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F ederal r es er v e Bank of D allas F IS 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 Circular No. 69-214 August 20, 1969 N EW OFFERING — TREASURY BILLS To A ll Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Y o u r attention is invited to the follow ing statement giving details of tw o issues of Treasury bills: T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $2,800,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing August 28, 1969, in th e am ount of $2,802,134,000, as follows: 92-DAY B IL L S (to m aturity date) to be issued August 28, 1969, in the am ount of $1,600,000,000, or thereabouts, representing an additional am ount of bills dated M ay 29, 1969, and to m ature November 28, 1969, originally issued in the am ount of $1,300,016,000, th e additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,200,000,000, or thereabouts, to be dated August 28, 1969, and m ature February 26, 1970. T h e bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at m aturity their face am ount will be payable without interest. T hey will be issued in bearer form only, and in denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Monday, August 25, 1969. Tenders will not be received at the T reasury D epartm ent, Washington. Each tender must be for an even m ultiple of $1,000, and in case of competitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged th a t 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. B anking institutions generally may subm it tenders for account of customers provided the nam es of the customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account. T enders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately after the closing hour, tenders will be opened a t the Federal R eserve Banks and Branches, following which public announcem ent will be made by the T reasury D epartm ent of th e am ount and price range of accepted bids. Those subm itting tenders will be advised of th e acceptance or rejection thereof. T he 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 a t the average price (in three decimals) of accepted competitive bids for the respective issues. Settlem ent for accepted tenders in accordance with th e bids m ust be m ade or com pleted a t the Federal R eserve B ank on August 28, 1969, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing August 28, 1969. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m atur ing bills accepted in exchange and the issue price of the new bills. T h e income derived from T reasury bills, w hether interest or gain from the sale or other disposition of th e bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatm ent, as such, under the Internal Revenue Code of 1954. T h e 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 U nited States, or by any local taxing authority. For purposes of taxation th e am ount of discount a t which T reasury bills are originally sold by the U nited States is considered to be interest. U nder Section 454 (b ) and 1221 (5 ) of th e Internal Revenue Code of 1954 the amount of discount a t which bills issued hereunder are sold is not con sidered to accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, w hether on original issue or on subsequent purchase, and th e am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the retu rn is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e terms of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve B ank or Branch. In accordance w ith the above announcement, tenders w ill be received a t this b a n k and its branches a t El Paso, Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M o n d a y , August 25, 1969. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and A pproxim ate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue November 20, 1969 D ue February 19, 1970 $2,526,808,000__________________ ___ ________ T otal Applied F o r____________ __________________ $2,166,956,000 $ 1,600,102,000________________________________ Total Accepted________________________________ $ 1,200,462,000 Price Yield Price Yield ---------------------H igh____________________ .96.415____________ 7.091% 98.280-------------------6.804% --------98.255 6.903% _________ ____ ___________ Low______________________ 96.388___________ 7.145% 98.267 6.856% ( 1 ) ------------------------------Average______________ __ ___ 96.400____________ 7.121% (1 ) ( 1 ) T h e s e r a t e s a r e on a b a n k d is c o u n t b asis. T h e e q u i v a le n t c o u p o n issu e y ie ld s a r e 7 . 0 7 % f o r t h e 9 1 - d a y b ills, a n d 7 . 4 9 % f o r t h e 1 8 2 -d a y bills. (See reverse side for tender form ) 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 Dated August 28, 1969 Maturing February 26, 1970 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The--------------------------------------------------Branch El Paso 79999 Houston 77001 San Antonio 78206 (Date) _ 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 $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. ___________________ (*- COMPETITIVE TENDERS <$---------------------------------------^ J n )- ------------------------------ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE ' CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b e r of Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT Maturity Value m $ m $ (a) $ (a). ? 1,000 * 5,000 ?- □ ]__j D r a f t e n c l o s e d (E ffectual delivery of enclosed d ra ft shall be on latest day which will permit presentment In o rd e r to o b ta in irrevocably collected fu n d s on payment date) (a) $1:,000,000 Delivery Instructions: □ P a y m e n t to be m a d e by______________ □ Charge our reserve account on payme n t date (a) $ 500,000 t □ B y maturing bills held by_____________________________ □ 10,000 $50,000 ?- (ii) $ 100,000 ?- □ Prices should be e x pressed on the basis of 100, with not more than th ree decim al p la ce s, e. g., 99.925. Fractions must not be used. (S u b sc rib e r’s full n am e or c o rp o rate 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 ( Address) By(A uthorized official sig n a tu re a n d title) Ship to----------------- --------- ( F or th e a cco u nt of, if te n d e r is fo r a n o th e r su b scrib er) (Addresa) IM P O R T A N T 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 o i 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. (S ee re v e rse f o r ann o u n cem en t)