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F ederal r eser ve Bank of Dallas FISC 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 9 1 J u ly 30, 1969 NEW OFFERING — TREASURY BILLS To All B a n kin g In stitutions a n d O th e r s C o n c e r n e d in th e E leventh F e d e r a l Reserve District: Y ou r a t te n t io n is in v ite d to th e fo llo w in g s t a t e m e n t g iv in g d e t a il s of tw o is s u e s of T re as u ry 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 ,8 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 A u g u s t 7, 1 9 6 9 , in t h e a m o u n t o f $ 2 ,8 0 0 ,7 6 2 ,0 0 0 , a s fo llo w s : 9 1 - D A Y B I L L S ( t o m a t u r i t y d a t e ) t o b e i s s u e d A u g u s t 7, 1 9 6 9 , i n t h e a m o u n t o f $ 1 , 6 0 0 , 0 0 0 , 0 0 0 , o r t h e r e a b o u t s , 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 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 , o r ig in a lly is s u e d in t h e a m o u n t o f $ 1 ,3 0 0 ,2 8 2 ,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 to 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 f o r $ 1 , 2 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 A u g u s t 7, 1 9 6 9 , a n d t o m a t u r e F e b r u a r y 5 , 1 9 7 0 . T h e b ills o f b o th se r ie s w ill b e issu 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 titiv 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 it y th e ir fa c e a m o u n t w ill b e p a y a b le w it h 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 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 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 th e c lo sin g D a y lig h t S a v in g T im e , M o n d a y , A u g u s t 4 , 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 t h e T r e a s u r y 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 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 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 o n th e p r in te d fo rm 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 s u p p lie d b y F e d e r a l a p p lic a tio n th e r e fo r . h o u r , o n e - t h ir t y p .m ., E a s t e r n D e p a r tm e n t, W a sh in g to n . E a c h o ffered m u st b e ex p ressed on is u r g e d th a t te n d e r s b e m a d e R eserve B an k s or B ranches on 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 re s e t fo rth 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 tit u t io 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 t h 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 se 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 ill s a p p l i e d fo r, u n l e s s t h e t e 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 t y o f p a y m e n t b y a n in c o r p o r a t e d 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 d o s in 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 e r e 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 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 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 or 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 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 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 A u g u s t 7, 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 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 A u g u s t 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 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 tw e e n t h e p a r v a lu e o f m a tu r in g b i l l s a c c e p t e d in e x c h a n g e a n d t h e i s 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 or g a in fr o m t h 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 tr e a tm e n t , a s su 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 are s u b je c t t o 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 t a t e , b u t a r e e x e m p t f r o m a ll t a x a t io n n o w o r h e r e a f t e r im p o s e d o n t h e p r in c i p a l o r in t e r e s t t h e r e o f b y a n y S t a t e , 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 it 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 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 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 t e 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 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 th 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 f r o m c o n s id e r a t io n a s c a p it a l a sse 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 th 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 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 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 se , a n d th e a m o u n t a c tu 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 t u r it y 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 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 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 a c c o r d a n c e w ith th e a b o v e a n n o u n c e m e n t , t e n d e r s will b e re c e iv e d a t this b a n k a n d its b r a n c h e s a t El P aso, H o u s to n a n d San A n to n io u p to tw e l v e - th ir ty p .m ., Central D ay lig h t S a v in g Time, M o n d a y , A u g u s t 4, 1 96 9. T e n d e rs m a y not b e entered b y telep ho n e. Y ours v e r y truly, P. E. Coldw ell P re sid e n t 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 O c to b e r 30, 1 9 6 9 1 8 2 -D a y B ills D u e January 29, 1970 $ 2 , 6 4 2 , 5 6 9 , 0 0 0 --------------------------------------------------------- T o t a l A p p l i e d F o r ------------------------------------------ ---------------------$ 2 , 1 4 6 , 3 2 6 , 0 0 0 $ 1 , 6 0 0 , 3 4 3 , 0 0 0 .................... .............................. .................................. T o t a l A c c e p t e d --------------------------------------------------------- ---------$ 1 , 1 0 0 , 3 2 4 , 0 0 0 P r ic e Y ie ld P r ic e Y ie ld 9 8 .1 9 4 . 7 .1 4 5 % _____________________H i g h ______________________ . 9 6 . 3 1 9 . ___ _________ 7 . 2 8 1 % 9 8 . 1 8 2 . . . . ..........................7 . 1 9 2 % ___________________ ______________ L o w _____________________ ____ . . . 9 6 . 2 9 5 ________________ 7 . 3 2 9 % 9 8 . 1 8 7 ________________7 . 1 7 2 % ( 1 ) ___________________ _____. . A v e r a g e ---------------------------------------- 9 6 . 3 0 3 ________________ 7 . 3 1 3 % (1 ) ( 1 ) T h e s e r a t e s a r e on a h a n k d is c c u n t hasis. T h e e q u i v a le n t c o u p o n issue y ie ld s are 7 . 4 1 % for th e 91 d a y ti l l s , a n d 7 . 7 0 % fn r t h e 182 d a y tills . ( S e e rev e r se sid e for te n d er fo 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 February 5,1970 Dated August 7,1969 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The__________________________ __ Bran ch El Paso 79999 H ouston 77001 San Antonio 78206 (Hate) P u rsu a n t to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and th e provisions of the public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am ount shown below, and agrees to pay fo r th e am ount allotted, on or before the issue date, by the method and a t the rate indicated. _NOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $_ Noncompetitive tenders for $200,000 or less from any one biddsr, w ithout stated price, will beaccepted in full at the average price (in three decimals) of accepted competitive bids. ($ Jo L ____________________ COMPETITIVE TENDERS )* ___________________ BSE?3 TEND ERS MAY NOT BE EN TE R E D BY TELEPH ON E. TEN D ERS BY W IRE, ' CLOSING HOUR, ARE ACCEPTABLE. M aturity Value <(t $ .(fij $ 1,000 * 5,000 ?- (ft $ 10,000 ¥50,000 □ □ m $ (a $ 100,000 ¥(ft $ 500,000 □ □ Charge our reserve account on paym ent date D ra ft enclosed (Effectual delivery of enclosed d raft shall be on latest day which will permit presentment in order in obtain irrevoenhly collected funds on p a y m e n t date J Delivery In stru c tio n s : □ □ (Subscriber's full n a m e or corporate title] Hold in Custody Account—M ember banks fo r own account only Pledge to secure T reasury T ax and Loan Account Ship to---------------------------------------- THE By m atu rin g bills held by______________________________ P ay m en t to be m ade by_ (a) $1 ,000,000 * □ RECEIVED BEFO RE Paym ent fo r th is issue of bills cannot be made by credit to T reasury T ax and Loan Account. METHOD OF PAYMENT D e n o m in a tio n s D e sir ed N u m b e r of Pieces IF Prices should be ex pressed on the basis of 100, with not more than t h r e e d ec im a l p la c e s, e. g., 99.925. Fractions m ust not be used. (Address) By_ (Authorized official signature and title) (For the account of, if tender is fcr another subscriber! (Addresa) IMPORTANT 1. No tender fo r less than $1,000 will be considered and each tender m ust be for an am ount in multiples of $1,000 (m atu rity value). 2 Tenders should be forw arded in a n envelope clearly addressed to this bank or app rop riate branch as Fiscal A gent of the ' U nited S tates, w ith notation on th e envelope reading “T E N D E R FOR TREA SU RY O FFE R IN G .” Since envelopes re ceived w ith this legend will not be opened until a f te r the closing tim e specified m the public announcement, communi cations relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank or ap pro priate branch. 3. A ny qualified or conditional tend er will be rejected. 4 I f a corporation m akes the tender, the form should be signed by an officer of th e corporation authorized to m ake ' tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t he has been so authorized. If the tender is made by a partnership it should be signed by a m em ber of the firm, who should sign in the form “............................................... a copartnership, by ............................................................................................., a member of th e firm.” 5. Tenders from those other th a n incorporated banks and tru st companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m atu rity value) of the T reasury bills applied for, or unless th e tenders are accompanied by an express g u ara n ty of full paym ent by an incorporated bank or tr u s t company. 6. I f the language of this form is changed in an y respect, which, in the opinion of the Secretary of th e T reasu ry is m a te rial, th e tender m ay be disregarded. (See reverse for announcement)
@FedFRASER