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F ederal Reserve

bank of

Dallas

FIS C A L A G E N T O F T H E UN ITED STA T E S

DALLAS, TEXAS 7 5 2 2 2
C i r c u l a r N o . 6 9 -3 15
D e c e m t a r 3 1 , 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 sta te m e n t giving details of two issues o f Treasury bills:
T h e T re a s u ry D e p a rtm e n t, b y this p u b lic notice, invites te n d e rs for tw o series o f T re a s u ry bills to th e ag g reg a te a m o u n t
o f $3,000,000,000, or th ere ab o u ts, fo r cash a n d in exchange for T re a su ry bills m a tu rin g J a n u a r y 8, 1970, in th e a m o u n t of
$2,902,671,000, a s follow s:
91-D A Y B IL L S (to m a tu rity d a te ) to be issued Ja n u a ry 8, 1970, in th e a m o u n t of $1,800,000,000, or th e re ­
a bouts, 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 O c to b er 9, 1969, a n d to m a tu re A pril 9 , 1970,
o riginally issued in th e a m o u n t o f $1,200,584,000, th e a d d itio n al a n d original bills to be freely interchangeable.
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 J a n u a r y 8, 1970, a n d io m a tu re J u l y 9, 1970.
T h e bills of b o th series w ill b e issued on a disco u n t 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 as h e rein afte r
pro v id ed , a n d a t m a tu r ity th e ir face a m o u n t w ill b e p a y ab le w ith o u t in terest. T h e y w ill b e 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 will b e received a t F e d e ra l R e se rv e B an ks 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 , J a n u a r y 5, 1970. T e n d e rs will n o t b e 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 fo r a n even m u ltip le of $1,000, a n d in th e case of co m p e titiv e te n d e rs th e price 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 usea. I t is u rged t h a t te n d e rs be m ade
on th e p rin te d form s a n d fo rw arded in th e special envelopes w hich will b e su p p lied by F e d e ra l R e se rv e B a n k s o r 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 ay su b m it te n d e rs for account of custom ers p ro v id ed th e nam es of th e custom ers are
se t fo rth 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 ten d e rs except for th e ir ow n account.
T e n d e rs will be received w ith o u t deposit fro m inco rp o rated b a n k s 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 s tm e n t securities. T e n d e rs from o th ers m u st be a ccom panied b y p a y m e n t of 2 p e rc e n t of the face a m o u n t of
T re a s u ry bills a p p lie d for, unless th e ten d e rs a r e a cc o m p an ied by a n express g u a ran ty of p a y m e n t b y 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, ten d e rs w ill b e opened 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 of 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 ta n ce or rejection thereof. T h e S ecretary of th e T re a su ry expressly reserves th e
rig h t to a cc ep t o r re je c t a n y or a ll tenders, in w hole o r in p art, 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 ese reservations, n o n c o m p e titiv e ten d e rs for 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 w ill be
a cc ep te d in full a t th e average p rice (in th re e decim 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 te n d e rs in accordance w ith th e bids m u s t b e 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 on J a n u a r y 8, 1970, in
cash o r o th e r 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 J a n u a ry 8, 1970. Cash a n d
e xchange 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 w ill be m ad e for differences b etw een th e p a r v alue o f m a tu r­
in g bills a cc ep te d in exchange a n d th e issue p rice of new bills.
T h e incom e d e riv e d fro m T re a su ry bills, w h e th er in te re st o r gain from th e sale o r o th e r disposition of th e bills, does n ot
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 o f T re a su ry bills does n o t have 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 ject to estate, in h eritan ce, gift o r o th e r excise taxes, w h eth er
F e d e ra l o r 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 on th e p rin cip a l or in te re st th e re o f b y a n y S ta te ,
o r a n y o f 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 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 are originally sold b y th e U n ite d S ta te s is considered to be interest. 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 are sold is n o t con­
sid ered to a ccrue u n til such bills a re sold, red eem ed or otherw ise disposed of, and such bills a re excluded from 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 insurance c o m p a n ies) issued h e re u n d e r n e ed include
in his incom e tax re tu rn only th e difference b etw een th e p rice p a id for such bills, w h e th e r o n original issue or on su b seq u en t
purchase, 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 rity d u rin 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 o r loss.
T re a su ry D e p a rtm e n t C ircular No. 418 ( c u r re n t re v isio n ) 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
g overn th e conditions of th e ir issue. C opies of th e c irc u la r 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 accord ance with the a b o v e an n o u n c em en t, tenders will be received at this b ank a n d its branches at El Paso,
Houston a n d San A ntonio up to twelve-thirty p.m., Central Standard Time, M on d ay, January 5, 1970 . Tenders may
not b e entered 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 ccep ted T e n d e rs
90-D ay B ills
181-D ay B ills
D u e A p ril 2, 1970
D u e Ju ly 2, 1970
$2,424,140,000_________________________ — ......—T o ta l A p p lied F o r --------------------------------------------------- $2,214,915,000
$1,800,035,000---------------------------------------------------- .T o tal A c c ep ted -------------- -------------------- ---------------$1,200,085,000
P ric e
Y ie ld
P ric e
Y ie ld
98.025------------------- 7 .9 0 0 % ------------ ----------------------------- High_._................. ........... .......... ..95,966____________ 8 .023%
9 7 .9 5 3 ---------8 .1 8 8 % -------------------------- -------------- L ow ----------------------------------------------- -------- -------------- 95.904____________ 8.147%
97.976........................ ..8.096% ( 1 ) --------------------------- -----A verage......................................................— -------- -------------- 95.927____________ 8 .101% ( 1 )
( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t b a sis. T h e e q u iv a l e n t c o u p o n issu e y ie ld s a r e 8 . 3 8 % f o r t h e 9 0 - d a y b ills
1 8 1 - d a y b i ll s .
’

a n d 8 .5 6 % fo r th e

( S e e r e v e r s e aide fo 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
Dated October 9, 1969

M aturing April 9, 1970

To: Federal R eserve Bank, Station K, D allas, T exas 75222
or—
The__________________________________ Branch
El P a so 79999

H o u sto n 77001

(Date)

S a n A n to n io 78206

P u r s u 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 ircu lar N o. 418 (c u r r e 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 ed 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 am ou n t
sh o w n below , an d a g r e e s to p a y fo r th e a m o u n t a llo tted , on o r b efore th e issu e date, b y t h e m eth od and a t th e r a te in d ica ted .

_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 fo r $200,000 or le s s from a n y on e bidder, w ith ou t s ta te d price, w ill b e accep ted in f u 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.

I

COMPETITIVE T E N D E R S < $

.<§>_@.

---------------------------------____________________ _

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 m ore th a n
t h r e e d e c im a l p la 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 BY 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 S IN G H O U R , A R E A C C E P T A B L E .

Denominations Desired
N u m b er of

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
by cred it to T r e a s u r y T a x an d L o an A ccount.

M a tu rity V alu e

Pieces

<> $
8
$

5,000 ?

(a) $

10,000 $

(ft $

M ETHOD OF PA Y M E N T

1,000 $

50,000 $

□
□

Charge our reserve account on paym ent
date

|__j D r a f t e n c l o s e d (Effectual delivery o f enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funda on paym«nt
da to)

(a) $1 ,000,000 $
D elivery Instructions:
□

P aym ent to be made by______________

□

m $ 100,000 $
(a) $ 500,000 $

B y m aturing bills
held by________________________________

(Subscriber’s full name or corporate title)

Hold in Custody Account— Member
banks for own account only

(Address)

□

Pledge to secure Treasury Tax and
Loan Account

□

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

(For the account of, if tender is for another subscriber)

' -------------- ---------------------------------------------------------—

(Address)

B y-

(Authorized official signature and title)

IM PORTANT
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 an d e a c h 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 tu r ity
v a lu e ).
2. T en d ers sh o u ld be fo r w a rd ed in an e n velo p e c le a r ly a d d re ssed to th is ban k o r a p p ro p ria te branch a s F is c a l A g e n t o f the
U n ite d S t a te s , w it h n o ta tio n o n 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 en v e lo p es
received w ith th is le g e n d w ill n o t b e 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 o u n cem en t, com 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 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 ta in ed fr o m th is
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, th e fo r m sh ould be sig n e d b y a n officer o f th e corp oration a u th o riz ed to m ak e th e
ten d er a n d th e s ig n in g o f th e fo r m b y a n officer o f th 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 b y him t h a t he
h a s been so au 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 ber o f t h e firm , w ho
sh ould s ig n in th e fo r m “_________________________________ , a cop a rtn ersh ip , b y.---------------------------------------------------------------------- ,
a m em ber o f th e firm ”.
5. T en d ers fr o m th o se other th a n in corp orated ban k s a n d t r u s t com panies or resp o n sib le and recognized d ea lers in in v e s t­
m e n t se c u r itie s w ill be disregard ed , u n less accom p anied b y a deposit o f 2 p ercen t o f the to ta l am ou n t (m a tu r ity v a lu e )
o f th e T r ea s u r y b ills applied fo r , o r u n less th e te n d e r s are accom panied b y a n e x p r es s g u a r a n ty o f fu ll p a y m e n t by an
in corp orated b a n k or tr u s t com pany.
6. I f th e la n g u a g e o f th is fo rm is c h a n g ed in a n y r es p e ct, w h ich, in th e opin io n o f th e S e c r e ta r y o f th e T r ea su r y is
m a teria 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