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F ederal R eserve Bank of Dallas 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 6 4 J u ly 2, 1969 N EW O F F E R IN G — 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 te n d e r s fo r t w o se r ie s o f T r e a s u r y b ills t o t h e a g g r e g a te a m o u n t o f $ 2 ,7 0 0 ,0 0 0 ,0 0 0 , or 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 tu r in g J u ly 10, 1 9 6 9 , in t h e a m o u n t o f $ 2 ,7 0 3 ,9 2 0 ,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 ) t o b e is su e d J u ly 10, 1 9 6 9 , in th e a m o u n t o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 , or 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 A p r il 10, 1 9 6 9 , a n d to m a tu r e O c to b e r 9 , 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 1 ,2 6 1 ,0 0 0 , t h e a d d it io n a l a n d o r ig in a l b ills t o b e f r e e ly in te r c h a n g e a b le . 1 8 2 - D A Y B I L L S fo r $ 1 ,1 0 0 ,0 0 0 ,0 0 0 , or th e r e a b o u ts , to b e d a te d J u ly 10, 1 9 6 9 , a n d t o m a tu r e J a n u a r y 8, 1 9 7 0 . 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 i d e d , a n d a t m a t u r i t y t h e i r f a c e a m o u n t w i l l 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 l y , 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 to t h e c lo s in g h o u r, o n e -th ir ty 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 , J u l y 7, 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 st 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 th e c a se o f c o m p e t i t iv e te n d e r s th e p r ic e o ffe r e d m u s t b e e x p r e sse d o n t h e b a s is 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 i s 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 r w a r d e d 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 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 on a p p lic a t io n th e r e fo r . B a n k i n g in s t it u t io n s g e n e r a lly m a y s u b m it t e n d e r s for 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 ill 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 fo 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 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 sp o n s ib le a n d r e c o g n iz e d d e a le r s in in v e s t m e n t s e c u r itie s . T e n d e r s fr o m o th e r s m u s t b e a c c o m p a n ie 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 s u r y b ills a p p lie d fo r, u n le s s th e te n d e r s a r e a c c o m p a n ie d b y a n e x p r e s s 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 com p an 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 ch es, fo llo w in g w h ich p u b l ic a n n o u n c e m e n t w ill b e m a d e b y th 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 ss 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 te 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 to 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 te 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 te 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 l l a t t h e a v e r a g e p r i c 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 i d s f o r t h e r e s p e c t i v e i s s u e s . S e t t l e m e n t f o r a c c e p t e d t e 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 J u ly 1 0 , 1 9 6 9 , in c a s h or o th e r im m e d ia t e ly a v a ila b le fu n d s o r 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 ly 10, 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 j u s t m e n t s w ill b e m a d e for 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 in 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 fro 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 th e s a le o r 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 fro 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 su ch , u n d er th e In te rn a l R e v e n u e C o d e o f 195 4 . T h e b ills are su b je c t to e s ta te , in h erita n c e, g ift or o th e r e x c ise ta x es, w h e th e r F e d e r a l or S t a t e , b u t a r e e x e m p t fr o m a ll t a x a t io n n o w o r h e r e a f te r im p o s e d o n t h e p r in c ip a l o r 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 th 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 , 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 th 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 so 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 to b e in te r e s t. U n d e r S e c t io n 4 5 4 ( b ) a n d 1 2 2 1 ( 5 ) o f t h e I n t e 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 i s c o u n t a t w h i c h b ill s 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 il s u c h b ills a re 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 as c a p it a l a s se ts. A c c o r d in g ly , th 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 li f 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 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 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 or 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 it h e r u p o n s a le or r e d e m p t io n a t m a tu r ity 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 tu r n is m a d e , a s o r d in a r y g a in o r lo ss. 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 t h e c o n d it io n s o f t h e ir issu e . C o p ie s o f t h 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 with the above announcement, tenders w ill be received at this b ank an d its branches at El Paso, Houston an d San Antonio up to tw elve-thirty p.m., Central D aylight Saving Time, M o n d a y , July 7, 1969. Tenders may 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 r o 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 O cto b er 2, 1 9 6 9 1 8 3 -D a y B ills D u e January 2, 1970 $ 2 , 4 0 4 , 3 9 5 , 0 0 0 ------------------------------------- ------- ------------------ T o t a l A p p l i e d F o r _______________ _____ ____________________$ 1 , 9 3 8 , 3 2 1 , 0 0 0 $ 1 , 6 0 0 , 1 8 4 , 0 0 0 ------------------------------------------------------------------T o t a l A c c e p t e d ___________________________________________ $ 1 , 1 0 0 , 1 2 1 , 0 0 0 P r ic e Y ie ld P r ic e Y ie ld 9 8 . 4 0 0 ________________6 . 3 3 0 % __________________________________ H i g h ____________________________ 9 6 . 5 1 2 ________________ 6 . 8 6 2 % 9 8 .3 2 8 6 . 6 1 5 % ----------------------------------------------------L o w ........................................... ................ 9 6 . 4 2 2 ________________ 7 . 0 3 9 % 9 8 . 3 6 8 ----------------6 . 4 5 6 % ( 1 ) — -------------------------------------A v e r a g e ___________________________ 9 6 . 4 7 0 ______ ....6 .9 4 4 % ( 1 ) ( 1 ) T h e s e rates are on a b ank discount basis. T h e eq u iv a le n t coupon issue y ie ld s are 6 . 6 5 % for th e 9 1 - d a y bills, a n d 7 . 3 0 % for the lfl3 d a y tills. ( S e e r e v e r s e sid e for 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 January Dated July 10, 1969 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— T h e ________________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 8, 1970 (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. J N O T T O E X C E E D §200,000 NONCOMPETITIVE TE N D E R 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 _________ __________ pressed on the basis of 100, with not niorr 2han ------------------------------ th ree decim al p laces. ___________________ e. g., 99.925. Fractions must not be used. j* COMPETITIVE T E N D E R S $ ( ^ 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 Denominations Desired by credit to Treasury Tax and Loan Account. N u m b e r of M a tu r i ty V alue FiMM M ETH O D OF P A Y M E N T (® $ 1,000 (® ? 5,000 ? $ (5) ? 10,000 O 50,000 $ ? ? 100,000 (5) $ $ . □ □ □ P a y m e n t to be m a d e by_ Charge our reserve account on payment date |~] Draft e n c l o s e d (Effectual delivery uf enclosed draft s h all be o n la te s t dn;y w h ic h will c e r r n i t p r e s e n t m e n t In tirdeT to r h t n i n ir r e v o c a b ly cfillected f u n d s o n p a y m e n t date] - Delivery Instructions: □ B y maturing bills held by__________ □ $- <8> $ 500,000 ? 1 ,000,000 $ □ ( S u b s c r ib e r ' e f u l l n a m e o r c o r c o r n t f 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 ( AHHreffi ) By_ ( A u tb o T i 7fd cfficlnl s i g n a t u r e a n d title ] Ship to-------------------------- ( F o r th e a c c o u n t o l, if te n d e r ia f o r a n o t h e r s u h s c r ib e i ] (A d d r e s s ] 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 m ate rial, the tender may be disregarded. (See reverse for announcement)
@FedFRASER