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F e d e r a l R e ser ve Ba n k o f Da l l a s FISCAL AGENT OF THE UNITED STATES DALLAS, TEXAS 7 5 2 2 2 Circular N o. 69-267 O ctober 29, 1969 N E W O F F E R IN G - — T R E A S U R Y BILLS To A ll B a n k in g Institutions a n d O th e rs C o n ce rn e d in the Eleventh Fede ral R eserve District: Y o u r attention is invite d to the fo llo w in g statem ent g iv in g d e ta ils o f tw o issu e s of T re a su ry bills: T h e Treasury D epartm ent, b y this pu blic notice, invites tenders for two series o f Treasury bills to the aggregate am ount o f $3,000,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing N ovem ber 6, 1969, in the am ount of $2,902,422,000, as follow s: 9 1 -D A Y B IL L S (to m aturity date) to be issued N ovem ber 6, 1969, in the am ount of $1,800,000,000, or there abouts, representing an additional am ount o f bills dated August 7, 1969, and to mature February 5, 1970, originally issued in the am ount of $1,203,246,000, the additional and original bills to be freely interchangeable. 1 8 2 -D A Y B IL L S for $1,200,000,000, or thereabouts, to be dated N ovem ber 6, 1969, and to m ature M a y 7, 1970. T h e bills o f both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face am ount will be payable w ithout interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e ). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard T im e, M on day, N ovem ber 3, 1969. Tenders w ill not be received at the Treasury D epartm ent, W ashington. Each tender must be for an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed on the basis o f 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be made on the printed form s and forw arded in the special envelopes which will be supplied b y Federal R eserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account o f customers provided the names o f the customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their ow n account. Tenders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accom panied b y paym ent o f 2 percent o f the face am ount o f Treasury bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent b y an incorporated bank or trust com pany. Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which pu b lic announcem ent w ill be m ade b y the Treasury D epartm ent o f the am ount and price range o f accepted bids. Those subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f 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. S ubject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder w ill be accepted in full at the average price (in three decim als) o f accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids must be made or com pleted at the Federal R eserve Bank on N ovem ber 6, 1969, in cash or other im m ediately available funds or in a like face am ount o f Treasury bills m aturing N ovem ber 6, 1969. Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents w ill b e made for differences between the par value o f matur ing bills accepted in exchange and the issue price o f the new bills. T h e incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not have any exem ption, as such, and loss from the sale or other disposition o f Treasury bills does not have any special treatment, as such, under the Internal R even ue C ode o f 1954. T h e 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 im posed on the principal or interest thereof b y any State, or any o f the possessions o f the U nited States, or b y any local taxing authority. F or purposes o f taxation the amount o f discount at which Treasury bills are originally sold b y the U nited States is considered to be interest. U nder Sections 4 54 ( b ) and 1221 ( 5 ) o f the Internal R even ue C ode o f 1954 the amount o f discount at 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. A ccordingly, the owner o f Treasury bills (oth er than life insurance com panies) issued hereunder need include in his incom e 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 at m aturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular N o. 418 (current revision) and this notice, prescribe the terms o f the Treasury bills and govern the conditions o f their issue. C opies o f the circular m ay be obtained from any Federal R eserve Bank or Branch. In acc o rd a n ce w ith the a b o v e a n n o u n ce m e n t, tenders w ill be received at this b a n k a n d its b ra n c h e s a t El Paso, H o u sto n a n d San A n to n io up to tw e lve -th irty p.m . Central S ta n d a rd Time, M o n d a y , N o v e m b e r 3, 1969. T en ders m a y not be entered b y telephone. Y o u rs v e ry truly, P. E. C a ld w e ll Pre siden t LA ST P R E V IO U S O F F E R IN G O F T R E A S U R Y BILLS Am ount, R ange and A pproxim ate Y ie ld o f A ccep ted Tenders 91-D ay Bills 182-D ay Bills D ue January 29, 1970 D u e A pril 30, 1970 $2,946,070,000 T ota l A pp lied F or____________________________________$2,879,182,000 $1,800,104,000------------------------------------------------------- -Total_A ccep ted ______________________________________$1,200,454,000 P rice Y ield P rice Y ield 98.231----------------------6 .9 9 8 % ------------------------------------------- H igh _________________ 96.336______________ 7.247% 98.220-------------------- 7 .0 4 2 % -------------------------------------------- X o w _______________________ -9 6 .3 2 2 ______________ 7 .275% 98.223---------------------- 7.0 30 % ( 1 ) -----------------------------------Average---------------------------------- -9 6 .3 2 8 _____________ 7 .263% ( 1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 7.26% for the 91-day bills and 7 64% for the 182-day bills. (See reverse side for tender form) I 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 August 7 ,1 9 6 9 Maturing* February 5, 1970 T o : Federal Reserve Bank, Station K, Dallas, Texas 75222 or— Branch The ....... E l Paso 79999 H ouston 77001 ____ San A n ton io 78206 _______ (Date) Pursuant to the provisions o f T reasury D epartm ent Circular N o. 418 (current revision ) and the provisions o f the public announcement issued by the Treasury Departm ent, the undersigned offers to purchase T reasury bills in the amount shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by the m ethod and at the rate indicated. N ON CO M PETITIVE T E N D E R $_________________________________________ N O T TO E X C E E D $200,000 N oncom petitive tenders fo r $200,000 or less from any one bidder, without stated price, w ill be accepted in fu ll at the average price (in three decim als) o f accepted com petitive bids. @ Prices should be ex----------- pressed on the basis of $ COM PETITIVE T EN D ER S < ? ------------------------------@ -------------- $------------------------------------- - ftJe^decTmS0^ ” J (j»__________________ (g) ________ < ____________ ___________ j* e. g., 99.925. Fractions \ must not be used. K g T T E N D E R S M A Y NO T BE E N T E R E D B Y TE LE PH O N E. T E N D E R S B Y W IR E , IF R E C E IV E D B E F O R E TH E CLOSING H O U R, A R E A C C E P T A B L E . Denominations Desired Number o f Pieces by Maturity Value (5) $ 1,000 * («) $ Paym ent fo r this issue o f bills cannot be made credit to T reasury T ax and Loan Account. M ETH O D O F P A Y M E N T 5,000 _ (a) $ (5) $ □ 100,000 $ 500,000 $ Payment to be made by_ Charge our reserve account on payment date D raft enclosed (Effectual delivery o f enclosed draft 50,000 $ (3) $ By maturing bills held by____________________________________ □ 10,000 $ (5) $ □ □ shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date) .(5) $1 ,000,000 $ Delivery Instructions . □ □ □ (Subscriber’s full name or corporate title) Hold in Custody Account— Member banks for own account only Pledge to secure Treasury Tax and Loan AcCOUnt (A ddress) By(Authorized official signature and title) Ship to------------------------------------------------ (For the account of, if tender is for another subscriber) (Address) IMPORTANT 1. N o tender fo r less than $1,000 w ill be considered and each tender must be fo r an amount in m ultiples o f $1,000 (m aturity valu e). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as F iscal A g en t o f the United States, w ith notation on the envelope reading “ T E N D E R FO R T R E A S U R Y O F F E R IN G .” Since envelopes re ceived w ith this legend w ill not be opened until after the closin g tim e specified in the public announcement, com m uni cations relating to other m atters should not be enclosed. E nvelopes fo r subm itting tenders m ay be obtained from this bank or appropriate branch. 3. A n y qualified or conditional tender w ill be rejected. 4. I f a corporation makes the tender, the form should be signed b y an officer o f the corporation authorized to m ake th tender and the signing o f the form by an officer o f the corporation will be construed as a representation b y him that he has been so authorized. I f the tender is m ade b y a partnership it should be signed by a m em ber o f the firm, who should sign in the form “ ............................................... , a copartnership, b y .......................................................................................... a m em ber o f the firm.” 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest m ent securities w ill be disregarded, unless accompanied b y a deposit o f 2 percent o f the total amount (m aturity value) o f the T reasury bills applied for, or unless the tenders are accom panied b y an express guaranty o f fu ll paym ent by an incorporated bank or trust com pany. 6. I f the language o f this form is changed in any respect, which, in the opinion o f the Secretary o f the Treasury is m ate rial, the tender m ay be disregarded. (See reverse for announcement)