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F ederal r eser ve Bank of D allas F ISC A L A G E N T OF THE UN ITED ST A T E S DALLAS, TEXAS 75222 Circular No. 69-220 August 25, 1969 N EW OFFERING — TREASURY BILLS To A ll Banking Institutions and Others Concerned PLEASE OBSEKVE CLOSING DATE — FRIDAY, AUGUST 29, 1969 in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of two issues o f 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 Septem ber 4, 1969, in the am ount of $2,802,014,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued Septem ber 4, 1969, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated June 5, 1969, and to m ature D ecember 4, 1969, origin ally issued in the am ount of $1,301,356,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,200,000,000, or thereabouts, to be dated Septem ber 4, 1969, and m ature M arch 5, 1970. T he bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and a t m aturity their face am ount will be payable without interest. T hey will be issued in bearer form only, an d in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity value). Tenders 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, Friday, August 29, 1969. Tenders will not be received a t the Treasury D epartm ent, Washington. Each tender must be for an even multiple 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 at 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. Banking institutions generally m ay subm it tenders for account of customers provided th e names of th e 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 th e face am ount of Treasury bills applied for, unless th e tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately after th e closing hour, tenders will be opened a t th e Federal Reserve B anks and Branches, following which public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Those subm itting tenders will be advised of the 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, noncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted a t the Federal R eserve B ank on Septem ber 4, 1969, in cash or other im mediately available funds or in a like face am ount of T reasury bills m aturing Septem ber 4, 1969. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m atur ing bills accepted in exchange and the issue price of th e new bills. T he income derived from Treasury 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 T reasury bills does not have any special treatm ent, as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but are exem pt 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. F or purposes of taxation the am ount of discount a t which Treasury bills are originally sold by the U nited States is considered to be interest. U nder Section 454 (b ) and 1221 (5 ) of the Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not con sidered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of th e T reasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve Dank or Branch. In accordance with the above announcement, tenders w ill be received a t this b ank and its branches a t El Paso, Houston an d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, Friday, August 29, 1969. Tenders m ay not be entered by telephone. Yours very truly, P. E. Coldwell President Figures co n cern in g offering of 9 2 - D a y Treasury Bills matu ri ng N o v e m b e r 2 8 , 1 9 6 9 , a n d 1 8 2 -D ay Treasury Bills matu ri ng Febru a r y 2 6 , 1 9 7 0 , not a v a i l a b l e w hen ihis circular w a s pri nte d. (S ee reverse for tender foim ) 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 September 4, 1969 Maturing March 5, 1970 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The________________________________ Branch El Paso 78999 Houston 77001 _______ San Antonio 78206 (Date) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount 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 PLEASE OBSERVE CLOSING DATE — FRIDAY, AUGUST 29, 1969 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 e x pressed on the basis of (a) COMPETITIVE TENDERS >* ------------------------ @----------- $-------------------------------- P $ @ tTrU'^^ecTma^'plac^, e. g., 99.925. Fractions must not be used. - Ug§r’ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b er of Pieces Payment for this issue of bills cannot be m ade by credit to Treasury Tax and Loan Account. METHOD OF PAYMENT Maturity Value (a) $ 1,000 $- (a) $ 5,000 $ 10,000 $- ( ft $ □ □ P a y m e n t to be m a d e by_ □ 50,000 $(n) $ 100,000 ?(a) $ 500,000 ?- (r B y maturing bills held b y _________________________ Charge our reserve account on p a y m e n t date $ I I D r a f t e n c l o s e d (Effectual delivery of enclosed draft s h all he o n la te s t d a y w h ic h w ill p e r m i t p r e s e n t m e n t in o r d e r to o b t a i n ir r e v o c a b ly c o lle c te d f u n d s o n payment (a) $1 ,000,000 $. d ate) D e liv e iy In str u c tio n s. (S u b sc rib e r’s fu ll n am e o r c o rp o ra te 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 ( d ss A dre ) B y ----------------------------------------- L O c ill A c C O U I lt □ (A uthorized official sig n atu re an d title) Ship to-------------------------- ( F o r th e a cc o u n t of, if ten d er is f o r a n o th e r subscriber) — ( A d d re ss ) 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 o f 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 th e 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 in v est ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity valu e) 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. (See reverse for announcement)