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F ederal

reserve bank of

Dallas

FISCA L AGENT OF THE UNITED ST AT E S

DALLAS, TE X A S

7S222
C ircu la r N o. 68-122
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 n otice, in v ites te n d e rs fo r tw o series o f 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, o r th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g M a y 31, 1968, in th e a m o u n t of
$4,003,990,000, as follow s:
273-D A Y B IL L S (to m a tu rity d a te ) to b e 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 a n 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 a lly issued in th e a m o u n t of $1,001,786,000, th e a d d itio n a l a n d o rig in al bills to b e 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 disco 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 te r e s t T h e y will be issued in b e a re r form only, a n d in
de 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 rity v a lu e ).
T e n d e rs w ill be receiv ed 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 hour, o n e -th irty p.m ., E a s te rn
D a y lig h t S avin g T im e , T h u rsd a y , M a y 23, 1968. T e n d e rs w ill n o t be receiv ed 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 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 be ex pressed o n th e
b asis 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 oney e a r b ills w ill r u n for 365-days, th e d isco u n t ra te w ill b e c o m p u te d on a b a n k d isco u n t basis of 360-days, as is c u rre n tly th e
p ra c tic e on a ll issues of T re a s u ry b ills.) I t is urg ed th a t ten d e rs b e m ad e o n th e p rin te d form s a n d fo rw ard ed in th e special
en velop es w hich w ill b e su p p lied b y F e d e ra l R e se rv e B an k s or B ran ch es o n a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs fo r a cco u n t of custom ers p ro v id ed th e n am es o f th e custo m ers are
se t fo rth in such tend ers. O th e rs th a n b a n 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 e x cep t fo r th e ir ow n account.
T e n d e rs will b e receiv ed w ith o u t de p o sit fro m in c o rp o ra ted b an k s a n d tr u s t c o m p anies 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 e rs m u st b e a cc o 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 acco 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 co 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 hour, 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 ranches, follow ing w hich
p u b lic a n n o u n ce m en 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 ran g e of a cc ep te d bids. T h o se
su b m ittin g te n d e rs will be ad v ised of th e a c c ep ta n ce o r re je c tio n thereof. T h e S e c retary of th e T re a su ry expressly reserves th e
rig h t to a c c e p t o r re je c t a n y or all ten d e rs, in w hole o r in p a rt, a n d h is actio n in a n y such re sp e c t shall b e final. S u b je c t to
th ese reservatio ns, 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 p rice from a n y one b id d e r will be
a cc ep te d in full a t th e average p rice (in th re e d e cim als) of a cc ep te d co m p e titiv e bids for th e re sp ectiv e issues. S e ttle m e n t for
acc ep te d te n d e rs in accord an ce w ith th e b ids m u st be m ad e o r co 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 M a y 31, 1968,
in cash o r o th e r im m e d ia tely a v ailab le fu n d s or in a like 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 an d
exchange te n d e rs w ill receive e q u al tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e fo r differences b etw een 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 o f 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 o r gain fro m th e sale o r o th e r d isp osition of th e bills, does n o t
h a v e a n y e x em ption , a s such, a n d loss from th e sale o r o th e r d isp o sitio n o f 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,
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 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 a ll 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 o r in te re st th ere o f b y a n y S ta te ,
or a n y of th e possessions of th e U n ite d S tates, o r b y a n y local tax in g au 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 disco u n t
a t w hich T re a su ry bills a re o rig in ally sold by th e U n ite d S ta te s is co nsid ered to be in te re st. U n d e r Sectio ns 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 o f d iscoun t a t w hich b ills issued h e re u n d e r a re sold is n o t c on sidered to
a ccru e u n til such bills a re sold, re d ee m e d o r otherw ise disposed of, a n d such b ills a re exclu ded 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 b ills (o th e r th a n life in su ran ce co m p a n ies) issued h e re u n d e r n eed in clu d e in his
incom e ta x re tu rn only th e difference b e tw ee n th e p rice p a id fo r such bills, w h e th e r on o riginal 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 r ity d u rin g th e tax a b le y e a r fo r w hich th e re tu r n is
m ad e, 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. 41 8 (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 of th e T re a su ry b ills a n d
govern th e cond ition s of th e ir issue. C opies of th e c irc u lar m a y b e o b ta in e d from a n y F e d e ra l R e se rv e B a n k o r B ranch.

In a cco rd an ce with the a b o 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 h e s a t El Paso,
Houston a n d San Antonio, up to tw leve-thirty p.m., Central Daylight Saving Time, Thursday, M a y 23, 1968. Tenders
m a y not b e e n te re d by te le p h o n e .
Yours very truly,
P. E. Coldwell
President
(S ee 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
Dated May 31,1968

Maturing May 31,1969

T o : Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________________ 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.
/
Prices should be ex1 $ ----------------------------- @ --------------- $----------------------- -------- —
pressed on the basis of
/g)
»
100, with not more than
C O M P E T I T I V E T E N D E R S } $.
^----------------------------- --th ree d e c im a l p la ces,
______________ @ __________$
___________e. g., 99.925. Fractions
'
hm ust not be used.
TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b er of
Pieces

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M a tu rity V alue

(5) $
(® $
m %
$

METHOD OF PAYMENT

1,000 $.
5,000 $.

□ By maturing bi l
ls
held by________________________
□ Payment to be made by_________

10,000 $.
50,000 %
.

$ 100,000 $.
< $ 500,000 $.
e>
m $ i ,000,000 $

□ 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 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 irrevocab ly collected fu n d s on
p a y m e n t date)

Delivery Instructions:
(S u b scrib er’s fu ll na m e o r c o rp o ra te title )

□ Hold in Custody Account— Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□

(Address)

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 fo r a n o th e r su b scrib er)

(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
U nited 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 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 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 may be disregarded.

(See reverse for announcement)

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