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Federal Reserve bank of Dallas FIS C A L A G EN T O F T H E UN ITED STA TES DALLAS, TEXAS 75222 Circular No. 68-101 April 24, 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 Ele venth F e d e r a l R e serv e District: Y our 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 i l s of tw o iss u e s of T re as u ry bills: T he T reasury D epartm ent, by this 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 M ay 2, 1968, in the am ount of $2,500,107,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued M ay 2, 1968, in the am ount of $1,600,000,000, or thereabouts, representing an additional am ount of bills dated February 1, 1968, and to m ature August 1, 1968, originally issued in the am ount of $999,988,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S (to m aturity date) to be issued M ay 2, 1968, in the am ount of $1,100,000,000, or thereabouts, representing an additional am ount of bills dated October 31, 1967, and to m ature October 31, 1968, originally issued in the am ount of $1,001,770,000 (an additional $500,170,000 was issued January 31, 1968), the addi tional and original bills to be freely interchangeable. 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 aturity 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). Tenders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving Tim e, M onday April 29, 1968. Tenders will not be received a t the Treasury D epartm ent, Washington. Each tend er m ust be for an even multiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on th e 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 and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. B anking 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 w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders 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 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 th e acceptance or rejection thereof. T h e 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 find. 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 m ade or completed a t the Federal Reserve Bank on M ay 2, 1968, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing M ay 2, 1968. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur ing bills accepted in exchange and the issue price of th e new bills. T h e income derived from T reasury 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, w hether 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 United States is considered to be interest. Under Suctions 454 (b ) and 1221 (5 ) of the Internal Revenue Code of 1954 th e 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 T reasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between th e 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 at m aturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury 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 m ay 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 , te n d e r s will b e rec 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, Houston a n d San A n to n io u p to tw e l v e - th ir ty p. m., Centr al D aylig ht Saving Time, M o n d a y , April 29, 1968. T en de rs m a y not b e e n t e r e d b y t e l e p h o n e . Yours v e r y truly, P. E. Co ld w ell P re sid e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and A pproxim ate Yield of Accepted Tenders 91-Day Bills D ue Ju ly 25, 1968 $2,613,756,000________________ $1,600,715,000_______________ Price Yield 98.614____ _______ 5.483%_...... . 98.593___________ 5.566% _____ 98.599____ _______ 5.542% (1 ) . -Total Applied For. — T otal Accepted_ -H igh-------------... Low___ Average . ------ 182-Day Bills D ue October 24, 1968 * 2 5 ____ __ _ ___ 1$2,327,710,000 _______________________ $1,100,332,000 P rice Yield - ....... —97.138—___ ______ 5.661% -----........-97.114____________5.709% — ........... 97.124___ _________ 5.689% (1) ( 1 ) These rates are on a bank discount basis. T he equivalent coupon issue yields are 5 . 7 0 % for the 91-day bills and 5 9 4 % for the 182-day 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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated February 1, 1968 Maturing August 1, 1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — T h e________________________________ Branch El Paso 79099 Houston 77001 San Antonio 7820S (Date) 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. )? COMPETITIVE TENDERS <?- K 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. _@ . -@ - E X T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IP 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 M atu rity Value (5) $ 1,000 $_ ((}) $ (a) $ 5,000 $_ 10,000 $_ (a) $ 50,000 $ METHOD OF PAYMENT □ By m atu rin g bills held by______________________________ P ay m en t to be m ade by______________ □ □ $ 100,000 $_ m> $ 500,000 $_ Charge our reserve account on p ay m en t date |_ t 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 latest d ay which will p e rm it p re s e n t m e n t in o rder to o b ta in irrevocably collected funda o n p a y m e n t date) ?i. Delivery In stru ctio n s: (S u b sc rib e r’s full n am e or c o rp o ra te title) □ ' Hold in Custody Account— M ember banks fo r own account only □ □ Pledge to secure T reasu ry T ax and Loan Account (A ddress) By- Ship to----------------------------------------- (Authorized official signature and title) ( F o r the acc o u n t of, if te n d e r is fo r a n o th e r subscriber) ( Addresa) 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 (m aturity 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 h e has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, w ho 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 in vest ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount m a tu rity valu e) 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 s material, the tender may be disregarded. (See reverse fo r announcem ent)
@FedFRASER