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F ederal R eserve Bank 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, TEXAS 75222 Circular No. 68-46 February 15, 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 eserve District: Y ou r a t t e n t i o n is in vited 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 o f 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 am ount of $1,500,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing February 29, 1968, in th e am ount of $3,904,591,000, as follows: 275-DAY B IL L S (to m aturity date) to be issued F ebruary 29, 1968, in the am ount of $500,000,000, or thereabouts, representing an additional am ount of bills dated November 30, 1967, and to m ature November 30, 1968, originally issued in the am ount of $1,000,262,000, the additional and original bills to be freely interchangeable. 365-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated F ebruary 29, 1968, and to m ature February 28, 1969. 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 atu rity their face am ount will be payable without 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). T enders 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, Wednesday, February 21, 1968. Tenders 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 the case of competitive tenders th e price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. (Notw ithstanding the fact th a t the one-year bills will run for 365-days, the discount rate will be com puted on a bank discount basis of 360-days, as is currently the practice on all issues of T reasury bills.) I t is urged th a t tenders be m ade 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 n ot 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 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 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 th e rig ht 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 th e respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal Reserve Bank on February 29, 1968, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing February 29, 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 aturing bills accepted in exchange and the issue price of the new bills. T he 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, 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 th e 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 interest. 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 considered to accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, th e owner of Treasury bills (other than life insurance companies) 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 th e return is m ade, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe the term s of the T reasury bills and govern th e conditions of their issue. Copies of the circular may 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 r e 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 ., C e n tral S t a n d a r d Time, W e d n e s d a y , F e b r u a r y 2 1 , 1968 . Tenders m a y not b e e n t e r e d by t e l e p h o n e . Y ours v e r y truly, P. E. Coldw ell P re sid e n t (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 FOR ADDITION TO TREASURY BILLS 275 DAYS TO MATURITY Dated November 30,1967 Maturing November 30, 1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________ ________ B r a n ch El Paso 79999 Houston 77001 (Date) 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 a t the rate indicated. NONCOMPETITIVE TENDER $_ _NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. Prices should be ex- U- pressed on the basis of 100, with not more than th re e d e c im a l places, __________________ e. g., 99.925. Fractions /?must not be used. d rip TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. - @ --------------------------- - COMPETTTTVF, T E N D E R S '$ _ D enom inations D esired Number of Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M aturity Value ■<> $ 3 ? 5,000 (ffl ? METHOD OF PAYMENT 1,000 10,000 □ By m a tu rin g bills held by___________________________ P ay m en t to be m ade by___________ □ @ ? 50,000 ?. (a) ? 100,000 $. (5) $ 500,000 $. □ I 1 Charge our reserve account on p ay m ent date D ra ft enclosed ( E f f e c t u a l d e liv e ry o f en closed d r a f t shall he on la te st day which will p e rm it p re s e n t m e n t in order to obtain irrevocably collected f u n d s on p a y m e n t date) @ $1,000,000 ?Delivery In stru c tio n s : □ □ Pledge to secure T reasury T ax and Loan Account (S u bscrib er’s full n am e or co rp orate title) Hold in Custody Account— Member banks fo r own account only □ (Address) B y- (A uthorized official s ig n a tu re a n d title ) Ship to__________________________ (F o r the accou nt of, if te n d e r is fo r a n o th e r subscriber) (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 the United States, with notation on the envelope reading “TENDER F O I 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 m 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, by .....................................................J a member of the firm”. 5. Tenders from those other than incorporated banks and tru st 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 fo r announcement)