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federal reserve bank of Dallas 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 75222 Circular No. 69-26 F ebruary 5, 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 R e serve District: Y ou r a t t e n t i o n is in v 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 o f tw o is s u e s of T re as u ry bills: T he 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 an d in exchange for T reasury bills m aturing February 13, 1969, in th e am ount of $2,704,449,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued F ebruary 13, 1969, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated N ovember 14, 1968, and to m ature M ay 15, 1969, originally issued in the am ount of $1,102,720,000, 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 F ebruary 13, 1969, and to m ature August 14, 1969. T he 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 a turity th eir face am ount will be payable w ithout 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). T enders will be received a t Federal Reserve B anks and B ranches u p to the closing hour, one-thirty p.m., E astern S tandard Tim e, M onday, F ebruary 10, 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 th e case of com petitive tenders the price offered m ust be expressed on the basis of 100, w ith not more tha n three decimals, e.g., 99.925. Fractions may 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 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 th an banking institutions will not be perm itted to subm it tenders except for their own account. T enders will be received w ithout deposit from incorporated banks and trust companies and from 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 the tenders are accompanied by a n 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 R eserve Banks and Branches, following which public announcem ent will be m ade b y 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 th e 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 w ithout stated price from any one bidder will be accepted in full a t the average price (in three decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t the F ederal Reserve B ank on F ebruary 13, 1969, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing F ebruary 13, 1969. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p a r value of m atur ing bills accepted in exchange and th e issue price of the new bills. T he income derived from T reasury 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 th e Internal R evenue 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 the am ount of discount a t which T reasury bills are originally sold by the U nited States is considered to be in te re s t U nder Sections 454 (b ) and 1221 (5 ) of th e Internal R evenue 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 com panies) issued hereunder need include in his income tax retu rn 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 the conditions of their issue. Copies of th e circular may be obtained from any F ederal Reserve 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 , 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 San 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 eb r u a r y 10, 1969. 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. Coldwell P re sid e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approximate Y ield of Accepted T enders 91-Day Bills 182-Day Bills D ue M ay 8, 1969 D ue August 7, 1969 $2,797,471,000__________________ __________ T o tal Applied F o r.______________________________ $2,189,171,000 $1,600,485,000______________ _____ ___________ .Total A ccepted____________________ _____ ___ _ $1,100,024,000 _ Price Y ield Price Yield 98.429____________6.215% _________ ________________ H igh_____________________ 96.800___ - ____ 6.330% 98.417 6.262% _______ _______________ X ow ______________________ 96.781___________ 6.367% 98.420 6.251% (1)_____„ __ __________ Average________________ ___ 96.785___________ 6.359% (1 ) _ ( 1 ) T h ese rates are on a b ank d iscount basis. T h e e q u iv a le n t coupon issue y ie ld s are 6 .4 4 % for t h e 9 1 -d a y bills, a n d 6 .6 6 % for t h e 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 Dated Novem ber 14, 1968 M aturing May 1 5 ,1 9 6 9 To: Federal R eserve Bank, Station K, Dallas, T exas 75222 or— The__________________________________ Branch El Paso 79999 Houston 77001 ___________________________________ San Antonio 78206 (Date) 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 TENDER $______________________________________ N O T TO EXCEED $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. / ^ i S ___________________ @ _________ $ ------------------------------------- Prices should be expressed on the basis of <f$---------------- @ -------- $--------------------- t / $ ___________________ @ _________ $ ________________________ V e. g., 99.925. Fractions must not be used. COMPETITIVE T E N D E R S T ^ S ^ Hgg* TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number o f Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Maturity Value (a) $ .(a) ? (a) $ 5,000 * 10,000 $- ..(a) ? METHOD OF PAYMENT 1,000 $- 50,000 ?. □ □ < $ 500,000 $ n1 (a) $1 ,000,000 ?. P a y m e n t to be m a d e by_ □ Jo). $ 100,000 $- B y maturing bills held b y ____________________ Charge our reserve account on paym e n t date I j Draft enclosed _ (Effectnal delivery o f enclosed d ra ft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on paym en t date) Delivery Instructions: ________ (Subscriber’s full name or corporate title) □ 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 □ Ship to_____________________ Loan -------- (Address) ___________________________________ A ccount (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 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 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 sign fid 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 lias 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 fo r announcem ent)