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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. 68-76 March 20, 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 leven th F e d e r a l R eserv e District: Your a t t e n t i o n is in v ited to th e f o llo w in g s t a t e m e n t giv ing d e t a il s of tw o iss u es of T re as u ry bills: T h e T reasury D epartm ent, by thi* public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $2,600,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M arch 28, 1968, in th e am ount of $2,502,430,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued M arch 28, 1968, in the am ount of $1,600,000,000, or thereabouts, representing an additional am ount of bills dated D ecember 28, 1967, and to m ature Ju n e 27, 1968, originally issued in the am ount of $1,003,266,000, the 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 28, 1968, and to m ature Septem ber 26, 1968. T he bills of both series will be issued on a discount basis under com petitive and noncompetitive bidding as hereinafter provided, and a t m aturity their face am ount will be payable w ithout in te re st 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). T enders will be received a t Federal Reserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern Standard Tim e, M onday, M arch 25, 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 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. I t is urged th a t tenders be made on the printed forms an d forwarded in the special envelopes which will be supplied by Federal Reserve B anks or Branchea 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 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 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 accom panied 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 at 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 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 th e Federal R eserve B ank on M arch 28, 1968, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M arch 28, 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 h e 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 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 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. Under 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 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 the return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e 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 , 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 ouston a n d San A n to n io u p to tw e l v e - th ir ly p.m ., Central S t a n d a r d Time, M o n d a y , M a rc h 25, 1968. T en ders m a y not be e n t e r e d b y t e l e p h o n e . Y ours very truly, P. E. Coldwell P r e s id e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approximate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue Ju n e 20, 1968 D ue Septem ber 19, 1968 $2,459,717,000_______________________________T otal Applied F or-----------------------------------------------$1,847,801,000 $ 1,600,298,000______________________________ —T otal Accepted___________ _ ______ _____ ______$1,000,034,000 _ Price Yield Price Yield 98.676____________5.238%....... ............................................ High_____________________ 97.298____________5.345% 98.655___________ 5.321% __________________________ l o w ______________________ 97,271.................. .....5.398% 98.664----------------- 5.285% ( 1 ) —. ------------------------- Average____________________ 97.281___________ 5.378% (1 ) ( 1 ) T h e s e rates are o n a b ank d iscount basis. T h e eq u iv a le n t coupon issue y ie ld s are 5 .4 3 % for th e 9 1 - d a y b ills, an d 5 . 6 1 % for t h e 1 8 2 - d a y 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 TREASURY BILLS 182 DAYS TO MATURITY Maturing September 26, 1968 Dated March 28, 1968 To: Federal Reserve Bank, Station E, Dallas, Texas 75222 or — The_________________________________Branch 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. NONCOMPETITIVE TENDER ?_______________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. Prices should be ex ($ (7ft pressed on the basis of ) ' 100, with not more than (a) COMPETITIVE TENDERS ¥ th ree decim 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 THE CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Denominations Desired Number of Pieces Maturity Value < ¥ ffl <® ¥ (a) ¥ METHOD OF PAYMENT 1,000 ¥5,000 ¥- □ 10,000 ¥50,000 ¥ □ <® $ (5) ¥ 100,000 ¥■ By m a tu rin g bills held b y ____________________________ _ P a y m en t to be m ade by______________ □ C harge our reserve account on p a y m e n t date | I D ra ft enclosed ( E f f e c tu a l d e liv e ry of eneloied (a) ¥ 500,000 ¥ & ¥1 ,000,000 ¥■ draft shall be on lateBt day which will permit present m ent in order to obtain irrevocably collected funda o n payment date) Delivery In stru ctio n s: □ □ Pledge to secure T reasury T ax and Loan Account (Subscriber’s full name or corporate title) Hold in Custody Account— M ember banks for own account only □ (Address) By- Ship to----------------------------------------- (Authorized official signature and title) (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 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 th e 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 in vest 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 i a material, the tender may be disregarded. (See reverse fo r announcem ent)