The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal reserve Bank of Dallas F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEXAS 75222 C irc u la r No. 69-290 N o v e m b er 26, 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 of tw o issues o f Treasury bills: T h e T re a su ry D e p a rtm e n t, b y th is public notice, in v ites te n d e rs for two series of T re a s u ry bills to th e aggregate a m o u n t o f $3,000,000,000, o r th ere ab o u ts, fo r cash a n d in exchange for T re a s u ry bills m a tu rin g D e c e m b e r 4, 1969, in th e a m o u n t of $2,903,767,000, a s follow s: 91-D A Y B IL L S ( to m a tu rity d a te ) to b e issued D ecem b er 4, 1969, in th e a m o u n t of $1,800,000,000, or th e re abouts, re p re se n tin g a n a d d itio n al a m o u n t o f bills d a te d S e p te m b e r 4, 1969, a n d to m a tu re M a rc h 5, 1970, originally issued in th e a m o u n t of $1,201,020,000, th e a d d itio n al a n d original bills to b e freely in terchangeable. 182-D A Y B IL L S for $1,200,000,000, or th ere ab o u ts, to be d a te d D e c em b er 4, 1969, a n d to m a tu re J u n e 4, 1970. T h e bills of b o th series will b e issued on 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 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 w ill b e p a y ab le w ith o u t interest. T h e y will b e issued in b e are 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 r ity v a lu e ). T en d e rs w ill b e receiv ed 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 , D e c em b er 1, 1969. T e n d e rs w ill n o t b e re ce iv e d 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 e v en m u ltip le of $1,000, a n d in th e case of c o m p e titiv e ten d ers th e p rice offered m u st be expressed on t h e basis of 100, w ith n o t m o re th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t b e used. I t is urged t h a t te n d e rs be m ad e o n th e p rin te d form s a n d fo rw arded in th e special envelopes w hich will be su p p lied b y F e d e ra l R e se rv e B a n k s or 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 a y su b m it te n d e rs fo r account of custom ers p ro v id ed th e nam es o f th e custom ers are s e t fo rth in such ten d ers. O th e rs th a n b a n k in g in stitu tio n s w ill n o t b e p e rm itte d to su b m it ten d e rs e xcept for th e ir ow n account. T e n d e r s w ill be received w ith o u t d e p o sit from inco rp o ra ted b a n k s a n d tr u s t com panies a n d from responsible a n d recognized d e ale rs in in v e stm e n t securities. T e n d e rs from others m u st b e a ccom panied by 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 a ccom panied b y an express g u a ran ty of p a y m e n t b y an 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 closing hour, te n d e rs will b e opened 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 an n o u n ce m en t will be 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 cc ep te d bids. T hose su b m ittin g ten d e rs w ill b e advised o f th e acceptance or re je ctio 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 ccep t o r re je c t a n y o r all ten d ers, in w hole or in p a rt, a n d his a ctio n in a n y such re sp e ct shall be final. S u b je c t to th e s e reservations, n o n c o m p e titiv e te n 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 er will be a c c e p te d in full a t th e a v era g e p rice ( in th ree d ecim als) of a cc ep te d 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 o r com pleted a t th e F e d e ra l R e se rv e B a n k o n D e c e m b e r 4, 1969, in cash or o th er im m e d ia te ly a v ailab le funds o r in a like face a m o u n t o f T re a s u ry bills m a tu rin g D e c em b er 4, 1969. C ash a n d exchange te n d e rs w ill receive e qual tre a tm e n t. C ash a d ju s tm e n ts will b e m ad e for differences b e tw ee n th e p a r v alue of m atu rin g bills a cc ep te d in exchange a n d th e issue price 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 or o th e r disposition of th e bills, does n o t h a v e a n y exem ption, as such, a n d loss from th e sale or o th e r disposition of T re a s u ry bills does n o t h a v e a n y special tre a tm e n t, a s such, u n d e r th e In te rn a l R e v en u e C ode of 1954. T h e bills a re su b ject to e state, inheritance, g ift or o th er excise taxes, w h eth er F e d e ra l or S ta te , b u t a re e x e m p t from a ll tax a tio n now o r h e re a fte r im posed 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 taxing au th o rity . F o r pu rp o ses 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 o riginally sold b y th e U n ite d S ta te s is considered to be interest. U n d e r S ections 4 5 4 ( b ) and 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 bills issued h e reu n d e r a re sold is n o t con sid e re d to accrue u n til such b ills are sold, re d ee m e d or o therw ise disposed of, a n d such bills a re excluded fro m 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 in su ran ce com panies) 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 p rice p a id fo r such bills, w h e th er on original issue or on su b seq u e n t p u rch ase, a n d th e a m o u n t a ctu a lly receiv ed e ith e r u p o n sale or re d e m p tio n a t m a tu rity durin g th e tax a b le y e ar for w hich th e re tu rn is m ade, a s o rd in ary gain or loss. T re a su ry D e p a rtm e n t C ircu la r No. 418 (c u rre n t re v isio n ) a n d th is notice, prescribe th e te rm s of th e T re a s u ry bills and g o vern th e conditions of th e ir issue. C opies of th e c irc u la r 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 accordance 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 ank a n d its branches a t El Paso, Houston a n d San Antonio up to twelve-thirty p.m.. Central Standard Time, M on d ay, D ecem ber 1, 1969. Tenders m a y not be entered by t ele p h o n e . Yours very truly, P. E. C old well 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 ccepted T e n d e rs 9 0-D ay B ills 181-D ay Bills D u e F e b r u a ry 26, 1970 D u e M a y 28, 1970 $2,733,250,000_________________________________T o ta l A p p lied F o r ....................... ........................ ................. $3,392,456,000 $1,800,458,000__________________________________ T o ta l A ccepted.._____ ________ ______ ______ ______ $1,201,344,000 P ric e Y ie ld P ric e Y ield 98.178 7 .2 8 8 % ----------------------------------------- H ig h --------------- ---- ----------------9 5 .9 6 8 ......................._8.019% 98.119 7 .5 2 4 % ----------------------------------------- Low ------------------ --------- --------95.962_____________ 8.031 % 98.131--------------- .7 .476% ( 1 ) . ------------------------------- A verage---------------------------------- 95.964____________ 8 .027% ( 1 ) ( 1 ) T h e s e rates are o n 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 .7 2 % for th e 9 0 -d a y b ills, and 8 .4 8 % for the 1 81 -d a y bills. ( S e e r e v e r s e s id e f o r t e n d e r f o r m ) 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 D ated Septem ber 4,1 9 6 9 M aturing March 5 ,1 9 7 0 T o : Federal R eserve Bank, Station K, Dallas, T exas 75222 or— The__________________________________ Branch E l P a so 79999 H o u sto n 77001 S a n A n to n io (Date) 78206 P u r s u a n t to t h e p r o v isio n s o l T r e a s u r y D e p a r tm e n t C ircu lar 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 p u blic a n n o u n ce m en t issu e d by tho T r e a s u r y D e p a r tm en t, th e u n ch rsig n ed offers to p u rc h a se T r e a s u r y b ills in the am ou n t sh o w n below , an d 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 b efore th e issu e date, b y th e m ethod a n d a t th e r a te in d icated . NONCOMPETITIVE T E N D E R $_ JVOT 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 fo r $200,000 or le s s from an y on e bidder, w ith o u t s ta te d price, w ill b e a ccep ted in fu ll a t the a v e r a g e p rice ( in th r e e d e c im a ls) o f a ccep ted c o m p e titiv e bid s. _ ?■ COMPETITIVE T E N D E R S f( $1 h _ (a) (a) --- 11----------------$ ? P r ic e s sh ou ld be e x p r e sse d on th e b a s is o f 100, w ith n o t m ore 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 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 I V E D B E F O R E T H E C L O S IN 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 e sir ed Number o l Pieces P a y m e n t f o r t h is issu e o f b ills c a n n o t be m ade b y c re d it to T r e a s u r y T a x an d L o an A ccount. Maturity Value M ETHOD OF PA Y M EN T 1,000 $ 5,000 $ □ 10,000 $ □ 50,000 ? <a $ (a) ¥ 100,000 $ □ <® ? @ $ <rt) $ Charge our reserve account on paym ent date I_j D ra ft enclosed (Effectual delivery o f enclosed draft @ ? 500,000 $ ?1:,000,000 $ shall be on latest day which will permit presentment in order to obtain irrevocably collected fu nds 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 Tax and Loan Account (Address) B y(Authorized official signature and title) Ship to------------------------------------------‘' (For the account of, if tender is for another subscriber) (Addresa) IM P O R T A N T 1. N o te n d e r f o r le s s th a n $1,000 w ill b e con sid ered a n d e a c h 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 be fo r w a rd ed in an en v elo p e c le a r ly a d d re ssed to th is b a n 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 t e s , w it h n o ta tio n o n th e en v elo p e r e a 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 received w ith th is leg e n d w ill n o t be opened u n til a f t e r th e c lo sin g tim e specified in th e pu blic an 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 closed . E n v e lo p e s fo r su b m ittin g te n d e r s m a y be ob ta in ed fr o m t h i s b a n k or a p p r o p r ia te branch. 3. A n y qualified or con d itio n a l te n d e r w ill be rejected. 4. I f a corp oration m a k e s th e ten d er, t h e fo r m sh o u ld be sig n ed b y a n officer o f th e c orp o ra tion au th orized to m a k e t h e te n d e r an d t h e s ig n in g o f th e fo r m b y a n officer o f t h e corp oratio n w ill be co n stru ed a s a r e p r e se n ta tio n b y him t h a t h e h a s b een so a u th orized . I f th e te n d e r i s m ade b y 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 th e firm , w h o sh ould s ig n in th e fo r m ________________ ________________, a copartnership, b y ._____________________________________ ________ , a m em b er o f th e firm ”. 5. T en d ers fr o m th o se o th er t h a n in corp orated b a n k s a n d t r u s t co m p an ies o r resp o n sib le an d rec o g n iz ed d e a ler s i n in v e s t m e n t se c u r itie s w ill be disrega rd ed , u n le ss a ccom p a n ied b y a deposit o f 2 p e r ce n t o f th e to ta l a m o u n t (m a t u r ity v a lu e ) o f th e T r e a s u r y b ills ap p lied fo r , o r u n le ss th e te n d e r s ar e accom p anied b y a n e x p r e s s g u a r a n t y o f f u l l p a y m e n t b y a n in c o rp o ra te d b a n k or t r u s t com pany. 6. I f th e la n g u a g e o f t h is fo r m i s c h a n g e d in a n y r e s p e c t, w h ich, in th e op in 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 i s m a te ria l, th e te n d e r m a y be disregard ed . (See reverse for announcement)
@FedFRASER