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F e d e r a l R e s er v e Ba n k o f D a lla s FIS C A L A G E N T O F T H E U N ITED ST A T E S D A L L A S, T E X A S 7 5 2 2 2 Circular No. 69-66 M arch 19, 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 eserve District: Y o u r 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 in g d e t a i l s of tw o is s u e s of T re as u ry bills: T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $2,700,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing M arch 27, 1969, in th e am ount of $2,709,020,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued M arch 27, 1969, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated D ecem ber 26, 1968, and to m ature Ju n e 26, 1969, originally issued in the am ount of $1,104,988,000, 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 M arch 27, 1969, and to m ature Septem ber 25, 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 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 aturity value). Tenders will be received a t Federal Reserve B anks and Branches up to the closing hour, one-thirty p.m., Eastern S tandard Tim e, M onday, M arch 24, 1969. Tenders will not be received a t the T reasury D epartm ent, Washington. Each tender must be for an even m ultiple of $1,000, and in the case of com petitive tenders th e price offered m ust be expressed on the 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 made 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 other* 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 an incorporated bank or tru st company. Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve B anks and Branches, following which public announcem ent will be made by the Treasury D epartm ent of th e am ount and price range of accepted bids. Those subm itting tenders will be advised of the acceptance or rejection thereof. T he 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, 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 th e respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or completed a t the Federal R eserve B ank on M arch 27, 1969, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing M arch 27, 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 th e 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 Treasury bills are originally sold by the U nited States is considered to be in terest 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 th a n 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 th e taxable year for which the retu rn is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe the term s of the 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 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 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 a so , H o usto n a n d San 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 arch 24, 1969 . T e n d e rs m a y n o t be en tered by telep ho n e. Yours v e r y truly, P. E. Cold w ell P re sid e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approximate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue Ju n e 19, 1969 D ue Septem ber 18, 1969 $2,828,882,000---------------------------------------------- T otal Applied For_______________________________ $2,783,116,800 $1,600,567,000-------------------------------------------------T otal Accepted------------------------------------------------- $1,100,334,000 Price Yield Price Yield 98.463 6.080% -------------------------------------- .High....................................____„96.868____________ 6.195% 98.454 6.116% ---------------------------------------Xow ______________________ 96.850___________ 6.231% 98.456 6.108% ( 1 ) ------------------------------- Average________________________________ 96.855_6.221% (1 ) ( 1 ) T h e s e rates are on a b an k discount basis. T h e eq u iv a le n t cou p on issue y ie ld s are 6 .2 9 % for t h e 9 1 -d a y b ills, a n d 6 .5 1 % for th e 18 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 27, 1969 M aturing Septem ber 25, 1969 To: Federal R eserve Bank, S tation K, Dallas, T exas 75222 or— The___________________________________Branch El Paso 79999 Houston 77001 San Antonio 78206 (D ate) P u rsu a n t to the provisions of T reasury D epartm ent Circular No. 418 (cu rrent revision) and the provisions of the public announcement issued by th e T reasu ry D epartm ent, the undersigned offers to purchase T reasury bills in the am ount shown below, and agrees to pay fo r th e am ount allotted, on or before the issue date, by th e method and a t th e ra te indicated. _NOT TO E X C E E D $200,000 NONCOM PETITIVE T E N D E R $_ Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full a t the average price (in three decimals) of accepted competitive bids. P rices should be ex pressed on the basis of 100, w ith not more th an t h r e e d ecim al p la ce s, e. g., 99.925. F ractions m ust not be used. -<£?> COMPETITIVE T E N D E R S it -@ - C'-gr’ T E N D E R S MAY NOT B E E N T E R E D BY T E L E P H O N E . T E N D E R S BY W IR E , I F R E C E IV E D B E F O R E T H E CLOSING H OU R, A R E A C C EPT A B L E . Paym ent fo r this issue of bills cannot be made by credit to T reasu ry T ax and Loan Account. D enom inations Desired Number of Pieces Maturity Value (ai ? (n\ $ 5,000 9- (a) $ 10,000 $- (a) ? METHOD O F PAY M EN T 1,000 $- 50,000 ?- □ B y m a t u r i n g b ills h e l d b y ________________________ □ P a y m e n t to b e m a d e by_ (a) $ 100,000 t □ C h a rg e o u r re se rv e acco u n t on p a y m e n t d a te (a) $ 500,000 _ I ] D r a f t e n c lo s e d (Effectual delivery o f enclosed draft shall he on latest day which will permit presentment in order to obtain irrevocably collected fund* on payment date) (fp ?1 ,000,000 D e liv e ry I n s tr u c tio n s : (Subscriber’s full name or corporate title) □ □ □ H o ld i n C u s t o d y A c c o u n t — M e m b e r b a n k s f o r o w n a c c o u n t o n ly P le d g e to se c u re T r e a s u r y T a x a n d L oan A ccount (Addresa) B y_ (Authorized official signature and title) S h i p t o ----------------------------------------------(For the account of, if tender id for another subscriber) (Address) IMPORTANT 1. No tender fo r less th an $1,000 will be considered and each tender m ust be fo r an am ount in multiples of $1,000 (m atu rity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of th e United S tates, w ith notation on th e envelope reading “TENDER FOR TREASURY O FFERIN G .” Since envelopes re ceived w ith this legend will not be opened until a fte r the closing tim e specified in the public announcement, communi cations rela tin g to other m atters should not be enclosed. Envelopes for subm itting tenders may be obtained from this bank or ap p ro p riate branch. 3. Any qualified or conditional tender will be rejected. 4. If a corporation m akes the tender, th e form should be signed by an officer of the corporation authorized to m ake 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 a t he has been so authorized. If th e tender is made by a partnership it should be signed by a m em ber of th e firm, who should sign in the form “............................................. a copartnership, by ......................................................................................... ......, a member of the firm.” 5. Tenders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of th e total am ount (m atu rity value) of th e T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an incorporated bank or tr u s t company. 6. If th e language of th is form is changed in any respect, which, in th e opinion of th e S ecretary of the T reasu ry is m ate rial, the tender m ay be disregarded. (See reverse for announcem ent)
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