The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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 ^ °th ’w i,th dn.ot n]or« COMPETITIVE TENDERS — - , \< $__________________(5) ________ $________________________ ^ ree e c im a l pthan 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 <a> $ 50,000 <a> $ 100,000 <5> $ 500,000 $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)
@FedFRASER