o. 4 1 8 ( c u rre n t revision) a n d th is notice, pre sc rib e th e te rm s of th e T re a s u ry bills a n d
govern th e conditions 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 fro m 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 at this b ank an d its branches at El Paso,
Houston a n d San A ntonio up to twelve-thirty p.m .. Central Standard Time, M on d a y, D ecem ber 2 9 , 1 969 . Tenders m a y
not b e 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
90 -D ay Bills
181-D ay B ills
D u e M a rc h 26, 1970
D u e J u n e 25, 1970
$2,432,178,000-------------------------------------------------- T o ta l A p p lied F o r ---------------------------------------- --------- $1,863,339,000
$1,800,058,000__________________________________ .T o tal A c c ep ted _________ ____ _____________________ $1,200,019,000
P ric e
Y ield
P ric e
Y ield
98.060------------------- 7 .7 6 0 % ----------- ------------------------------ H ig h ----------------------------------- 96.094_____________7.769%
98.041
7 .8 3 6 % ----------- ---- --------------------- .— L ow -------------------------------------96.057 _____________7.842 %
98.049
7.804% ( 1 ) ------------------ ---------- — A v erag e---------------------------------- 96.071_____________7 .815% ( 1 )
( 1 ) T h e s e r a te s a r e on a b a n k d isc o u n t b asis. T h e e q u iv a le n t c o u p o n issu e y ie ld s a r e 8 . 0 7 %
1 8 1 - d a y b ills .

fo r th e 9 0 - d a y b ills

an d 8 .2 5 %

fo r th e

( 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

90 DAYS TO MATURITY
D ated October 2, 1969

Maturing April 2, 1970

T o : 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 an A n to n io 78206

P u r su 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 the
pu blic a n n ou n cem en t issu e d by 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 the am o u n t
sh o w n below , an d a g r e e s to p a y f o r th e a m o u n t allotted , on o r b efore th e issu e date, b y th e m ethod an d a t th e r a te in d icated .

NONCOM PETITIVE T E N D E R $_

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

N o n co m p etitiv e te n d e r s fo r $200,000 or le s s from a n y one bidder, w ith ou t sta te d price, w ill b e a ccep ted in fu ll a t the a v e r a g e
price (in th ree d e c im a ls) o f accep ted c o m p e titiv e bids.

COMPETITIVE T E N D E R S ^ $;
;

(a)
(3>

P r ic e s should be e x ­
p r e sse d on the b a sis 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.

s

T E N D E R S M A Y NO 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 t h is issu e o f b ills c a n n o t b e m ade
by 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

(a) $
0> $
(S $
>
(a) $

M ETHOD OF PA Y M EN T

1,000 ?
5,000 ?

□

B y m aturing bills
held by__-___________________________ __
P aym ent to be m ade by______________

10,000 ?
50,000 ?

□

@ ? 100,000 $
(a) ? 500,000 $

□

Charge our reserve account on paym ent
date
I | D ra ft enclosed (Effectual delivery o f enclosed draft

$1 ,000,000 $

Bhall he on latest day which will permit presentment In
order to obtain irrevocably collected funds o n payment
date)

D elivery Instructions:
□
□
□

(Subscriber’s fu ll name or corporate title)

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

(Address)

B y-

Ship to------------------------------------------'

(Authorized official signature and title)

(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 fo r le s s th a n $1,000 w ill be co nsidered an d e a c h ten d er m u s t be f o r a n a m ou n t in m u ltip les o f $1,000 (m a tu r ity
v a lu e ) .
2. T en d ers sh ou ld be fo r w a r d e d in a n e n velo p e c le a r ly a d d re ssed to th is b an k o r 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 en 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 specified in th e pu blic an n o u n cem en t, com 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 s u 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 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 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 a n officer o f th e co rp o ra tion a u th o riz ed to m a k e th e
ten d er a n d t h e s ig n in g o f th e fo r m b y an officer o f th 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 he
h a s been so au th orized . 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 t h 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 ber o f th e firm ”.
5. T en d ers fr o m th o se other t h a n in co rp orated b an k s a n d t r u s t c om p an ies or r esp o n sib le a n d rec o g n iz ed d e a ler s in in v e s t­
m e n t se c u r itie s w ill be d isregard ed , u n le ss acco m p a n 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 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 le ss th e te n d e r s ar 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 f u ll p a y m e n t b y an
in corp orated b an k or t r u s t com pany.
6. I f th e la n g u a g e o f t h is form 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 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, th e te n d e r m a y be disreg ard ed .

(See reverse for announcem
ent)

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