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F ederal Reserve Bank o f Dallas
FISCAL AGENT O F THE UNITED STATES

DALLAS, TEXAS

75222
C ircu la r N o. 68-141
J u n e 19, 1968

NEW OFFERING — TREASURY BILLS

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

Your attentio n 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 ite s te n d e rs for tw o series of T re a s u ry b ills to th e ag 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 b ills m a tu rin g J u n e 30, 1968, in th e a m o u n t of
$1,500,552,000, as follow s:
273-D A Y B IL L S (to m a tu rity d a te ) to b e issued J u ly 1, 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 b ills d a te d M a rc h 31, 1968, a n d to m a tu re M a rc h 31, 1969, o riginally
issued in th e a m o u n t of $1,000,119,000, th e a d d itio n al a n d original 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 b e d a te d J u n e 30, 1968, a n d to m a tu re J u n e 30, 1969.
T h e b ills of bo th series will b e issued on a disc 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 a s h e re in a fte r
p rov ided , a n d a t m a tu rity th e ir face a m o u n t will 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 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 will b e 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 hou r, o n e -th irty p.m ., E a s te rn
D a y lig h t S av in g T im e , T u esd ay , J u n e 25, 1968. T e n d e rs w ill n o t be re ce iv e d a t th e T re a su ry D e p a rtm e n t, W ash in gto n. E ac h
te n d e r m u st be for a n e v 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 exp ressed 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 a y n o t be used. (N o tw ith sta n d in g th e fa c t t h a t th e oney e ar bills will ru n for 365-days, th e d isc o u n t ra te w ill be c o m p u te d on a b a n k disco u n t basis of 360-days, a s is c u rre n tly th e
p ra ctice on all issues of T re a su ry b ills.) I t is u rg e d t h a t te n 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
envelopes w hich w ill be su p p lied b y F e d e ra l R e se rv e B a n 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 a y su b m it te n d e rs fo r a cc o u n t of cu stom ers p ro v id ed th e n a m e s o f th e cu sto m ers a re
se t fo rth in such tend ers. O th e rs th a n b an 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 will be receiv ed w ith o u t de p o sit from in co rp o ra ted b a n k s a n d tr u s t c o m panies a n d from resp o n sib le a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs fro m o th ers m u st be acco m p an ied b y p a y m e n t o f 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, unless 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 co rp o ra ted b a n k o r
tr u s t com pany.
Im m e d ia te ly a f te r th e closing h o ur, 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 ra n 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 o f th e a cc ep ta n ce or re je c tio n th ere o f. T h e S e c retary of th e T re a s u ry expressly reserv es th e
rig h t to a cc ep t o r re je c t a n y o r 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 fo r each issue fo r $200,000 or 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
acc ep te d in full a t th e av erag e p rice (in th re e de cim als) of a cc ep te d c o m p e titiv e b id s for th e re sp e ctiv e issues. S e ttle m e n t for
a cc ep te d te n d e rs in acco rdan ce w ith th e b id s m u st be m ad e or 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 J u ly 1, 1968,
in cash o r o th e r im m e d ia te ly 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 b ills m a tu rin g J u n e 30, 1968. C ash a n 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 will b e m a d 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 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 er in te re s t or 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 exem ptio n, as such, a n d loss from th e sale o r o th e r disp o sitio n of T re a su ry b ills 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 e state , 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 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 o n th e p rin c ip a l o r in te re st th e re o f b y a n y S ta te ,
or an y of th e possessions of th e U n ite d S ta te s, or b y a n y local tax in g a u th o rity . F o r p u rp o se s of ta x a tio n th e a m o u n t of disco u n t
a t w hich T re a su ry bills a re originally sold by th e U n ite d S ta te s is c o nsid ered to b e in te re st. U n d e r Sections 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 disco u n t a t w hich bills issued h e re u n d e r a re sold is n o t c onsidered 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 bills a re exclud ed fro m c o n sid era tio 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 c o m p a n ies) issued h e re u n d e r need in clu d e in his
incom e tax re tu rn only th e d ifference b e tw ee n th e p rice p a id fo r such bills, w h e th e r on original issue o r o n su b seq u e n t p urchase,
a n d th e a m o u n t a ctu 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 h ich 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 N o. 4 18 (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 c o n ditions of th e ir issue. C opies of th e c irc u lar m ay 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 ccordance with the a b o v e a n n o u n c e m e n t, te n d e rs will be received a t this b a n k a n d its b ra n ch e s a t El Paso,
Houston a n d San Antonio, up to tw elve-thirty p.m., Central Daylight Saving Time, Tuesday, J u n e 25, 1968. Tenders
m ay not b e en 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 June 30,1968

Maturing June 30,1969

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The____________________________ Branch
E l Paso 79999

Houston 77001

(Date)

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.

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
’ ree n.ot n]or« than
COMPETITIVE TENDERS \< $__________________(5) ________ $________________________ ^ °thw i,th d e c im a l p la ces,
—
- ,
^
i
S____________ @ _________ $________________________ e. g., 99.925. Fractions
V
m ust not be used.
S S T TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY W IRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

1,000
5,000
m $
(a) $
10,000
<> $ 50,000
a
<> $ 100,000
a
<> $ 500,000
5
$i,,000,000
< $
s>

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

Maturity Value

METHOD OF PAYMENT

$$.
?$.
?.
*

□ By maturing bills
held by________________________
□ Payment to be made by_________
□ Charge our reserve account on payment
date
| I Draft enclosed (E ffec tu a l delivery of enclosed
draft shall be on latest day which will permit present*
ment in order to obtain irrevocably collected funds on
payment date)

Delivery Instructions:
(Subscriber’s full name or corporate title)

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

(Address)

By_

(Authorized official signature and title)

Ship to_______________________
(For the account of, if tender is for another subscriber)
(Address)

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 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
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 o f 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