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F e d er a l R eser ve Ba n k





Circular No. 69-151
June 18, 1969


To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statement giving details of two issues of Treasury bills:
The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing June 30, 1969, in the amount of
$1,702,711,000, as follows:
274-DAY BILLS (to maturity date) to be issued June 30, 1969, in the amount of $500,000,000, or thereabouts,
representing an additional amount of bills dated March 31, 1969, and to mature March 31, 1970, orig­
inally issued in the amount of $1,000,536,000, the additional and original bills to be freely interchangeable.
365-DAY BILLS for $1,200,000,000, or thereabouts, to be dated June 30, 1969, and to mature June 30, 1970.
The bills of both series w ill be issued on a discount basis under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable without interest. They 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 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D ay­
light Saving Time, Tuesday, June 24, 1969. Tenders w ill not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the
basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. (Notwithstanding the fact that the oneyear bills w ill run for 365-days, the discount rate will be computed on a bank discount basis of 360-days, as is currently the
practice on all issues of Treasury bills.) It is urged that 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 submit tenders for account of customers provided the names of the customers are
set forth in such tenders. Others than banking institutions w ill not be permitted to submit tenders except for their own account.
Tenders w ill be received without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or
trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those
submitting tenders w ill be advised of the acceptance or rejection thereof. The 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 at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for
accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on June 30, 1969,
in cash or other immediately available funds or in a like face amount of Treasury bills maturing June 30, 1969. Cash and
exchange tenders w ill receive equal treatment. Cash adjustments will be made for differences between the par value of maturing
bills accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether 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 Treasury bills does not have any special treatment,
as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State,
or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454 (b ) and 1221 (5 )
of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not considered 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 Treasury bills (other than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is
made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

In accordance with the above announcement, tenders w ill be received at this bank and its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Tuesday, June 24, 1969. Tenders may
not be entered by telephone.

Yours v r tuy
e y rl,
P E Clwl
. . odel
( e r v r esd frt n e f r )
S e e e s ie o e d r o m

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


Dated June 30, 1969

Maturing June 30, 1970

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
T h e _ _ ___________________________ Branch
El Paso 79999
Houston 77001
San Antonio 78206

(D ate)

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 $_

. N O T 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.
Prices should be ex1»P----------------------------@ -------------- $----------------------------------pressed on the basis of
C O M P E T I T I V E T E N D E R S < $ ____
100, with not more than
v ----------------------------------three decimal places,
________________ @ _________ $_______________________
e. g., 99.925. Fractions
must not be used.
Denominations Desired
Num ber of

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M aturity Value





Payment to be made by_____________


10,000 $

B y maturing bills
held by___________________________


5,000 $

Charge our reserve account on payment

50,000 $



$ 500,000 $

| | 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 elo scd
d ra ft shall be on latest day which will perm it p resent­
m ent in order to obtain irrevocably collected funds on
paym ent date)

$1,000,000 ?
Delivery Instructions:

(Subscriber’s fu ll nam e o r corporate title)


Hold in Custody Account— M emb e r
banks for ow n account only
Pledge to secure Treasury Tax and
Loan Account


(A uthorized official sign ature an d title)

Ship to_________________________
(F or th e account of, if tender is fo r another subscriber)


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

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.
Any qualified or conditional tender will be rejected.
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.

( e r v r ef ra n u c m n )
S e ees o n o n e e t

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