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F e d e r a l R e s e r v e Ba n k o f D a lla s F ISC A L A G E N T O F T H E U N IT E D ST A T E S DALLAS, TEXAS 7 5 2 2 2 Circular No. 69-20 January 29, 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 Eleventh 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 th e fo llo w in g s t a t e m e n t g iv in g d e t a il s o f tw o iss u e s o f T re as u ry bills: T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to th e aggregate am ount of $2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing February 6, 1969, in th e am ount of $2,703,621,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued February 6, 1969, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated November 7, 1968, and to m ature M ay 8, 1969, originally issued in the am ount of $1,101,010,000, 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 February 6, 1969, and to m ature August 7, 1969. T h e bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and a t m aturity their face am ount will be payable without interest. T hey will be issued in bearer form only, and in denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity value). Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard Tim e, Monday, February 3, 1969. T enders will not be received a t the T reasury D epartm ent, Washington. Each tender m ust be for an even m ultiple of $1,000, and in the case of competitive tenders the pri'-e offered m ust be expressed on the basis of 100, w ith not more th an three decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks 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 trust companies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the 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 the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves th e 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, noncompetitive 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 F ebruary 6, 1969, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing February 6, 1969. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur ing bills accepted in exchange and th e issue price of the new bills. T h e income derived from T reasury bills, w hether interest or gain from the 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 h e bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, b u t 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 th e am ount of discount a t which Treasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454 (b ) and 1221 (5 ) of the 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, redeem ed 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 th e T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal R eserve B ank 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 , te 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 ., C e ntral S t a n d a r d Time, M o n d a y , F e b r u a r y 3, 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 . Yours v e r y truly, P. E. Coldw ell P re s id e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and A pproxim ate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue M ay 1, 1969 D ue Ju ly 31, 1969 $2,648,027,000---------------------------------------------- T otal Applied F o r_______________________________$2,449,074,000 $ 1,600,569,000------------------------------------------------T otal Accepted__________________ ______________ $ 1,102,304,000 Price Yield Price Yield 98.448----------------- 6.140% ______ ___ ________________ H igh______________________96.849___________ 6.233% 98.437----------------- 6.183% ________ _________________ Low______________________ 96.835___________ 6.260% 98.441----------------- 6.167% ( 1 ) ------------------------------- Average______________ ___ __96.838____________6.255% (1 ) ( 1 ) T h e s e rates are o n a b a n k discou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 6 .3 5 % for th e 9 1 - d a y bills, and 6 .5 5 % for the 1 82-d a y bills. “ (See reverse sid for tender form e ) 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 91 DAYS TO MATURITY M aturing May 8 ,1 9 6 9 D ated N ovem ber 7 ,1 9 6 8 To: Federal R eserve Bank, Station K, Dallas, T exas 75222 or— The__________________________________ B r a n c h 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 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 $_______________________________________ NOT 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. / _ Prices should be e x pressed on the basis of 100, with not more than (a) COMPETITIVE T E N D E R S $ ? th r ee decim al p la ce s, e. g., 99.925. Fractions @ ? must not be used. ' TENDERS MAY NOT BE EN TERED BY TELEPHONE. TEN DERS BY WIRE, IF RECEIVED BEFORE T H E CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Denominations Desired N u m b er of M a tu rity V alu e P ie c e s m % (a). $ 5,000 & (a), $ METHOD OF PAYMENT 1,000 ?10,000 $- □ □ By m atu rin g bills held b y _________ P ay m en t to be m ade by_ 50,000 ?- m $ (a) % 100,000 % (a) $ 500,000 % . □ Charge our reserve account on p a y m e n t date I _] D ra ft enclosed (Effectual delivery of enclosed d r a f t s h a ll b e o n la te s t d a y w h ic h w ill p e r m i t p r e s e n t m e n t i n o r d e r t o o b t a i n irr e v o c a b ly c o lle c te d f u n d s o n p a y m e n t d a te ) % ?1 ,000,000 ?- Delivery In stru ctions: ( 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 Account— M ember banks fo r own account only □ Pledge to secure T reasury T ax and Loan Account □ (A d d ress) By( A u t h o r i z e d o f fic ia l s i g 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, if t e n d e r is f o r a n o t h e r s u b s c r ib 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, communi cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from th is 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 m ate rial, the tender may be disregarded. (See reverse for announcement)