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F ed er a l R eserve b a 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 lar No. 69-59 M a rc h 12, 1969 NEW OFFERING — TREASURY BILLS To All B a n k in g In stitutions 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: Your a t t e n t i o n is in v ite d to th e fo llo w in g s t a t e m e n t g iv i n g d e t a il s of t w o iss u e s of T re a s u ry bills: T h e T re a s u ry D e p a rtm e n t, by th is pu b lic notice, in v ites te n d e rs for two series o f T re a s u ry bills to th e ag g reg a te a m o u n t of $2,700,000,000, o r th ere ab o u ts, fo r cash a n d in exchange for T re a su ry bills m a tu rin g M a rc h 20, 1969, in th e a m o u n t of $2,701,387,000, as follows: 91-D A Y B IL L S (to m a tu rity d a te ) to be issued M a rc h 20, 1969, in th e a m o u n t of $1,600,000,000, or th e re abouts, re p rese n tin g a n add itio n al a m o u n t o f bills d a te d D e c em b er 19, 1968, a n d to m a tu re J u n e 19, 1969, o riginally issued in th e a m o u n t of $1,101,293,000, th e ad d itio n al a n d original bills to be fre ely in terchangeable. 182-D A Y B IL L S for $1,100,000,000, or th ere ab o u ts, to be d a te d M a rc h 20, 1969, a n d to m a tu re S e p te m b e r 18, 1969. T h e b ills of b o th series will be issued on a discount basis u n d e r co m p e titiv e a n d n o 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 will be p a y ab le w ith o u t interest. T h e y will b e issued in b e a re r fo rm only, a n d in de 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 will be received a t F e d e ra l R e se rv e B a n k s a n d B ran ch es 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 o n d a y , M a rc h 17, 1969. T e n d e rs will n o t b e receiv ed 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 e v en m u ltip le of $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 st be expressed on th e basis of 100, w ith n o t m o re th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay n o t b e used. I t is u rg e d t h a t te n d e rs b e m ade on th e p rin te d form s a n d fo rw arded in th e special env elopes w hich w ill be su p p lied b y F e d e ra l R eserve B a n k s o r B ran ch es on a p p lic a tio n th erefo r. B a n k in g in stitu tio n s generally m a y s u b m it ten d e rs for a cc o u n t of custom ers pro v id ed th e n a m e s of th e custom ers a re set forth in such tenders. O th ers 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 ten d ers e x ce p t for th e ir own a c c o u n t T e n d e rs will be received w ith o u t deposit from inco rp o ra ted banks a n d tru 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 be a ccom panied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of T re a su ry bills a p p lie d for, unless th e te n d e rs a re a ccom panied 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 tr 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 o p e n ed 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 c e m e n t will be m a d e by 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 of a cc ep 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 re je ctio n thereof. T h e S e c re ta ry of th e T re a su ry expressly reserves th e rig h t to a c c e p t or re je c t any or a ll ten d ers, in w hole or in p a rt, a n d his actio n in a n y such re sp e ct shall be final. S u b je c t to these reservations, no n co m p etitiv e ten d e rs for each issue for $200,000 or less w ith o u t sta te d p rice from a n y o n e b id d e r will be a ccep ted in full a t th e av erag e price ( in th re e d ecim als) of a cc ep te d co m p e titiv e bids for th e respective issues. S e ttle m e n t for acc ep te d te n d e rs in accordance w ith th e bids m u st b e m ad e or c o m p leted a t th e F e d e ra l R eserv e B a n k on M a rc h 20, 1969, in cash o r o th e r im m e d ia tely a v ailab le funds o r in a like face a m o u n t of T re a su ry bills m atu rin g M a rc h 20, 1969. C ash a n d e x c h a n g e ten d e rs w ill receive e qual tre a tm e n t. Cash a d ju s tm e n ts w ill be m ad e for differences b etw een th e p a r value of 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 derived from T re a su ry bills, w h e th e r in te re st or gain from th e sale or o th e r disposition of th e bills, does n o t h a v e any e xem ption, as such, a n d loss from th e sale o r o th er disposition of T re a su ry bills does not ha v e a n y special tre a tm e n t, as such, u n d e r th e In te rn a l R e v e n u e Code o f 1954. T h e bills a re su b je c t to estate, in h eritan ce, gift o r o th e r excise taxes, w h e th er F e d e ra l o r 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 or in te re st th e re o f b y a n y S tate, or a n y of th e possessions of th e U n ite d States, o r by a n y local taxing au th o rity . F o r p urposes of tax a tio n th e a m o u n t of discount a t w hich T re a su ry bills are originally sold by th e U n ite d S tates 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 en u e Code of 1954 th e a m o u n t of discount a t w hich bills issued h e re u n d e r a re sold is n o t con sid ered to accrue u n til such bills a re sold, re d ee m e d o r otherw ise disposed of, a n d such bills a re excluded from c onsideration as c ap ital 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 r e tu r n only th e difference b etw een th e p rice p a id for such bills, w h e th e r on original issue or o n subsequent purchase, 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 or re d e m p tio n a t m a tu rity 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 ary gain o r loss. T re a s u ry D e p a rtm e n t C ircu lar N o. 4 1 8 ( c u r re n t revision) a n d th is notice, pre sc rib e th e te rm s of th e T re a su ry b ills a n d govern th e conditions of th e ir issue. C opies of th e c ircu lar m ay be o b ta in e d fro m a n y F e d e ra l R eserv e B a n k o r 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 ElP a s o , H o u sto n a n d S an A n to n io up 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 17, 1969. T en d e rs m a y n o t be en tered by telephone. Y ours v e r y truly, P. E. Coldw ell 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 ield o f A ccepted T e n d e rs 91-D ay B ills 182-D ay B ills D u e J u n e 12, 1969 D u e S e p te m b e r 11, 1969 $2,517,689,000________________________________ T o ta l A p p lied F o r.________________________________ $2,043,491,000 $ 1,600,189,000___________________________________T o ta l A c c ep ted ________________ __ ______________ $ 1,100,010,000 P ric e Y ie ld P ric e Y ield 98.480_____________ 6 .0 1 3 % __________________________ H ig h _______________________ 96.858 ____________ 6.2 1 5 % 98.464 6 .0 7 6 % __________________________ L o w _______________________ 96.840____________ 6.251% 98.471_____________ 6 .049% ( 1 ) _____________________ A verage______________________96.849____________ 6.233% (1 ) ( 1 ) T h e s e r a t e s a r e on a b a n k d is co u n t basis. T h e e q u i v a le n t c o u p o n issue y ie ld s a r e 6 . 2 3 % fo r t h e 9 1 - d a y b ills, a n d 6 . 5 2 % fo r t h 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 20, 1969 Maturing September 18, 1969 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The_________________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 (D ate) 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. _NOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $_ Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. _ COMPETITIVE TENDERS v------------------------viy-----$ @ $ ............. @ _ .$ . .. Prices should be ex pressed on the basis of 100, with not more than th re e decim al places, e. g., 99.925. Fractions must not be used. U5T TENDERS MAY NOT BE EN TERED BY TELEPHO NE. 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. Num ber of M a tu rity V alue P iecefl m ? $ METHOD OF PAYMENT 1,000 $5,000 * □ m $ 10,000 ?. 0 ? 50,000 ?(a) ? 100,000 ?.(ft! $ 500,000 $- □ By m aturing bills held b y ____________________ Paym ent to be made by_ □ Charge our reserve account on payment date j_] Draft enclosed (E ffectual delivery of enclosed d ra ft shall be on la te st day which will p e rm it p re s e n tm e n t In ord e r to obta in irrevocably collected fu nda on p a y m e n t date) .(a), $1 ,000,000 ?Delivery Instructions: ( S ubscriber’s full n am e or corpo ra te title ) □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ (A ddress) By(A uthorized official sig n a tu re a n d t itle ) Ship to---------------------------------------(F o r the a ccount of, if te n d e r is f o r a n o th e r aubacrfber) (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 (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 matters should not be enclosed. Envelopes for submitting tenders may be obtained from thi* 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 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 (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 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 mate rial, the tender may be disregarded. (See reverse for announcement)
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