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F Reserve B ank ederal of Dallas F I S C A L A G E N T O F T H E U NITED ST A T E S DALLAS, TEXAS 75222 Circular No. 68-6 January 3, 1968 NEW OFFERING TREASURY BILLS — T A X A N T IC IP A T IO N SERIES To All B a n k in g Institutions a n d O th e r s C o n c e r n e d in t h e E leventh F e d e r a l R eserve District: Your a t te n t io n is in v ited to th e fo llo w in g s t a t e m e n t g iv ing d e t a il s of tw o is s u e s of T reasu ry bills: T h e Treasury D epartm ent, by this public notice, invites tenders for $2,500,000,000, or thereabouts, of 161-day T reasury bills (to m aturity d a te ), to be issued January 15, 1968, on a discount basis under competitive and noncompetitive bidding as hereinafter provided. T he bills of this series will be designated T ax A nticipation Series and represent an additional am ount of bills dated October 9, 1967, to m ature Ju n e 24, 1968, originally issued in th e am ount of $3,005,517,000. T he additional and original bills will be freely interchangeable. T hey will be accepted a t face value in paym ent of income taxes due on Ju n e 15, 1968, and to the extent they are not presented for this purpose the face am ount of these bills will be payable w ithout interest a t m aturity. T axpayers desiring to apply these bills in paym ent of Ju n e 15, 1968, income taxes may subm it the bills to a Federal Reserve B ank or Branch or to the Office of the Treasurer of the U nited States, Washington, not more than fifteen days before th a t date. In the case of bills subm itted in paym ent of income taxes of a corporation they shall be accompanied by a duly completed Form 503 and the office receiving these items will effect the deposit on Ju n e 15, 1968. In the case of bills subm itted in paym ent of income taxes of all other taxpayers, the office receiving the bills will issue receipts therefor, the orig inal of which the taxpayer shall subm it on or before Ju n e 15, 1968, to the D istrict D irector of Internal Revenue for the D istrict in which such taxes are payable. T he bills will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received a t Federal Reserve B anks and Branches up to the closing hour, one-thirty p.m., Eastern Standard Tim e, Tuesday, January 9, 1968. Tenders will not be received a t the T reasury D epartm ent, Washington. Each tender m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged th at tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of th e cutomers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reas ury bills applied for, unless th e tenders are accompanied by an express guaranty of paym ent by an incorporated bank or trust company. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this issue a t a specific rate or price, until after one-thirty p.m., E astern Standard Tim e, Tuesday, Jan uary 9, 1968. Im m ediately after the closing hour, tenders will be opened at th e Federal Reserve Banks and Branches, following which public announcement will be made by th e T reasury D epartm ent of th e am ount and price range of accepted bids. Those sub m itting tenders will be advised of th e acceptance or rejection thereof. T he Secretary of the Treasury expressly reserves the right to accept or rcject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reser vations, noncompetitive tenders for $400,000 or less w ithout stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted com petitive bids. Paym ent of accepted tenders a t the prices offered m ust be made or completed a t the Federal Reserve B ank in cash or other im m ediately available funds on January 15, 1968, provided, however, any qualified depositary will be perm itted to m ake paym ent by credit in its T reasury T ax and Loan account for Treasury bills allotted to it for itself and its customers up to any am ount for which it shall be qualified in excess of exist ing deposits when so notified by the Federal R eserve B ank of its District. T he income derived from T reasury bills, w hether interest or gain from the sale or other disposition of th e bills, does not have any exemption, as such, and loss from the sale or other disposition of T reasury bills does not have any special treatm ent, as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation th e am ount of discount at which T reasury bills are originally sold by the U nited S tates is considered to be interest. Under Sections 454 ( b ) and 1221 (5 ) of the Internal Revenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other than life insurance companies) issued hereunder need include in his income tax return only th e difference between the price paid for such bills, w hether on original issue or on subsequent purchase, and th e am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of th e T ieasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve BanV or Branch. In a c c o r d a n c e w ith th e a b o v e a n n o u n c e m e n t , te n d e r s will b e r e c e iv e d a t this b a n k a n d its b r a n c h e s a t El Paso, H ouston a n d Scm A n to n io , u p to tw e l v e - th ir ty p.m .. Centre! S t a n d a r d Time, T u e s d a y , J a n u a r y 9, 1968. T en d e rs m a y no f be e n t e r e d b y te l e p h o n e . Yours trulv # - - • # ! --- ---- W a t r o u s H. Irons President (See reverse side for tender form) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) This issue of Treasury bills will be accepted at face value in payment of income taxes due on June 15,1968 TENDER FOR ADDITION TO TREASURY BILLS TAX ANTICIPATION SERIES Dated October 9, 1967 161 DAYS TO MATURITY Maturing June 24, 1968 T o : Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The ----------------------------------------- Branch E l P aso 79999 H ouston 77001 San A ntonio ___________ ___________ 78206 (D a te ) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to th e provisions of the public announcement, as shown on reverse side, as issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount shown below, and agrees to pay for th e amount allotted, on or before the issue date, by the method and at the rate indicated. NONCOMPETITIVE TENDER NOT TO EXCEED $400,000 N oncom petitive te n d e rs fo r $100,000 o r less from any one bidder, w ith o u t sta te d price, w ill be accepted in full a t the a v e ra g e price (in th re e decim als) of accepted co m p etitiv e bids. $ ( COMPETITIVE TENDERS ( _____ ___ $________ — P rices should be e x p re sse d on th e b asis o f 100, w ith n o t m ore t h 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. < p @ ?— ......... -------------@_ U ST 'T E N D E R S M AY 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 BY W IR E , I F R E C E IV E D B E F O R E T H E C LO SIN G H O U R , A R E A C C E P T A B L E . D en o m in atio n D esired Number of Pieces M ETHOD OF PA Y M EN T Maturity Values ____ @ $ 1,000 $ @ $ 5,000 $10,000 $- @ $ □ By c h a rg e to o u r T re a s u ry T ax an d L o an A ccount □ P a y m e n t to be m ad e by. □ B y c h a rg e to o u r re s e rv e account on p a y m e n t d ate. □ B y d r a f t enclosed (effectual deliv ery of enclosed draft sh all be on la te s t d ay w hich w ill p e rm it p re s e n tm e n t i n o rd e r to o b ta in irrev o cab ly collected fu n d s on payment d a te ). (N a m e of B an k ) 50,000 $ _ g @ ? 100,000 $ @ $ 500,000 $. @ $ . @ $1 ,000,000 ?. W e c e rtify th a t we, as well as o u r cu sto m ers, if any, lis ted hereon h ave ag reed n r t to p u rch ase or to sell, o r to m ake a n y ag re e m e n ts w ith resp ect to th e p u rch ase o r sale or o th e r dispogj. tion of any bills of th is issue a t a specific ra te o r pricc, u n til a f t e r o n e -th irty p.m., E a s te rn S ta n d a rd T im e, T uesday, J a ru u a ry 9. 1968. ~ Delivery Instructions: (Subscriber’s full name or corporate title) □ Hold in Custody Account — M banks for own account only □ Pledge to Secure Treasury Tax and Loan Account |— | e m b e r ______________________________ (A ddress) By---------- (Authorized official signature and title) ^0 _____________________ (Address) IM PO R T A N T 1. No te n d e r fo r less th a n $1,000 w ill be considered a n d each te n d e r m u s t be f o r a n am o u n t in m u ltip les of $1,000 ( m a tu r it y v alu e). 2 T en d ers should be fo rw a rd e d in a n envelope cle a rly ad d ressed to th is bank or a p p ro p r ia te b ran ch as F iscal 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 envelope re a d in g “ T E N D E R F O R T R E A S U R Y B IL L S ” . Since envelopes receiv ed w ith th is legend w ill n o t be opened u n til a f t e r th e closing tim e specified in th e public an nouncem ent, co m m u n ic atio n s re la tin g to o th e r m a tte r s should n o t be enclosed. E nvelopes fo r su b m ittin g te n d e rs m a y be re q u e ste d fro m th is b a n k o r a p p ro p ria te b ran ch . 3. A ny qualified o r conditional te n d e r w ill be rejected . 4 If a co rp o ratio n m a k es th e te n d e r th e fo rm should be signed by a n officer of th e co rp o ratio n a u th o riz e d to m a k e th e te n d e r a n d th e sig n in g of th e fo rm by a n officer of th e co rp o ratio n w ill be co n stru ed as a re p r e s e n ta tio n by him t h a t h e ---- j - j ------ -------- ,—— 'I-s m a ae dy a u a r u i e is L p il tinuuiu ue sig n ed by a m em b er of th e firm , w h o h as been s o A u t h o r i z e d th e te n d e r is m a a e oy f co p a rtn e rsh ip , b y .............................. ......... ... "hould sig n in th e fo rm " .... ‘’ a m e m b e r of th e firm ” . G. T enders fro m th o se o th e r th a n in c o rp o ra te d b a n k s an d t r u s t ^ o m g a n i e B d e a l e r s in in v e s tvvill rlisrpp-arded u n less acco m panied t>> .i deposit ox ^ p ercen t ot to ta l a m o u n t ( m a tu r it y ^alue) of th e T re a su ry bflls ap p lied fo r , o r u n le ss th e te n d e rs a r e accom panied by a n ex p ress g u a r a n ty o f fu ll p a y m e n t by an in c o rp o rated b a n k o r t r u s t com pany. Il la n g u a g e o* th is fo rm is ch an g ed in an y resp ect, w hich, in th e opinion of th e S ecretary of th e T re a su ry , is m a te r ia l, tender m a y b e d isreg ard ed . (S ee re v e rs e fo r anno uncem ent)