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FEDERAL RESERVE BANK OF DALLAS
FIS C A L A G EN T O F TH E UN ITED STA T E S

DALLAS, TEXAS

75222

C ir c u la r N o. 68-91
A p ril 10, 1968

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O th ers C o n c e r n e d
In t h e E le v en th F e d e r a l Rese rve District:
Your attention is in v ited to th e f o llo w in g s t a t e m e n t giving d e t a il s of t w o is s u e s 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 th e aggregate am ount
of $2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing April 18, 1968, in th e am ount of
$2,502,288,000, as follows:
91-DAY BILLS (to m aturity date) to be issued April 18, 1968, in the am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated January 18, 1968, and to m ature Ju ly 18, 1968, originally
issued in the am ount of $1,000,753,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,100,000,000, or thereabouts, to be dated April 18, 1968, and to m ature October 17, 1968.
T h e bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter
provided, and a t m atu rity their face am ount will be payable without interest. T hey will be issued in bearer form only, and in
denom inations 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 the closing hour, one-thirty p.m., E astern
Standard Tim e, M onday, April 15, 1968. Tenders will not be received a t the T reasury D epartm ent, Washington. Each
tender must be for an even m ultiple 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 that tenders be made
on the printed forms and forwarded in the special envelopes which will be 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 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 te n d e n are accompanied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t the Federal R eserve B anks and Branches, following which
public announcem ent 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 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 without stated price from any one bidder will be
accepted in full a t 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 com pleted a t the Federal R eserve Bank on April 18, 1968, in
cash or other im mediately available funds or in a like face am ount of Treasury bills m aturing April 18, 1968. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p a r 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 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 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 U nited 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 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 euch 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 com panies) 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 the taxable year for which the
return is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (curren t revision) and this notice, prescribe the term s of the T reasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank 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 rec eiv 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 a so ,
H ouston a n d San A n to n io u p to tw e l v e - th ir ty p .m ., Centr al S t a n d a r d Time, M o n d a y , April IS, 196 8. T e n d e rs m a y n o t b e
entered by telephone.
Yours v ery truly,
P. E. Coldwell
P re 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 July 11, 1968
D ue October 10, 1968
$2,394,243,000_______________________________ T otal Applied For---------------------------------------------- $1,883,329,000
$1,600,043,000________________________________ T otal Accepted------------------------------------------ $1,000,316,000
Price
Yield
Price
Yield
98.673___________ 5.250%_----- -------------------------------- .H igh---------------------------------97.286___________ 5.368%
98.649___________ 5.345% -------------------------------- -------- Low______________________ 97.260___________ 5.420%
98.658___________ 5.309% ( 1 ) ------------------------------- Average____________________ 97.270___________ 5.400% (1 )
( 1 ) T h e s e rate s a re on
t h e 1 8 2 - d a y b i lls .

a

b a n k d is c o u n t b asis. T h e e q u iv a l e n t c o u p o n issu e y i e l d s a r e 5 . 4 6 %

f o r t h e 9 1 - d a y bills, a n d 5 . 6 3 %

foi

(See reveroe aide 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
D ated Ja n u a ry 18, 1968

Maturing July 18, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________________Branch
£1 P a so

79999

H o u sto n 77001

S a n A n to n io

(D.ta)

78206

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e
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 EX CEED $200,000

NONCOM PETITIVE T E N D E R $_

N o n co m p etitiv e te n d e r s fo r $200,000 or le s s from a n y one bidder, w ith o u t sta te d price, w ill be accep ted in f u ll a t the a v e r a g e
price (in three d e c im a ls) o f a ccep ted c o m p e titiv e bids.

COMPETITIVE TEN D ER S
\

¥
$

Prices should be ex­
pressed on the basis of
100, with not more than
th ree decim al p la ce s,
e. g., 99.925. Fractions
must not be used.

¥

@

a^=TEN D EE 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 e n o m in a tio n s D esired
Number o f
Pieces

Maturity Valu«

■< > $
8
$

5,000 $-

<> $
8

METHOD OF PAYMENT

1,000 $.
10,000 ?50,000 $■

$

□
□

By m atu rin g bills
held b y _____________________________
P a y m en t to be m ade by_____________

$ 100,000 $■
$ 500,000 ?.

□ Charge our reserve account on paym ent
date
|_J D ra ft 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

. 0 $1,000,000 $-

d r a f t shall be on la te st day which will p e rm it p re s e n t­
m e n t in ord er to o btain irrevocably collected fu nd a o n
p a y m e n t date)

Delivery In stru ctio n s:
□
□

Pledge to secure T reasury Tax and
Loan Account

(S ubscriber’s full n am e or co rp o rate title)

Hold in Custody Account— M ember
banks fo r own account only

□

(Address)

B y-

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

(A uthorized official s ig n a tu re an d title)

(F o r th e account o f, if te n d e r is for a n o th e r subscriber)

(A ddress)

IM P O R T A N T

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.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.
(See reverse fo r announcem ent)

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