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F ederal r eserve Bank of Dallas FIS C A L A G E N T O F T H E U N ITED S T A T E S DALLAS, TEX A S 7 5 2 2 2 C ir c u la r N o . 6 9 -2 6 0 O c t o b e r 22, 1969 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to th e follo w in g sta te m e n t giving details o f tw o issu e s o f Treasury bills: T h e T re a su ry D e p a rtm e n t, b y this p u b lic notice, invites ten d ers for tw o series of T re a s u ry bills to th e a g g reg a te a m o u n t o f $3,000,000,000, or th ereabouts, fo r cash a n d in exchange for T re a s u ry bills m a tu rin g O cto b er 30, 1969, in th e a m o u n t of $3,004,168,000, as follows: 91-D A Y B IL L S ( t o m a tu rity d a te ) to be issued O ctober 30, 1969, in th e a m o u n t of $1,800,000,000, o r th e re abouts, rep rese n tin g a n a d d itio n al a m o u n t of bills d a te d J u l y 31, 1969, a n d to m a tu re J a n u a r y 29, 1970, originally issued in th e a m o u n t of $1,100,720,000, th e a d d itio n al a n d original bills to be freely interchangeable. 182-D A Y B IL L S ( to m a tu rity d a te ) to be issued O ctober 30, 1S69, in th e a m o u n t of $1,200,000,000, or th e re abouts, rep rese n tin g a n a d d itio n al a m o u n t of bills d a te d A p ril 30, 1S69, a n d to m a tu re A pril 30, 1970, orig in ally issued in th e a m o u n t of $1,000,634,000 (a n a d d itio n al $500,151,000 was issued Ju ly 31, 1 9 6 9 ), th e ad d itio n a l a n d original bills to b e fre ely interchangeable. T h e bills of b o th series w ill b e issued o n a disco unt basis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r pro v id ed , a n d a t m a tu rity th e ir face a m o u n t will b e p a yable w ith o u t in terest. T h e y will be issued in b e a re r fo rm only, a n d in d e n o m in a tio n s o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu rity v a lu e ). T e n d e rs will b e received a t F e d e ra l R e se rv e B a n k s a n d B ranches u p to th e closing hour, o n e -th irty p.m ., E a s te rn S ta n d a rd T im e , M onday, O ctober 27, 1969. T e n d e rs will n o t be received a t th e T re a s u ry D e p a rtm e n t, W ashington. E a c h te n d e r m u st be for a n even m u ltip le of $1,000, a n d in th e case of c om petitive te n d e rs th e p rice offered m u st b e expressed on th e basis of 100, w ith n o t m ore th a n th ree decim als, e.g., 99.925. F ra c tio n s m a y n o t be used. I t is urged t h a t te n d e rs be m a d e on th e p rin te d form s a n d fo rw arded in th e special envelo pes w hich will b e su p p lied b y F e d e ra l R e se rv e B a n k s o r B ran ch es on a p p lic a tio n therefor. B an k in g in stitu tio n s generally m ay su b m it te n d e rs for a cc o u n t o f custom ers p ro v id ed th e nam es of th e custom ers are se t fo rth in such tenders. O th ers th a n ban k in g in stitu tio n s will n o t b e p e rm itte d to su b m it te n d e rs e x ce p t fo r th e ir own account. T e n d e rs will be receiv ed w ith o u t deposit fro m in co rp o ra ted b anks a n d tru s t com panies a n d from responsible a n d recognized d ealers in in v e s tm e n t securities. T en d e rs from o th ers m u st be a cc o m p an ied b y p a y m e n t o f 2 p e rc e n t of th e face a m o u n t of T re a s u ry bills a p p lie d for, unless th e ten d e rs a re a cc o m p an ied b y a n express g u a ran ty of p a y m e n t b y a n in co rp o ra ted b a n k or tr u s t com pany. Im m e d ia te ly a f te r t h e closing hour, te n d e rs w ill b e o p ened a t th e F e d e ra l R e se rv e B a n k s a n d B ran ch es, follow ing w hich p u b lic a n n o u n ce m en t w ill be m a d e b y th e T re a s u ry D e p a rtm e n t of th e a m o u n t a n d p rice ra n g e of a c c e p te d bids. T h o se su b m ittin g te n d e rs w ill be ad v ised of th e a cc ep ta n ce or re je c tio n thereof. T h e S e c retary of th e T re a s u ry expressly reserves th e rig h t to a cc ep t o r re je c t a n y or a ll tenders, in w hole o r in p a rt, a n d his a c tio n in a n y such re sp e c t shall b e final. S u b je ct to th e se reservations, no n c o m p e titiv e ten d e rs for each issue for $200,000 o r less w ith o u t sta te d p rice from a n y one b id d e r will be a c c e p te d in full a t th e average p rice (in th re e d ecim als) of a cc ep te d c o m p e titiv e bids fo r th e respective issues. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e bids m u st b e m ad e or c o m p le te d a t th e F e d e ra l R e se rv e B a n k on O ctober 30, 1969, in cash or o th e r im m e d ia te ly a v ailab le funds or in a like face a m o u n t of T re a su ry bills m a tu rin g O ctober 30, 1969. Cash a n d exchange te n d e rs will receiv e equal tre a tm e n t. C ash a d ju s tm e n ts will be m a d e for differences b etw een th e p a r v a lu e of m a tu r ing bills a ccep ted in exchange a n d th e issue p rice of th e new bills. T h e incom e d e riv e d from T re a su ry bills, w h e th e r in te re st or gain from th e sale o r o th e r disposition o f th e bills, does n o t h a v e a n y exem ption, as such, and loss from th e sale or o th e r disposition of T re a su ry bills does n o t have a n y special tre a tm e n t, as such, u n d e r th e In te rn a l R e v en u e Code of 1954. T h e bills are su b je ct to estate, inheritan c e, g ift or o th e r excise taxes, w h eth er F e d e ra l or S ta te , b u t a re e x em p t from all ta x a tio n now o r h e re a fte r im posed on th e p rin cip a l or in te re st th e re o f by a n y S ta te , o r a n y of th e possessions of the U n ite d States, o r b y a n y local tax in g a u th o rity . F o r p urposes of ta x a tio n th e a m o u n t of discount a t w hich T re a s u ry bills a re originally sold by th e U n ite d S tates is considered to b e in terest. U n d e r S ections 4 5 4 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e Code of 1954 th e a m o u n t of discount a t w hich b ills issued h e reu n d e r are sold is n o t con sid e red to accrue u n til such bills a re sold, re d ee m e d or otherw ise disposed of, a n d such bills are excluded from consideration as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insurance c o m p an ies) issued h e re u n d e r n e ed include in his incom e ta x re tu rn only th e difference b e tw ee n th e price p a id for such bills, w h e th er o n original issue o r on su b seq u e n t p u rch ase, a n d th e a m o u n t a c tu a lly re ce iv e d e ith e r u p o n sale o r re d e m p tio n a t m a tu rity d u rin g th e tax ab le y e a r fo r w hich th e r e tu r n is m ade, as o rd in a ry gain o r loss. T re a su ry D e p a rtm e n t C ircu lar No. 418 (c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e term s o f th e T re a s u ry bills a n d govern th e conditions of th e ir issue. C opies of th e c irc u lar m a y be o b tain e d from a n y F e d e ra l R eserv e B a n k or B ranch. In accord ance with the a b o v e a n n o u n c em en t, tenders will b e received at this b a n k a n d its b ranches a t El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, M o n d ay, October 27, 1 9 69. Tenders m a y not be entered by te le p h o n e . Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS A m ount, R a n g e a n d A p p ro x im ate Y ie ld of A c c ep ted T e n d e rs 91 -D ay Bills 182-D ay B ills D u e J a n u a r y 22, 1970 D u e A pril 23, 1970 $2,831,850,000-------------------------------------------------- T o ta l A p p lied F o r _____________ _________ __________ $2,490,137,000 $1,800,185,000----------------------------------------------------- T o ta l A c c ep ted ------------- -------------------------------------- $1,200,375,000 P ric e Y ield P ric e Y ield 98.255 6 .9 0 3 % ----------------------------------------- H ig h ----------------------------------- 96.341___ ... ____7.238% 98.231 6 .9 9 8 % ----------------------------------------- JLow________________________ 96.321____________ 7.277% 98.237--------------------6 .975% ( 1 ) --------------------------------- A verage----------------------------------96.327___________ .7.265% ( 1 ) ( 1 ) T h e s e rates are on a b a n k discount basis. T h e eq u iv a le n t coupon issue y ie ld s are 7 .2 0 % for th e 9 1 -d a y bills, and 7 6 5 % for the 1 82 -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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated July 31,1 9 6 9 M aturing January 29, 1970 To: Federal R eserve Bank, Station K, Dallas, T exas 75222 or— T he__________________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 ( D a te ) P u r su a n t to th e p r o v isio n s o f T r e a s u r y D e p a r tm e n t C ircular N o . 418 (c u r r e n t r e v isio n ) and th e p r o v isio n s o f the public an n ou n cem en t issu ed b y th e T r e a s u r y D e p a r tm en t, th e u n d e rsig n ed o ffers to p u rch a se T r ea su r y b ills in the am oun t sh o w n below , and a g r e e s to p a y fo r th e a m o u n t a llo tte d , on o r b efore th e issu e d ate, b y t h e m eth o d and a t t h e r a te ind icated. NONCOM PETITIVE T E N D E R $_ JNOT TO E X C E E D $200,000 N o n c o m p e titiv e te n d e r s for $200,000 or le s s from a n y o n e bidder, w ith ou t s ta te d price, w ill be a ccep ted in f u ll a t the a v e r a g e price (in th ree d e c im a ls) o f accep ted c o m p e titiv e bids. /_ _ _ @ --- $ P r ic e s should be e x p r e sse d on the b a s is of 100, w ith n o t m ore th a n t h r e e d c c im a l p l a c e s , e. g., 99.925. F r a c tio n s m u s t n o t b e used . COMPETITIVE T E N D E R S 3 HrW ' T E N D E R S M A Y N O T B E E N T E R E D B Y T E L E P H O N E . T E N D E R S B Y W IR E , I F R E C E IV E D B E F O R E T H E * C L O SIN G H O U R , A R E A C C E P T A B L E . P a y m e n t f o r th is issu e o f b ills can n o t b e m ad e b y c re d it to T r e a s u r y T a x and L oan A ccou n t. D e n o m in a tio n s D e sir ed N um ber of P ieces M aturity Value METHOD OF PA Y M EN T □ (a) ? 1,000 *■ 5,000 $- .© ? 10,000 ?- □ ■& $ 50,000 $. © ? B y m aturin g bills held by________________________________ P aym en t to be m ade by______________ □ Charge our reserve account on paym ent date I | D ra ft enclosed (E ffectual delivery o f enclosed d r a f t © $ 100,000 $■ .© $ 500,000 $. s h a l l be o n l a t e 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 !n o r d e r to o b t a i n i rr e v o c a b ly c o lle c te d f u n d a o n p a y m e n t d a te ) © $1 ,000,000 $. D elivery In stru ctio n s: □ □ □ ( 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 t i t l e ) Hold in Custody Account— Member banks for own account only Pledge to secure T reasury Tax and Loan Account (Address) B y( A u t h o r i z e d o f fi c ia l s i g n a t u r e a n d t i t l e ) Ship to------------ --- -------------------------- (For the account of, if tender is for another subscriber) (Address) IM PORTANT 1. N o te n d e r f o r le s s th a n $1,000 w ill be con sid ered an d e ach te n d e r m u s t be f o r a n am ou n t in m u ltip le s o f $1,000 (m a t u r it y v a lu e ) . 2 T en d ers sh ou ld b e forw a rd ed in an e n v e lo p e c le a r ly a d d ressed to th is b a r k or a p p ro p ria te branch a s F is c a l A g e n t o f th e ’ U n ite d S t a te s , w ith n o ta tio n on th e e n v e lo p e r ea d in g “T E N D E R F O R T R E A S U R Y O F F E R I N G .” S in ce e n v e lo p es r e c eiv e d w ith th is le g e n d w ill n o t be opened u n til a ft e r t h e c lo s in g tim e specified m th e public an n o u n cem en t, co m m u n i c a tio n s r e la tin g to o th e r m a tte r s should n o t b e en closed . E n v e lo p e s fo r s u b m ittin g ten d ers m a y be ob tain ed fr o m t h is ban k or a p p ro p ria te branch. 3. A n y qualified or co n d itio n a l te n d e r w ill b e rejected. 4 I f a corp oration m a k e s th e ten d er, t h e fo r m sh ou ld be sig n e d b y a n officer o f th e corp oratio n a u th o riz ed to m a k e th e ' te n d e r an d th e s ig n in g o f t h e fo r m b y a n officer o f th e co rp oration w ill b e co n stru ed a s a r ep r e se n ta tio n b y h im t h a t h e h a s b een so a u th orized . I f t h e te n d e r is m a d e b y a partn ersh ip i t should b e sig n e d b y a m e m b er o f th e firm , w h o should sig n in th e fo r m “ .................................................... , a copartnership, Dy................................................................................................................, a m em ber o f th e firm .” 5. T enders fr o m th o s e o th er th a n incorp orated b a n k s and tr u s t com panies o r resp o n sib le and reco g n ized d ea lers in in v e s t m e n t se c u r itie s w ill be disregard ed , u n le ss accom p anied by a dep o sit o f 2 p ercen t o f th e to ta l am ou n t (m a tu r ity v a lu e ) o f th e T r ea su r y b ills app lied for, or u n le s s th e te n d e r s are accom panied b y a n e x p r e s s g u a r a n ty o f fu ll p a y m e n t b y an incorporated bank or tr u st com pany. 6. I f th e la n g u a g e o f th is fo rm is c h a n g ed in a n y r esp e ct, w hich, in th e opinion o f th e S e c re ta ry o f th e T r ea s u r y is m a t e rial, th e te n d e r m a y be disregard ed . (See reverse for announcement)
@FedFRASER