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F ederal

reserve

Bank

F ISC A L A G E N T O F T H E

U N IT E D

DALLAS, TEXAS

of

Dallas

STATES

75222

Circular No. 68-16
January 17, 1968

NEW OFFERING — TREASURY BILLS
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 le v en th F e d e r a l Reserve District:
Your a t t e n t i o n is in v ite d to th e f o llo w in g s t a t e m e n t g iv ing d e t a il s of t w o is s u e s of T re as u ry bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount
of $2,500,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing January 25, 1968, in the am ount of
$2,501,384,000, as follows:
91-DAY BILLS (to m aturity date) to be issued January 25, 1968, in the am ount of $1,500,000,000, or there­
abouts, representing an additional am ount of bills dated October 26, 1967, and to m ature April 25, 1968,
originally issued in the am ount of $1,000,763,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated Jan u ary 25, 1968, and to m ature July 25, 1968.
T h e bills of both series will be issued on a discount basis under com petitive and noncompetitive bidding as hereinafter
provided, and a t m aturity their face am ount will be payable w ithout interest. T hey 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).
T enders will be received at Federal Reserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, January 22, 1968. Tenders will not be received a t the T reasury D epartm ent, Washington. Each
tender must be for an even m ultiple of $1,000, and in the case of competitive 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. I t 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 the customers 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 tru st companies and from responsible and recognized
dealers in investm ent securities. T enders from others must be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve B anks and Branches, following which
public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T he Secretary of the Treasury expressly reserves the
right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to
these reservations, noncompetitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal R eserve B ank on January 25, 1968, in
cash or other im m ediately available funds or in a like face amount of T reasury bills m aturing January 25, 1968. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atu r­
ing bills accepted in exchange and the issue price of the new bills.
T he income derived from Treasury bills, w hether interest or gain from th e sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other disposition of Treasury 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, w hether
Federal or State, b u t 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 the am ount of discount
a t which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454 ( b ) and
1221 (5 ) of the Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not con­
sidered 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 Treasury bills (other than life insurance com panies) issued hereunder need include
in his income tax return only the difference between the price paid for such bills, w hether on original issue or on subsequent
purchase, and the am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the
retu rn is made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s of the T reasury bills and
govern the conditions of their issue. Copies of th e circular m ay be obtained from any Federal Reserve B ank or Branch.

In a c c o r d a n c e w ith t h 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 re 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 P aso,
Houston a n d San A n to n io u p to tw e l v e - th ir ty p .m ., Central S t a n d a r d Time, M o n d a y , J a n u a r y 22, 1968 . T e n d e rs m a y
not b e e n t e r e d b y t e l e p h o n e .
Y ours v e r y truly,
W a t r o u s H. Irons
P re sid en t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and A pproxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue April 18, 1968
D ue Ju ly 18, 1968
$3,552,478,000_______ ______________________ T otal Applied For_______________________________ $2,103,649,000
$1,502,048,000________________________ ________T otal A ccepted____________ _________ ___________$1,000,247,000
Price
Yield
Price
Yield
98.723_________
5.052% ______ ________ ___________H igh______________________ 97.360___________ 5.222%
98.716
5 .0 8 0 % _______ _ ____ ___________Low_____________ ________ 97.348.__ ________ 5.246%
_
98.718
5.072% ( 1 ) ____________________ Average____________________ 97.352.____ ______ 5.238% (1)
( 1 ) T h ese rates are on a bank discount basis. T h e eq u iva le n t coupon issue y ie ld s are 5 .2 2 % for th e 9 1 - d a y bills, and 5 .4 7 % for
t h e 1 8 2 - d a y b i ll s .

( S e e r e v e r s e s id e 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 TREASURY BILLS

182 DAYS TO MATURITY
Maturing July 25, 1968

Dated January 25, 1968
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________________Branch
El Paso 79999

Houston 77001

(Date)

San Antonio 78206

P u rs u a n t to th e pro visions of T re a s u r y D e p a rtm e n t C irc u lar No. 418 ( c u r re n t revision ) and th e p rovision s of t h e
public an n o u n cem en t issued b y th e T re a s u r y D e p a rtm e n t, th e u n d ersig n ed offers to p u rc h a s e T re a s u r y bills in th e a m o u n t
show n below, an d a g re e s to p a y fo r th e a m o u n t allo tte d , on o r befo re th e issue d ate, by th e m eth od a n d a t th e r a t e in d ic a te d .

JSTOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $_

N oncom petitive te n d e rs fo r $200,000 or less fro m an y one b id d er, w ith o u t s ta te d price, w ill b e accepted in fu ll a t th e a v e r a g e
price (in th re e decim als) of accepted com petitive bids.

(_

_

?

(a)

$

?

@

?

COMPETITIVE TENDERS

_

P ric e s should be e x ­
p re s se d on th e b a sis o f
100, w ith n o t m o re 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 b e used.

E X 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 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 s D esired
N u m b e r of
Pieces

M a tu rity Value

@ $

_

.

.....................

M ETHOD O F PA Y M EN T

1,000 I

@ ?
-

P a y m e n t f o r th is issue of bills ca n n o t be m a d e
by c re d it to T re a s u ry T a x and L o an A ccount.

5,000

@ $

□

10,000 $■
50,000 $-

By maturing bills
held by-------------------------------------------Payment to be made by_____________

□

@ $
.@ $ 100,000 $@ $ 500,000 $-

□
|

I

Charge our reserve account on payment
date
Draft enclosed ( E f f e c t u a l d e liv e r y o f enclosed
d ra ft shall be on latest day w hich will p e rm it p r e s e n t ­
m e n t in o rd e r to o btain irrevocably collected f u n d s o n
p a y m e n t date)

@ $1,000,000 $
Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

□

(S u b scrib er’s full n am e or c o rp o ra te title)

Hold in Custody Account— Member
banks for own account only

Ship to___________________________

(Address)

By
(A uthorized official s ig n a tu re an d title)

(F o r the a cco u nt of, if te n d e r is for a n o th e r subscriber)

(A ddress)

IM P O R T A N T
1. N o te n d e r f o r less th a n $1,000 w ill be considered an d each 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 aturity
v alu e).
2. T en ders should be fo rw ard ed in a n envelope cle a rly ad d re s se d to th is b an k or a p p ro p ria te b ran ch a s F is c a l A g e n t o f t h e
U n ited 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 re c e iv e d
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 noun cem en t, co m m u n ic atio n s
re la tin g to o th e r m a tte rs sho uld n o t be enclosed. E nv elo p es fo r s u b m ittin g te n d e rs m a y be o b ta in ed fro m th is b a n k
or a p p ro p ria te b ranch.
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 the te n d e r, th e fo rm should be sig n ed by a n officer of th e co rp o ratio n a u th o riz e d to m a k e t h e
te n d e r an d th e sig n in g of th e fo r m b y a n officer of th e co rp o ratio n w ill be co n stru ed as a re p re s e n ta tio n by him t h a t h e
h a s been so autho rized. If th e te n d e r is m ad e by a p a rtn e rs h ip i t should be sig n ed by a m e m b e r o f th e firm , w h o
should sig n in th e fo rm “........................................................... , a c o p a rtn e rsh ip , b y .......................................................................................
a m e m b er of th e firm ”.
5. T en d ers fro m those o th e r th a n in c o rp o rated b an k s a n d tr u s t com panies o r resp o n sib le a n d recognized d ealers in in v e s t­
m e n t secu rities w ill be d isreg ard ed , u n le ss accom panied by a dep o sit of 2 p e rc e n t o f th e to ta l a m o u n t ( m a tu r ity v a lu e )
of th e T re a s u r y bills applied fo r, o r u n le ss th e te n d e rs a re accom panied by a n ex p re ss g u a r a n ty o f fu ll p a y m e n t b y an
in c o rp o rated b ank o r tr u s t com pany.
6. If th e la n g u a g e o f th is fo rm is changed in a n y resp ect, w hich, in th e opinion of th e S e c re ta ry of th e T re a s u r y i s
m a te ria l, th e te n d e r m a y be d isreg ard ed .

(See reverse fo r announcem ent)

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