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F ed e r a l r e s e r v e Ba n k o f D a lla s 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, TEXAS 75222 Circular No. 68-33 February 5, 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 leventh F e d e r a l R e serv e District: Y our a t t e n t i o n is in v ited to t h e fo llo w in g s t a t e m e n t g iving d e t a il s of t w o iss u e s of T re as u ry bills: PLEASE OBSERVE CLOSING D A T E - FRIDAY, FEBRUARY 9, 7968 T he 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 F ebruary IS, 1968, in the am ount of $2,501,459,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued February 15, 1968, in the am ount of $1,500,000,000, or there abouts, representing an additional am ount of bills dated November 16, 1967, and to m ature M ay 16, 1968, originally issued in the am ount of $999,947,000, th e additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,000,000,000, or thereabouts to be dated F ebruary 15, 1968, and to m ature August 15, 1968. T he bills of both series will be issued on a discount basis under competitive and noncom petitive 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 atu rity value). Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard T im e, Friday, February 9, 1968. T enders 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 th e case of com petitive tenders the price offered m ust be expressed on the basis of 100, with not more th a n three decimals, e.g., 99.925. Fractions m ay not be used. It is urged th a t tenders be m ade on the printed forms and forwarded in the special envelopes which will be supplied by F ederal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided th e 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 th e ir own account. T enders will be received w ithout 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 reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or trust 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 m ade by the T reasury D epartm en t of the am ount and price range of accepted bids. Those subm itting tenders will be advised of the acceptance or rejection thereof. T h e 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, noncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder will be accepted in full a t th e average price (in three decimals) of accepted competitive bids for th e respective issues. Settlem ent for accepted tenders in accordance with th e bids m ust be m ade or com pleted a t th e Federal Reserve B ank on February 15, 1968, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing February 15, 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 atur 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 the sale or other disposition of the 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 th e Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, b ut are exem pt from all taxation now or hereafter imposed on th e principal or interest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount a t which T reasury bills are originally sold by the U nited States is considered to be in te re s t U nder Sections 454 (b ) and 1221 (5 ) of th e 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, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other th a n life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the 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. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the T reasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve Bank 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 , t e 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, H ousto n a n d S a n A n to n io u p to tw e lv e - th ir ty p.m ., Central S t a n d a r d Time, F riday, F eb r u a r y 9, 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, P. E. C oldw ell P re sid e n t Figures concerning offering of 9 1 -Day Treasury Bills maturing May 9, 1968, an d 182-Day Treasury Bills maturing August 8, 1968, not available when this circular was printed. ( S e e re v erse for 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 Dated February 15, 1968 Maturing August 15, 1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________________Branch El Paso 79999 Houston 77001 ________________________________________ San Antonio 78206 (Dat«) 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. OBSERVE CLOSING DATE — FRIDAY, FEBRUARY 9, 1968 NONCOMPETITIVE TENDER $_______________________________ NOT TO EXCEED $200,000 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. / @ -------------- $------------------------------------C O M P E T IT IV E T E N D E R S ' S ( ft < R ______________________________ i c v -----------------------------------/ $ ____________________@ __________ $ _______________________ \ Prices should be expressed on the basis of 100, with not more than th ree d ecim al p la ce s, e. g., 99.925. Fractions must not be used. ^ " T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E CLOSING HOUR, AB IE ACCEPTABLE. Denominations Desired Number of Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Maturity Value -(a) $ $ (a) $ 1,000 $________________ 5,000 s METHOD OF PAYMENT □ By maturing bills held by______________________________ _ ■ □ Payment to be made by_______________ ---------------------------------------------------------□ Charge our reserve account on paym ent 10,000 $ 50,000 $--------------------<® $ 100,000 $______________ -(a) $ 500,000 -Q $ <> £2 D ra ft enclosed (® $1 ,000,000 11VC1J □ □ □ iilDI/iULbiUXlO. _______________________ Hold in Custody Account^-M em ber banks fo r own account o n l Pledge to secure T reasu ry T ax and Loan Account Ship to-------------------------------------- (E ffectual delivery of enclosed draft shall be on latest day which will permit p resen t m ent In order to obtain irrevocably collected fund* on payment date) (Subscriber's full name or corporate title) y ------------------------------------------------------------------------------(Address) _________________________________________________ (Authorized official signature and title) ------------------------------------------------------------------------------ PLEASE (For the account of, if tender is for another subscriber) (Address) IM P O R T A N T 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, b y .................................................................................. 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 fo r announcement)