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F ederal Reserve Bank o f D allas FISCAL AGENT OF THE UNITED STATES DALLAS, TEXAS 75222 Circular No. 69-94 April 17, 1969 NEW OFFERING — TREASURY BILLS To All B a n k in g institu tio n s a n d O th e r s C o n c e r n e d in th e E leventh F e d e r a l R eserv 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 o f t w o is s u e s o f T re a s u ry bills: T h e Treasury D epartm ent, b y this public notice, invites tenders for two series o f Treasury bills to the aggregate am ount o f $1,500,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing April 30, 1969, in the am ount of $1,701,601,000, as follows: 276-D A Y B IL L S (to m aturity d ate) to be issued April 30, 1969, in the am ount of $500,000,000, or thereabouts, representing an additional am ount of bills dated January 31, 1969, and to mature January 31, 1970, orig inally issued in the am ount of $1,000,177,000, the additional and original bills to be freely interchangeable. 365-D A Y B IL L S for $1,000,000,000, or thereabouts, to be dated April 30, 1969, and to m ature April 30, 1970. T h e bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face am ount w ill be payable w ithout in terest T h ey 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 v a lu e ). Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard T im e, Thursday, April 24, 1969. T enders w ill not be received at the Treasury D epartm ent, W ashington. 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 decim als, e.g., 99.925. Fractions m ay not be used. (N otw ithstanding the fact th at the oneyear bills will run for 365-days, the discount rate w ill be com puted on a bank discount basis o f 360-days, as is currently the practice on all issues of Treasury bills.) It is urged that tenders be m ade on the printed forms and forwarded in the special envelopes which will be supplied by Federal R eserve B anks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of custom ers provided the nam es o f the custom ers are set forth in such tenders. Others than banking institutions w ill not be perm itted to subm it tenders except for their ow n a ccou n t Tenders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent o f 2 percent o f the face am ount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent by an incorporated bank or trust company. Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which public announcem ent will be m ade by the Treasury D epartm ent o f the am ount and price range of accepted bids. T hose subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary o f 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, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted at the Federal R eserve B ank on April 30, 1969, in cash or other im m ediately available funds in a lik e face am ount of Treasury bills m aturing April 30, 1969. Cash and exchange tenders will receive equal trea tm en t Cash adjustm ents will be m ade for differences betw een the par value of maturing bills accepted in exchange and the issue price of the new bills. T he incom e derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exem ption, 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 R evenue 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 im posed on the principal or interest thereof b y 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 o f discount at which Treasury bills are originally sold by the U n ited States is considered to be in te re st Under Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not considered 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 Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e tax return only the difference betw een the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 4 18 (current revision) and this notice, prescribe the term s o f the Treasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank 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 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 El P a so , H o u sto n a n d S an A n to n io u p to tw e lv e - th ir ty p .m ., C e n tral S t a n d a r d Time, T h u rs d a y , April 2 4 , 1969 . T e n d e rs m a y n ot b e en tered by te lephone. Yours very truly, P. E. Coldwell President (See reverse side fortender 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 276 DAYS TO MATURITY Dated January 31, 1969 Maturing January 31,1970 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The------------------------------------------------Branch El Paso 79999 Houston 77001 ______________________________________ San Antonio 78206 (Date) 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 at the rate indicated. NONCOMPETITIVE TENDER ____________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. _ Prices should be ex\? -----------------------------@ ------------- S----------------------------------pressed on the basis of COMPETITIVE TENDERS /$ ___________ @_______ $___________________ / $ ___________________@ ________ $_______________________ \ tS er^ eS m ^ p la^ es e. g., 99.925. Fractions must not be used. TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M aturity Value <a> $ (5) $ 1,000 $ 5,000 $ <p) $ 10,000 $ 50,000 $ METHOD OF PAYMENT □ By maturing bills held by________________ □ Payment to be made by_ (5) $ <5> $ 100,000 $ <5> $ 500,000 $ (a) $1 ,000,000 $ Delivery Instructions: □ Charge our reserve account on payment date | | D r a f t e n c l o s e d ( E f fe c tu a l d e liv e ry o f en clo sed d ra ft shall be on latest day which will perm it present* m ent in order to obtain irrevocably collected funds on paym ent date) __ (Subscriber’s full nam e or corporate title) □ Hold in Custody Account— Member banks for own account only — (Address) □ Pledge to secure Treasury Tax and Loan Account By______________________________ □ Ship to_________________ ____ _ (Authorized official signature and title) (For the account of, if tender is fo r another subscriber) (Address) 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 received 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 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 the signing of the form by an officer of the corporation will be construed as a representation by him that 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 (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 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 material, the tender may be disregarded. (See reverse for announcement)
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