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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. 68-63
March 6, 1963

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 Reserve District:
Y our a t te n t io n is in v ited 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 a s u ry

bills:

T he T reasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $2,600,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M arch 14, 1968, in th e am ount of
$2,501,460,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued M arch 14, 1968, in the am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated December 14, 1967, and to m ature June 13, 1968, originally
issued in the am ount of $1,000,357,000, 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 M arch 14, 1968, and to m ature Septem ber 12, 1968.
T he bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter
provided, and at m aturity their face amount 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 aturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard Tim e, Monday, M arch 11, 1968. Tenders will not be received a t the T reasury Departm ent, Washington. Each
tender must be for an even multiple 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 may not be used. It
is urged th a t tenders be made
on the printed forms and forwarded in the special envelopes which will bo supplied by Federal Reserve B anks or Branches
on application therefor.
Banking institutions generally may subm it tenders for account of customers provided the names of the customers ore
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 without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by paym ent of 2 percent of the face am ount of
Treasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im mediately after the closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury 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 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 at 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 made or completed a t the Federal Reserve B ank on M arch 14, 1968, in
cash or other im mediately available funds or in a like face am ount of Treasury bills maturing M arch 14, 1968. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar 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 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 he 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
at which Treasury bills are originally sold by the United 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, redeemed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the 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, whether on original issue or on subsequent
purchase, and the am ount actually received either upon sale or redem ption a t m aturity during th e 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 Treasury bills and
govern the 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 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 r e c e iv e d a t th is b a n k a n d its b r a n c h e s a t El P a so ,
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 , M a rc h 11, 1968. T e n d e rs m a y not
be 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 r e s id e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and Approximate Y ield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue Ju n e 6, 1968
D ue Septem ber 5, 1968
$2,731,107,000_______________________________ Total Applied F o r_______________________________$1,930,970,000
$1,600,624,000------------------------------------------------- T otal Accepted------------------------------------------------- $1,000,050,000
Price
Yield
Price
Y ield
98.748
4.953% -------------------------------------- High______________________ 97.392________________ 5.159%
98.731-------------......5,020%-------------------- ------------------- Low__________________ _ ..97,374.....___ _____ 5.194%
_
98.736-------— 5.000% ( 1 ) -------------------------------Average____________________ 97.385____________ 5.173% (1 )
( 1 ) These rates are on a bank discount basis. T he equivalent coupon issue yields are S.13% for the 91-day bills, and 5.39*% for
th e 182*day bills.
-

(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

91 DAYS TO MATURITY
Dated December 14, 1967

Maturing June 13, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
Th e_________________________________ Bran ch
El Paso 79999

Houston 77001

(Data)

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.

_NOT 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
100, with not more than
th ree decim al place*,
e. g., 99.925. Fractions
must not be used.

($■
(n)

COMPETITIVE TENDERS
$

?

... .

U ^ T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

D en o m in atio n s D esired
Number of
Pieces

Maturity Vmlne

METHOD OF PAYMENT

1,000 $.
5,000 ?-

□

10,000 $.
50,000 ?-

□

$ 100,000 ?.
(a) ? 500,000 $
$1 ,000,000 *

□

(a) $
(5) ?
<> ?
5

$

By maturing bills
held by_____________________________
Payment to be made by_____________

Charge our reserve account on payment
date
| I D ra ft enclosed (Effectual delivery of cnelnaad
d r a f t 6 h a ll be o n l a t e s t d a y w h i c h w i l l p e r m i t p r e s e n t ­
m e n t in o r d e r t o o b t a i n i r r e v o c a b l y c o l l e c t e d fund* o n
p a y m e n t d ate)

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

(Subscriber's full Dame or corporate title)

Hold in Custody Account— Member
banks for own account only

□

(A ddress)

By-

Ship to-----------------------------------------

(Authorized official signature and title)

(For the account of, if tender la Cor 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.
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.
fi. If the language of this form is changed in any respect, which, in the opinion of the S ecretary of th e T reasury is
m aterial, the tender m ay be disregarded.
(See reverse fo r announcem ent)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102