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 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. 68-47 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 rn e d in t h e Eleventh F e d e r a l R eserve District: Y our a t t e n t i o n is inv ited to th e fo llo w in g s t a t e m e n t g iv ing d e t a il s o f t w 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 February 29, 1968, in th e 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 February 29, 1968, and to m ature F ebruary 28, 1969. T he bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and a t m aturity th eir 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). T enders will be received a t Federal R eserve Banks an d B ranches u p 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 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. (N otw 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 Treasury bills.) 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 Federal Reserve B anks or Branches on application therefor. B anking institutions generally may subm it tenders for account of customers provided the 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 their own account. Tenders will be received w ithout 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 accom panied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless th e tenders are accompanied by a n 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 ent of th e 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 th e T reasury 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 com petitive 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 the Federal Reserve B ank on February 29, 1968, in cash or other im m ediately available funds or in a like face am ount of Treasury 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 h e income derived from T reasury 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 th e sale or other disposition of T reasury 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 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 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, the owner of T reasury bills (other than life insurance companies) issued hereunder need include in his income tax return only th e 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 m ade, 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 th e 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 , 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, Houston a n d San A n to n io , u p 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 eb r u a r y 21, 1 96 8. Tenders 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. 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 TREASURY BILLS 365 DAYS TO MATURITY Dated February 29, 1968 Maturing February 28,1969 T o : Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________________Branch El Paso 79999 Houston 77001 (Date) San Antonio 7820G 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 $_ _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. / _ e Prices should be ex1 $------------------------------@ -------------- $------------------------------------ pressed on the basis of COMPETITIVE TENDERS ( $_______________ @________ $____________________ t T ^ d ^ ™ ^ * * I$ \ ______________ @ _________ $________________________ e. g., 99.925. Fractions’ must not be used. jJSlP TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces .(5) ? <> ? 5 Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Maturity Value METHOD OF PAYMENT 1,000 $. □ 5,000 $. @ ? 10,000 (5) $ 50,000 $. (5) $ 100,000 $. □ □ (5) $ 500,000 $. @ $1,000,000 $. □ By maturing bills held by__________________ Payment to be made by___________ Charge our reserve account on payment date Draft enclosed ( E f f e c t u a l d e liv e r y o f e n c lo s e d draft shall be on latest day which will permit present ment in order to obtain irrevocably collected funds on payment date) Delivery Instructions: □ □ Pledge to secure Treasury Tax and Loan Account (Subscriber’s fu ll name or corporate title) Hold in Custody Account— Member banks for own account only □ (Address) By_ (Authorized official signature and title) Ship to__________________________ (For the account of, if tender is for another 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 (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. Any qualified or conditional tender will be rejected. 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 T reasury is m aterial, the tender m ay be disregarded. (See reverse fo r announcement)