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F ederal R eserve Bank

of

Dallas

FISCAL AGENT OF THE UNITED STATES

DALLAS, TE X A S

75222
C ircu la r No. 68-121
M a y 16, 1968

NEW OFFERING — TREASURY BILLS

To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:

Your attention is invited to the following s ta te m e n t giving details of tw o 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 for tw o series of T re a su ry bills to th e agg regate a m o u n t
of $ l,5 0 0 r000,000, or 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 y 34, 1968, in th e a m o u n t of
$4,003,990,000, as follow s:
273-D A Y BILLS (to m a tu rity d a te ) to be issued M a y 31, 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 an a d d itio n al a m o u n t of bills d a te d F e b ru a ry 29, 1968, a n d to m a tu re F e b ru a ry 28, 1969, orig­
in ally issued in th e a m o u n t of $1,001,786,000, th e a d d itio n al a n d original bills to be fre ely interch angeable.
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 y 31, 1968, a n d to m a tu re M a y 31, 1969.
T h e b ills 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 vid 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 ab le w ith o u t in terest. T h e y will be issued in b e a re r form only, a n d in
d e n o m in atio n s of $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 will be received a t F e d e ra l R e se rv 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
D a y lig h t S aving T im e , T h u rsd a y , M a y 23, 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 ac 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 co 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 b e used. (N o tw ith sta n d in g th e fa c t th a t th e oney e ar bills w ill ru n for 365-days, th e disco u n t ra te will be co m p u ted 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 a ll issues of T re a su ry b ills.) I t is urg ed t h a t ten d e rs be m ad e on th e p rin te d form s a n d fo rw ard ed in th e special
env elop es w hich w ill be su p p lied by F e d e ra l R e se rv e B an k s or B ran ch es on a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s g en erally m ay su b m it te n d e rs for a cc o u n t of c usto m ers p ro v id ed th e nam es o f th e custo m ers are
se t fo rth in such ten ders. 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 receiv ed 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 tr u s t co m pan ies a n d fro m resp onsible a n d rcco sn ized
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 be 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 nless th e te n d e rs a re acco m p an ied by a n express g u a ra n ty of p a y m e n t by 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, ten d e rs will be o p e n ed 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 w ill be 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 ran ge of a cc ep te d bids. T h o se
su b m ittin g te n d e rs w ill be ad v ised of th e acc 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 o r re je c t a n y or a ll ten d ers, in w hole or in p a rt, a n d h is actio n in a n y such re sp e ct shall be final. S u b je ct to
th ese reserv ation s, n o n c o m p e titiv e te n d e rs for each issue fo r $200,000 o r less w ith o u t sta te d price from a n y one b id d e r w ill be
a cc 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 ids 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 accord ance w ith th e bids 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 M a y 31, 1968,
in cash or o th e r im m e d ia te ly 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 y 31, 1968. C ash a n d
exchange te n d e rs w ill receive eq u al tre a tm e n t. C ash a d ju s tm e n ts will be m ad e for differences betw een th e p a r v alue of m a tu rin g
b ills 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 or gain from th e sale or o th e r disposition of th e bills, does n o t
h av e a n y exem ptio n, as such, a n d loss from th e sale or o th e r d isp 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 d e r th e In te rn a l R e v en u e C ode of 1954. T h e b ills a re su b je c t to estate , 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 e x em p t from all ta x a tio n now o r h e re a fte r im po sed on th e p rin c ip a l or in te re st th e re o f b y an y S ta te ,
or a n y of th e possessions of th e U n ite d S tates, or by 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 disco unt
a t w hich T re a su ry bills are originally sold b y th e U n ite d S ta te s is con sidered to be in te re st. U n d e r S ections 454 ( b ) a n d 1221 (5 )
of 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 disco unt a t w hich bills issued h e re u n d e r a re sold is n o t con sidered to
accrue u n til such bills a re sold, re d ee m e d or o therw ise disposed of, a n d such b ills a re excluded from c o n sid sra tio 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 insuran ce c o m p a n ies) issued h e re u n d e r n eed ’n clu de in his
incom e ta x re tu rn only th e difference b etw een th e p rice p a id for such bills, w h e th er on original issue o r on su b seq u e n t purch ase,
a n 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 for w hich th e re tu r n is
m ade, as o rd in ary gain o r loss.
T re a su ry D e p a rtm e n t C ircu la r No. 418 (c u rre n t re v isio n ) a n d th is notice, p rescrib e th e te rm s of th e T re a su ry bills a n d
govern th e co nditions of th e ir issue. C opies of th e c irc u lar m ay be o b tain e d from a n y F e d e ra l R e se rv e B a n k or B ranch.

In acc o rd a n c e with the a b c v e a n n o u n c e m e n t, tenders will be received a t this b a n k a n d its b ra n c he s a t El Paso,
Houston a n d Sen Antonio, up to twleve-thirty p.m., Central Daylight Saving Time, Thursday, M ay 23, 1968. Tenders
m ay not be entered by telep h on 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

273 DAYS TO MATURITY
Dated February 29,1968

Maturing February 28, 1969

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
T h e .------------------------------------------------Branch
El Paso 79999

Houston 77001

San Antonio 78206

(D ate)

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

Noncom petitive tenders for $200,000 or less from any one bidder, without stated price, w ill be accepted in full at the average
price (in three decim als) of accepted com petitive bids.
neu i
Prices should be ex­
i t ­ ----------------------@ ---------------$----------------------- —---------- pressed on the basis of
«
COMPETITIVE TENDERS I’ $
(a)
$
100, with not more than
------------------------- ----------- — — i
v
th ree d e c im a l p la ces,
I $___________________ @ __________ $_______________________ e. g., 99.925. Fractions
\
m ust not be used.
15?° 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 Vc.lue

METHOD OF PAYMENT

(5) $
(5) $

1,000 ?.
5,000 ?.

□

(a) $
(a) $

10,000 $.
50,000 (

□

(a) $ 100,000 $.
(a) $ 500,000 $(ci) $1,,000,000 ?.

By maturing bills
held by_______________________ _
Payment to be made by___________

□

Charge our reserve account on payment
date
|_| Draft 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
d r a f t shall 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 fund 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

Ship to__________________________

(A ddress)

By_
(A u th o riz e J official s ig n a tu re a nd title )

(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 subscriber)

(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 Fiscal A gent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY BILLS”. Since envelopes received
w ith 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 anofficer of the corporation authorized to make the
tendsr 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 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
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