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F ederal Reserve Ba nk o f Dallas
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 ircular No. 69-54
M a rc h 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 E le venth F e d e r a l R e serv e District:
Y our a t t e n t i o n is in v ite d 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, invites te n d e rs for two series of T re a s u ry b ills to th e a g g reg ate a m o u n t of
$2 700,000,000, o r th ereabouts, for cash a n d in exchange for T re a su ry bills m a tu rin g M a rc h 13, 1969, in th e a m o u n t of
$2,700,536,000, a s follows:
91-D A Y B IL L S (to m a tu rity d a te ) to be issued M a rc h 13, 1969, in the a m o u n t of $1,600,000,000, o r th e re ­
abouts, rep rese n tin g a n ad d itio n al a m o u n t of bills d a te d D e c em b er 12, 1968, a n d to m a tu re J u n e 12, 1969,
originally issued in th e a m o u n t o f $1,100,831,000, th e a d d itio n al a n d original bills to be freely interchangeable.
182-D A Y B IL L S for $1,100,000,000, o r th ere ab o u ts, to be d a te d M a rc h 13, 1969, a n d to m a tu re S e p te m b e r 11, 1969.
T h e bills of b o th series w ill be issued on 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 a s h e rein afte 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 interest. T h e y will be issued in b e a re r form 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 e n d e rs w ill 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 ste rn
S ta n d a rd T im e , M onday, M a rc h 10, 1969. T e n d e rs will n o t be receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington. E ach
te n d e r m u st b e 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 ten d e rs th e p rice offered m u st b e expressed on
th e basis of 100, w ith n o t m ore th a n th ree decim als, e.g., 99.925. F ra c tio n s m a y n o t be used. I t is u rged t h a t te n d e rs b e m ad e
o n th e p rin te d form s a n d fo rw arded in th e special e n v elo p es w hich will b e supplied b y F e d e ra l R e se rv e B a n k s o r B ran ch es on
a p p lic a tio 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 ccount of custom ers p ro v id ed th e nam es o f th e custom ers are
s e t fo rth in such tenders. O th e rs th a n ban k in g in stitu tio n s will n o t b e p e rm itte d to su b m it te n d e rs ex cep t fo r th e ir own account.
T e n d e r s will b e receiv ed w ith o u t dep o sit from in co rp o ra ted b a n k s a n d tr u s t com panies a n d from responsible a n d recognized
d e ale rs in in v e stm e n t securities. T e n d e rs from o th ers m u st b e a ccom panied b y p a y m e n t of 2 p e rc e n t of th e fa ce a m o u n t of
T re a s u ry bills a p p lie d for, unless th e te n d e rs a re a cc o m p an ied by a n express g u a ran ty of p a y m e n t by 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 f te r th e closing hour, te n d e rs will be opened a t th e F e d e ra l R e se rv e B anks a n d B ranches, follow ing w hich
p u b lic an n o u n ce m en t will b e m ad e b y th e T re a su 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 c c e p te d bids. T hose
su b m ittin g te n d e rs will be advised 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 su ry expressly reserves th e
rig h t to a c c e p t o r re je c t a n y or all ten d ers, in w hole or in p a rt, a n d his a ctio n in a n y such re sp e ct shall b e final. S u b je c t to
th e se reservations, no n c o m p e titiv e ten 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 one b id d e r will 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 respective issues. S e ttle m e n t for
a cc ep te d ten d ers in accordance w ith th e bids m u st b e m ad e or 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 13, 1969,
in cash o r o th e r im m e d ia te ly a v ailab le funds or in a like face a m o u n t of T re a su ry bills m a tu rin g M a rc h 13, 1969. Cash and
exchange ten d e rs w ill receiv e equal tre a tm e n t. C ash a d ju s tm e n ts w ill b e m ad e for differences betw een th e p a r v a lu e o f m a tu r ­
ing bills a cc ep te d in exchange a n d th e issue p rice of th e new bills.
T h e incom e deriv ed from T re a su ry bills, w h e th e r in te re s t or gain from th e sale o r o th e r disposition o f th e bills, does not
h a v e a n y exem ption, as such, a n d loss from th e sale o r o th e r disposition of T re a su ry bills 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 C ode of 1954. T h e bills a re 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 o r S ta te , b u t a re e x em p t from all tax a tio n now o r h e re a fte r im posed on th e p rin c ip a l or in te re st th e re o f b y a n y S tate,
or a n y o f 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 p urposes of tax a tio n th e a m o u n t o f discount
a t w hich T re a su ry b ills a re originally sold by th e U n ite d S ta te s is considered to be 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 e n u e C ode o f 1954 th e a m o u n t of disco 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 accrue u n til such bills a re sold, red eem ed o r otherw ise disposed of, a n d such bills a re excluded from co n sid eratio n as
c a p ita l assets. A ccordingly, th e ow ner of T re a su 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 n e ed include
in his incom e ta x re tu rn only th e difference b e iw ee n th e p rice p a id for such bills, w h e th er o n original issue o r o n subsequent
p u rch ase, 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 rity durin g th e tax ab le y e a r for w hich th e
re tu rn is m ade, a s o rd in a ry gain o r loss.
T re a su ry D e p a rtm e n t C ircular No. 418 (c u rre n t revision) a n d this notice, pre sc rib e th e term s of th e T re a s u ry bills a n d
g overn th e conditions of th e ir issue. Copies of th e ircu la r m ay be o b ta in e d fro m a n y F e d e ra l R e se rv e B a n k or B ran ch .

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 re 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 uston a n d San 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 , M a rc h 10, 196 9. T e n d e rs m a y not
be entered by telephone.
Yours v e r y truly,
P. E. Coldwell
P re s id 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 ccepted T e n d e rs
91 -D ay B ills
182-D ay Bills
D u e J u n e 5, 1969
D u e S e p te m b e r 4, 1969
$2,522,585,000............ ................................. ....................T o ta l A p p lie d F o r ____________ ____ ___ ____________ $2,164,783,000
$ 1,600,063,000__________________________________ T o ta l A c c ep ted ______________ _ _________________ $1,100,53 7,000
_
Price
Y ield
Price
Y ield
98.436.
.6 .1 8 7 % .______ ___________________ H ig h _______________________ 96.797................. .... 6 .3 3 6 %
9 8 .4 2 4 _____ _____ _.6.235% _. ............... ....................................Low............................................._96.788_____________ 6 .3 5 3 %
98.429
6 .215% ( 1 ) -------- -------------------------- A verage_______________
—96.794.
_______ 6.3 4 2 % ( 1 )
( 1 ) T h e s e rates are on a b ank discount basis. T h e eq u iv a le n t coupon issue yie ld s are 6 .4 0 % for th e 9 1 -d a y b ills, a n d 6 .6 4 %
t h e 1 8 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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Maturing June 12,1969

Dated December 12,1968
To: Federal Reserve Bank, Station K, 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 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.

JSTOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $_

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
. __________________ ___________ T----------------------------------- p r is e d on the basis of
'~
~
<
»
100, with not more than
(a)
$
COMPETITIVE TENDERS $
th re e decim al places,
e. g., 99.925. Fractions
$
@
must not be used.
1®= TENDERS MAY NOT BE EN TERED BY TELEPH ON E. TENDERS BY W IRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made
Denominations Desired
by credit to Treasury Tax and Loan Account.
N n m h e r of
M aturity Value

Pieces

?

1,000

m

<
rE

5,000

*

m

?

10,000

?-

(a> $

50,000

$-

m

$

100,000

*.

Xu

$

METHOD OF PAYMENT

?-

500,000

.(5)

□
□
□
□

By m aturing bills
held b y _____ _______________________
Paym ent to be made by______________
Charge our reserve account on payment
date
D raft enclosed <Kffectu»i delivery <* enelo«*d drmfl
shall be on latest day which will p e rm it p re sen tm en t in
ord er to obtain irrevocably collected fu n d s on p ay m en t
date)

$ i ,000,000 ?.

Delivery Instructions:
(S ubscriber's full nam e or c o rp o rate title)

□
□
□

Hold in Custody Account— Member
banks for own account only
Pledge to secure Treasury Tax and
Loan Account

( A d d ress)

By-

Ship to---------------------- -----------------

(A u thorized official sig n atu re a n d title)
( F o r th e a ccount of, if te n d e r is fo r a n o th e r su b scriber)

(A ddress)

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 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 signed by an officer of the corporation authorized to make the
tender and a t 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 (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 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)

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