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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 No. 69-311
D e c e m b e r 22, 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 sta te 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 s u ry bills to th e a ggregate a m o u n t
of $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 J a n u a ry 2, 1970, in th e a m o u n t of
$2,911,209,000, as follows:
90-D A Y B IL L S (to m a tu r ity d a te ) to be issued Ja n u a ry 2,1970, in th e a m o u n t of $1,800,000,000, o r th e re ­
ab o u ts, 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 c to 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 of $1,208,450,000, th e a d d itio n al a n d original bills to be freely interchangeable.
181-D A Y B IL L S fo r $1,200,000,000, or th ere ab o u ts, to be d a te d J a n u a 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 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 r ity 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 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 will 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 29, 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 s t 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 b e 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 eserv 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 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 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 except 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 rated banks a n d tr u 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 ten d e rs are a ccom panied by a n express g u aran 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 opened a t th e F e d e ra l R e se rv e B anks 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 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 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 rejection thereof. T h e S ecretary of th e T re a su ry expressly reserves th e
rig h t to a cc ep t o r re je c t a n y or all tenders, in w hole or 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 average 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 cc ep te d ten d e rs in accordance w ith th e bids m u st b e m a d 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 J a n u a r y 2, 1970, in
cash o r o th er im m e d ia tely 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 J a n u a ry 2, 1970. Cash a n d
exchange ten d e rs will receiv e equal tre a tm e n t. Cash a d ju stm e n ts w ill b e m a d e for differences betw een th e p a r v alue of m a tu r­
ing bills a ccep ted in exchange a n d th e issue p rice of new bills.
T h e incom e d e riv e d 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 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 o f 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 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 o f 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 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 by th e U n ite d S ta te s is considered to be in te re st. 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 re u n d e r a re sold is not con­
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 c onsideration 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 n e ed include
in his incom e tax re tu r n only th e difference b etw een th e price p a id for such bills, w h e th er o n 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 for w hich th e
re tu rn 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 ircu lar No. 418 (c u rre n t revision) a n d th is notice, pre sc rib e th e term s of th e T re a su ry bills a n d
govern th e c onditions of th e ir issue. Copies of th e c irc u la r m ay be 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 accordance with the a b o v e a n n o u ncem en t, tenders will b e received at 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, D ecem ber 2 9, 1 969 . Tenders m ay
not b e entered by 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 of A ccepted T e n d e rs
90-D ay B ills
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 ta l A c c e p te d _______ ___ ___________________ ___ _$1,200,019,000
P ric e
Y ie ld
P ric e
Y ie ld
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 e ra g e --------------- ----------------- 96.071____________ 7.815% ( 1 )
( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t b a s is . T h e e q u iv a l e n t c o u p o n iss u e y i e l d s a r e 8 . 0 7 % f o r t h e 9 0 - d a y bills, a n d 8 - 2 5 % f o r t h e
1 8 1 - d a y b i ll s .

( S e e r e v e r s e aide 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

181 DAYS TO MATURITY
Dated January 2, 1970

M aturing July 2, 1970

T o : Federal R eserve Bank, Station K, Dallas, T exas 75222
or—
The__________________________________ Branch
El Paso 79999

Houston 77001

(Date)

San Antonio 78206

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.

NONCOMPETITIVE T E N D E R $_

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

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.

COMPETITIVE T E N D E R S

I$
S

_

_

(o)
@

Prices should be ex­
pressed on the basis of
100, with not more than
th ree decim al places,
e. g., 99.925. Fractions
must not be used.

$

2 ^ = TENDERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.
METHOD OF PAYM ENT

Maturity Value

<> $
5

1,000 $.

$

5,000 ?.
10,000 $-

(a> $

□
□

P aym ent to be m ade by______________

□

50,000 $$
(a) ? 100,000 $.
$ 500,000 $-

B y m aturing bills
held by________________________________ _

Charge our reserve account on paym ent
date
D ra ft enclosed (Effectual delivery of enclosed draft

□

shall be on latent day which will permit presentment in
order to obtain irrevocably collected funds o n payment
date)

$1.,000,000 ?.
D elivery Instructions:
□
□
□

(Subscriber’s fu ll 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 to-------------------------------------------

(Authorized official signature and title)

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

(Address)

IMPORTANT
1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity
valu e).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes
received with this legend will not be opened until after the closing time specified in the public announcement, communi­
cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this
bank or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him that he
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who
should sign in the form “_____________________________ , a copartnership, by--------------------------------------------------------------,
a member of the firm”.
5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or trust company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.

( reverse for announcement)
See

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