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F e d e r a l r e s e r v e Ba n k o f D a lla s 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 75222 C ir c u la r N o . 6 9 - 1 9 9 A u g u st 6, 1969 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O th e r s C o n c e r n e d in t h e E le venth F e d e r a l R e serve District: Y our a t t e n t i o n is in vited to th e fo llo w in g s t a t e m e n t g iv in g d e ta ils o f 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 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 th e a g g r e g a te a m o u n t o f $ 2 ,8 0 0 ,0 0 0 ,0 0 0 , or th e r e a b o u ts , fo r ca sh a n d in e x c h a n g e f o r T r e a s u r y b ills m a tu r in g A u g u s t 14, 1 9 6 9 , in t h e a m o u n t o f $ 2 ,8 0 2 ,0 9 5 ,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 A u g u s t 14, 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 M a y 15, 1 9 6 9 , a n d to m a tu r e N o v e m b e r 13, 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 ,4 7 4 ,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 3 - D A Y B I L L S fo r $ 1 ,2 0 0 ,0 0 0 ,0 0 0 , o r th e r e a b o u ts , to b e d a te d A u g u s t 14, 1 9 6 9 , a n d m a tu r e F e b r u a r y 13, 1 9 7 0 . T h e b ills o f b o th 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 id e d , a n d a t m a t u r it y th e ir f a 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 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 to t h 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 11, 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 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 te n d e r s th e p r ic e 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 o n t h e p r in te d fo r m s a n d fo r w a r d e d in t h 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 ere 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 s t b e e x p r e sse d o n is u r g e d t h a t t e n d e r s b e m a d e R eserv e B a n k s or B ran ch es on 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 th e c u s to m e r s a re s e t fo r th in su 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 ith 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 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 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 re a c c o m p a n ie d b y a n e x p r e ss 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 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 ch es, fo llo w in g w h ic h 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 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 ise d o f t h e a c c e p ta n c e o r r e je c tio n th ere 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 ll t e n d e r s , i n w h o l e o r in 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 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 te 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 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 l l a t t h e a v e r a g e p r ic 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 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 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 or 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 A u g u s t 1 4 , 1 9 6 9 , in c a s h o r o th e r im m e d ia te 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 A u g u s t 14, 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 i n g b ill s a c c e p t e d i n 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 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 lia v e a n y e x e m p tio n , a s su c h , a n d lo ss fr o m th e sa le or o th e r d is p o s itio n o f T r e a su 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 er th e In te rn 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 su b je c t to esta te , in h erita n c e, g ift or o th er e x c ise ta x es, w h e th e r F e d e r a l o r S ta te , b u t a r e e x e m p t fr o m a ll ta x a tio n n o w or h e r e a fte r im p o s e d o n th e p r in c ip a l or in te r e s t th e r e o f b y a n y S ta te , or a n y o f th e p o s s e s s io n s o f t h 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 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 ig in a lly s o ld b y th 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 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 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 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 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 th 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 ith e r u p o n s a le or 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 is m a d e , a s o r d in a r y g a in 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 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 f r 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 t h 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 r e 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 ousto n a n d S an A n to n io u p to tw e lv e - th ir ty p.m ., Central D ayli ght S av in g Time, M o n d a y , A u g u s t 11, 19 69 . T e n d e rs m a y not b e e n t e r e d by t e l e p h o n e . Yours v e r y truly, P. E. Cold w ell P re sid en 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 N o v em b er 6, 1969 $ 2 , 7 0 3 , 8 7 9 , 0 0 0 _____________________ $ 1 , 6 0 1 , 0 1 1 , 0 0 0 ________________ ____ P r ic e 9 8 . 2 4 7 _________ 9 8 . 2 2 6 _________ 9 8 . 2 3 2 _________ 1 8 2 -D a y B ills D u e F eb ru a ry 5, 1 9 7 0 - T o t a l A p p lie d For_. ___ T o t a l A c c e p t e d . __ --------------------------------- $ 2 , 4 4 1 , 9 2 3 , 0 0 0 --------------------------------- $ 1 , 2 0 0 , 2 3 1 , 0 0 0 ..H ig h .. -L ow A verage_ . . 9 6 . 4 4 4 .It __________________ 7 . 0 3 4 % . 9 6 . 4 1 1 __ _____ _____________ 7 . 0 9 9 % - 9 6 . 4 1 8 ________________ 7 . 0 8 5 % ( 1 ) y ie ld . . 6 . 9 3 5 % ......... . . . 7 . 0 1 8 % ______ .6 .9 9 4 % ( 1 ) . P r ic e Y ie ld C l) T h e s e rates are on a b ank discou nt basis. T h e eq u iv a le n t cou p on issue yield s are 7 .2 2 % for th e 9 1 - d a y bills, and 7 . 4 5 % for th e 1 8 2 -day bills. ( S e e reverse sid e for ten d er fo rm ) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 183 DAYS TO MATURITY D ated A ugust 14,1969 M aturing F e b ru ary 13,1970 To: Federal Reserve Bank, S tation K, Dallas, Texas 75222 or— The_________________________________Branch El Paso 79999 Houston 77001 San Antonio 78206 (Date) P ursu an t to th e provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of the public announcement 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 the am ount allotted, on or before the issue date, by th e method and a t th e ra te indicated. JNOT TO EX CEED $200,000 NONCOM PETITIVE T E 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. Jir_ ------------------------------ COM PETITIVE TEN D ER S ------------------------------ ----------------------------------------1 *U S ’" TEND ERS MAY NOT BE E N TE R E D BY TELEPH O N E. TEND ERS B Y W IRE, IF RECEIVED BEFO RE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b e r of Pieces P aym ent fo r this issue of bills cannot be made by credit to T reasury Tax and Loan Account. METHOD OF PAYMENT M a tu rity V alue m $ (a) $ (a) $ (a) $ 1,000 * □ 5,000 $10,000 ?- □ 50,000 $(a) $ 100,000 $(a) $ 500,000 ?- □ By m atu rin g bills held by______________________________ P ay m en t to be m ade by______________ Charge our reserve account on paym ent date I_j D r a f t e n c l o s e d (Effectual delivery of enclosed draft ehal] be on latest day which will pe rm it p re s en tm en t in o rd e r to o btain irrevocably collected fu n d s on p a y m e n t date) (ii) $1 ,000,000 $Delivery In stru ctio n s: □ Prices should be ex pressed on the basis of 100, w ith not more than t h r e e d ecim al p la c e s, e. g., 99.925. F ractions m u st not be used. (S ubscriber’s full nam e or c o rp o ra te title) Hold in Custody Account— M ember banks fo r own account only □ Pledge to secure T reasu ry T ax and Loan Account □ Ship to---------------------------------------- (Address) By_ (A uthorized official s ig n a tu re a n d title) (F o r th e a ccount of, if te n d e r is fo r a n o th e r subscriber) (A ddress) IMPORTANT 1. No tender fo r less th a n $1,000 will be considered and each tender m u st be for an am ount in multiples of $1,000 (m atu rity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or appro priate branch as Fiscal A gent of th e United States, w ith notation on the envelope reading “TENDER FOR IREASURY OFFERING.” Since envelopes re ceived w ith this legend will not be opened until a f te r the closing time specified m the public announcement, communi cations relating to other m a tte rs should not be enclosed. Envelopes for subm itting tenders may be obtained from this bank or app ropriate branch. 3. A ny qualified or conditional tender will be rejected. 4. If a corporation m akes the tender, th e form should be signed by an officer of the corporation authorized to m ake th e tender and the signing of the form by a n 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 mem ber of the firm, who should sign in th e form “.............................................., a copartnership, by .............................................................................................. a mem ber of th e firm.” 5. Tenders from those other th a n incorporated banks and tr u s t 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 aturity value) of the T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an incorporated bank or tru s t 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. (See reverse for announcement)
@FedFRASER