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F ederal R eserve Bank of Dallas F IS C A L A G EN T O F T H E UN ITED STA T E S DALLAS, TEXAS 75222 0 Circular No. 68-42 February 14, 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 venth F e d e r a l R eserve District: Y our a t t e n t i o n is in v ite d to th e fo llo w in g s t a t e m e n t giv ing d e t a il s of tw 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 amount of $2,500,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing F ebruary 23, 1968, in th e am ount of $2,501,490,000, as follows: 90-DAY B IL L S (to m aturity date) to be issued February 23, 1968, in the am ount of $1,500,000,000, or there abouts, representing an additional am ount of bills dated November 24, 1967, and to m ature M ay 23, 1968, originally issued in the am ount of $1,000,010,000, the additional and original bills to be freely interchangeable. 181-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated February 23, 1968, and to m ature August 22, 1968. T h e 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 B anks and Branches up to the closing hour, one-thirty p.m.. E astern Standard Tim e, M onday, F ebruary 19, 1968. T enders will not be received a t th e T reasury D epartm ent, W ashington. Each tender must 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 a t tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve B anks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided the names of th e 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 w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accompanied b y an express guaranty of paym ent by a n 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 ent of th e am ount and price range of accepted bids. Those submitting 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 a t the average price (in three decimals) of accepted competitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or completed a t the Federal Reserve B ank on February 23, 1968, in cash or other im mediately available funds or in a like face am ount of Treasury bills m aturing February 23, 1968. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atur ing bills accepted in exchange and the issue price of the new bills. T h e income derived from T reasury 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 h e bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt 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 U nited States is considered to be interest. U nder 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, redeem ed 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 return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (curren t revision) and this notice, prescribe th e 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 B ank 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 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 up 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 , F eb r u a r y 19, 19 68. T enders m a y not b e e n t e r e d b y t e l e p h o n e . Yours v e r y truly, P. E. Coldwell P re sid e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and A pproxim ate Yield of A ccepted Tenders 91-Day Bills 182-Day Bills D ue M ay 16, 1968 D ue August 15, 1968 $2,617,650,000_______________________________ Total Applied For_______________________________ $2,217,774,000 $ 1,500,12 7,000________________________________ T otal Accepted_________________________________ $ 1,000,021,000 Price Yield Price Yield 98.734 5.008% _________________________ H igh______________________ 97.354___________ 5.234% 98.720 5.064% _________________________ Low______________________ 97.326___________ 5.289% 98.726 5.040% ( 1 ) ____________________ Average_____________________ 97.333___________ 5.275% (1 ) ( 1 ) T h ese rates are on a bank d iscount basis. T h e eq u iv a le n t coupon issue y ie ld s are 5 .1 9 % for th e 9 1 -d a y bills, an d 5 . 5 1 % for th e 182-d a y bills. ( 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 181 DAYS TO MATURITY Dated F e b ru ary 23,1968 M aturing A ugust 22, 1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________________Branch El Paso 79999 Houston 77001 San Antonio 78206 (Date) 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. NONCOMPETITIVE TENDER $_ JSTOT 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. ---------------------------- (»COMPETITIVE TENDERS < $_ /$_ ---------------------------__________________ Prices should be ex pressed on the basis of 100, with not more than th re e decim al places, e. g., 99.925. Fractions must not be used. E X T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number o f Pieces Maturity Value $ METHOD OF PAYMENT 1,000 $ <® $ - Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. 5,000 $ 10,000 $ □ ® $ > (5) ? 50,000 ? (H ? 100,000 $ > By m atu rin g bills held b y _____________________________ P ay m en t to be m ade by_____________ □ □ Charge our reserve account on p aym ent date |_j D ra ft enclosed ( E f f e c t u a l d e liv e r y o f enclosed <® ? 500,000 $ (a) $1,,000,000 $ d ra ft shall be on latest day which will p erm it p re s e n t m e n t in order to o btain irrevocably collected fu n d s o n p a y m e n t d ate) Delivery In structions: □ □ Pledge to secure T reasu ry Tax and Loan Account □ (S ub scriber’s fu ll n a m e or c o rp o ra te title) Hold in Custody Account— Member banks fo r own account only Ship to----------------------------------------- (Address) By(A uthorized official s ig n a tu re a n d title) (F o r the acco un t of, if te n d e r is f o r a n o th e r sub scrib er) (Address) 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 (m aturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of th e 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 th a t 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 (m aturity 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)