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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 N o. 69-302
D e c em b er IS, 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 follo w in g statem ent g iving 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, 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
of $3,000,000,000, o r th ereabouts, for cash a n d in exchange for T re a su 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 be 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, rep rese n tin g a n add 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,
originally issued in th e a m o u n t of $1,201,115,000, th e ad d itio n al a n d original bills to b e freely interchangeable.
181-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 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 co m p e titiv e a n d n o 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 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 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 rity v a lu e ).
T e n d e rs will be received a t F e d e ra l R e se rv e B anks a n d B ranches up 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 will n o t b e 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 even m u ltip le of $1,000, a n d in th e case of co 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 b e used. I t is u rg e d t h a t te n d e rs be m ad e
on th e p rin te d form s a n d forw arded in th e special envelopes w hich will be supplied b y F e d e ra l R eserv e B a n k s or B ra n ch e s on
a p p lic atio n therefor.
B a n k in g in stitu tio n s g enerally 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 of th e custom ers are
set forth in such ten d e rs. O th ers th a n ban 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 e x ce p t for th e ir ow n account.
T en d e rs will b e received w ith o u t dep o sit from in co rp o ra ted b a n k s a n d tru s t com panies a n d from re sponsible a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs from o th ers m u st b e 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 rea su ry bills a p p lie d for, unless th e te n d e rs are accom panied b y a n express g u a ra n ty o f p a y m e n t b y a n in co rporated b a n k or
tru s t com pany.
Im m e d ia te ly a f te r th e closing hour, te n d e rs will be 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 an n o u n ce m en t will be m ad e by th e T re a s u ry D e p a rtm e n t o f th e a m o u n t a n d p rice range of a cc ep te d bids. T h ose
su b m ittin g te n d e rs will b e advised of th e a cc ep ta n ce or rejection 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 all tenders, in w hole o r in p a rt, a n d his action in a n y such re sp e c t shall be final. S u b je ct to
th ese reservations, n o n c o m p e titiv e ten d e rs fo r each issue for $200,000 or less w ith o u t sta te d p rice from a n y one b id d e r will b e
a ccep ted in full a t th e average p rice ( i n th re e d ecim als) o f 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 ccep ted 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 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 b ills 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 a re
su b m itte d to a F e d e ra l R e se rv e B a n k or B ra n c h th a t will be closed on 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
o r b ra n ch on e ith e r D e c em b er 24, o r on D e c e m b e r 29 w ith p a y m e n t of th re e d a y s’ accru ed in te re st unless s e ttle m e n t is m ad e
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 a lu e of m atu 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 deriv ed 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 e x em 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 not 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 Code of 1954. T h e bills are su b je ct to estate, in h eritan ce, 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 exem pt from a ll 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 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 S tates, o r b y a n y local tax in g a u thority. F o r pu rp o ses 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 a re 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 S ections 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 discount a t w hich bills issued h e re u n d e r a re sold is n o t con­
sidered 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 an ies) issued h e re u n d e r need include
in his incom e tax r e tu r n only th e difference betw een th e p rice p a id fo r such bills, w h e th e r o n original issue o r o n subsequent
p urchase, 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 fo r w hich th e
re tu rn is m ade, as o rd in a ry gain o r loss.
T re a s u ry D e p a rtm e n t C ircu lar No. 418 (c u r re n t revision) a n d th is notice, pre sc rib e th e term s of th e T re a s u ry b ills a n d
govern th e conditions of th e ir issue. C opies o f th e circu lar m a y b e o b tain 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 bank a n d its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Friday, Decem ber 19, 1969. Tenders m ay
not b e entered by t ele p h o n e .
Yours very truly,
P. E. Coldwell
President

F i g u r e s c o n c e r n i n g o f f e r i n g o f 91 - 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 ir 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 TREASURY BILLS

181 DAYS TO MATURITY
D ated Decem ber 26, 1969

M aturing June 25, 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

(Date)

S a n A n to n io 78206

P u r su a n t to th e p ro v isio n s o f T r ea s u r y D e p a r tm en t C ircu lar N o. 418 (c u r r e n t r e v isio n ) and th e p ro v isio n s o f th e
public an n o u n cem en t issu ed by th e T r e a s u r y D e p a r tm en t, th e un d ersign ed offers to p u rch a se T r ea su 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 fo r t h e am oun t allo tted , on or before th e issu e date, b y th e m ethod and a t th e ra te in d ica ted .

PLEASE

OBSERVE

CLOSING

DATE — FRIDAY, DECEMBER

19, 1969

NONCOMPETITIVE T E N D E R $_

_NOT TO EXCEED $200,000

N o n co m p etitiv e ten d ers for $200,000 or le s s from a n y o n e bidder, w ith o u t s ta te d price, w ill be a ccep ted in fu ll at th e a v e r a g e
price (in th ree d e c im a ls) o f a ccep ted co m p etitiv e bids.
_
---------------------------------------M y

{*

-----

_

COMPETITIVE TEN D ER S , $;

<n)

$

1

((ft

P r ic e s should be e x ­
p ressed on th e b a s is o f
100, w ith not 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 st n o t be used.

$

_

_

.

2 ® = 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 e d
Number of
Pieces

P a y m e n t f o r th is issu e o f b ills can n ot be m a d e
b y credit to T r ea s u r y T a x and L oan A cco u n t.

M a tu rity V alu e

METHOD OF PAYM ENT

(a) ?
(5) $

1,000 ?
5,000 $

□

$

10,000 $

□

B y m aturing bills
held by___________
P aym ent to be made by_

50,000 $

$
(a) $ 100,000 $.

□

Charge our reserve account on paym ent
date
[ | D ra ft enclosed (Effectual delivery of enclosed draft

(a) $ 500,000 ?
< > $1,000,000 %
3

shall be on latest day which will permit presentment in
order to obtain irrevocably collected funda on paym ent
date)

Delivery Instructions:
□
□
□

(Subscriber’s full name or corporate title)

Hold in Custody Account— Member
banks fo r 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 is for another subscriber)
(Address)

IM P O R T A N T
1. N o te n d e r fo r le s s th a n $1,000 w ill be con sid ered a n d e a ch te n d e r m u st be fo r a n a m ou n t in m u ltip les 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 a n envelop e c le a r ly ad d ressed to th is b a n k or a p p ro p ria te bran ch a s F is c a l A g e n t o f t h e
U n ite d S ta te s , w ith 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
receiv ed w ith t h is leg e n d w ill n o t be opened u n til a f te r th e c lo s in g tim e sp ecified in th e p u blic 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 oth er m a tte r s sh o u ld n ot be 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 be ob tained fr o m t h i s
ban k or a p p r o p r ia te branch.
3. A n y qualified o r co n d itio n al te n d e r w ill be rejected .
4. I f a c orp o ra tion m ak es th e te n d e r , th e form sh ould be sig n e d by an officer o f t h e c o rp oration a u th orized to m ak e t h e
te n d e r a n d th e s ig n in g o f th e fo r m b y an officer o f t h e co rp o ra tion w ill be con str u e d a s a r e p r e se n ta tio n by h im t h a t h e
h a s b een so auth orized . I f th e te n d e r i s m ad e 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 the firm , w h o
should s ig n in th e fo r m “ ____
_______________________, a cop artn ersh ip , b y .---------------------------------------- ------------ ----------------- (
a m em ber o f t h e firm ”.
5. T e n d e r s fr o m th o s e oth er t h a n in corp orated b an k s a n d t r u s t c om p an ies or r esp o n sib le and r eco gn ized d ea lers in i n v e s t ­
m e n t se c u r itie s w ill be d isr e g a rd ed , u n le ss accom p an ied by a dep osit o f 2 p e r ce n t o f the to ta l a m o u n t ( m a tu r ity v a l u 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 a ccom p a n ied by an e x p r e s s g u a r a n ty o f f u ll p a y m e n t b y an
in c o rp o ra te d b an k or t r u s t com p an y.
6. I f th e la n g u a g e o f t h is fo r m is c h a n g e d in a n y r esp e ct, w h ich , in th 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 ia
m a te ria l, t h e te n d e r m a y be d isreg ard ed .

(See reverse for announcement)

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