View PDF

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

Da lla s

FISCA L AGENT OF THE UNITED ST A T E S

DALLAS, TE X A S

75222
C ircu la r No. 68-78
M a rc h 20, 1968

NEW OFFERING — TREASURY BILLS

To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:

Your atten tio n is invited to the following s ta te m e n t giving details of tw o issues of Treasury bills:
T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, in v ites te n d e rs fo r tw o series of T re a su ry b ills to th e agg regate a m o u n t
of $1,500,000,000, o r th ere ab o u ts, fo r cash a n d in exchange for T re a su ry bills m a tu rin g M a rc h 31, 1968, in th e a m o u n t of
$1,400,376,000, as follow s:
274-D A Y B IL L S ( to m a tu r ity d a te ) to b e issued A pril 1, 1968, in th e a m o u n t of $500,000,000, o r th e re a b o u ts,
re p re se n tin g a n a d d itio n a l a m o u n t of b ills d a te d D ecem b er 31, 1967, a n d to m a tu re D e c e m b e r 31, 1968,
o rig in ally issued in th e a m o u n t of $999,945,000, th e ad d itio n al a n d o rig in al b ills to b e fre ely in terch an g eab le.
365-D A Y B IL L S fo r $1,000,000,000, o r th ere ab o u ts, to be d a te d M a rc h 31, 1968, a n d to m a tu re M a rc h 31, 1969.
T h e b ills of b o th series will be issued on a d isco u n t basis u n d e r co m p e titiv e a n d n o n c o m p e titiv e b id d in g a s h e re in a fte r
p ro v id ed , a n d a t m a tu rity th e ir face a m o u n t will b e p a y a b le w ith o u t in te re st. T h e y w ill be issued in b e a re r fo rm only, a n d in
den o m in a tio n s o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu r ity v a lu e ).
T e n d e rs w ill be receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ran ch es u p to th e closing hou r, o n e -th irty p.m ., E a s te rn
S ta n d a rd T im e , T u esd ay , M a rc h 26, 1968. T e n d e rs w ill n o t b e re ce iv e d a t th e T re a su ry D e p a rtm e n t, W ashington.
E a c h te n d e r m u st be fo r a n ev en m u ltip le of $1,000, a n d in th e case of c o m p e titiv e te n d e rs th e p rice offered m u st b e expressed
on th e basis o f 100, w ith n o t m o re th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t b e used. (N o tw ith sta n d in g th e fa c t t h a t
th e one-year b ills will ru n fo r 365-days, th e d isco u n t ra te will b e c o m p u te d on a b a n k disc o u n t basis of 360-days, as is c u rren tly
th e p ra c tic e on a ll issues of T re a su ry b ills.) I t is urg ed th a t te n d e rs be m ad e on th e p rin te d form s a n d fo rw ard ed in th e special
envelo pes w hich will be su p p lied b y F e d e ra l R e se rv e B a n k s o r B ra n ch e s o n a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s g en erally m a y su b m it te n d e rs fo r a cc o u n t o f custo m ers p ro v id e d th e n a m e s o f th e c ustom ers a re
se t fo rth in such ten d ers. O th e rs th a n b an k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it te n d e rs e x ce p t fo r th e ir ow n account.
T e n d e rs will b e re ce iv e d w ith o u t d e p o sit fro m in co rp o ra ted b a n k s a n d tru s t c o m pan ies a n d fro m resp o n sib le a n d recognized
d ealers in in v e s tm e n t securities. T e n d e rs fro m o th e rs m u st b e a cco m p an ied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of
T re a su ry b ills a p p lie d for, u nless th e te n d e rs a re a ccom panied b y a n express g u a ra n ty of p a y m e n t b y a n in co rp o ra ted b a n k o r
tr u s t com pany.
Im m e d ia te ly a f te r th e closing hour, te n d e rs w ill b e o p e n e d a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich
p u b lic
a n n o u n c e m e n t w ill be m ad e by th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d p ric e range of a c c e p te d bids. T h o se
su b m ittin g te n d e rs will b e a d v ised o f th e a cc ep ta n ce o r re je c tio n th ereo f. T h e S e c retary of th e T re a su ry expressly reserves th e
r ig h t to a c c e p t o r re je c t a n y o r a ll ten d e rs, in w hole o r in p a rt, a n d h is a c tio n in a n y such re sp e c t shall b e final. S u b je c t to
th ese reservatio ns, n o n c o m p e titiv e te n d e rs fo r each issue fo r $200,000 o r less w ith o u t sta te d p rice fro m a n y o ne b id d e r w ill be
acc ep te d in full a t th e a v era g e p rice (in th re e d e cim als) of a cc ep te d c o m p e titiv e b id s fo r th e re sp e ctiv e issues. S e ttle m e n t fo r
acc ep te d te n d e rs in accord ance w ith th e b id s m u st b e m ad e o r co m p le te d a t th e F e d e ra l R e se rv e B a n k on A p ril 1, 1968,
in cash o r o th e r im m e d ia tely a v ailab le fu n d s or in a lik e face a m o u n t of T re a su ry bills m a tu rin g M a rc h 31, 1968. C ash a n d
exchange te n d e rs w ill receive e q u al tre a tm e n t. C ash a d ju s tm e n ts will be m a d e fo r differences b etw een th e p a r v a lu e of m a tu rin g
bills a cc ep te d in exchange a n d th e issue p rice o f th e n ew bills.
T h e incom e d e riv e d fro m T re a su ry bills, w h e th e r in te re s t or g ain fro m th e sale o r o th e r d isp o sitio n o f th e bills, does n o t
h a v e a n y e x em ptio n, a s such, a n d loss fro m th e sale o r o th e r d isp o sitio n of T re a s u ry b ills does n o t h a v e a n y special tre a tm e n t,
as such, u n d e r th e In te rn a l R e v e n u e C ode of 1954. T h e b ills a re su b je c t to e state , in h eritan c e, g ift o r o th e r excise taxes, w h e th er
F e d e ra l o r S ta te , b u t a re e x em p t from a ll ta x a tio n now o r h e re a fte r im posed on th e p rin cip a l o r in te re s t th e re o f b y a n y S ta te ,
o r a n y of th e possessions of th e U n ite d S tates, o r b y a n y local tax in g a u th o rity . F o r p u rpo ses of ta x a tio n th e a m o u n t of d isco u n t
a t w hich T re a su ry bills a re originally sold by th e U n ite d S ta te s is considered to be in te re st. U n d e r S ections 454 ( b ) a n d 1221 ( 5 )
of th e In te rn a l R e v e n u e C ode of 1954 th e a m o u n t of d iscou nt a t w hich b ills issued h e re u n d e r a re sold is n o t considered to
accru e u n til such bills a re sold, re d ee m e d o r o therw ise disposed of, a n d such b ills a re excluded fro m c o n sid eratio n as c a p ita l
assets. A ccordingly, th e ow ner of T re a su ry b ills (o th e r th a n life in su ran ce co m p a n ies) issued h e re u n d e r need in clu d e in h is
incom e ta x r e tu rn o n ly th e difference b e tw ee n th e p ric e p a id fo r such bills, w h e th e r on o rig in al issue o r o n su b seq u e n t p urchase,
a n d th e a m o u n t a c tu a lly receiv ed e ith e r u p o n sale o r re d e m p tio n a t m a tu rity d u rin g th e tax a b le y e a r fo r w hich th e r e tu rn is
m ade, as o rd in ary gain or loss.
T re a su ry D e p a rtm e n t C ircu la r N o. 418 (c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e te rm s of th e T re a su ry b ills a n d
govern th e c o n d itio n s o f th e ir issue. C opies o f th e c irc u la r m ay be o b tain e d fro m a n y F e d e ra l R e se rv e B a n k o r B ranch.

In ac c o rd a n c e with the a b o v e a n n o u n c e m e n t, te n d e rs will b e received a t this b a n k a n d its b ra n c h e s a t El Paso,
Houston a n d San Antonio, up to tw elve-thirty p.m., Central S ta n d a rd Time, Tuesday, M arch 26, 1968. Tenders m ay
not b e en te re d by te lep h o n e .
Yours very truly,
P. E. Coldwell
President
(S ee 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
Maturing March 31, 1969

Dated March 31, 1968
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________________ Branch
E l Paso 79999

Houston 77001

(D ate)

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 $.

Noncom petitive tenders for $200,000 or less from any one bidder, without stated price, w ill be accepted in full at the average
price (in three decim als) of accepted com petitive bids.
_
_
Prices should be ex­
pressed on the basis of
100, with not more than
(a)
COMPETITIVE TENDERS < $
$
th ree d e c im a l p la ces,
e. g., 99.925. Fractions
$ ..
- $
@
V
~
'
m ust not be used.
TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b e r of
Pieces

Paym ent for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M a tu rity V alue

METHOD OF PAYMENT

(fib $

1,000 $5,000 $-

□

(fib $
(5) $

10,000 $50,000 $-

□

(fib $

B y maturing bills
held by___________________________
Paym ent to be made by___________

□

Charge our reserve account on payment
date

|

(fib $ 100,000 $.
(fib $ 500,000 $,
(fib $1;000,000 $.

[ D r a f t e n c l o s e d ( E f f e c t u a l d e liv e r y o f e n c lo s e d
d r a f t sh all be on la te s t day w hich w ill p e rm it present*
m e n t in ord e r to o b ta in irrevo cably collected fu n d s on
p a y m e n t d a te )

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

(S u b scrib er’s fu ll na m e o r c o rp o ra te title )

Hold in Custody Account— Member
banks for own account only

□

(A ddress)

By-

a u t h o r i z e d official s ig n a tu re a n d title )

Ship to___________________________
(F o r th e a cc o u n t o f, if te n d e r is fo r a n o th e r su b scrib er)
(A ddress)

IMPORTANT
1. No tender for less than $1,000 w ill be considered and each tender m ust be for an amount in m ultiples of $1,000 (m aturity
value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as F iscal A gent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY BILLS”. Since envelopes received
with this legend w ill not be opened until after the closing tim e specified in the public announcement, communications
relating to other m atters should not be enclosed. Envelopes for subm itting tenders m ay be obtained from this bank
or appropriate branch.
3. Any qualified or conditional tender w ill 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 w ill 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 w ill 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 fu ll paym ent 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
m aterial, the tender m ay be disregarded.

(See reverse for announcement)

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