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F ederal Reserve bank of Dallas

Circular No. 69-239
Septem ber 17, 1969
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Y ou r attention is invited to the following statement giving details o f tw o issues of Treasury bills:
T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount
of $3,000,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Septem ber 25, 1969, in the am ount of
$3,003,961,000, as follows:
92-DAY B IL L S (to m aturity date) to be issued September 25, 1969, in th e am ount of $1,800,000,000, or there­
abouts, representing an additional am ount of bills dated June 26, 1969, and to m ature D ecember 26, 1969,
originally issued in the am ount of $1,100,270,000, 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 25, 1969, and m ature M arch 26, 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 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 Banks and Branches up to th e closing hour, one-thirty p.m., Eastern
D aylight Saving Tim e, Monday, Septem ber 22, 1969. Tenders will not be received a t the Treasury D epartm ent, Washington.
Each tender m ust be for an even multiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on
th e basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged th a t tenders be m ade
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 may 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 w ithout deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of
Treasury 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 m ade 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 th e T reasury 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 made or completed a t the Federal Reserve B ank on Septem ber 25, 1969,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing Septem ber 25, 1969. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur­
ing bills accepted in exchange and th e issue price of the new bills.
T he income derived from Treasury bills, w hether interest or gain from the 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 h e bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, b u t 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 eny local taxing authority. F or purposes of taxation the 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 Sections 454 (b ) and
1221 (5 ) of the Internal Revenue Code of 1954 tha 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 the 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 (current revision) and this notice, prescribe the 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 ab ove announcement, tenders w ill be received at this b ank an d its branches a t El Paso,
Houston and San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M o n d a y , September 22, 1969. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
Amount, R ange and Approximate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue D ecem ber 18, 1969
D ue M arch 19, 1970
$2,670,856,000........................................... ................ _Total Applied F or_______________________________ $2,132,569,000
$1,800,608,000_____________________ __________-Total Accepted________________________________ $1,200,394,000
7.117% ______ __________________ H igh______________________ 96.306___________ 7.307%
98.185____________ 7.180% _________ __ _____________ Low______________________ 96.289___________ 7.340%
98.191____________ 7.156% ( 1 ) ____________________Average_____________________96.295___________ 7.329% (1 )
( 1 ) T h e s e r a te s a r e o n a h a n k d isc o u n t h a sis. T h e e q u iv a le n t c o u p o n issue y ield s a re 7 . 3 9 %
t h e 1 8 2 - d a y b ills .

fo r t h e 9 1 - d a y bills, a n d

7 .7 2 %


(See reverse side for tender form)

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


Dated September 25,1969

Maturing March 26, 1970

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
The-------- --- --------------------------------------Branch
El Paso 79999

Houston 77001

San Antonio 78206

( D a te )

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.


_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) o'- accepted competitive bids.
Prices should be ex ­
pressed on the basis of
100, with not more than
------------------------------1 th ree decim al p laces,
e. g ., 99.925. Fractions
must not be used.

($ -


-@ _

($ -

Denominations Desired
N um ber of
P ie c e s

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

Maturity Value

(ffi $
<> $
<> $



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


50,000 $(a) $ 100,000 $(a) $ 500,000 $-

B y maturing bills
held by_____________________________ _


5,000 $10,000 $.

Charge our reserve account on payment


| | D r a f t e n c lo se d

?1:,000,000 ?Delivery Instructions:

( S u b s c r ib e r ’s f u ll 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 Account

(Effectual delivery of enclosed draft

shall be on latest day which will p e rm it pre sen tm en t in
order to o b ta in irrevocably collected fu n d s on p a y m e n t



Ship to--------------------------

(A uthorized official s ig n a tu re a n d title)
(F or the account of, if te n d e r is for a n o th e r subscriber)


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 mate­
rial, the tender may be disregarded.

(See reverse for announcement)

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