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F ederal Reserve Bank of D allas F I S C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEXAS 7 5 2 2 2 C ir c u la r N o . 6 9 -1 3 3 M ay 28, 1969 N EW OFFERING — TREASURY BILLS To All Banking Institufions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the follo w ing statement giving details of tw o issues of Treasury bills: T h e T r e a su r y D e p a r tm e n t, b y th is p u b lic n o tic e , in v ite s te n d e r s fo r tw o series o f T r e a su r y b ills to t h 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 , o r th e r e a b o u ts , fo r c a s h 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 t u r in g J u n e 5, 1 9 6 9 , in t h e a m o u n t o f $ 3 ,0 0 1 ,0 5 6 ,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 te ) to b e is su e d J u n e 5, 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 ere 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 M a r ch 6, 1 9 6 9 , a n d to m a tu r e S e p te m b e r 4 , 1 9 6 9 , o r ig in a lly i s s u e d in t h e a m o u n t o f $ 1 ,1 0 1 ,0 6 0 ,0 0 0 , t h e a d d i t io 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 f o r $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , o r t h e r e a b o u t s , t o b e d a t e d J u n e S, 1 9 6 9 , a n d t o m a t u r e D e c e m b e r 4 , 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 sis 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 tu r ity th e ir fa c e a m o u n t w ill b e p a y a b le w ith o u t in te r e s t. T h e y w ill b e is s u e d in b e a r e r fo 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 t e r n D a y lig h t S a v in g T im e , M o n d a y , J u n e 2, 1 9 6 9 . T e n d e r s w ill n o t b e r e c e iv e d a t th e T r e a su r y D e p a r tm e n t, W a sh in g to 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 i t 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 s s e d o n t h e b a s i s o f 1 0 0 , w it h n o t m o r e t h a n t h r e e d e c i m a ls , e .g ., 9 9 .9 2 5 . F r a c t io 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 th e p r in te d fo r m s a n d fo rw a rd ed in th e s p e c ia l e n v e lo p e s w h ic h w ill b e su 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 s u b m it te n d e r s fo r a c c o u n t o f c u s to m e r s p r o v id e d t h e n a m e s o f t h e c u s to m e r s are s e t f o r t h in s u c h t e n d e r s . O t h e r s t h a n b a n k i n g i n s t i t u t i o n s w i l l n o t b e p e r m i t t e d t o s u b m i t t e n d e r s e x c e p t f o r t h e i r o w n a c c o u n t. T e n d e r s w ill b e r e c e iv e d w ith o u t d e p o sit fr o m in c o r p o r a te d b a n k s a n d tr u st c o m p a n ie s a n d fr o m r e sp o n sib 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 fo r, u n less th e ten d ers a re a c c o m p a n ie d b y a n e x p re ss g u a ra n ty o f p a y m e n t b y a n in co r p o r a ted b a n k o r tru st co m p a n y . I m m e d ia te ly a fte r th e c lo 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 ra 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 it t in g t e n d e r s w ill b e a d v is e d o f th e a c c e p t a n c e o r r e je c tio n th e r e o f. T h e S e c r e t a r y o f t h e T r e a s u 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 o r a l l t e n d e r s , i n w h o l e o r i n p a r t , a n d h i s a c t i o n i n a n y s u c h r e s p e c t s h a l l b e f in 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 fo r 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 fu ll a t t h e a v e r a g e p r ic e ( in 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 t e n d e r s i n a c c o r d a n c e w i t h t h e b i d s m u s t b e m a d e o r c o m p l e 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 J u n e 5, 1 9 6 9 , in c a sh or o th e r im m e d ia t e ly a v a ila b le fu n d s or in a lik e fa c e a m o u n t o f T r e a su r y b ills m a tu r in g J u n e 5, 1 9 6 9 . C a sh a n d e x c h a n g e t e 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 t m e n t s 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 t h e p a r v a lu e o f m a tu r i n g b ill s 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 t io n , a s su c h , a n d lo ss fr o m t h e s a le o r o th e r d is p o s itio n o f T r e a s u r y b ills d o e s n o t h a v e a n y s p e c ia l t r e a tm e n t, a s s u 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 re 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 ta t e , b u t a re e x e m p t fr o m a ll ta 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 te 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 s s e s s io n s o f th e U n i t e d S ta te s , or 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 ta x a t io 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 i g in a lly s o ld b y t h 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 th e In 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 to a c c r u e u n t il s u c h b ills 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 ills a r e e x c lu d e d fr o m c o n s id e r a t io n a s c a p it a l a s se 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 th a n lif e in s u r a n c e c o m p a n ie s ) is s u 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 if f e r e n c e b e t w e e n t h e p r ic e p i i d fo r s u 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 s e , a n d t h e a m o u n t a c t u a ll y r e c e iv e d e i t h e r u p o n s a le o r ..a d e m p tio 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 f o r w h i c h t h 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 th e ir is s u e . C o p ie s o f t h e cir 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 at this b a n k an d its branches a t El Paso, Houston an d San Antonio up to tw elve-thirty p.m.. Central Daylight Saving Time, M o n d a y , June 2, 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 en d ers 9 1 -D a y B ills D u e A u gu st 28, 1969 1 8 3 -D a y B ills D u e N ovem b er 28, 1969 $ 2 , 5 9 0 , 2 3 3 , 0 0 0 --------------------------------------------------------------- T o t a l A p p l i e d F o r ----------------------------------------------------------------$ 2 , 1 1 9 , 5 5 5 , 0 0 0 $ 1 , 7 0 0 , 6 7 0 , 0 0 0 -------------------------------- ----------------------------------T o t a l A c c e p t e d ___________________________________________ $ 1 , 3 0 0 , 0 0 5 , 0 0 0 P r ic e 9 8 . 4 6 4 ........................ 9 8 . 4 4 8 --------9 8 . 4 5 2 .......................... Y ie ld P r ic e Y ie ld _ _ 6 .0 7 6 % ___________________ ____ H i g h _________________ — 9 6 . 8 6 2 _______________6 . 1 7 3 % - 6 . 1 4 0 % . . ......................................... ................_ . l o w ______________________ 9 6 . 8 3 1 _________________ 6 . 2 3 4 % _ _ 6 .1 2 4 % ( 1 ) . .................... ....... A v e r a g e ---------------------------- ------_ ._ 9 6 . 8 3 9 . _______________ 6 . 2 1 8 % (1 ) ( 1 ) T h e s e rates are o n a b a n k discount basis. T h e eq u iv a le n t co u p o n issue y ie ld s are 6 . 3 1 % for t h e 9 1 -d a y bills, and 6 . 5 1 % for t h e 1 8 3 - d a y bi ll s. ( S e e r e v e r s e s id 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 Maturing December 4,1969 Dated June 5, 1969 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The________________________________ Branch E l P a so 79999 H o u sto n 77001 S a n A n to n io 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. NONCOMPETITIVE TENDER $_____________________________________ NOT TO EXCEED $200,000 N o n c o m p c titiv e te n d e r s for $200,000 or le s s from a n y on e bidder, w ith o u t sta te d price, w ill be accep ted in f u ll a t the a v e r a g e price (in three d e c im a ls) o f a ccepted co m p e titiv e bids. ---------COMPETITIVE TENDERS < $-----------------■" ' ' .. /$__________ ____________________ Prices should be e x pressed on the basis of -----------------------------____________________ th ree decim al p la ce s, e. g., 99.925. Fractions must not be used. 100, w ith n o t m ore t h a n ^ ' T E N D E R S 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 D e n o m in a tio n s D e sir ed by credit to Treasury Tax and Loan Account. N u m b e r of M a tu r ity V alue P ie c e s .(g) $ 1 ,0 0 0 $ _______________ _<§> $ 5,000 $_____________ METHOD OF PAYMENT □ B y maturing bills held by______________________________ $_ □ Pay m e n t to be m a d e by______________ _<$> $ 1 0 0 ,0 0 0 $_ □ $ 500,000 $_ 10,000 -@ $ 50,000 Charge our reserve account on payment date |~| Draft enclosed (E ffectu al delivery o f enclosed d r a f t fi hnl l he on Intest day w h i c h will B e r m i t c r e f i e n t m e n t i n firmer t n o b t a i n i r r e v o c a b l y col lec ted f u n d s o n D»ymPT)t -<0) $ 1 ,0 0 0 ,0 0 0 $_ data] Delivery Instructions: □ □ □ ( S u b s c r i b e r ' s f u l l n a m e o r c o r r c r a U t i tl e ] 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 ( Addr*»*m 1 By( A u t h o r i s e d official flifinatiiTe a n d t it le ] Ship to-------------------------- ( F o r t h e n w a u n t of, if t endeT is t o r a n c t h e r s u b s c r i b e r ] ( Addrefla] IM P O R T A N T 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 th e 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 m ate rial, the tender may be disregarded. (See reverse for announcement)
@FedFRASER