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F ed e r a l R es e r v e Ba n k o f D a lla s
F IS 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 7 5 2 2 2
Circular No. 69-4
January 8, 1969
NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O th e r s C o n c e r n e d
in t h e E le venth F e d e r a l Reserve District:
Y our a t t e n t i o n is in v ited to the f o llo w in g s t a t e m e n t giv ing d e t a il s o f tw o iss u e s o f T re asu ry bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of
$2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing January 16, 1969, in th e am ount of
$2,701,696,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued Jan u ary 16, 1969, in the am ount of $1,600,000,000, or there
abouts, representing an additional am ount of bills dated October 17, 1968, and to m ature A pril 17, 1969,
originally issued in the am ount of $1,101,755,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,100,000,000, or thereabouts, to be dated January 16, 1969, and to m ature July 17, 1969.
T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and a t m atu rity the ir face a-.iount will be payable w ithout interest. T hey will ba issued in bearer form only, and in
denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value).
T enders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
S tandard Tim e, M onday, January 13, 1969. T enders will not be received a t the T reasury D epartm ent, Washington. E ach
tender m ust be for an even m ultiple of $1,000, and in the case of competitive tenders th e price offered m ust be expressed on
the basis of 100, with n ot more than three decimals, e.g.j 99.925. Fractions m ay not be used. I t is urged th a t tenders be made
on th e printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve B anks or Branches on
application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account.
T enders will be received without deposit from incorporated banks and tru st companies and irom responsible and recognized
dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of th e face am ount of
T reasury bills applied for, unless th e tenders are accompanied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve B anks and Branches, following which
public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Those
subm itting tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves the
right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to
these reservations, noncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder will be
accepted in full a t the average price (in three decimals) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal Reserve B ank on Jan u ary 16, 1969,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Janu ary 16, 1969. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e par value of m atur
ing bills accepted in exchange and the issue price of th e new bills.
T h e income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of th e bills, does not
have any exemption, as such, and loss from th e sale or other disposition of Treasury bills does not have any special treatm ent,
as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State,
or any of the possessions of the U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount
a t which Treasury bills are originally sold by the U nited States is considered to be interest. Under Sections 454 (b ) and
1221 (5 ) of th e Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not con
sidered to accrue until such bills are sold, redem med or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of T reasury bills (other th a n life insurance com panies) issued hereunder need include
in his income tax return only the difference between the price paid for such bills, w hether on original issue or on subsequent
purchase, and the am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the
return is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and
govern th e conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch.
In a c c o r d a n c e w ith t h e a b o v e a n n o u n c e m e n t , t e n d e r s will b e r e c e iv e d a t this b a n k a n d its b r a n c h e s a t El P aso ,
Houston a n d S an A n to n io u p to tw e l v e - th ir ty p.m ., Central S t a n d a r d Time, M o n d a y , J a n u a r y 13, 1 9 6 9 . T e n d e rs m a y
not b e e n t e r e d by t e l e p h o n e .
Y ours v e r y truly,
P. E. Co idw ell
P re sid e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Yield of Accepted Tenders
91-Day Bills
D ue April 10, 1969
$2,638,895,000______________
$1,600,042,000______________
Price
Yield
98.443______
..6.160%.
98.421______
..6.247%.
98.426______
.6.227% ( 1 ) .
-T o ta l Applied For_
__ T otal A ccepted__
------H igh— ____
_Low_
-A verage-
182-Day Bills
D ue Ju ly 10, 1969
___________ ______$2,095,215,000
...................... ........... $1,100,040,000
Price
Yield
...96.798________________ 6.334%
...96.774________________ 6.381%
...96.782___ ________ 6.365% (1 )
( 1 ) T h e s e rates are on a b ank d iscount basis. T h e eq u ivale n t cou p on issue y ie ld s are 6 .4 1 % for th e 9 1 - d a y bills, and 6 .6 7 %
th e 18 2 -d a y bills.
for
(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
Maturing July 17, 1969
D ated Ja n u a ry 16, 1969
To
Federal Reserve Bank, S tation E , Dallas, Texas 75222
or —
The_________________________________ Branch
El Paso 79999
Houston 77001
San Antonio 78206
(D a te )
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 apount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.
.NO T TO EX C EED $200,000
NONCOM PETITIVE T E N D E R $_
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
Prices should be ex
Jn)_
----------------------------pressed on the basis of
[?-
COM PETITIVE TEN D ER S {%-
_@_
($ -
_@ _
100, with not more than
----------------------------___________________
th ree d e c im a l places,
e. g., 99.925. F ra c tio n s
must not be used.
JggP TEN DERS MAY NOT BE EN T ER ED BY TELEPHONE. TEN DERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.
Denominations Desired
N um ber of
P ie ce s
M a tu rity V alu e
(a) $
(ffl ?
.(a) $
METHOD OF PAYMENT
1,000 ?5,000 ?-
□
10,000 ?50,000 $■
By m atu rin g bills
held by______________________
P ay m en t to be m ade by_
□
(ffi $
(a) $ 100,000 $(5) $ 500,000 $(a) §1 ,000,000 $-
□
Charge our reserve account on paym ent
d ate
I
I D r a f t e n c l o s e d ( E f f e c tu a l d e liv e ry o f e n c lo se d d r a f t
s h a l l be o n l a t e n t d a y w h i c h w i l l p e r m i t p r e s e n t m e n t i n
o r d e r to o b t a i n irr e v o c a b ly c o lle c te d f u n d a o n p a y m e n t
d a ta )
Delivery In stru c tio n s :
( S u b s c r i b e r ’s f u l l n a m e o r c o r p o r a t e t i t l e )
□
Hold in Custody A ccount— M ember
banks fo r own account only
□
Pledge to secure T reasury Tax and
Loan Account
□
(A dd resa)
By__
( A u t h o r i z e d o f fic ia l s i c n a t u r e a n d t i t l e )
Ship to---------------------------------------( F o r t h e a c c o u n t o f , i f t e n d e r is f o r a n o t h e r s u b s c r i b e r )
(A d d ress)
IM P O R T A N T
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
value).
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 re
ceived with this legend will not be opened until after the closing time specified in the public announcement, communica
tions 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 at 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.
(See reverse for announcement)
@FedFRASER