The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal Reserve F ISC A L AGENT OF bank THE of U N IT E D Dallas STATES DALLAS, TEXAS 75222 C i r c u l a r N o. 6 9 -1 0 8 A p r il 3 0 , 1969 NEW OFFERING — TREASURY BILLS To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the follow ing statement giving details of tw o issues of Treasury bills: T h e T r e a s u r y D e p a r t m e n t , b y th is p u b lic n o tic e , in v it e s t e n d e r s fo r t w o series o f T r e a s u r y b ills t o th e a g g r e g a te a m o u n t o f $ 3 ,0 0 0 ,0 0 0 ,0 0 0 , or th e r e a b o u ts , fo r ca sh a n d in e x c h a n g e fo r T r e a s u r y b ills m a tu r in g M a y 8, 1 9 6 9 , in th e a m o u n t o f $ 3 ,0 0 2 ,0 2 3 ,0 0 0 , a s fo llo w s: 9 1 - D A Y B I L L S ( t o m a tu r ity d a t e ) to b e is s u e d M a y 8, 1 9 6 9 , in th e a m o u n t o f $ 1 ,7 0 0 ,0 0 0 ,0 0 0 , o r th e r e a b o u ts , r e p r e s e n tin g a n a d d itio n a l a m o u n t o f b ills d a te d F e b r u a r y 6, 1 9 6 9 , a n d to m a tu r e A u g u s t 7, 1 9 6 9 , o r ig in a lly is s u e d in t h e a m o u n t o f $ 1 ,1 0 0 ,4 8 3 ,0 0 0 , t h e a d d i t i o n a l a n d o r i g in a l b ill s t o b e f r e e l y in t e r c h a n g e a b l e . 1 8 2 - D A Y B I L L S fo r $ 1 ,3 0 0 ,0 0 0 ,0 0 0 , o r th e r e a b o u ts , to b e d a te d M a y 8, 1 9 6 9 , a n d to m a tu r e N o v e m b e r 6 , 1 9 6 9 . T h e b ills o f b o t h s e r ie s w ill b e is s u e d o n a d is c o u n t b a s is u n d e r c o m p e t it iv e a n d n o n c o m p e t it iv e b id d in g a s h e r e in a fte r p r o v id e d , a n d a t m a t u r i t y t h e ir f a c e a m o u n t w ill b e p a y a b l e w i t h o u t i n t e r e s t . T h e y w i l l b e i s s u e d in b e a r e r f o r m o n ly , a n d in d e n o m in a tio n s o f $ 1 ,0 0 0 , $ 5 ,0 0 0 , $ 1 0 ,0 0 0 , $ 5 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 a n d $ 1 ,0 0 0 ,0 0 0 ( m a t u r it y v a lu e ) . T e n d e r s w ill b e r e c e iv e d a t F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s u p t o t h e c lo s in g h o u r , o n e - t h ir t y p .m ., E a s te r n D a y l i g h t S a v i n g T i m e , M o n d a y , M a y 5, 1 9 6 9 . T e n d e r s w i l l n o t b e r e c e i v e d a t t h e T r e a s u r y D e p a r t m e n t , W a s h i n g t o n . E a c h t e n d e r m u s t b e fo r a n e v e n m u lt ip le o f $ 1 ,0 0 0 , a n d in t h e c a s e o f c o m p e t it iv e t e n d e r s t h e p r ic e o ffe r e d m u s t b e e x p r e ss e d o n t h e b a s i s o f 1 0 0 , w i t h n o t m o r e t h a n t h r e e d e c i m a l s , e .g ., 9 9 . 9 2 5 . F r a c t i o n s m a y n o t b e u s e d . I t is u r g e d t h a t t e n d e r s b e m a d e o n t h e p r in te d fo r m s a n d fo r w a r d e d in t h e s p e c ia l e n v e lo p e s w h ic h w ill b e s u p p lie d b y F e d e r a l R e s e r v e B a n k s o r B r a n c h e s o n a p p lic a tio n th e r e fo r . B a n k in g in s titu tio n s g e n e r a lly m a y su b m it te n d e r s fo r a c c o u n t o f c u sto m e r s p r o v id e d t h e n a m e s o f th e c u sto m e r s are s e t fo r th in su c h te n d e r s. O th e r s t h a n b a n k in g in s t it u t io n s w ill n o t b e p e r m it t e d t o s u b m it t e n d e r s e x c e p t fo r t h e ir o w n a cc o u n t. T e n d e r s w ill b e r e c e iv e d w it h o u t d e p o s it fr o m in c o r p o r a te d b a n k s a n d tr u s t c o m p a n ie s a n d fr o m r e s p o n s ib le a n d r e c o g n iz e d d e a le r s in i n v e s t m e n t s e c u r it ie s . T e n d e r s f r o m o t h e r s m u s t b e a c c o m p a n i e d b y p a y m e n t o f 2 p e r c e n t o f t h e f a c e a m o u n t o f T r e a su r y b ills a p p lie d for, u n le ss th e te n d e r s a re a c c o m p a n ie d b y a n e x p r e ss g u a r a n ty o f p a y m e n t b y a n in c o r p o r a te d b a n k or tru st co m p a n y . I m m e d ia te ly a fte r th e clo sin g hour, te n d e r s w ill b e o p e n e d a t th e F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s, fo llo w in g w h ic h p u b lic a n n o u n c e m e n t w ill b e m a d e b y t h e T r e a s u r y D e p a r t m e n t o f t h e a m o u n t a n d p r ic e r a n g e o f a c c e p t e d b id s. T h o s e s u b m ittin g te n d e r s w ill b e a d v is e d o f th e a c c e p ta n c e or r e je c tio n th e r e o f. T h e S e c r e ta r y o f th e T r e a su r y e x p r e s s ly r e se r v e s th e r i g h t t o a c c e p t o r r e j e c t a n y or a l l t e n d e r s , in w h o l e o r i n p a r t, a n d h is a c t i o n in a n y s u c h r e s p e c t s h a ll b e fin a l. S u b j e c t t o t h e s e r e se r v a tio n s , n o n c o m p e t it iv e t e n d e r s for e a c h is s u e fo r $ 2 0 0 ,0 0 0 o r le s s w it h o u t s t a t e d p r ic e fr o m a n y o n e b id d e r w ill b e a c c e p t e d in f u ll a t t h e a v e r a g e p r ic e ( i n t h r e e d e c i m a l s ) o f a c c e p t e d c o m p e t i t i v e b id s fo r t h e r e s p e c t i v e is s u e s . S e t t l e m e n t fo r a c c e p t e d te n d e r s in a c c o r d a n c e w it h t h e b id s m u s t b e m a d e o r c o m p le t e d a t t h e F e d e r a l R e s e r v e B a n k o n M a y 8, 1 9 6 9 , in c a s h or o th e r im m e d i a t e ly a v a il a b l e fu n d s o r in a li k e f a c e a m o u n t o f T r e a s u r y b ills m a tu r in g M a y 8, 1 9 6 9 . C a sh a n d e x c h a n g e te n d e r s w ill r e c e iv e e q u a l tr e a tm e n t. C a sh a d ju s tm e n ts w ill b e m a d e fo r d iffe r e n c e s b e t w e e n th e p a r v a lu e o f m a tu r in g b ills a c c e p t e d in e x c h a n g e a n d t h e is s u e p r ic e o f t h e n e w b ills. T h e in c o m e d e r iv e d fr o m T r e a s u r y b ills, w h e t h e r in te r e s t o r g a in fr o m t h e s a le or o t h e r d is p o s itio n o f t h e b ills , d o e s n o t h a v e a n y e x e m p tio n , a s su c h , a n d lo ss fro m th e sa le o r o th er d is p o s itio n o f T r e a su r y b ills d o e s n o t h a v e a n y s p e c ia l tr e a tm e n t, a s su c h , u n d e r th e I n te r n a l R e v e n u e C o d e o f 1 9 5 4 . T h e b ills a r e s u b je c t to e s ta te , in h e r ita n c e , g ift or o th e r e x c is e ta x e s , w h e th e r F e d e r a l or S t a t e , b u t a re e x e m p t fr o m a ll t a x a tio n n o w o r h e r e a fte r im p o s e d o n t h e p r in c ip a l or in t e r e s t t h e r e o f b y a n y S ta te , o r a n y o f t h e p o ss e s s io n s o f th e U n i t e d S ta te s , o r b y a n y lo c a l ta x in g a u th o r ity . F o r p u r p o s e s o f t a x a tio n t h e a m o u n t o f d is c o u n t a t w h ic h T r e a s u r y b ills a r e o r ig in a lly s o ld b y th e U n i t e d S t a t e s is c o n s id e r e d t o b e in te r e s t. U n d e r S e c t i o n 4 5 4 ( b ) a n d 1 2 2 1 ( 5 ) o f t h e I n te r n a l R e v e n u e C o d e o f 1 9 5 4 t h e a m o u n t o f d is c o u n t a t w h ic h b ills is s u e d h e r e u n d e r a r e s o ld is n o t c o n s id e r e d t o a c c r u e u n t i l s u c h b ill s a r e so ld , r e d e e m e d o r o t h e r w is e d is p o s e d o f, a n d s u c h b i l l s a r e e x c lu d e d f r o m c o n s id e r a t i o n a s c a p it a l a sse ts. A c c o r d in g ly , t h e o w n e r o f T r e a s u r y b ills (o t h e r t h a n li f e in s u r a n c e c o m p a n ie s ) issu e d h e r e u n d e r n e e d in c lu d e in h is in c o m e t a x r e tu r n o n ly t h e d iffe r e n c e b e t w e e n t h e p r ic e p a id fo r su c h b ills, w h e t h e r o n o r ig in a l is s u e o r o n s u b s e q u e n t p u r c h a se , a n d t h e a m o u n t a c t u a lly r e c e iv e d e ith e r u p o n s a le o r r e d e m p t io n a t m a t u r it y d u r in g t h e t a x a b le y e a r fo r w h ic h th e r e t u r n i s m a d e , a s o r d i n a r y g a i n o r lo s s . T r e a s u r y D e p a r t m e n t C ir c u la r N o . 4 1 8 ( c u r r e n t r e v is io n ) a n d t h is n o t ic e , p r e s c r ib e t h e t e r m s o f t h e T r e a s u r y b ills a n d g o v e r n th e c o n d it io n s o f t h e ir is s u e . C o p ie s o f th e c ir c u la r m a y b e o b t a in e d fr o m a n y F e d e r a l R e s e r v e B a n k o r B r a n c h . In accordance w ith the above announcement, tenders w ill be received a t this b a nk an d its branches a t El Paso, Houston and San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M o n d a y , M a y 5, 1969. Tenders m ay not be entered by telephone. Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS A m o u n t, R a n g e a n d A p p ro x im a te Y ie ld o f A c c e p te d T e n d e r s 9 1 -D a y B ills D u e J u ly 31, 1 9 6 9 1 8 2 -D a y B ills D u e O cto b er 30, 19 6 9 $ 2 , 9 6 1 . 9 7 8 , 0 0 0 ______ ___________ ____ __________________ T o t a l A p p l i e d F o r _________________________________________ $ 2 , 1 9 0 , 8 6 3 , 0 0 0 $ 1 , 6 0 1 , 5 4 1 , 0 0 0 -------------------------------------- --------------------------- . T o t a l A c c e p t e d ___________________________________________ $ 1 , 1 0 0 , 2 4 4 , 0 0 0 P r ic e Y ie ld P r ic e Y ie ld 9 8 . 4 7 3 _______________ 6 . 0 4 1 % __________________________________ H i g h .............. ...........................................9 6 . 9 5 2 _______________ 6 . 0 2 9 % 9 8 . 4 6 8 _______________ 6 . 0 6 1 % ........... ...................... ...............................L o w _____________________________ 9 6 . 9 4 0 _______________ 6 . 0 5 3 % 9 8 . 4 7 0 ------------------------6 . 0 5 3 % ( l ) i _________________________A v e r a g e __________________ ___ 9 6 . 9 4 5 ________________ 6 . 0 4 3 % (1 ) ( 1 ) T h e s e rates are on a bank discount basis. T h e eq u iv a le n t cou p on issue y ie ld s are 6 . 2 3 % for th e 9 1 -d a y bills, a n d 6 . 3 2 % for th e 1 8 2 -day bills. ( S e e r e v e r s e sid e f o r t e n d e r f o r m ) 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 M a y 8,1969 Maturing N o v e m b e r 6,1969 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— T h e — _ _ — ________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 (D a te ) 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. N O N C O M P E T I T I V E T E N D E R $_ JSTOT T O E X C E E D $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. $ (a) $ COMPETITIVE T E N D E R S Prices should be ex pressed on the basis of 100, with not more than th ree decim al p laces, e. g., 99.925. Fractions must not be used. @ E S P TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Denominations Desired N um ber of P ie c e s M a tu r i ty V alue (0) $ 0> ? 5,000 $ (a) $ 10,000 $ (a) $ METHOD OF PAYMENT 1,000 $ 50,000 $ □ B y maturing bills held by__________ □ P a y m e n t to be m a d e by_ Charge our reserve account on payment date (a) $ 100,000 □ @ $ 500,000 ? | ® $1,000,000 $ Delivery Instructions: □ □ □ | D r a f t e n c l o s e d (Effectual delivery o f enclosed d ra ft shall be on latest day which will p e rm it presentment in order to obtain irrevocably collected funds on payment date) (Subscriber’s fu ll name or corporate title) Hold in Custody Account— M e m b e r banks for o w n account only Pledge to secure Treasury T a x and Loan Account (Address) By. (Authorized official signature and title) Ship to__________________________ (F o r the account of, i f 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 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 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 mate rial, the tender may be disregarded. (See reverse for announcement)
@FedFRASER