View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal

reserve

Bank

of

Dallas

FISCA L AGENT OF THE UNITED STATES

DALLAS, TEXAS

75222
C ircu la r N o. 68-18
J a n u a r y 18, 1968

NEW OFFERING — TREASURY BILLS

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statement giving details of two issues of Treasury bills:
T h e T re a s u ry D e p a rtm e n t, b y th is p u b lic notice, in v ite s te n d e rs fo r tw o series o f T re a s u ry b ills to th e a g g reg ate a m o u n t
o f $1,500,000,000, or th ere ab o u ts, fo r cash a n d in exchange for T re a s u ry b ills 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 follows:
2 74-D A Y B IL L S ( to m a tu r ity d a te ) to b e issued J a n u a ry 31, 1968, in th e a m o u n t o f $500,000,000, o r 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 cto b er 31, 1967, a n d to m a tu re O c to b er 31, 1968,
o rig 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 o rig in al b ills to b e fre ely in terch an g eab le.
366-D A Y B IL L S fo r $1,000,000,000, o r 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 b ills o f b o th series w ill b e issued on a d isco 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 a s h e re in a fte r
p ro 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 a b le w ith o u t in terest. T h e y w ill b e issued in b e a re r fo rm 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 r ity v a lu e ).
T e n d e rs will b e receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ra n ch e s u p to th e closing ho ur, 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 , Ja n u a r y 25, 1968. T e n d e rs w ill n o t b e receiv ed 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 b e 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 s t b e exp ressed
o n th e basis o f 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 a y n o t b e used. (N o tw ith sta n d in g th e f a c t t h a t
t h e o ne-y ear b ills w ill ru n fo r 366-days, th e d isco u nt r a te w ill b e c o m p u te d o n a b a n k discou n t basis o f 360-days, as is c u rre n tly
t h e p ra c tic e o n all issues of T re a su ry b ills.) I t is u rg e d t h a t te n d e rs b e m a d e on th e p rin te d form s a n d fo rw a rd ed in th e special
e n v elo pes w hich w ill b e su p p lied b y F e d e ra l R e se rv e B a n k s o r B ra n ch e s o n 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 a y su b m it te n d e rs for a cc o u n t o f cu sto m ers p ro v id ed th e n a m e s of th e c u stom ers a re
s e 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 b e p e rm itte d to su b m it te n d e rs e x ce p t for th e ir ow n account.
T e n d e rs w ill b e receiv ed w ith o u t d e p o sit fro m in co rp o ra ted b a n k s a n d tr u s t co m pan ies a n d fro m respo n sib le a n d recognized
d e ale rs in in v e stm e n t securities. T e n d e rs fro m o th e rs m u st b e acco m p an ied b y p a y m e n t o f 2 p e rc e n t o f th e face a m o u n t of
T re a s u ry b ills a p p lie d for, u nless th e te n d e rs a re a cc o m p an ied b y a n express g u a ra n ty of p a y m e n t b y a n in co rp o ra ted b a n k o r
t r u s t com pany.
I m m e d ia te ly a f te r th e closing ho ur, te n d e rs will b e o p e n e d 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 c e m e n t w ill b e m ad e b y th e T re a s u ry D e p a rtm e n t o f th e a m o u n t a n d p rice ran ge of a cc ep te d bids. T h o se
su b m ittin g te n d e rs will b e ad v ised of th e acc ep ta n ce o r re je c tio n thereo f. T h e S e c re ta ry o f th e T re a su ry ex p ressly reserves th e
r ig h t to a c c e p t o r re je c t a n y or all ten d e rs, in w hole o r in p a r t, a n d his a ctio n in a n y such re sp e ct shall b e final. S u b je c t to
th ese reserv ation s, n o n c o m p e titiv e te n d e rs fo r each issue fo r $200,000 o r less w ith o u t sta te d p rice fro m a n y one b id d e r w ill b e
a cc ep te d in full a t th e av era g e p rice ( in th re e de cim als) o f a cc ep te d c o m p e titiv e b id s fo r th e re sp e ctiv e issues. S e ttle m e n t fo r
a cc ep te d te n d e rs in acco rd ance w ith th e b id s m u st b e m a d e o r 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 31, 1968,
in cash or o th e r im m e d ia tely a v ailab le fu n d s or in a lik e face am o u n t of T re a su ry b ills m a tu rin g J a n u a r y 31, 1968. C ash a n d
e x change te n d e rs w ill receiv e e q u al tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e fo r differences b e tw ee n th e p a r v a lu e o f m a tu rin g
b ills a cc ep te d in exchange a n d th e issue price o f th e new bills.
T h e incom e d e riv e d fro m T re a su ry bills, w h e th e r in te re s t o r g ain fro m th e sale o r o th e r d isp o sitio n of th e bills, does n o t
h a v e a n y exem p tio n , as such, a n d loss from th e sale o r o th e r d isp o sitio n o f T re a su ry b ills does n o t h a v e 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 e n u e C ode o f 1954. T h e b ills a re s u b je c t to estate, in h eritan c e, g ift o r o th e r excise taxes, w h e th er
F e d e ra l o r S ta te , b u t a re e x e m p t fro m a ll ta x a tio n now o r h e re a fte r im po sed o n th e p rin c ip a l o r in te re s t th e re o f b y a n y S ta te ,
o r a n y of th e possessions of th e U n ite d S ta te s, o r b y a n y local tax in g a u th o rity . F o r p u rp o ses o f ta x a tio n th e a m o u n t o f discou n t
a t w hich T re a s u ry b ills a re o rigin ally sold b y th e U n ite d S ta te s is co n sidered to b e in te re st. U n d e r S ectio n s 4 54 ( b ) a n d 1221 ( 5 )
o f th e In te rn a l R e v en u e C ode o f 1954 th e a m o u n t o f d isco u n t a t w h ich b ills issued h e re u n d e r a re sold is n o t con sidered to
accru e u n til such b ills a re sold, re d ee m e d o r o th erw ise disposed of, a n d such bills a re excluded fro m co n sid eratio n as c a p ita l
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 ran ce co m p a n ies) issued h e re u n d e r n e ed in clu d e in his
incom e ta x re tu r n on ly th e difference b e tw ee n th e p rice p a id fo r such bills, w h e th er on original issue o r o n su b seq u e n t p urch ase,
a n d th e a m o u n t a c tu a lly re ce iv e d 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 a r fo r w hich th e re tu r n is
m ad e, as o rd in ary g ain o r loss.
T re a s u ry D e p a rtm e n t C ircu la r No. 41 8 (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 s u ry b ills a n d
govern th e c o n ditio ns of th e ir issue. C opies of th e c irc u lar m a y b e o b ta in e d fro m a n y F e d e ra l R e se rv e B a n k o r B ran ch .

In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio, up to twelve-thirty p.m., Central Standard Time, Thursday, January 25, 1968. Tenders may
not be entered by telephone.
Yours very truly,
Watrous H. Irons
President
(S ee 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 FOR TREASURY BILLS

366 DAYS TO MATURITY
Maturing January 31, 1969

Dated January 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 Department, 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.

JNOT 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
-@ o
100, with not more than
COMPETITIVE TENDERS <[$_
------- --------------------------- - ■
" th ree d e c im a l p laces,
_____$______________ ._________
e. g., 99.925. Fractions
h
-@ must not be used.
TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um ber 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

(a) $
<> $
3

METHOD OF PAYMENT

1,000 $5,000 $-

□

. 0 $ 10,000 $(a) $ 50,000 $.
(a) $ 100,000 $< $ 500,000 $
cb

□

By maturing bills
held by___________________________
Paym ent to be made by___________

□
|

< $1,000,000 $
fl>

Charge our reserve account on payment
date
1 D r a f t e n c l o s e d ( E f f e c t u a l d e l i v e r y o f e n c lo s e d
d r a f t sh all be on la te st day w hich w ill p e rm it p re sen t­
m e n t in o rd er to o b ta in irrevocably collected fu n d s on
p a y m e n t date)

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

□

(S ubscriber’s fu ll n am e o r co rp o rate title)

Hold in Custody Account— Member
banks for own account only

Ship to _ _______________________

(A ddress)

By_

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

(F o r th e acco u n t of, if te n d e r is f o r a n o th e r subscriber)

(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. Envelopes 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 signing 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