View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F e d e r a l R e s e r v e Ba n k o f D a lla s

DALLAS, TEXAS 7 5 2 2 2

Circular No. 69-224
Septem ber 3, 1969

To A ll Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:
Y our 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 Septem ber 11, 1969, in the am ount of
$2,800,296,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued Septem ber 11, 1969, in the am ount of $1,600,000,000, or there­
abouts, representing an additional am ount of bills dated June 12, 1969, and to m ature D ecember 11, 1969,
originally issued in the am ount of $1,300,610,000, 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 11, 1969, and m ature M arch 12, 1970.
T h e 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 w ithout 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).
Tenders will be received a t Federal Reserve B anks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving Tim e, Monday, Septem ber 8, 1969. Tenders will not be received a t the Treasury D epartm ent, Washington. Each
tender m ust be for an even m ultiple of $1,000, and in case of com petitive tenders the price offered m ust be expressed on
the basis of 100, with not more th a n three decimals, e.g., 99.925. Fractions may not be used. I t is urged th a t tenders be made
on th e 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 the names 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 tru st 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
T reasury bills applied for, unless th e tenders are accompanied by an express guaranty of paym ent by an incorporated bank or
trust company.
Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve Banks 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, 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 the bids m ust be m ade or completed a t the Federal Reserve B ank on Septem ber 11, 1969,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Septem ber 11, 1969. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the 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 th e sale or other disposition of the 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 he bills are subject to estate, inheritance, gift or other excise taxes, whether
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. For purposes of taxation the am ount of discount
at which Treasury bills are originally sold by th e U nited States is considered to be in terest U nder Section 454 (b ) and
1221 (5 ) of the Internal Revenue Code of 1954 th e am ount 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 T reasury bills (other than life insurance companies) issued hereunder need include
in his income tax return only the difference between th e price paid for such bills, w hether 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.
T reasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe th e term s of the T reasury bills and
govern th e conditions of their issue. Copies of th e circular may be obtained from any Federal Reserve B ank or Branch.
In accordance with the above announcement, tenders w ill be received at this b a n k and its branches at El Paso,
Houston an d San Antonio up to tw elve-thirty p.m., Central Dayiight Saving Time, M o n d a y September 8, 1969. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
Amount, R ange and A pproxim ate Yield of Accepted Tenders
91-Day Bills
D ue December 4, 1969
98.244___________ 6.947% ____
98.222___________ 7.034% ____
7.014% (1 ) .

_________ T otal Applied For_
___________ T otal A ccepted__


_ Low__


( 1 ) T h e s e r a t e s a r e on a b a n k d isc o u n t b a sis. T h e e q u iv a l e n t c o u p o n issue y ie ld s a r e 7 . 2 4 %
t h e 1 8 2 - d a y b i ll s .

182-Day Bills
D ue M arch 5, 1970
... -----------------$2,103,545,000
------------------------- $1,200,091,000Price
...96.405____ __________ 7.111%
-9 6 .3 6 0 ________________ 7.200%
...96.377____________ 7.166% (1)
f o r t h e 9 1 - d a y b ills


7 54%


(See reverse side for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated September 11,1969

Maturing March 12,1970

T o: Federal Reserve Bank, Station K, Dallas, Texas 75222
The----------------------- --------------------------Branch
E l Paso 79999

Houston 77001

San Antonio 78206


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.

TENDERS <$------------------------ @----------- $-------------------------------P


fn )
(n )

(a )


Prices should be ex­
pressed on the basis of

three ^ecTmaTplac^
e. g., 99.925. Fractions
must not be used.

Denominations Desired
N um ber of


Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M a tu r ity Value

M ?

1,000 $.
5,000 ?-


B y maturing bills
held by_____________________

10,000 550,000 $-


P a y m e n t to be m a d e by_

.(a). $ 100,000 $.


Charge our reserve account on payment

(n ? 500,000 ?>
(a) $i.,000,000 ?-

I I D r a f t e n c l o s e d (Effectual delivery of enelooed dr»ft

(< ?
(a) $
(a) $

shall be on latest day which will p erm it p re s e n tm e n t In
o rd e r to obtain irrevocably collected funda on p a y m e n t
d ate)

Delivery Instructions .

( S u b s c r i b e r 's f u l l n a m e o r c o r p o r a t e ti t l e )

□ 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 AcC U
O nt

( d es
A dr s)
(A uthorized official s ig n a tu re an d title)

□ Ship to---------------------------

( 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 i b e r )


(A d d ress)

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
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 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 m ate­
rial, the tender may be disregarded.
(See re v e rse f o r ann o u n cem en t)

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102