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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 ircu la r No. 69-301
D e c e m b e r 15, 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 statem ent giving details of tw o issues o f 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, invites 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, for cash a n d in exchange for T re a s u ry bills m a tu rin g D e c em b er 26, 1969, in th e a m o u n t of
$2,900,840,000, as follow s:
90-D A Y B IL L S (to m a tu r ity d a te ) to b e issued D e c em b er 26, 1969, in th e a m o u n t of $1,800,000,000, or 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 S e p te m b e r 25, 1969, a n d to m a tu re M a rc h 26, 1970,
o riginally issued in th e a m o u n t of $1,201,115,000, th e a d d itio n al and original b ills to be freely interchangeable.
181-D A Y B IL L S for $1,200,000,000, or th ere ab o u ts, to b e d a te d D e c em b er 26, 1969, a n d to m a tu re J u n e 25, 1970.
T h e bills of b o th series will be issued on a discount 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 a s 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 will b e p a y a b le w ith o u t interest. T h e y will b e issued in b e a re r fo rm only, a n d in
den o m in atio 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 will 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 , F rid a y , D e c em b er 19, 1969. T e n d e rs w ill n o t be received 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 in th e case of c o m p e titiv e ten d e rs th e p rice offered m u st be 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 n o t be used. I t is u rg e d 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 forw arded in th e special envelopes w hich will be su p p lied b y F e d e ra l R eserve B a n k s or B ran ch es on
a p p lic atio n therefor.
B a n k in g in stitu tio n s generally m a y su b m it ten d e rs fo r account of custom ers p ro v id ed th e nam es of th e custom ers are
set forth in such ten d e rs. O th ers th a n b a n k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it te n d e rs e x ce p t for th e ir own a c c o u n t
T en d e rs will be receiv ed w ithout dep o sit from in co rp o ra ted banks a n d tr u s t com panies a n d from responsible a n d recognized
dealers in in v e s tm 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 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 su 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 ra n ty of p a y m e n t b y a n inco rp o rated b a n k or
tru s t com pany.
Im m e d ia te ly a fte r th e closing 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 e se rv 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 will be m ad e by 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 of a c c e p te d bids. T hose
su b m ittin g te n d e rs will b e advised of th e a cc ep ta n ce o r re je ctio n thereof. T h e S e c re ta ry 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 any o r all tenders, in w hole o r in p a rt, a n d his actio n in a n y such re sp e ct shall be final. S u b je ct to
th e se reservations, n o n c o m p e titiv e te n 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 ccep ted in full a t th e average p rice ( in th re e d ecim als) of a cc ep te d c o m p e titiv e bids fo r th e respective issues. S e ttle m e n t for
a cc ep te d te n d e rs in accordance w ith th e b id s m u st be m ad e or c o m p le te d on D e c em b er 26, 1969, in cash or o th e r im m e d ia tely
a v ailab le funds or in a like face a m o u n t of T re a s u ry bills m a tu rin g D e c e m b e r 26, 1969; p rovided, how ever, t h a t if te n d e rs are
su b m itte d to a F e d e ra l R e se rv e B a n k o r B ra n c h t h a t will b e closed o n D e c em b er 26, s e ttle m e n t m u st be c o m p le te d a t such b a n k
or b ra n ch on e ith e r D e c em b er 24, o r o n D e c e m b e r 29 w ith p a y m e n t of th re e days’ a cc ru ed in te re st unless se ttle m e n t is m ade
w ith T re a su ry bills m a tu rin g D e c em b er 26, 1969. C ash a n d exchange te n d e rs will receive e q 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 etw een th e p a r v alue o f 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 derived from T re a su ry bills, w h e th e r in te re st or 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, as such, a n d loss from th e sale o r o th e r disposition of T re a su ry bills does n o t ha 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 Code of 1954. T h e bills a re su b je c t to e state, in h eritan ce, gift or 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 ex 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 cip a l o r in te re s t 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 S tates, o r b y a n y local tax in g a uthority. 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 su ry bills are originally sold b y th e U n ite d S ta te s is considered to be in terest. U n d e r Sections 454 ( b ) and
1221 ( 5 ) of th e In te rn a l R e v e n u e C ode of 1954 th e a m o u n t of discount a t w hich bills issued h e re u n d e r a re sold is n o t con­
sid ered 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 a re excluded from consideration as
c a p ita l assets. A ccordingly, th e ow 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 tax re tu rn only th e difference b e tw ee n th e p rice p a id for such bills, w h e th e r o n original issue o r on subsequent
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 rin g th e tax a b le y e a r for w hich th e
re tu rn is m ad e , as o rd in ary gain o r loss.
T re a s u 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, p re sc rib e th e term s of th e T re a s u ry bills a n d
govern th e c o nditions of th e ir issue. C opies of th e circular m a y 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 o r B ranch.

In accordance 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 nk a n d its branches at El Paso,
Houston and San A ntonio up to twelve-thirty p.m., Central Standard Time, Friday, D ecem ber 19, 1969. Tenders m a y
not b e entered by t ele p h o n e .
Yours very truly,
P. E. Caldwell
President

F i g u r e s c o n c e r n i n g o f f e ri n g o f 9 1 - D a y T r e a s u r y Bills m a t u r i n g M a r c h 1 9 , 1 9 7 0 , a n d 1 8 2 - D a y T r e a s u r y Bills m a t u r i n g J u n e 18,
1 9 7 0 , n o t a v a i l a b l e w h e n this c i r c u l a r w a s p r i n t e d .

( S e e rev erse fo r te n d e r fo rm )

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

90 DAYS TO MATURITY
D ated Septem ber 2 5,1969

M aturing March 26, 1970

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 78206

(Date)

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 la r N o . 418 ( c u r r e n t r e v isio n ) a n d t h e p r o v isio n s o f t h e
p u blic a n n o u n ce m en t issu ed b y th e T r e a s u r y D e p a r tm e n 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 a m o u n t
sh o w n below , and a g r e e s to p a y f o r t h e am ou n t allotted , on or b efore t h e issu e date, b y th e m ethod a n d a t th e r a te in d ic a te d .

19, 1969

NONCOM PETITIVE T E N D E R $____________________________________ NO T 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 for $200,000 or le s s from a n y o n e bidder, w ith o u t s t a t e d price, w ill be a ccep ted in fu ll at th e a v e r a g e
p rice (in th r e e d e c im a ls) o f a c ce p te d c o m p e titiv e bids.
/ ,
_
_
1 *P--------------------------------- ? ---------------------------------------------------------------

COMPETITIVE TEN D ER S < ?--------------------------@------------ $---------------------------------

OBSERVE

CLOSING

DATE — FRIDAY, DECEMBER

‘

PLEASE

P r ic e s should b e e x p ressed on th e b a s is o f

"

'

X ”

h ______________________ @ __________ $ ____________________________
e. g ., 99.925. F r a c t io n s
V
m u s t n o t be used.

I S f 3 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 , IF R E C E IV 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 e d
Number of
PlK“

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 a d e
by c re d it to T r e a s u r y T a x and L oan A ccount.
M ETHOD OF PA Y M EN T

Maturity Value

@ $

1,000

□

B y m a t u r i n g b ills

(5) $

5,000 9-------------------------10,000 $-----------------------

(fit $

50,000 $--------------------- -------------------------------------------------------------------------------------------

@ $
-

.

h e ld b y _____________ _

□

s
< > ? 100,000
S
$ 500,000 $--------------------------

$1 ,000,000

□

Paym ent to be made by_______________
C h a r g e o u r r e s e r v e a c c o u n t on p a y m e n t

date
Q D r a f t e n c lo s e d (Effectual delivery of enclosed draft
shall be on latest day which will permit presentment in

ip_________________ ___ _ _

o r d e r t o o b t a i n i r r e v o c a b l y c o lle c te d f u n d s o n p a y m e n t

date)

D elivery Instructions:
□ Hold in Custody Account— Member
banks fo r own account only

b r ib e r -, turn*™ or corporate title)------------------___________________________________________________ _ _ _

□

B y ____________________________________________________ _

P le d g e t o s e c u r e T r e a s u r y T a x a n d

(Address)

L oan A ccount

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

(Address)

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 be co n sid ered and e a ch 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 it y
v a lu e ) .
2. T en d ers should be fo r w a rd ed in an en velop 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 b ran ch as F is c a l A g e n t o f t h e
U n ite d S ta te s , w it h n o ta tio n on th e en velop 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 e s
received w ith t h i s leg e n d w ill n o t be opened u n til a f t e r th e c lo s in g tim e specified in t h 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 be enclosed . 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 ob tain ed fr o m t h i s
b a n k o r a p p r o p r ia te branch.
3. A n y qu alified o r co n d itio n a l te n d e r w ill be rejected .
4. I f a corp oratio n m a k es th e ten d er, th e fo r m sh ou ld be sign ed b y a n officer o f t h e c orp o ra tion a u th o riz ed to m a k e t h e
te n d e r an d th 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 str u e d 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 e e n 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 i t should be sig n e d by a m em b er o f th e firm , w h o
sh ould s ig n in t h e fo r m “ _________________________________ , a co p artn ersh ip , by------------------------------------------------------------------------(
a m em ber o f th e firm ” .
5. T e n d e r s fr o m th o s e o th e r th a n in corp orated b a n k s a n d t r u s t c om p an ies or r esp o n sib le and rec o g n iz ed d ea lers in i n v e s t ­
m e n t se c u r itie s w ill be d isreg a rd ed , u n le ss a ccom p a n ied b y a d ep o sit o f 2 p e r c e n t o f th e to ta l a m o u n t (m a tu r it y v a l u e )
o f the T r e a s u r y b ills app lied fo r , or u n le ss th e te n d e r s a r e accom p an ied 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
in c o rp o ra te d b a n k o r 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 esp e ct, w h ic h , in th e op in io n o f th e S e c r e ta r y o f t h e T r e a s u r y is
m a te r ia l, th e te n d e r m a y be disregard ed .

(See reverse for announcem
ent)

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