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Federal Reserve Bank

of

Dallas

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

DALLAS, TEXAS 7 5 2 2 2
C ircular No. 69-316
D ecem ber 31, 1969

NEW OFFERING — TREASURY BILLS
To All Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follow in g sta tem ent 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, in v ites ten d e rs for tw o series of T re a s u ry bills to th e ag g reg a te a m o u n t
of $3,000,000,000, o r 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 ry 8, 1970, in th e a m o u n t of
$2,902,671,000, a s follows:
91-D A Y B IL L S (to m a tu rity d a te ) to be issued J a n u a r y 8, 1970, 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 O cto b er 9, 1969, a n d to m a tu re A p ril 9, 1970,
originally issued in th e a m o u n t of $1,200,584,000, th e a d d itio n al a n d original bills to be freely interchangeable.
182-DA Y B IL L S fo r $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 to m a tu re J u ly 9, 1970.
T h e bills of b o th series will b e issued on a discount 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 b id d in g as h e rein afte r
p rovided, a n d a t m a tu r ity 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 w ill be issued in b e a re r form only, a n d in
de 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 en d e rs will b e received a t F e d e ra l R e se rv e B anks 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 ry 5, 1970. 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 be fo r a n even m u ltip le of $1,000, a n d in th e case of c om petitive 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 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 supplied by F e d e ra l R e se rv e 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 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 thers th a n banking in stitu tio n s will n o t b e p e rm itte d to su b m it ten d e rs e xcept fo r th e ir ow n account.
T e n d e rs will be received w ith o u t deposit from in co rp o ra ted banks a n d tru 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 oth ers m u st be a ccom panied b y p a y m e n t o f 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 ten d e rs a re a cc om panied b y a n express gu aran 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 fte r th e closing hour, te n 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 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 range of a cc ep 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 retary of th e T re a su ry expressly reserves th e
rig h t to a cc ep t or re je c t a n y or all tenders, in w hole o r in p a rt, a n d his a ctio n in a n y such resp ect shall be final. S u b je c t to
th ese reservations, n o n c o m p e titiv e te n 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 will be
a cc ep te d in full a t th e average p rice (in th re e decim als) of a cc ep te d co m p e titiv e bids for th e re sp e ctiv e 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 bids m u st b e m ad e or c o m p leted 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 tely 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
exchange ten d e rs w ill receive e qual tre a tm e n t. C ash a d ju stm e n ts w ill b e m a d e for differences betw een th e p a r v alue of m a tu r­
in g bills a cc ep te d in exchange a n d th e issue p rice o f new bills.
T h e incom e d e riv e d from 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 not
h a v e a n y exem ption, a s such, a n d loss from th e sale o r 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 je ct to estate, inheritan c e, gift or o th er excise taxes, w h eth er
F e d e ra l or S ta te , b u t are e x 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 or in te re st th e re o f by a n y S tate,
or 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 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 b ills are originally sold by th e U n ite d S ta te s is considered to be interest. U n d e r Sections 454 ( 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 are sold is r.ot con­
sid e red to a ccrue u n til such bills are sold, red eem ed 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 ow ner of T re a su 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 re tu r n only th e difference b etw een th e price o a id for such bills, w h e th er o n original issue or on subsequent
p u rch ase, 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 em p tio n a t m a tu rity d u rin g th e tax a b le year for w hich the
re tu r n is m ade, as ord in ary 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 re v isio n ) a n d th is notice, pre sc rib e th e term s of th e T re a su ry bills and
govern th e conditions of th e ir issue. C opies of th e c ircu lar m ay be o b ta in e d from a n y F e d e ra l R eserve B a n k or B ranch.

In accordance with the a b o v e a n n o u n c em en t, tendars will b e received at this b ank a n d its branches a t El Paso,
Houston a n d San A ntonio up to twelve-thirty p.m., Central Standard Time, M on d a y, January 5, 19 70. 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
Amount, R ange and Approxim ate Y ield of Accepted T enders
90-Day Bills
181-Day Bills
D ue A pril 2, 1970
D ue July 2, 1970
$2,424,140,000________________________ _____ T otal A pplied F o r__ ____ ________________________ $2,214,915,000
$1,800,035,000------------------------------------------------ .Total A cc ep ted ....... —
----------------------------- -$ 1 ’200’085,000
Price
Yield
Price
Yield
98.025-------------------7.900% -------------------------------- H igh--------------------------------- 95.966___ ___ ____ 8.023%
97.953................ ....... 8.188% ------------ ------------ ---------- Low........ ...... ..... ..... ...... 95.904............... .......8.147%
97.976------------------8.096% ( 1 ) --------- ----------------------Average— ____ ____________________________________ 95.927_H I 8 4 0 1 % (1 )
( 1 ) T h e s e rates are on a b ank d iscount basis. T h e e q u iv a le n t coupon issue y ie ld s are 8 .3 8 % fo r th e 9 0 -d a y bills and 8 5 6 % for the

1 8 1 - d a y b ills .

( S e e r e v e r s e sid e fo r t e n d e r f o n n )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
B ated January 8, 1970

M aturing July 9, 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 a n A n to n io 78206

P u r su 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
p u blic 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 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 th e am oun t
sh o w n below, a n d a g r e e s to p a y f o r th e a m o u n t allotted , o n or b efore th e issu e date, by th e m eth o d a n d a t th e r a te ind icated .

JNOT TO E X C E E D $200,000

NONCOMPETITIVE T E N D E R $_

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 one bidder, w ith o u t s ta te d price, w ill be a ccep ted in f u ll a t the a v e r a g e
p rice ( 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

I
"

ip
if;

_

_

(a)
@

s

------?

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 .
P a y m e n t fo r t h is issu e o f b ills c a n n o t be m ade
b y cred it to T r e a s u r y T a x a n d L oan A ccount.

D e n o m in a tio n s D e sir ed
Number of
Pieces

Maturity Value

?

5,000 $

(a) $

M ETHOD OF PA Y M EN T

1,000 $

$

10,000 ?
50,000 $

(a) $

□
□

Delivery Instructions:

□

Charge our reserve account on payment
date

|

(a) $1 ,000,000 $

□

By maturing bills
held by______________________________
Payment to be made by______________

□

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

□

P r ic e s should be e x ­
p r e sse d on the b a s is of
1 0 0 , 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.

| 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 funds on payment
date)
(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)

By-

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

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

--------------------- "

(Address)

IMPORTANT
1. N o te n d e r f o r le s s th a n $1,000 w ill be 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 a m o u n t in m u ltip les 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 ad d ressed to th is b an k or 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 ta te 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 e n velop es
r eceived w ith t h is leg 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 a n n ou n cem en t, com m u n i­
c a tio n s r e la t in g t o o th e r m a tte r s sh o u 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 o b 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 co n d itio n al te n d e r w ill be rejected .
4. I f a co rp oration m a k e s th e ten d er, th e fo r m sh ou ld be sig n e d b y a n officer o f th e corp oration a u th o rized to m ake th e
tender 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 oration w ill be c o n stru ed 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 th e firm, w h o
sh ou ld s ig n in th e fo r m “_________________________________ , a cop artn ersh ip , b y ----------------------------------------------------------------------- ,
a m em ber o f th e firm ” .
5. T en d ers fr o m th o se oth er t h a n in c o rp o ra te d b a n k s a n d t r u s t com p a n ies o r resp o n sib le an d rec o g n iz ed 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 an ied b y a dep osit o f 2 p ercen 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 t h e te n d e r s a r e accom p anied b y a n e x p r e s s g u a r a n ty o f f u l l p a y m e n t b y an
in corp orated 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 sp e c t, 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 is
m a te ria l, th e te n d e r m a y be disreg ard ed .

(See reverse for announcem
ent)

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