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F ederal Reserve Bank of 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 ircular No. 69-298 D e c em b er 10, 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 state m e n t giving details of two issues of Treasury bills: T h e T re a s u ry D e p a rtm e n t, b y th is p u b lic notice, in vites ten d e rs fo r tw o series of T re a s u ry bills to th e a ggregate a m 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 su ry bills m atu rin g D e c em b er 18, 1969, in th e a m o u n t of $2,901,799,000, as follows: 91-D A Y B IL L S (to m a tu rity d a te ) to be issued D e c em b er 18, 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 S e p te m b e r 18, 1969, a n d to m a tu re M a rc h 19, 1970, originally issu ed in th e a m o u n t of $1,200,698,000, 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 b e d a te d D e c e m b e r 18, 1969, a n d to m a tu re J u n e 18, 1970. T h e bills o f b o th series w ill b e issued o n a d isc o u n t 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 re in a fte 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 w ill b e p a yable w ith o u t in te re st. T h e y w ill 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 rity 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 onday, D e c em b er 15, 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 the case of c o 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 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 th a t te n d e rs be m a d e o n th e p rin te d form s a n d forw arded in th e special envelopes w hich will b e supplied b y F e d e ra l R e se rv e B a n k s o r B ranches 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 account of custom ers pro v id ed th e nam es of th e custom ers are se t fo rth in such te n d e rs. 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 xcept for th e ir own account. T e n d e rs will b e receiv ed w ith o u t dep o sit from 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 e ale rs in in v e stm 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 a ccom 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 f te r th e closing hour, te n d e rs w ill be 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 ranches, follow ing w hich p u b lic an n o u n ce m en t will 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 range o f a cc ep te d bids. T hose su b m ittin g te n d e rs w ill be ad v ised 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 c c e p t or re je c t a n y o r 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 c t to th e s e reservations, n o 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 ( i n th re e d ecim als) of a c c e p 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 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 eserve B a n k on D e c e m b e r 18, 1969, in cash o r o th er 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 D e c em b er 18, 1969. Cash a n d exchange te n d e rs w ill receive eq u al 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 a lu e of m atu rin g 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 from 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, a s such, a n d 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 e n u e C ode of 1954. T h e bills are su b ject to estate, inheritance, gift o r o th e r excise taxes, w h e th 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 o n th e p rin cip a l or 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, o r b y a n y local tax in g a u 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 are originally sold b y th e U n ite d S ta te s is considered to b e in terest. U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e Code of 1954 th e a m o u n t of disco u n t 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 or otherw ise disposed of, a n d such bills a re excluded from consideration as c a p ita l assets. A ccordingly, th e o w ner of T re a s u ry bills (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 need include in his incom e ta x re tu rn o n ly th e difference b e tw ee n th e p rice p a id for such bills, w h e th er o n original issue or o n su b seq u en t p u rc h ase, a n d th e a m o u n t a c tu 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 d u rin g th e tax ab le y e a r for w hich th e re 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 rev isio n ) a n d th is notice, p re sc rib e th e term s of th e T re a s u ry bills a n d go vern th e c o nditions of th e ir issue. Copies of th e c irc u la r m a y 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 accord ance with the a b o v e an n ou n c em en t, tenders will b e received a t this b ank 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 ay , Decem ber 15, 196 9. Tenders m a y not be en tered b y 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 ie ld of A ccepted T e n d e rs 91-D ay B ills 182-D ay Bills D u e M a rc h 12, 1970 D u e J u n e 11, 1970 $2,380,312,000_____ ____ _____ ___—- -------------- .T o ta l A p p lied F o r -----------------------------------------$2,097,301,000 $1,800,338,000______________ ___ —...... .......................T o ta l A c c e p te d ..------------------------------------------------- $1,200,293,000 P ric e Y ie ld P ric e Y ield 98.068________ .7 .6 4 3 % ..................................... ............- H i g h — ------------------------------- 96.078 _ ........ ..7.758% 98.041_________ 7 .7 5 0 % ------- --------- -------------------------X o w ------------------------------- .....96.032.___ _ _____ 7.849% 98.053............ .............7.702% ( 1 ) . . ------------------------------- A verage............................. ..............96.055.............. ..7.803% (1 ) ( 1 ) T h e s e r a t e s a r e o n a b a n k d i s c o u n t b a s is . T h e e q u i v a l e n t c o u p o n i s s u e y i e l d s a r e 7 . 9 6 % f o r t h e 9 1 - d a y b i l l s , a n d 8 . 2 4 % f o r t h e 1 8 2 - d a y b ills . ( S e e r e v e r s e sid 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 1 8,1969 Maturing March 19,1970 To: 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 (Date) S an A n to n io 78206 P u r s u 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 ircu lar N o. 418 (c u r r e n t r e v isio n ) an d th e p r o v isio n s o f th e p u blic 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 offers to p u rc h a se T r e a s u r y b ills in the a m ou n t sh o w n below , and a g r e e s to p a y f o r th e a m ou n t a llo tte d , on or b efore th e issu e date, by th e m ethod an d a t th e r a te in d ica ted . NONCOM PETITIVE T E N D E R $_ _NOT 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 a n y on e bidder, w ith o u t sta te d price, w ill be a ccep 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 accep ted c o m p e titiv e bids. $ COMPETITIVE T E N D E R S \ ?- .(o). -@ . -@ ---------------------------------_ _ _________________ - P r ic e s should be e x p r e sse d on the b a s is o f 100, w ith n o t more 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 f Pieces P a y m e n t f o r th 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 ? (ffl $ 5,000 $ (® $ M ETHOD OF PA Y M EN T 1,000 $ □ B y m aturing bills held by__ __________________________ __ 10,000 ? 50,000 $ □ P aym ent to be made by______________ <® ? 100,000 $ <® $ 500,000 $ □ Charge our reserve account on paym ent date I | D ra ft enclosed (Effectual delivery o f enclosed draft < > *1.,000,000 $ § shall be on latest day which will permit presentment in order to obtain irrevocably collected funda on payment date) < $ s> D elivery 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 (Address) B y- Ship to------------------------------------------- (Authorized official signature and title) (For the account of, if tender is for another subscriber) (Address) IM PO R TA N T 1. N o te n d e r f o r le s s th a n $1,000 w ill be considered an d e a c h ten d er m u st be f o r a n am o u n t in m u ltip les o f $1,000 (m a tu r it y v a lu e ). 2. T en d ers sh o u ld be fo r w a rd ed in a n e n velo p e c le a r ly a d d ressed to th is b a n k or a p p ro p ria te branch as F is c a l A g e n t o f th e U n ite d S ta t e s , w it h n o ta tio n on th e envelop 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 en v e lo p es received w ith th is le g 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 sp ecified in th e pu blic an n o u n cem en t, c o m m u n i c a tio n s r e la t in g to oth er m a tte r s sh ou ld n o t b e enclosed . E n v e lo p e s f o r s u b m ittin g te n d e r s m a y b e o b ta in e d fr o m t h is b a n 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 be rejected. 4. I f a co rp oration m a k e s the ten d er, th e fo r m sh o u ld be sig n e d by a n officer o f th e c orp oratio n a u th o riz ed to m ak e th e te n d e r and t h 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 co n str u e d a s a r ep r e se n ta tio n b y him t h a t he h a s b een so auth orized . I f th e te n d e r is 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 ber o f th e firm , w h o sh ou ld sig n in th e fo r m “_________________________________ , a copartnership, by.____ _________________________________________ _ a m em ber o f th e firm ”. 5. T en d ers fr o m th o s e oth er th a n in corp orated b an k s a n d t r u s t c o m p a n ies or r esp o n sib le an d r ecog n ized d ea lers in in v e s t m e n t se c u r itie s w ill be d isregard ed , u n le ss accom p anied 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 , or u n le ss th e te n d e r s are 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 an in corp orated b an k or t r u s t com pany. 6. I f th e la n g u a g e o f th is fo r m is c h a n g e d in a n y r e sp e c t, w h ich , in t h e o p in io n 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 disrega rd ed . (See reverse for announcement)
@FedFRASER