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F ed era l R e s e r v e B ank

of

Dallas

F IS C A L A G E N T O F T H E U N IT E D S T A T E S

DALLAS. TEX A S

75222
C ircu la r No. 68-17
J a n u a r y 18, 1968

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 following s ta te m e n t giving 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, in vites te n d e rs for two series of T re a su ry bills to th e a gg reg ate a m o u n t
o f $1,500,000,000, or th ere ab o u ts, for 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 31, 1968, in th e a m o u n t of
$1,401,412,000, as follow s:
274-D A Y B IL L S ( to m a tu rity d a te ) to b e issued J a n u a ry 31, 1968, in th e a m o u n t of $500,000,000, or th ere ab o u ts,
re p re se n tin g a n a d d itio n al a m o u n t of bills d a te d O ctob er 31, 1967, a n d to m a tu re O cto b er 31, 1968,
orig in ally issued in th e a m o u n t of $1,001,770,000, th e a d d itio n al a n d original bills to be fre ely in terch an geab le.
366-D A Y B IL L S fo r $1,000,000,000, or th ere ab o u ts, to be d a te d J a n u a r y 31, 1968, a n d to m a tu re J a n u a r y 31,
1969.
T h e bills of b o th series will be issued on a disco u n t 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 re in a fte r
p ro v id ed , a n d a t m a tu rity 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 be issued in b e a re r form only, a n d in
d en 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 r ity v a lu e ).
T e n d e rs will b e received a t F e d e ra l R eserv e B a n k s a n d B ran ch es 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 , T h u rsd a y , J a n u a r y 25, 1968. T e n d e rs w ill n o t be 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 for a n e v en m u ltip le of $1,000, a n d in th e case of c o m p e titiv e te n 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 o re th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay n o t be used. (N o tw ith sta n d in g th e fa c t th a t
th e on e-y ear b ills will ru n for 366-days, th e d isco u nt r a te w ill b e co m p u te d on a b a n k d isco un t basis of 360-days, as is c u rre n tly
th e p ra ctice o n all issues of T re a su ry b ills.) I t is u rg ed 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 fo rw ard ed in th e special
env elo pes w hich w ill be su p p lied by F e d e ra l R eserv e B a n k s o r B ra n ch e s on a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s g en erally m ay su b m it te n d e rs fo r a cco u nt of cu stom ers p ro v id ed th e n am es of th e cu sto m ers a re
se t fo rth in such ten d ers. O th e rs th a n b a n k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it te n d e rs e x ce p t fo r th e ir ow n account.
T e n d e rs will be receiv ed w ith o u t d ep o sit from in co rp o ra ted b an k s a n d tr u s t co m pan ies a n d fro m resp o nsib le a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs fro m o th ers m u st b e acco 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 re a su ry bills a p p lie d for, unless th e te n d e rs a re acco m p an ied b y 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.
I m m e d ia te ly a fte r th e closing hour, te n d e rs will b e 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 a n n o u n ce m en t will be m a d s 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 rang e of a cc ep te d bids. T h ose
su b m ittin g te n d e rs will be adv ised of th e acc ep ta n ce or re je ctio n th ereo f. T h e S e c re ta ry of th e T re a su ry expressly reserv es th e
rig h t to a c c e p t or re je c t a n y or all ten d ers, in whole or in p a rt, a n d h is actio n in a n y such re sp e ct shall be final. S u b je ct to
th ese reservation s, n o n c o m p e titiv e te n d e rs fo r each issue fo r $200,000 or less w ith o u t s ta te d p rice fro m a n y one b id d er will be
a cc ep te d in full a t th e a v erage p rice ( in th re e de cim als) of a cc ep te d c o m p e titiv e b ids 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 o r 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 31, 1968,
in cash o r o th e r im m e d ia te ly a v ailab le fu n d s or in a like face am o u n t of T re a su ry bills m a tu rin g J a n u a r y 31, 1968. C ash a n d
exchange te n d e rs will receive eq ual tre a tm e n t. C ash a d ju s tm e n ts will be m ad e for differences b etw een th e p a r valu e of m a tu 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 d eriv ed from T re a su ry bills, w h e th er in te re s t o r gain fro m th e sale o r o th e r d ispo sitio n of th e bills, does n o t
h av e a n y ex em ptio n, as such, a n d loss fro m th e sale o r o th e r d isp osition of T re a su ry b ills does n o t h ave a n y special tre a tm e n t,
as such, u n d e r th e In te rn a l R e v en u e C ode of 1954. T h e bills a re su b je ct to estate, in h eritan c e, gift or o th e r excise taxes, w h e th er
F e d e ra l or S ta te , b u t a re e x em p t from all tax a tio n now o r h e re a fte r im po sed on th e p rin c ip a l o r in te re st th ere o f b y a n y S ta te ,
or a n y of th e possessions of th e U n ite d S tates, or by a n y local tax in g a u th o rity . F o r p u rp o ses of tax a tio n th e a m o u n t of disco u nt
a t w hich T re a su ry bills a re orig in ally sold b y th e U n ite d S ta te s is co n sidered 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 en u e C ode of 1954 th e a m o u n t of d isco un t a t w hich bills issued h e re u n d e r a re sold is n o t co nsidered to
accru e u n til such bills a re sold, re d ee m e d or otherw ise disposed of, a n d such bills a re excluded fro m c o n sid eratio n as cap ital
assets. A ccordingly, th e o w ner of T re a su ry bills ( o th e r th a n life in su rance co m p a n ies) issued h e re u n d e r n eed in clu de in his
incom e ta x r e tu rn only th e difference b e tw ee n th e p rice p a id for such bills, w h e th er on o riginal issue o r o n su b seq u e n t p u rcnase,
a n d th e a m o u n t a c tu a lly receiv ed e ith e r u p o n sale o r re d e m p tio n a t m a tu r ity d u rin g th e tax a b le y e ar fo r w hich th e re tu r n is
m ado, as o rd in ary gain or loss.
T re a s u 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, p re sc rib e th e te rm s of th e T re a su ry b ills a n d
g overn th e co nd itio n s of th e ir issue. C opies of th e circ u lar 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 ran ch .

In acco rd an ce with the a b o v e a n n o u n c e m e n t, te n d e rs will be received a t this b a n k a n d its b ra n c h e s a t El Paso,
Houston a n d San Antonio, up to tw e lv e -th irt/ p.m., Central S ta n d a rd Time, Thursday, J a n u a r y 25, 1968. Tenders m ay
not b e e n tered by te le p h o n e .
Yours very truly,
W atrous 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)

TENDER FCR ADDITION TO TREASURY BILLS

274 DAYS TO MATURITY
Dated October 31, 1967

Maturing October 31, 1968

T o: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________________ Branch
El Paso 79999

Houston 77001

(D ate)

San Antonio 78206

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Depai’tment, the undersigned offers to purchase Treasury bills in the amount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.

NOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
(^
_
Prices should be ex$________________________ pressed on the basis of
100, with not more than
COMPETITIVE TENDERS < $
$ ..........
@
three d e c im a l p laces,
e. g., 99.925. Fractions
-$ ■
/$
must not be used.
Egf* TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b e r of
Pieces

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M a tu rity V alue

(5) $
<> $
5
(a) $

METHOD OF PAYMENT

1,000 *
5,000 $10,000 $

□
□

(a) $ 50,000 $.
(a) $ 100,000 $(a) $ 500,000 $.

By m aturing bills
held by___________________________
Payment to be made by___________

□
|

(a) $1:,000,000 ?.

Charge our reserve account on payment
date
| D r a f t e n c l o s e d ( E f f e c t u a l d e liv e r y o f e n c lo s e d
d r a f t shall be on la te st day w hich w ill p e rm it p re s e n t­
m e n t in o rd e r to o bta in irrevocably collected fu nd s on
p a y m e n t date)

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

(S ub scrib er’s fu ll n am e o r c o rp o ra te title)

Hold in Custody Account— Member
banks for own account only

□

(A ddress)

By_
(A uth o rized official s ig n a tu re an d title )

Ship to__________________________
(F o r th e a cc o u n t of, if te n d e r is fo r a n o th e r su bscrib er)

(A ddress)

IMPORTANT
1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity
value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY BILLS”. Since envelopes received
with this legend will not be opened until after the closing time specified in the public announcement, communications
relating to other matters should not be enclosed. EnveL-pes for submitting tenders may be obtained from this bank
or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the
tender and the signirg of the form by an officer of the corporation will be construed as a representation by him that he
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who
should sign in the form “.................. . ..
.. ........ , a copartnership, by................................................................................. .
a member of the firm”.
5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or trust company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.
(See reverse for announcement)

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