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F ederal Reserve Ba n k o f Dallas
FI S C A L . A G E N T O F T H E U N I T E D S T A T E S

DALLmS, TEXAS

75222
C ir c u la r N o . 6 9-262
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 the fo llo w in g sta te m e n t giving details o f tw o issu e s of Treasury bills:
T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, invites te n d e rs for two series of T re a su ry bills to th e a ggregate a m o u n t
of $1,500,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g O c to b er 31, 1969, in th e a m o u n t of
$1,502,309,000, as follows:
273-D A Y B IL L S (to m a tu rity d a te ) to be issued O ctober 31, 1969, in th e a m o u n t of $500,000,000, or th e re ­
abouts, re p re se n tin g an ad d itio n al a m o u n t of bills d ated J u ly 31, 1969, a n d to m a tu re J u ly 31, 1970, originally
issued in th e a m o u n t of $1,202,063,000, th e a d d itio n al a n d original bills to b e fre ely interchangeable.
365-D A Y B IL L S for $1,000,000,000, o r th ere ab o u ts, to be d a te d O cto b er 31, 1969, a n d to m a tu re O c to b er 31, 1970.
T h e bills of b o th series w ill be issued o n a disco u n t basis u n d e r c o m p e titiv e a n d no n c o m p e titiv e bid d in g as h e rein afte r
p rovided, a n d a t m a tu rity th e ir face a m o u n t w ill b e p a yable w ith o u t interest. T h e y will be issued in b e a re r form only, a n d in
d e n o m in a tio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu r ity v a lu e ).
T e n d e rs w ill 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 ra n ch e s u p to th e closing hour, o n e -th irty p.m ., E aste rn
S ta n d a rd T im e , T u esd ay , O cto b er 28, 1969. T e n d e rs w ill not be received a t th e T re a su ry D e p a rtm e n t, W ashington. E ac 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 o m p e titiv e ten d e rs th e p rice offered m u st b e expressed on the
basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t be used. (N o tw ith sta n d in g th e fa c t t h a t th e oney e a r bills will ru n for 365-days, th e discount ra te w ill be c o m p u te d on a b a n k discount basis of 360-days, a s is c u rren tly th e
p ra ctice on a ll issues of T rea su ry bills.) I t is u rg e d th a t ten d e rs b e m ad e on th e p rin te d form s a n d fo rw a rd ed in th e special
envelopes w hich will b e supplied by F e d e ra l R e se rv e B anks o r B ra n ch e s on a p p lic a tio n therefor.
B a n 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 e d th e nam es of th e custom ers a re
se t ro rth in such tenders. O thers th a n b a n 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 except for th e ir own account.
T e n d e rs will be receiv ed w ith o u t deposit from in co rp o ra ted banks a n d tru s t com panies a n d from responsible a n d recognized
d ealers in in v estm e n t securities. T e n d e rs fro m o th ers m u st be a cc o m p an ied b y p a y m e n t of 2 p e rc e n t of th e fa ce a m o u n t of
T re a s u ry bills a p p lie d for, unless th e te n d e rs a re accom panied by a n express g u a ran ty of p a y m e n t by 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 th e closing hour, te n d e rs w ill be opened a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich
p u b lic an n o u n ce m en t w ill b e m ad e b y th e T re a su 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 ten d e rs will be advised of th e a cc ep ta n ce o r rejection thereof. T h e S ecretary of th e T re a su ry expressly reserves th e
rig h t to a cc ep t or 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 ctio n in a n y such re sp e c t shall b e final. S u b je ct to
th ese reservations, no n co m p etitiv e ten d e rs fo r each issue for $200,000 or less w ith o u t sta te d p rice from a n y one b id d e r will be
a cc ep te d in full a t th e a v erage price ( i n th re e decim als) of accepted co m p e titiv e bids fo r th e re sp e ctiv e issues. S e ttle m e n t for
a cc ep te d ten d e rs in accordance w ith th e bids m u st b e m a d e or c o m p leted a t th e F e d e ra l R eserv e B a n k on O c to b er 31, 1969,
in cash o r o th e r im m e d ia te ly available funds o r in a like face a m o u n t of T re a su ry bills m a tu rin g O ctober 31, 1969. C ash a n d
exchange ten d e rs w ill receive equal t r e a t m e n t Cash a d ju stm e n ts will be m ad e for differences b etw een th e p a r v a lu e of m a tu rin g
bills a cc ep te d 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 s u ry bills, w h e th e r interest o r gain from th e sale or o th e r disposition of th e bills, does n o t
h a v e a n y exem ption, a s such, and loss from th e sale o r 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 e n u e C ode of 1954. T h e bills are su b ject to estate, in h eritan ce, gift o r o th e r excise taxes, w h eth er
F e d e ra l o r S ta te , b u t a r e e x em p t from all ta x a tio n now or h e re a fte r im posed on th e p rin c ip a l o r in te re st th e re o f b y a n y S tate,
or a n y of th e possessions of th e U n ite d States, or b y a n y local taxing au th o rity . F o r p urposes of tax a tio n th e a m o u n t of discount
a t w hich T re a su ry bills a r e originally sold by th e U n ite d S ta te s is considered to b e interest. U n d e r Sections 454 ( b ) a n d 1221 ( 5 )
of th e In te rn a l R e v en u e C ode of 1954 the a m o u n t of discount a t which bills issued h e re u n d e r a re sold is n o t considered to
accrue u n til such bills are sold, re d ee m e d o r otherw ise disposed of, a n d such bills are excluded from consideration as c ap ital
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 in clude in his
incom e ta x re tu rn only th e difference b etw een th e p rice p a id for such bills, w h e th er o n original issue o r o n su b seq u e n t purchase,
a n d th e a m o u n t a c tu a lly received e ith e r u p o n sale or re d e m p tio n a t m a tu rity d u ring th e tax a b le y e ar for w hich th e re tu rn is
m ad e , as o rd in ary gain o r losa.
T re a su ry D e p a rtm e n t C ircular N o. 418 (c u rre n t revision) a n d th is notice, pre sc rib e th e te rm s of th e T re a s u ry bills a n d
govern th e conditions of th e ir issue. Copies of th e circular m ay b e o b ta in e d from a n y F e d e ra l R e se rv e B a n k or B ranch.

In a cco rd a n ce with the a b o v e an n ou n c em en t, tenders will b e received a t this b a n k an d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, Tuesday, October 2 8 , 1969. Tenders m a y not
be en tered by tele p h o n e .

Yours very truly,
P. E. Coldwell
President

(See reverse sid for tender form)
e

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

TENDER FOR ADDITION TC TREASURY BILLS

273 DAYS TO MATURITY
Dated July 31, 1969

M aturing July 3 1 ,1 9 7 0

To: Federal R eserve Bank, S tation K, Dallas, T exas 75222
or —
The__________________________________ B r a n c h
E l P a s o 79999

H o u sto n 77001

__________________________________________

S a n A n to n io 78206

(Date)

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 en t C ircular N o . 418 (c u r re n t r e v isio n ) and th e p r o v isio n s o f th e
public a n n ou n cem en t issu e d by th e T r ea su r y D e p a r tm en t, th e u n d ersign ed oil'ers t o p u rch a se T r ea su r y b ills in the am oun t
sh ow n below , an d 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 or b efore th e issu e d ate, b y th e m eth od and a t th e r a te ind icated.

NONCOM PETITIVE T E N D E R $________________________________NOT TO EXC E E D $200,000
N o n c o m p e titiv e te n d e r s fo r §200,000 or le s s lro m a n y on e bidder, w ith o u t sta te d price, w ill be accep ted in fu ll a t th e a v e r a g e
price (in three d e c im a ls) o f a ccep ted c o m p e titiv e bids.
P r ic e s should be e x ­
(?
(n )
p r e sse d on th e b a s is o f
?

(rb
COMPETITIVE T E N D E R S '? -------------------------- @ ________ $_
?
h
'

@

__________________

-

9

tT r U ^ d e d m a ^ ^ e s .
e. g., 99.925. F r a c tio n s
m u s t n o t be used.

-

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 LO SIN G H O U R , A R E A C C E P T A B L E .
D e n o m in a tio n s D esired

Number o f
Pieces

P a y m en t fo r th is issu e o f b ills ca n n o t b e m ade
b y credit to T r ea s u r y T a x and L oan A ccount.

Maturity Value

_______ @ $

1,000 $ __________________

(5) $

5,000 $______________

□

10’000 ?---------------------50,000 $_

□

-®

?
$

M ETHOD OF PA Y M E N T

_______ @ $ 100,000 $_______________
nnn t
-----------@ if 500,000 $---------------------__________ (fl)

rvrtrt r \ ( \ r \
$ I ,U U U jv U U

B y m aturing bills
held by_
P aym ent to be made by_
___________________________ _

□

Charge our reserve account on paym ent
date
[ I D raft enclosed (Effectual delivery of eneloaad

q*
$ ---------------------------------

draft shall be on latent day which will permit present*
ment in order to obtain irrevocably collected funda on
payment date)

Delivery Instructions:
( S u b s c r i b e r ’s f u ll 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 Treasury T ax and
Loan Account

-------------------------------- (Address)---------------By.______________________________________
(Authorized official signature and title)

Ship to_

(F or the account of, if tender ia for another subscriber)

(Address)

IMPORTANT
1.
2.

3.
4.

5.

6.

N o ten d er fo r le s s th a n $1,000 w ill b e considered and ea ch ten d er m u s t be f o r a n am o u n t in m u ltip le s o f $1,000 (m a tu r ity
v a lu e ).
T en d ers sh ou ld be forw ard ed in an e n v e lo p e c le a r ly ad d ressed to t h is bank or ap 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 t e s , w ith n o ta tio n on t h 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 e s
received w ith th is leg e n d w ill n o t b e opened u n til a ft e r th e c lo s in g tim e specified in th e public a n n ou n cem en t, c o m m u n i­
c a tio n s r e la t in g to o th e r m a tte r s sh o u ld n o t be en clo sed . E n v e lo p e s fo r su b m ittin g te n d e r s m a y b e ob ta in ed fr o m t h is
bank or a p p ro p ria te branch.
A n y qualified or con d ition al ten d er w ill be rejected.
I f a co rp oration m a k e s the ten d er, th e fo r m should be sig n e d by a n officer o f th e corp oration au th orized to m a k e t h e
ten d er and th e s ig n in g o f th e fo r m b y an officer o f th e corp oration w ill be con stru ed a s a r ep re se n ta tio n by him t h a t h e
h a s been so a u th o rized . I f th e te n d e r is m ad e by a p a r tn e r sh ip it should be sig n e d b y a m em b er o f t h e firm , w h o
should s ig n in th e fo r m “ ................................................................ . a cop artn ersh ip , b y ....... ..................................................................................
a m e m b er o f th e firm ”.
T enders fr o m th o s e oth er th a n inco rp orated b an ks and t r u s t c om p an ies or r esp o n sib le an d rec o g n iz ed 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 s s accom p anied by a dep o sit o f 2 p e r ce n t o f th e to ta l a m ou n t (m a tu r ity v a lu e )
o f th e T r ea su r y b ills ap p lied fo r , or u n le s s th e te n d e r s a r e accom p an ied by 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
incorp o rated bank or tr u st com pany.
I f th e la n g u a g e o f th is form is c h a n g e d in a n y r esp ect, w h ich , in t h e opin ion o f th e S e c r e ta r y o f th e T r e a s u r y is
m aterial; th e te n d e r m a y be disrega rd ed .

(See reverse for announcem
ent)

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