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F ederal Reserve

bank of

Dallas

FISCAL AGENT OF THE UNITED STATES

DALLAS, TE X A S

75222
C ircu la r No. 68-79
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 sta te m e n t giving details of two 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 reg ate a m o u n t
of $1,500,000,000, o r th ere ab o u ts, for cash a n d in exchange for T re a su ry b ills 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 rity d a te ) to be issued A pril 1, 1968, in th e a m o u n t of $500,000,000, or th ere ab o u ts,
re p re se n tin g a n a d d itio n al a m o u n t of b ills d a te d D ecem ber 31, 1967, a n d to m a tu re D e c em b er 31, 1908,
o riginally issued in th e a m o u n t of $999,945,000, th e a d d itio n al a n d original bilis to be fre ely in terchangeab le.
365-D A Y B IL L S for $1,000,000,000, or 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 bills of b o th series will be issued on a d isco u n t basis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r
pro v id ed , a n d a t m a tu rity th e ir face a m o u n t will be p a y a b le w ith o u t in te re st. T h e y will be issued in b e a re r fo rm only, a n d in
d e n o m in a tio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu rity v a lu e ).
T e n d e rs will be received a t F e d e ra l R eserv e B a n k s a n d B ran ch es u p to th e closing hour, 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 will n o t be received 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 for 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 be expressed
on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay n o t be used. (N o tw ith sta n d in g th e fa c t th a t
th e one-year bills will ru n for 365-days, th e disco u n t ra te will be co m p u te d on a b a n k d isco unt basis of 360-days, as is c u rren tly
th e p ra ctice on all issues of T re a su ry b ills.) I t is urg ed t h a t te n d e rs be m ad e o n th e p rin te d form s a n d forw ard ed in th e special
env elop es w hich will be su p p lied b y F e d e ra l R e se rv e B an k s or B ra n d ie s on a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs for a cc o u n t of custom ers p ro v id ed th e nam es of th e cu stom ers are
se t fo rth in such tenders. O th ers th a n b an k in g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs ex cep t fo r th e ir ow n account.
T e n d e rs will be received w ith o u t d e p o sit fro m in co rp o ra ted b an k s a n d tru s t c o m p anies a n d from resp onsible a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs fro m o th ers 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 bills a p p lie d for, unless th e te n d e rs a re acco m p an ied b y a n express g u a ra n ty o f p a y m e n t b y a n in co rp o ra ted b a n k or
tr u s t com pany.
Im m e d ia te ly a fte 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 ce m en t will 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 rice ra n g e of a cc ep te d bids. T h o se
su b m ittin g te n d e rs will be ad v ised of th e a cc ep ta n ce or re je ctio n thereof. T h e S e c retary of th e T re a su ry expressly reserv es th e
rig h t to a c c e p t or re je c t a n y o r all ten d ers, in w hole o r in p a rt, a n d h is actio n in a n y such re sp e c t shall be final. S u b je c t to
th ese reserv ation s, n o n c o m p e titiv e te n d e rs fo r each issue fo r $200,000 or l«ss w ith o u t sta te d p rice from a n y one b id d er will be
acc ep te d in full a t th e av erag 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 for th e resp e ctiv e issues. S e ttle m e n t for
a cc ep te d te n d e rs in acco rdan ce w ith th e b ids m u st be m ad e or c o m p leted 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 equal tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e fo r differences betw 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 of th e new bills.
T h e incom e d e riv e d from T re a su ry bills, w h e th e r in te re s t o r gain fro m th e sale o r o th e r d ispositio n of th e bills, does n o t
h av e a n y e x em ptio n, as such, a n d loss from th e sale or o th e r disp o sitio n of T re a su ry bills does n o t h av e a n y special tre a tm e n t,
as such, u n a e r th e In te rn a l R e v e n u e C ode of 1954. T h e bills 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 or S ta te , b u t a re ex 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 c ip a l o r in te re st th e re o f b y a n y S ta te ,
or a n y of th e possessions of th e U n ite d S tates, or b y a n y local tax in g a u th o rity . F o r pu rpo ses of ta x a tio n th e a m o u n t of d isco unt
a t w hich T re a su ry bills a re o riginally sold b y th e U n ite d S ta te s is con sidered to b e in terest. U n d e r Section s 454 ( b ) a n d 1221 (5 )
of th e In te rn a l R ev en u e C ode of 1954 th e a m o u n t of d iscoun t a t w hich bills 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 or o therw ise disposed of, a n d such bills a re excluded fro m co n sid eratio n as c ap ita l
assets. A ccordingly, th e ow ner of T re a su ry bills ( o th e r th a n life in su ran ce c o m p a n ies) issued h e re u n d e r need in clud e in his
incom e tax re tu rn only th e difference b e tw ee n th e p rice p a id for such bills, w h e th er on original issue or on su b seq u e n t pu rchase,
an 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 du rin g th e tax a b le y e a r fo r w hich th e re 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 rev 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 bills a n d
govern th e c o n d ition s of th e ir issue. C opies of th e c irc u lar m ay be o b ta in e d fro m a n y F e d e ra l R e se rv e B a n k or B ranch.

In a c co rd an ce with the a b o v e a n n o u n c e m e n t, te nders will be 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 twelve-thirty p.m., Central S tan d a rd Time, Tuesday, M arch 26, 1968. Tenders m ay
not b e e n tered by te le p h o n e.
Yours very truly,
P. E. Coldwell
President
(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

274 DAYS TO MATURITY
Maturing December 31, 1968

Dated December 31, 1967
T o: 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.

JN9T 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
COMPETITIVE TENDERS ( $
@ .......
$
th ree d e c im a l p la ces,
e. g., 99.925. Fractions
/$
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

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

M a tu rity V alue

(a) $
m $
(a) $
(a) $

METHOD OF PAYMENT

1,000 $5,000 $

□

10,000 $50,000 $-

□

By maturing bills
held by___________________________
Payment to be made by___________

□

$ 500,000 *
m $1:,000,000 $

Charge our reserve account on payment
date

|

(a) $ 100,000

| 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 shall be on la te s t day w hich w ill p e rm it p re se n t­
m e n t in o rd e r to o b ta in irrevocably collected fu n d s on
p a y m e n t date)

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

(S u b scrib er’s fu ll nam 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 th orized official s ig n a tu re a n d title )

Ship to__________________________ _
(F o r th e acco u n t of, if te n d e r is fo r a n o th e r sub scriber)

(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
valae).
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 may 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 officerof 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.
C. 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 may be disregarded.
( See reverse for announcement)

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