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F ederal R eserve Ba n k of D allas F IS C A L A G E N T O F T H E U N ITED ST A T E S DALLAS, TEXAS 75222 C ir c u la r N o . 6 9 -1 68 J u l y 9, 1969 N E W OFFERING — TREASURY BILLS To A ll 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 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 t e a m o u n t o f $ 2 ,7 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 ly 17, 1 9 6 9 , in t h e a m o u n t o f $ 2 ,7 0 1 ,7 0 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 te ) to b e is su e d J u ly 17, 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 , 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 A p r il 17, 1 9 6 9 , a n d to m a tu r e O c to b e r 16, 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 ,9 7 5 ,0 0 0 , t h e a d d itio 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 , o r th e r e a b o u ts , t o b e d a te d J u ly 17, 1 9 6 9 , a n d to m a tu r e J a n u a r y 1 5 , 1 9 7 0 . T h e b ills o f b o t h se 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 ir 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 is 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 l u e ) . T e n d e r s w i l l 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 l o s i n 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 ly 14, 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 s u r y D e p a r tm e n t, W a s h in g to n . E a c h ten d er 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 c a s e o f c o m p e t i t iv e te 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 sis o f 1 0 0 , w ith n o t m o r e th a n t h r e e d e c im 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 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 o n a p p lic a t io n th e r e fo r . B a n k in 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 te 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 a r e s e t fo r th in s u c h te n d e r s . O th e r s th a n b a n k in g in s titu tio n s w ill n o t b e p e r m it t e d to s u b m it te n d e r s e x c e p t fo r th e ir 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 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 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 for, u n le s s 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 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 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 ere o f. T h e S e c r e ta r y o f t h e T r e a su r y e x p r e s s ly re 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 ll te n d e r s , in w h o le o r in p a r t, a n d h is a c t io 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 issu e fo r $ 2 0 0 ,0 0 0 o r le ss w ith o u t s ta 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 ll a t t h e a v e r a g e p r ic e ( i n th r e e d e c i m a ls ) o f a c c e p t e d c o m p e t i t iv e b id s fo r t h e r e s p e c ti v e is s u e s. S e t t le m e n t for a c c e p te d te n d e r s in a c c o r d a n c e w ith th e b id s m u st b e m a d e o r c o m p le te d a t th e F e d e r a l R e s e r v e B a n k o n J u ly 17, 1 9 6 9 , in c a s h o r o th e r im m e d i a t e ly a v a ila b le fu n d s o r in a lik 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 t u r in g J u ly 1 7 , 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 stm e n ts w ill b e m a d e fo r d iffe r e n c e s b e tw e e n th 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 fr o m T r e a s u r y b ills, w h e t h e r in t e r e s t o r g a in fr o m th e s a le o r o th 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 s u c h , u n d e r 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 b ills a re s u b j e c t to e s ta te , in h e r ita n c e , g if t o r 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 r e e x e m p t fr o m a ll ta x a t io n n o w or 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 , 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 ta 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 i c 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 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 i l l s i s 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 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 i s 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 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 th e r t h a n life in su 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 i n 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 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 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 th e a m o u n t a c tu 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 tio n a t m a tu r ity d u r in g t h e ta 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 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 tic 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 is s u 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 w ith the ab ove 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 e lv e -th irty p.m ., Central Daylight Saving Time, M o n d a y , July 14, 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 an 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 O c to b e r 9, 1 9 6 9 1 8 2 -D a y B ills D u e J a n u a r y 8, 1 9 7 0 $ 2 , 4 2 4 , 5 7 2 , 0 0 0 ________________________________________ T o t a l A p p l i e d F o r _________________________________________ $ 2 , 1 9 1 , 7 1 1 , 0 0 0 $ 1 , 6 0 0 , 1 7 2 , 0 0 0 ............................. .......................... ............................. T o t a l A c c e p t e d -------------------------------------------------------------------$ 1 , 1 0 1 , 3 6 3 ! 0 0 0 P r ic e 9 8 .2 4 1 9 8 .2 0 2 9 8 .2 1 3 Y ie ld P r ic e Y ie ld 6 . 9 5 9 % --------------------------------------------------- H i g h ----------------------------------------------9 6 . 3 5 2 __________ ___ „ 7 . 2 1 6 % 7 . 1 1 3 % --------------------- ----- ------------------L o w ---------------------------------------------9 6 . 2 8 9 _________________7 . 3 4 0 % 7 . 0 6 9 % ( 1 ) — ----------------------------------A v e r a g e ------------------------------------------- 9 6 . 3 0 5 ________________ 7 . 3 0 9 % (1 ) ( 1 ) T h e s e rates are on 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 7 . 3 0 % for t h e 9 1 -d a y bills, a n d 7 6 9 % for th e 1 8 2 -d a y 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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated April 17, 1969 Maturing October 16, 1969 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The------------------------------------------------- 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. NONCOMPETITIVE TENDER $____________________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one biddar, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. (*COMPETITIVE TENDERS <! ------------------------------ Jdi ___________________ I* - Prices should be ex pressed on the basis of 100, with no' m c r v than three decimal p la ces, e. g., 99.925. Fractions must not be used. USIP 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. METHOD OF PAYMENT Denominations Desired N um ber of P ie c es M a t u r i t y V a lu e (n) ¥ 1,000 *5,000 ?- □ B y maturing bills held by_____________________________ 10,000 $50,000 ?. □ P a y m e n t to be m a d e by______________ $ 100,000 $(a) $ 500,000 $- □ Charge our reserve account on payment date (a) $ M $ (o’ $ <a) in) f_j D r a f t $1 ,000,000 $ Delivery Instructions: □ □ □ ( S u b s c r ib e r ' s f u ll n a m e o r c o r p o r a t e 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 Ship to-------------------------- e n c l o s e d (E ffectu al delivery o f enclosed d r a f t s h a ll b e o n Inten t d ay w h ic h 'will p e r m i t p r e s e n t m e n t i n o r d e r to o b ta in i r r e v o c a b ly c o lle c te d f u n d s o n p a y m e n t date] (A ddress) By_ ( A u th o r iz e d official s i g n a t u r e a n d ti tle ) ( F o r t h e a c c o u n t o f , if t e n d e r is f o r a n o t h e r s u b s c r ib e r ] ( 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, b y ............................................................................................., 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. (S ee re v e rse f o r a n n o u n cem en t)
@FedFRASER