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 Ban k o f D allas
FISCAL AGENT OF THE UNITED STATES

DALLAS, TE X A S

75222
C ircu la r N o. 68-97
A p ril 17, 1968

NEW OFFERING — TREASURY BILLS

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statement giving details of two issues of Treasury bills:
T h e T re a s u 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 a g g reg ate a m o u n t
of $1,500,000,000, or 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 A p ril 30, 1968, in th e a m o u n t of
$1,402,294,000, as follow s:
276-D A Y B IL L S (to m a tu rity d a te ) to b e issued A p ril 30, 1968, in th e a m o u n t of $500,000,000, o r 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 bills d a te d J a n u a ry 31, 1968, a n d to m a tu re J a n u a r y 31, 1969, originally
issued in th e a m o u n t of $1,000,078,000, th e a d d itio n a l a n d o rig in al bills 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, or th ere ab o u ts, to be d a te d A p ril 30, 1968, a n d to m a tu re A p ril 30, 1969.
T h e b ills of b o th series w ill b e issued on a d isc o 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 w ill be p a y a b le w ith o u t in terest. T h e y w ill b e issued in b e a re r fo rm only, a n d in
d e n 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 b e re ce iv e d a t F e d e ra l R e se rv e B a n k s a n d B ra n ch e s 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 , A p ril 23, 1968. T e n d e rs w ill n o t b e received a t th e T re a su ry D e p a rtm e n t, W ashington. B ach te n d e r
m u st b e 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
of 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
bills w ill ru n fo r 365-days, th e disco u n t ra te w ill b e c o m p u te d on a b a n k d iscoun t basis of 360-days, as is c u rre n tly th e p ra ctice
on all issues o f T re a su ry b ills.) I t is u rg e d t h a t te n d e rs b e m ad e on th e p rin te d form s a n d fo rw ard ed in th e sp ecial envelopes
w h ich w ill b e 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 on a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s g e n era lly m a y su b m it te n d e rs fo r acc o u n t of custom ers p ro v id ed th e n a m e s o f th e c usto m ers a re
se t fo rth in such ten d ers. O th e rs th a n b a n k in g in stitu tio n s w ill n o t b e 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 w ill b e receiv ed w ith o u t d e p o sit fro m in c o rp o ra te d b a n k s a n d tr u s t c o m panies a n d fro m resp o n sib le a n d recognized
de ale rs in in v e s tm e n t securities. T e n d e rs from 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 b ills a p p lie d for, u n less th e te n d e rs a re a cc o m p an ied b y a n express g u a ra n ty of p a y m e n t b y a n in c o rp o ra ted b a n k or
tr u s t com pany.
Im m e d ia te ly a f te r th e closing h our, 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 ran ches, follow ing w hich
p u b lic a n n o u n c e m e n t w ill b e m ad e b y 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
s u b m ittin g te n d e rs w ill b e a d v ised of th e a cc ep ta n ce o r re je c tio n th ereo f. T h e S e c re ta ry of th e T re a su ry expressly reserves th e
r ig h t to a c c e p t or re je c t a n y or 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 reserv atio n s, 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 one b id d e r will b e
a cc ep te d in fu ll a t th e av erag e p rice (in th re e d e cim als) o f a c c e p te d c o m p e titiv e b ids fo r th e re sp e ctiv e issues. S e ttle m e n t fo r
a cc ep te d te n d e rs in acco rdance w ith th e b ids m u st b e m ad e o r c o 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 30, 1968,
in cash or o th e r im m e d ia tely a v ailab le fu n d s o r in a lik e face a m o u n t of T re a su ry b ills m a tu rin g A p ril 30, 1968. C ash a n d
exchange te n d e rs w ill receiv e e q u al tre a tm e n t. C ash a d ju s tm e n ts w ill b e m ad e fo r differences b e tw ee n th e p a r v a lu e of m a tu rin g
b ills a c c e p 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 fro m T re a s u ry bills, w h e th e r in te re s t o r gain from th e sale o r o th e r d ispositio n of th e bills, does n o t
h a v e a n y ex em p tion, as 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 su ry b ills does n o t h a v e a n y special tre a tm e n t,
a s 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 ct to estate , in h eritan c e, g ift or 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 all ta x a tio n now or h e re a fte r im posed on th e p rin c ip 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 ta te s, 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 o f d isco unt
a t w hich T re a su ry bills a re o rig in ally sold b y th e U n ite d S ta te s is con sidered to b e in te re st. U n d e r Section s 4 54 ( b ) a n d 1221 ( 5 )
o f th e In te rn a l R e v en 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
a cc ru e u n til such b ills a re sold, re d ee m e d o r o therw ise d isposed 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 bills (o th e r th a n life insurance c o m p a n ies) issued h e re u n d e r n e ed in clu d e in his
incom e ta x re tu r n on ly th e difference b e tw ee n th e p rice p a id fo r such bills, w h e th er on original issue o r o n su b seq u e n t p u rchase,
a n d th e a m o u n t a c tu a lly re ce iv e d 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 re tu rn is
m ad e, as o rd in a ry g ain o r 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 o f th e T re a su ry b ills a n d
go vern th e c o n ditions of th e ir issue. C opies of th e c irc u la r m ay b e 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 o r B ran ch.

In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio, up to twelve-thirty p.m., Central Standard Time, Tuesday, April 23, 1968. Tenders may
not be entered by telephone.
Yours very truly,
P. E. C o l d w e l l
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 TREASURY BILLS

365 DAYS TO MATURITY
Maturing April 30,1969

Dated April 30, 1968
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.

.NOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $_

Noncom petitive tenders for $200,000 or less from any one bidder, without stated price, w ill be accepted in full at the average
price (in three decim als) of accepted com petitive bids.
Prices should be ex­
($
(a)
pressed on the basis of
$
100, with not more than
COMPETITIVE TENDERS h
@
$
th ree d e c im a l p la ces,
e. g., 99.925. Fractions
h
@
.
$
m ust not be used.
2 5 ^ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY W IRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um ber 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

$
.<$ $
(ct) $
(a) $

METHOD OF PAYMENT

1,000 $5,000 $.

□

10,000 $50,000 $.

□

By maturing bills
held by___________________________
Paym ent to be made by_

□

Charge our reserve account on payment
date
| | D raft 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

.(ft $ 100,000 $.
.(3) $ 500,000 $
(5) $1,,000,000 $.

d r a f t sh all be on la te s t day w hich w ill p e rm it p re s e 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 da te )

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

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

Ship to___________________________
(F o r th e a cc o u n t of, if te n d e r is f o r a n o th e r su b sc rib e r)

(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 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 besigned 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
m ent 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