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F ederal Reserve Ba nk of Dallas

DALLAS, TEX A S 7 5 2 2 2

Circular No. 69-92
April 16, 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 le venth F e d e r a l Reserve District:
Y our a t te n t io 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 o f t w o is s u e s of T re a s 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 T reasury bills m aturing April 24, 1969, in the am ount of
$2,703,500,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued April 24, 1969, in the am ount of $1,600,000,000, or there­
abouts, representing an additional am ount of bills dated Jan uary 23, 1969, and to m ature Ju ly 24, 1969,
originally issued in the am ount of $1,097,452,000, th e 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 24, 1969, and to m ature October 23, 1969.
T h e bills of both series will be issued on a discount basis under competitive and noncom petitive 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
denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity value).
Tenders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, April 21, 1969. Tenders will not be received a t the T reasury D epartm ent, Washington. Each
tender m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on
the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may 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 B anks or Branches on
application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided th e names of th e 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 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 th e Federal Reserve B anks and Branches, following which
public announcem ent will be made by the Treasury D epartm ent of the am ount and price range of accepted bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the 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 Reserve B ank on April 24, 1969,
in cash or other im mediately available funds or in a like face am ount of Treasury bills m aturing April 24, 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 atu r­
ing bills accepted in exchange and the issue price of the new bills.
T he income derived from T reasury 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 he bills are subject to estate, inheritance, gift or other excise taxes, w hether
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. F o r 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 in terest U nder Section 454 (b ) and
1221 (5 ) of the Internal Revenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redeemed 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 com panies) issued hereunder need include
in his income tax return only th e difference between the price paid for such bills, w hether on original issue or on subsequent
purchase, and th e am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the
return is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (curren t revision) and this notice, prescribe the term s of th e T reasury bills and
govern the conditions of their issue. Copies of the circular m ay 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 , 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 aso,
H o u s to n a n d S a n 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 21, 1969 . T e n d e rs m a y n o t
b e en tered by te lephone.
Yours v e r y truly,
P. E. Coldw ell
P re sid e n t
Amount, R ange and Approximate Yield of Accepted Tenders
91-Day Bills
182-Day BiUs
D ue Ju ly 17, 1969
D ue October 16, 1969
$2,605,224,000--------------------------------------------- .Total A pplied F o r__________ ____________________ $2,142,770,000
$1,600,496,000------------------------------------------------ .Total A ccepted________________________________ $1,100,441,000
P rice
6.144% _________________________ H igh______________________96.88l}__________ 6.169%
98.430------------------6.211% _____________________ ____ Low____
... ... 96.862____________6.207%
98.434------------------ 6.195% ( 1 ) ------------------------------- Average------------------- ----------- 96.870___ ___ ____ 6.191% (1)
( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t b a sis. T h e e q u iv a l e n t c o u p o n issu e y ie ld s a re 6 . 3 8 %
t h e 1 8 2 - d a y b i ll s .

fo r t h e 9 1 - d a y b ills, a n d 6 - 4 8 %


(See reverse side for tender form)

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


D ated April 24, 1969

M aturing October 23, 1969

T o: Federal R eserve Bank, Station K, Dallas, T exas 75222
The---------------------------------------------------- Branch
El Paso 79999

Houston 77001

San Antonio 78206

(D a te )

P ursuant to th e provisions of T reasu ry D epartm ent Circular No. 418 (current revision) and the provisions of the
public announcement issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasury bills in the am ount
shown below, and agrees to pay for the am ount allotted, on or before the issue date, by the method and a t the ra te indicated.


NOT TO EX C EED $200,000

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.
/ _


V -----------------------------



Prices should be ex­
pressed on the basis of
100, w ith not more th a n
t h r e e decim al p la c e s,
e. g., 99.925. F ractions
m ust not be used.

------------ V * ' ------------ -



P aym ent fo r this issue of bills cannot be m ade
by credit to T reasury Tax and Loan Account.

Denominations Desired
N um ber of
P ie c e s

M a t u r i t y V a lu e


1,000 ?
5,000 ?


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

10,000 $


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

(a) ? 50,000 $
(a) ? 100,000 ?
(a) $ 500,000 $


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 ate

(5) $
(a) ?

|__j D r a f t

D e liv e ry I n s tr u c ti o n s :

( S u b s c r ib e r 's f u l l n a m e o r c o r p o r a t e ti 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
P le d g e to s e c u re T r e a s u r y T a x a n d
Loan A ccount

e n c l o s e d (Effectual delivery of enclosed draft

s h all be o n l a t e s t d a y w h ic h will p e r m i t p r e s e n t m e n t i n
o r d e r to o b t a i n i r r e v o c a b ly co llected f u n d s o n p a y m e n t

(a) $1 ,000,000 ?

(A d d ress)

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

S h i p t o _______________________________

( F o r t h e a c c o u n t of, 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 u st be fo r an am ount in multiples of $1,000 (m atu rity
v alu e).
2. Tenders should be forw arded in an envelope clearly addressed to th is bank or ap pro priate branch as Fiscal A gent of th e
United S tates, w ith notation on the envelope reading “T EN D ER FOR TREA SU RY O FFE R IN G .” Since envelopes re ­
ceived w ith this legend will not be opened until a fte r th e 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 this
bank or ap p ro p riate branch.
3. A ny 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 th e
tender and th e 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. If th e ten der is made by a partnersh ip it should be signed by a mem ber of th e firm, who
should sign in the 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 invest­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m atu rity value)
of the T reasu ry 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 this form is changed in any respect, which, in the opinion of the S ecretary of the T reasury is m a te ­
rial, the tend er m ay be disregarded.
(See reverse fo r announcem ent)