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F ederal r es er v e Ba n k o f D allas F I S 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 C ircu la r N o. 69-51 F e b ru a ry 26, 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 t h 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 of t w o is s u e s of T re as u ry bills: T h e T re a s u ry D e p a rtm e n t, b y th is p u b lic notice, in v ites te n d e rs for tw o series of T re a s u ry b ills to th e a ggregate a m o u n t of $2,700,000,000, o r th ere ab o u ts, for cash a n d in exchange for T re a s u ry bills m a tu rin g M a rc h 6, 1969, in th e a m o u n t of $2,702,733,000, a s follow s: 91-D A Y B IL L S (to m a tu r ity d a te ) to be issued M a rc h 6, 1969, in th e a m o u n t o f $1,600,000,000, o r th e re a bouts, rep rese n tin g a n a d d itio n al a m o u n t o f bills d a te d D e c e m b e r 5, 1968, a n d to m a tu re J u n e 5, 1969, o riginally issued in th e a m o u n t of $1,100,082,000, th e a d d itio n al a n d original bills to b e freely interchangeable. 182-D A Y B IL L S for $1,100,000,000, or th ere ab o u ts, to b e d a te d M a rc h 6, 1969, a n d to m a tu re S e p te m b e r 4, 1969. T h e bills o f b o th series w ill b e issued o n 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 rovided, a n d a t m a tu rity 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 fo rm 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 en 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 ra n ch e s 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, M a rc h 3, 1969. T e n d e r s w ill n o t be re ce iv e d a t th e T re a su ry D e p a rtm e n t, W ashington. E a c h te n d e r m u st be for a n even m u ltip le o f $1,000, a n d in th e case of c o m p e titiv e te n d e rs th e p rice offered m u s t 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 b e used. I t is u rged t h a t te n d e rs be m ad e o n th e p rin te d form s a n d forw arded in th e special envelopes w hich will b e su p p lied b y F e d e ra l R e se rv e B a n k s or B ran ch es on a p p lic atio 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 a cc o u n t of custom ers p ro v id e d th e nam es of th e custom ers are se t fo rth in such tenders. O th e rs th a n b a n k in g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs ex cep t fo r th e ir ow n account. T e n d e rs will b e received w ith o u t d e p o sit from in co rp o ra ted b a n k s a n d tru s t com panies a n d fro m responsible a n d recognized d ealers in in v e s tm e n t securities. T e n d e rs fro m o th e rs m u st b e a cc o m p an ied b y p a y m e n t o f 2 p e rc e n t of th e face a m o u n t of T re a s u ry b ills a p p lie d for, unless th e ten d e rs a re a cc o m p an ied b y a n express g u a ran ty of p a y m e n t b y a n in co rp o ra ted b a n k or t r u s t com pany. Im m e d ia te ly a fte r th e closing hour, te n d e rs will b e opened a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich p u b lic a n n o u n ce m en t will b e m a d e b y th e T re a s u ry D e p a rtm e n t of th e a m o u n t a n d p rice range o f a cc ep te d bids. T h o se su b m ittin g te n d e rs will be ad v ised of th e a cc ep ta n ce o r reje ctio n thereof. T h e S e c retary of th e T re a s u ry expressly reserves th e rig h t to a cc ep t o r re je c t a n y o r all ten d ers, in w hole o r in p a rt, a n d his a ction in a n y such resp ect shall be final. S u b je c t to th ese reservations, n o n c o m p e titiv e te n 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 o n e b id d e r w ill be a c c e p te d in full a t th e a v erage p rice (in th re e d e cim als) of a cc ep te d c o m p e titiv e bids for th e re sp e ctiv e issues. S e ttle m e n t for a c c e p te d te n d e rs in accordance w ith th e b id s m u st be m ad e o r c o m p le te d a t th e F e d e ra l R e se rv e B a n k on M a rc h 6, 1969, in cash or o th e r im m e d ia tely av ailab le funds o r in a lik e face a m o u n t of T re a su ry bills m a tu rin g M a rc h 6, 1969. Cash a n d exchange te n d e rs w ill receive e qual t r e a t m e n t Cash a d ju s tm e n ts will b e m a d e for differences b etw een th e p a r v a lu e o f m a tu r ing bills a ccep ted in exchange a n d th e issue p ric e of th e 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 or gain from th e sale o r o th e r disposition o f 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 o r o th e r disposition of T re a s u ry b ills 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 en u e Code o f 1954. T h e b ills a r e su b ject to estate, inheritan c e, 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 on th e p rin c ip a l o r in te re st th e re o f b y a n y S ta te , o r a n y of th e possessions of th e U n ite d States, o r b y a n y local taxing a u th o rity . F o r pu rp o ses of ta x a tio n th e a m o u n t of discount a t w hich T re a s u ry bills a r e o riginally sold b y th e U n ite d S ta te s is considered to b e interest. 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 en u e Code of 1954 th e a m o u n t of d isc o u n t a t w hich bills issued h e reu n d e r a re sold is n o t con sid e red to accru e u n til such bills a re sold, re d ee m e d o r otherw ise d isposed of, a n d such bills are excluded fro m co n sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a s u 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 need include in his incom e tax re tu r n only th e difference b e tw ee n th e p rice p a id for such bills, w h e th e r o n original issue o r o n subsequent p urchase, 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 o r re d e m p tio n a t m a tu r ity d u rin g th e tax a b le y e a r fo r w hich th e re tu rn is m ade, a s o rd in a ry gain or loss. T re a su ry D e p a rtm e n t C ircu la r No. 418 ( c u r re n t re v isio n ) a n d th is notice, pre sc rib e th e te rm s o f th e T re a s u ry bills a n d g overn th e c o nditions of th e ir issue. C opies of th e c irc u la r m a y b e o b ta in e d from a n y F e d e ra l R e se rv e B a n k o r B ran ch . 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 , H o u sto n 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 n tral S t a n d a r d Time, M o n d a y , M a rc h 3, 1969. T e n d e rs m a y n o t be en tered by telep ho n e. Yours very truly, " P. E. Coldwell P re sid e n t 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 c c ep ted T e n d e rs 9 1 -D a y B ills 182-D ay B ills D u e M a y 29, 1969 D u e A ugust 28, 1969 $2,494,165,000_________________ _______________ T o ta l A p p lie d F o r _________________________________ $1,901,277,000 $1,600,361,000__________________ ____ ___________ T o ta l A c c ep ted __________________________________ $1,100,252,000 P ric e Y ie ld P ric e Y ie ld 98.4 73____________ 6.041 % ____________________________ H ig h ___________________ ...96.848____________ 6.235 % _ 98.455-----------6.1129? ------------------------------ L ow ------------------------------------96.822___________ 6 .286% 98.463 6 .080% ( 1 ) ---------------------------------A verage............................................___________________ 6.258% (1 ) ( 1 ) T h e s e rates are on a bank discount basis. T h e eq u iv ale n t coupon issue yie ld s are 6 . 2 6 % for t h e 9 1 - d a y b ills, an d 6 . 5 5 % for th e 1 8 2 -d a y bills. (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 Dated March 6,1969 Maturing September 4,1969 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The______________________________Branch El P a so 79999 H o u sto n 77001 S a n A n to n io 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 a t the rate indicated. NONCOMPETITIVE TENDER $_ JNTO TO EXCEED $200,000 T N o n co m p etitiv e te n d e r s fo r $200,000 or le s s fro m a n y on e bidder, w ith o u t sta te d price, w ill b e accep ted in fu ll a t th e a v e r a g e p rice (in th ree d e c im a ls) o f accep ted co m p e titiv e bids. (a) COMPETITIVE TENDERS $ @ ? $ .. Prices should be ex pressed on the basis of 100, with not more than th re e decimal places, e. g., 99.925. Fractions m ust not be used. TENDERS MAY NOT BE EN TERED BY TELEPHO NE. TENDERS BY W IRE, IF RECEIVED BEFORE T H E CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made D e n o m in a tio n s D e sir ed by credit to Treasury Tax and Loan Account. N u m b e r of M a tu rity V a lu e Pieces @ $ © $ METHOD OF PAYMENT 1,000 □ 5,000 $_ @ $ 10,000 $ $_ B y m aturing bills held b y ____________________________ Paym ent to be made by__________ _ 50,000 □ □ Charge our reserve account on payment date Q D raft enclosed (Effectual delivery of enclosed draft $ 100,000 $_ | 500,000 shall be on latest day which will p e rm it p re s e n tm e n t in order to obtain irrevocably collected fu n d s on payment d ate) _@ $ 1 , 000,000 $_ Delivery Instructions:. ( 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— Member banks for own account only Pledge to secure Treasury Tax and Loan Account (A ddress) B y. ( 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 , 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 ddress) 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 (m aturity 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 m atters 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 signad 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 th at he has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who ... ., a copartnership, by ....................... .............. ....................................... , should sign in the form “ .............. 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 (m aturity 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 tru st company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is mate rial, the tender may be disregarded. (See reverse for announcement)
@FedFRASER