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F ederal r es er v e Ba n k o f Dallas

DALLAS, TEXAS 7 5 2 2 2

Circular No. 69-21
January 29, 1969

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 R eserve District:
Y o u r a t t e n t i o n is inv ited to th e f o llo w in g s t a t e m e n t g iv in g d e t a il s of tw o is s u e s of T re as u ry bills:
The 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 the 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 b e dated February 6, 1969, and to m ature August 7, 1969.
T he 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 aturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
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 com petitive tenders the price offered m ust be expressed on
th e basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be m ade
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. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by a n incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve Banks 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 the
rig h t 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 competitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be made or completed a t the Federal Reserve Bank on February 6, 1969,
in cash or other im m ediately available funds or in a like face am ount of Treasury 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 p ar value of m atur­
ing bills accepted in exchange and the issue price of th e new bills.
T he income derived from Treasury bills, w hether interest or gain from the sale or other disposition of the bills, does not
have any exemption, as such, and loss from the 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, 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 T reasury 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 than life insurance companies) 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.
Treasury D epartm ent Circular No. 418 (curren t revision) and this notice, prescribe the terms of th e T reasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve B ank or Branch.

In a c c o r d a n c e w ith th 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 a so ,
Houston a n d San A n to n io up 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 en d e rs m a y
not b e e n t e r e d b y t e l e p h o n e .
Y ours v e r y truly,
P. E. Coldw ell
P re s id e n t
Amount, Range and Approximate 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______________________________ .Total Applied F or____________ __________________ $2,449,074,000
$1,600,569,000_______________________ ________ T otal A ccepted________________________________ $1,102,304,000
98.448----------6.140% __________________________H igh______________________96.849___________ 6.233%
6.183% _________ ________________ Low_____ ___ ___________________ 96.835
6 .260%
6.167% ( 1 ) ___________ __ ______ Average_______________ _.._.96.838____________6.255% (1 )
( 1 ) T h ese rates are on a bank discou nt basis. T h e eq u iv a le n t cou p on issue y ie ld s are 6 . 3 5 % for th e 9 1 -d a y b ills, a n d 6 . 5 5 % for
th e 1 8 2 -day bills.

(See reverse side for tender form )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


M aturing A u gust 7, 1969

D ated February 6,1 9 6 9
To: Federal R eserve Bank, Station K, Dallas, T exas 75222
The________ _________________________Branch
El Paso 79999

Houston 77001


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.

NONCOM PETITIVE T E N D E R $_______________________________________ NO T 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 o f
*100, with not more than
----------------------------- th ree decimal p la ce s,
e. g., 99.925. Fractions
?must not be used.


Payment for this issue of bills cannot be m ade
by credit to Treasury Tax and Loan Account.

Denominations Desired
Number of

M a t u r i t y V a lu e


.(5) ?

1,000 $5,000 *

B y maturing bills
held b y ________

.(iii $

10,000 ?.


P a y m e n t to be m a d e by_


50,000 ?-

m, $


Charge our reserve account on p a y m e n t


| | Draft enclosed

.(S3 $



100,000 ?$ 500,000 1
,000,000 ?-

(Effectual delivery of enclosed d r a ft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected fu nds on p ay m en t

Delivery Instructions:
( S u b s c r i b e r ’s f u ll n a m e o r c o r p o r a t e ti t l e )


Hold in Custody Account— M e m b e r
banks for o w n account only


Pledge to secure Treasury T a x and
Loan Account


(A ddress)

By(Authorized official signature and title)

Ship to__________________________
(For the account of,

if tender is

for another subscriber)


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
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f th e
United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING.” Since envelopes r e ­
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 th e
tender and at the signing of the form by an officer of the corporation will be construed as a representation by him that h e
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 ................................................................................................ f
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 announcem

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