View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F e d e r a l r e se r v e B an k of D a lla s

D A L L A S, T E X A S 7 5 2 2 2
Circular No. 69-83
April 9, 1969

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 leventh F e d e r a l R e serv e District:
Y ou r a t t e n t i o n is in v ited to th e fo llo w in g s t a t e m e n t giv 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 he 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 T reasury bills m aturing April 17, 1969, in the am ount of
$2,703,296,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued April 17, 1969, in the am ount of $1,600,000,000, or there­
abouts, representing an additional am ount of bills dated Janu ary 16, 1969, and to m ature Ju ly 17, 1969,
originally issued in the am ount of $1,100,670,000, 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 April 17, 1969, and to m ature October 16, 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 R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
S tandard Tim e, M onday April 14, 1969. Tenders will not be received a t th e T reasury D epartm ent, Washington. Each
tender m ust be for an even m ultiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on
th e basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It 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 may 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 w ithout deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investm ent securities. Tenders from others 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 Banks and Branches, following which
public announcem ent will be made by the T reasury D epartm ent of th e am ount and price range of accept’d bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T he Secretary of th e T reasury expressly reserves the
rig h t 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 w ithout stated price from any one bidder will be
accepted in full a t the average price (in three decimals) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be made or com pleted a t the Federal Reserve B ank on April 17, 1969,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing April 17, 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 the new bills.
T he income derived from Treasury 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 T reasury 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
F ed eral 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 T reasury bills are originally sold by the U nited States is considered to be interest. U nder Section 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 than life insurance companies) 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 th e taxable year for which the
retu rn i3 made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e terms 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 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 a so ,
H ouston 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 , April 14, 1969. T en d e rs m a y not
ka e n t e r e d b y t e l e p h o n e .
Yours v e r y truly,
P. E. Cold w ell
P re s id e n t
Amount, R ange and A pproxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue Ju ly 10, 1969
D ue October 9, 1969
$2,772,193,000--------------------------------------------- .Total A pplied F o r_______________________________ $2,367,906,000
$ 1,600,109,000------------------------------------------------- T otal A ccepted________________________________ $1,100,553,000
98.446------------------6.148% _____________ < i . H i g h ___________________
6.179% __________________________ Low____ ,P ^ ^ r ^ B j ^ B ^ 96.866___________ 6.199%
98.441------------------ 6.167% ( 1 ) ___________ ______ __ Average__________________________ _____ _________96.873_ 6.185% (1 )
( 1 ) T h e s e r a te s a r e on a b a n k d isc o u n t b a sis. T h e e q u iv a le n t c o u p o n issue y ie ld s a r e 6 . 3 5 %
t h e 1 8 2 - d a y b i ll s .

fo r th e 9 1 - d a y b ills, a n d 6 . 4 7 %


(See reverse side for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


M aturing October 16, 1969

D ated April 1 7 ,1 9 6 9
T o: Federal R eserve Bank, Station K, Dallas, T exas 75222
The__________________________________ Branch
E l Paso 79999

Houston 77001

San A ntonio 78206

(D a te )

P ursu ant to th e provisions of T re asu ry D epartm ent Circular No. 418 (current revision) and the provisions of the
public announcement issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am ount
shown below, and agrees to pay fo r the 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


Noncompetitive tenders fo r $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.
Prices should be ex­
pressed on the basis of
100, w ith not m ore th a n
------------------------------ t h r e e d ec im a l p la c e s ,
____________________ e. g., 99.925. F raction s
m ust not be used.
______________ ______



_@ .
-@ -

Paym ent fo r this issue of bills cannot be m ade
D enominations Desired
by credit to T reasury T ax and Loan Account.
Number of
M a tu rity V alu e

P ie c e s

< ?
<® $

5 ,0 0 0 $

(a) $


1 ,0 0 0 $

1 0 ,0 0 0 $

C® $

(a) $


C h a rg e o u r re se rv e accou nt on p a y m e n t
d ate


5 0 0 ,0 0 0 $

P a y m e n t to b e m a d e by_


1 0 0 ,0 0 0 $

B y m a t u r i n g b ills
h e l d b y ____________

| D r a f t e n c l o s e d ( E f f e c t u a l d e liv e r y o f en c lo s e d d r a f t
s h a ll be o n l a t e s t d ay w h ic h w ill p e r m i t p r e s e n t m e n t i n
o r d e r t o o b t a i n ir r e v o c a b ly collec ted f u n d s o n p a y m e n t
d ate)

5 0 ,0 0 0 $

(a) $


(a) $1.,0 0 0 ,0 0 0 $
D e liv e ry I n s tr u c tio n s :

P le d g e to s e c u r e T r e a s u r y T a x a n d
L oan A ccount

( 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 )

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


(A ddresa)

By( A u th o r iz e d official s i g n a t u r e a n d t i t l e )

S h i p t o ________________________________

( 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)

1. No tender fo r less th a n $1,000 will be considered and each tender m ust be fo r an am ount in multiples of $1,000 (m a tu rity
2. Tenders should be forw arded in an envelope clearly addressed to th is bank or appropriate branch as Fiscal A gent of th e
U nited S tates, w ith notation on the envelope reading “T EN D ER FO R TREA SU RY O FFE R IN G .” Since envelopes r e ­
ceived w ith this legend will not be opened until a fte r the closing tim e specified in the public announcement, communi­
cations relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is
bank or ap p ro p riate branch.
3. A ny qualified or conditional tender w ill be rejected.
4. If a corporation m akes the tender, th e form should be signed by an officer of th e corporation authorized to m ake th e
tender and the signing of th e form by an officer of the corporation will be construed as a representation by him th a t he
has been so authorized. I f the tender is made by a partnership it should be signed by a mem ber of the firm, who
should sign in th e form “.................................................. , a copartnership, by............................................................................................ ,
a mem ber of th e firm.”
5. Tenders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers in in vest­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the 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 tru s t company.
6. If th e language of this form is changed in any respect, which, in the opinion of the S ecretary of the T reasu ry is m a te ­
rial, th e tender m ay be disregarded.
(See reverse fo r announcem ent)

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