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F ederal Reserve bank F ISC A L AGENT OF THE U N IT E D DALLAS, TEXAS of Dallas STATES 75222 Circular No. 68-108 May 1, 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 E le venth F e d e r a l R eserv e District: Your a t t e n t i o n is inv ite d to t h e f o llo w in g s t a t e m e n t giving d e t a il s of tw o is s u e s of T re as u ry bills: T h e Treasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $2 700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M ay 9, 1968, in the am ount of $2,'502,031,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued M ay 9, 1968, in the am ount of $1,600,000,000, or thereabouts, representing an additional am ount of bills dated February 8, 1968, and to m ature August 8, 1968, originally issued in the am ount of $1,000,905,000, the additional and original bills to be freely interchangeable. 182-DAY BILLS for $1,100,000,000, or thereabouts, to be dated M ay 9, 1968, and to m ature November 7, 1968. T he 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 atu rity value). Tenders will be received a t Federal Reserve B anks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving Tim e, M onday, M ay 6, 1968. Tenders will not be received at the Treasury D epartm ent, Washington. Each tend er m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders th e price offered m ust be expressed on the basis of 100, with not more than three decimals, s.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be made on th e printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others th a n banking institutions will not be perm itted to subm it tenders except for their own account. T enders will be received w ithout deposit from incorporated banks and tru st 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 Treasury bills applied for, unless the tenders are accom panied 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 Banks 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 the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves the rig ht 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, noncom petitive 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 com pleted a t the Federal Reserve B ank on M ay 9, 1968, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M ay 9, 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 th e sale or other disposition of T reasury 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 th e United States, or by any local taxing authority. F or purposes of taxation the am ount of discount a t which T reasury bills are originally sold by the United States is considered to be interest. U nder 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 such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury 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 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 (current revision) and this notice, prescribe the term s of th e T reasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve 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 , t e n d e r s will b e r e c 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 ay lig h t S av in g Time, M o n d a y , M a y 6, 1968. T e n d e rs m a y not b e e n t e r e d by t e l e p h o n e . Yours v ery truly, P. E. C o ld w ell P re sid en t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and A pproxim ate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue August 1, 1968 D ue October 31, 1968 $2,703,979,000------------ ----------------------------- ---- T otal Applied For_______________________________$1,966,226,000 $1,600,429,000.-__________ ____________________ T otal A ccepted......................................... ........ ...... ...... .$1,100,104,000 Price Yield Price Yield 98.617 5.471% _________________ ___ H igh__________ ________- - 9 7 .1 7 6 ..5.586% 98.606.. ............... 5.515% _____________________ Low__________________ ___97.154.. ..5.629% 98.610 5.499% ( 1 ) ______ __ ________ Average. _______________ 97,163.. ..5.612% (1) ( 1 ) T h es e rates are on a bank discount basis. T h e e q u iv a le n t coupon issue y ie ld s are 5 . 6 5 % for th e 9 1 -d a y bills, and 5 . 8 6 % for t h e 1 8 2 - d a y b i lls . (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 D ated F e b ru ary 8, 1968 M aturing A ugust 8 ,1 9 6 8 To: Federal Reserve Bank, Station K, Dallas, T exas 75222 or — T h e ______________________________ B r a n c h ________________________________________ El Paso 79999 Houston 77001 San Antonio 78206 (Date) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions o f 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. NONCOMPETITIVE TEN D ER $._______________________________ NOT TO EX CEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. / _ ^ -------------------------------(£p---------------$ ------------------------------------ Prices should be expressed on the basis of COMPETITIVE TEN D ER 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, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Maturity Value METHOD OF PAYMENT (a) $ (a) $ 1,000 $. 5,000 $- □ <> $ H (a) $ 10,000 $50,000 $- □ (a) $ 100,000 $ (a) $ 500,000 $. (a) $1:,000,000 ?. □ Delivery Instructions: □ □ Charge our reserve account on payment date n Draft enclosed (E ffectual delivery of encloaed draft shall be on latest day which will permit present ment in order to obtain irrevocably collected fu n d s o n payment date) ___ ( Subscriber's fu ll name or corporate title) Hold in Custody Account— Member banks for own account only ----- Pledge to secure Treasury Tax and gy. L oan A ccount □ By maturing bills held by_ Payment to be made by_ Ship to___________________________ (Address) (Authorized official aignature and title) ___ (F or the account of, if tender is for another subscriber) (Address) 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 (m aturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f 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 m ake 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 m 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 will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value) - (IaSiU^y _i S.ai )P^fc f ° r’ or unless the tenders are accompanied by an express guaranty of full payment by an l 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 lged material, the tender may be disregarded. ded. (See reverse for announcement)