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F ederal Reserve Bank o f Dallas
F IS C A L A G E N T O F T H E U N ITE D S T A T E S

DALLAS, TEXAS 75222
C ircu lar No. 69-274
N o v e m b er 5, 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 llow in g state m e n t giving details of tw o issues 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, in v ites tenders fo r tw o series of T re a su ry bills to th e aggregate am o u n t
o f $3,000,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a s u ry bills m a tu rin g N o v e m b e r 13, 1969, in th e a m o u n t of
$2,890,203,000, a s follows:
92-D A Y B IL L S (to m a tu rity d a te ) to b e issued N o v e m b er 13, 1969, in th e a m o u n t of $1,800,000,000, o r th e re ­
abouts, re p 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 ugust 14, 1969, a n d to m a tu re F e b ru a ry 13, 1970,
o riginally issued in th e a m o u n t o f $1,199,449,000, th e a d d itio n al a n d original bills to be freely in terchangeable.
182-D A Y B IL L S for $1,200,000,000, o r th ere ab o u ts, to be d a te d N o v e m b e r 13, 1969, a n d to m a tu re M a y 14, 1970.
T h e b ills of b o th series will b e issued on a discount 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 bid d in g as h e rein afte r
p ro v id ed , a n d a t m a tu rity th e ir face a m o u n t will be p a y ab le 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 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 o n d a y , N o v e m b er 10, 1969. T e n d e rs will n o t b e receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington.
E a c h te n d e r m u st b e for a n e v en m u ltip le of $1,000, a n d ip th e case of co m p e titiv e 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 re e decim als, e.g., 99.925. F ra c tio n s m ay not b e used. I t is u rged t h a t te n d e rs b e m ade
on th e p rin te d form s a n d fo rw arded in th e special envelopes w hich w ill b e supplied b y F e d e ra l R eserv e B a n k s o r B ran ch es on
a p p lic a tio n therefor.
B a n k in g in stitu tio n s generally m a y su b m it te n d e rs for a cc o u n t of 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 b a n k in g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs ex cep t for th e ir own account.
T e n d e rs will b e receiv ed w ith o u t d e p o sit from in co rp o ra ted b anks a n d tr u 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 from 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 face 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 b y 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 fte r th e d o s in g hour, te n d e rs w ill b e o p e n ed a t th e F e d e ra l R eserv e B a n k s a n d B ranches, follow ing w hich
p u b lic a n 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 price range of a cc ep te d bids. T h o se
su b m ittin g ten d e rs w ill b e advised of th e a cc ep tan ce o r re je ctio n thereof. T h e S e c retary 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 o r all tenders, in whole o r in p a rt, a n d his a ctio n in a n y such re sp e c t shall be final. S u b je ct to
th e se reservations, no n c o m p e titiv e ten d e rs fo r each issue fo r $200,000 or less w ith o u t sta te d p rice from a n y one b id d er will be
a cc ep te d in full a t th e a v era g e p rice ( i n th re e de cim als) of a ccep ted c o m p e titiv e bids for th e respective issues. S e ttle m e n t for
a c c e p te d te n d e rs in accordance w ith th e bids m u st be 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 o n N o v e m b er 13, 1969,
in cash o r o th e r im m e d ia te ly a v ailab le funds o r in a lik e face a m o u n t of T re a su ry b ills m a tu rin g N o v e m b er 13, 1969. C ash a n d
exchange te n d e rs w ill receive e qual tre a tm e n t. Cash a d ju s tm e n ts will be m ad e for differences betw een th e p a r v alue of m a tu r ­
ing b ills 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 fro m T re a su ry bills, w h e th e r in te re st o r gain fro m th e sale o r o th e r disposition of th e bills, does n o t
h a v e a n y exem ption, as 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 en u e Code of 1954. T h e bills are su b je c t to estate, inheritance, g ift o r o th e r excise taxes, w h e th er
F e d e ra l o r S tate, b u t a re e x em p t from all tax a tio n now or h e re a fte r im p o sed on th e p rin cip a l o r in te re st th e re o f b y a n y S tate,
o r a n y of th e possessions of th e U n ite d States, or b y a n y local tax in g a u th o rity . F o r purposes of tax a tio n th e a m o u n t of disco unt
a t w hich T re a su ry bills a re originally »old b y th e U n ite d S tates is c onsidered to b e in te re st. U n d e r S ections 4 5 4 ( b ) a n d
1221 ( 5 ) of th e In te r n a l R e v e n u e Code of 1954 th e a m o u n t of discount a t w hich bills issued h e reu n d e r a re 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 o r otherw ise disposed of, a n d such bills are excluded from c onsideration as
c a p ita l assets. A ccordingly, th e ow ner of T re a su ry b ills (o th e r th a n life insurance c o m p a n ies) issued h e re u n d e r n e ed include
in h is incom e tax r e tu r n only th e difference b etw een th e p rice p a id for such bills, w h e th e r on original issue o r o n su b seq u en t
p u rch ase, a n d th e a m o u n t actu 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 r ity d u rin g th e tax ab le y e a r fo r w hich th e
re tu r n is m ade, as o rd in a ry gain or loss.
T re a su ry D e p a rtm e n t C ircu lar No. 418 ( c u r re n t rovision) 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 o f th e ir issue. C opies of th e circular m ay be 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 o r B ranch.

In a cco rd an ce with the a b o v e an n o u n c em en t, tenders will b e received a t this b a nk an d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m.. Central Standard Time, M on d a y, N ov em b e r 10, 1 9 6 9 . Tenders m a y not
be entered by t ele 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 ield o f A ccepted T en d e rs
9 1 -D a y B ills
182-D ay Bills
D u e F e b r u a ry 5, 1970
D u e M a y 7, 1970
$2,992,938,000-------------------------------------------------- T o ta l A p p lied F o r _________________________________ $2,293,726,000
$1,800,271,000---------------------------------------------------- .T o tal A ccep ted____ ____________________________ $1,200,622,000
P ric e
Y ie ld
P ric e
Y ield
98.245
6 .9 4 3 % ------------- ----------------------------H ig h ------------------------------------96.341____________ 7.238%
98.224
7 .0 2 6 % ------------------------------------------ Low------------------------------------ 96.310____________ 7.299%
98.231—----------------- 6.998% ( 1 ) --------------------------------- A verage--------------------------------- 96.319____________ 7.281% ( 1 )
( 1 ) T h e s e rates are in a b ank d isco u n t basis. T h e eq u iv ale n t cou p on issue y ie ld s are 7 .2 2 % for th e 9 1 - d a v b ills an d 7 6 6 % fo r the
1 8 2 -day bills.
~
...... . , ,,

(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 TO TREASURY BILLS

92 DAYS TO MATURITY
Dated A u gu st 14, 1969

M aturing F ebruary 13, 1970

To: Federal R eserve Bank, Station K, Dallas, T exas 75222
or—
T he__________________________________ Branch
E l P a so 79999

H o u sto n 77001

S a n A n ton io 78206

(D a te )

P u r su a n t to t h 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 re 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 e d 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 rc h a se T r e a s u r y b ills in th e am oun t
sh o w n below , and a g r e e s to p a y f o r th e a m o u n t a llo tte d , on or before th e issu e d ate, by th e m eth o d and a t th e r a te ind icated.

_NOT TO E X C E E D $200,000

NONCOMPETITIVE T E N D E R $_

N o n co m p etitiv e te n d e r s for $200,000 or le s s from a n y o n e bidder, w ithou t s ta te d price, w ill be accep ted in fu ll a t the a v e r a g e
price ( in th ree 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 ­
p r e sse d on th e b a s is o f
100, w it h n o t m o re th a n
t h r e e d e 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 .

(a)

COMPETITIVE T E N D E R S
$

@

$

pqgr5 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 ca n n ot b e m ad e
b y c re d it to T r ea su r y T a x and L oan A cco u n t.

D e n o m in a tio n s D e sir ed
Number of
Pieces

Maturity V a lu e

$
< ?
8)
(a) $

METHOD OF PAYM ENT

1,000 9
5,000
10,000 ¥
50,000 $

O ?

□
□
□

Charge our reserve account on paym ent
date
| | D r a ft enclosed (Effectual delivery of enelo««d draft

@ $ 100,000 $
(a) $ 500,000 $
(5) $1 ,000,000 $

s h a ll be o n la t e s t day w h ic h w ill p e r m i t p r e s e n t m e n t in

order to obtain irrevocably collected funds on payment
date)

D elivery Instructions:
□

B y m aturing bills
held by________________________________
P aym ent to be m ade by______________

(Subscriber’s fu ll name or corporate title)

Hold in Custody Account— Member
banks for own account only

□

Pledge to secure Treasury T ax and
Loan Account

□

(Address)

B y-

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

(Authorized official signature and title)
(For the account of, if tender ia for another subscriber)
(Address)

IM PORTANT
1. N o te n d e r fo r le s s th a n $1,000 w ill be considered an d each te n d e r m u s t be f o r a n a m o u n t in m u ltip le s o f $1,000 (m a t u r ity
v a lu e ) .
2. T en d ers sh o u ld b e fo r w a rd ed in an e n v e lo p e c le a r ly a d d ressed to t h is bank 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 ta t e 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 c e e n v e lo p es r e ­
ceived w ith t h is le g e n d w ill n o t be opened u n til a f te r t h 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 ou ld n o t b e en clo sed . E n v e lo p e s f o r su b m ittin g te n d e r s m a y be o b tained fr o m t h is
ban k or a p p ro p ria te branch.
3. A n y qualified or con d ition al ten d er w ill b e rejected.
4. I f a corp oration m a k e s th e ten d er, th e fo r m should be s ig n e d by an officer o f th e corp oration a u th orized to m a k e t h e
te n d e r and t h e s ig n in g o f th e fo r m by a n officer o f th e co rp o ra tion w ill be con stru ed a s a r e p r e se n ta tio n b y h im t h a t
h e h a s b een so au th orized . I f th e te n d e r is m ad e b y a p a rtn ersh ip i t should b e sig n e d b y a m e m b e r o f th e firm , w h o
should s ig n in th e fo r m “ ........ ..........................................., a cop a rtn ersh ip , b y ................................................................................................................ .
a m e m b er o f th e firm .”
5. T en d ers fr o m t h o s e o th e r th a n incorp orated b a n k s and t r u s t com panies or resp o n sib le and r ec o g n iz ed d e a ler s in in v e s t­
m e n t se c u r itie s w ill be disrega rd ed , u n le s s accom p anied b y a d ep 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 t h e T r e a s u r y b ills app lied fo r , or u n le s s th e te n d e r s a r e accom p anied 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 a n
incorp orated ban k or tr u s t com pany.
6. I f t h e la n g u a g e o f th is fo rm is ch a n g ed in a n y r esp e ct, w h ich, in th e opinion o f th e S e c r e ta r y o f th e T r e a s u r y i s m a t e ­
rial, th e te n d e r m a y be d isregard ed .

(See reverse for announcem
ent)

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