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F ederal R eser v e B ank o f D a llas F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEXAS 75222 C ircu la r No. 68-142 J u n e 19, 1968 NEW OFFERING — TREASURY BILLS To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Ycur attention is invited to the following statement giving details of two 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 b ills to th e ag g reg ate a m o u n t of $1,500,009,000, 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 Ju 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 bills d a te d M a rc h 31, 1968, a n d to m a tu re M a rc h 31, 1969, originally 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 freely in terch an g eab le. 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 J u n e 30, 1968, a n d to m a tu re J u n e 30, 1969. T h e bills of both series will b e issued on a d isco unt 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 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 ab le w ith o u t in terest. T h e y will be 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 be received a t F e d e ra l R eserv 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 av in g T im e , T u esd ay , J u n e 25, 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 c o 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 be 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 all 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 forw 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 an k s o r B ra n ch e s on a p p lic a tio n th erefor. B a n k in g in stitu tio n s generally m ay su b m it te n d e rs for acc o u n t of custo m ers p ro v id ed th e n am es of th e custo m ers are set forLh in such tenders. 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 received w ith o u t de p o sit fro m in co rp o ra ted b an k s a n d tru s t com panies a n d fro m resp onsible a n d recognized d ealers in in v estm e n t securities. T e n d e rs from o th ers m u st be acco 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 bills a p p lie d for, u nless th e te n d e rs a re a cco m p an ied by a n express g u a ran ty of p a y m e n t by a n in co rp o ra ted b a n k or tru s t com pany. Im m e d ia te ly a fte r th e closing hour, te n d e rs will b e o p e n ed a t th e F e d e ra l R eserv e B a n k s a n d B ranches, follow ing w hich pu b lic a n n o u n ce m en t will be m ad e by 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 hose su b m ittin g ten d e rs will be ad v ised of th e acc ep ta n ce or re je ctio n th ereo f. 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 cc ep t or re je c t a n y or all ten d e rs, in w hole or in p a rt, a n d his actio n in a n y such re sp e ct shall be final. S u b je ct to th ese reserv ations, no n c o m p e titiv e te n d e rs for each issue for $200,000 or less w ith o u t sta te d p rice fro m a n y one b id d er will be a cc ep te d in full a t th e av erage 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 acco rdan ce w ith th e bids 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 J u ly 1, 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 J u n e 30, 1968. C ash a n d exchange te n d e rs will 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 b etw een th e p a r v a lu e of m a tu rin g bills 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 deriv ed from T re a su ry bills, w h e th er 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 have an y exem p tion , as such, an 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 ave 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 or S ta te , b u t a re ex em p t from all ta x a tio n now or h e re a fte r im p osed on th e p rin cip a l or in te re st th e re o f by a n y S ta te , or an 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 p urp oses of tax a tio n th e a m o u n t of d iscoun 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 considered 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 ev en u e C ode of 1954 th e a m o u n t of discou nt a t w hich bills issued h e re u n d e r a re sold is n o t considered to accru e u n til such bills a re sold, re d ee m e d or otherw ise disposed of, a n d such bills a re excluded from co n sid eratio 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 in suran ce c o m p a n ies) issued h e re u n d e r need in clud e in his incom e tax re tu rn o nly th e difference betw een th e p rice p a id for such bills, w h e th er on original issue or on su b seq u e n t pu rchase, an d th e a m o u n t a c tu a lly received e ith e r up o n sale or 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 ar fo r w hich th e r e tu r n is m ade, as o rd in ary gain or losd. 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 re sc rib e th e te rm s of th e T re a su ry bills a n d govern th e c o n ditio ns of th e ir issue. C opies of th e circ u lar m ay b e o b ta in e d fro m a n y F e d e ra l R e se rv e B a n k o r B ranch. In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso, Houston and San Antonio, up to twelve-thirty p.m., Central Daylight Saving Time, Tuesday, June 25, 1968. Tenders may not be entered by telephone. 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 ADDITION TO TREASURY BILLS 273 DAYS TO MATURITY Dated March 31,1968 Maturing March 31,1969 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The-------------------------------------------------- Branch El Paso 79999 Houston 77001 San Antonio 78206 (D ate) P u rsu a n t to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of the public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am ount shown below, and agrees to pay for the am ount allotted, on or before the issue date, by the method and a t the rate indicated. NONCOMPETITIVE TENDER $_ NOT TO EXCEED $200,00C 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 S (ft $ -----------------------pressed on the basis of CO M PETITIVE TEN D ER S .< S (ft $ 100, with not more than — --- ■... ....................y ^ v------------------------------------- th ree d e c im a l p la ces, / $ ___________________ @ __________ §________________________ e. g., 99.925. Fractions \ m ust not be used. J-gr’ 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 P aym ent fo r this issue of bills cannot be made by credit to T reasury Tax and Loan Account. M a tu rity V alue <a $ <® $ $ <a> $ METHOD OF PAYM ENT 1,000 $. 5,000 $. □ 10,000 $ 50,000 $ □ $ 100,000 $. (a) $ 500,000 $- □ □ By mataring 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 ra ft shall be on la te st day which will p e rm it p r e s e n t m e n t in o rd er to o b ta in irrevocably collected fu n d s on p a y m e n t date) (a) $1.,000,000 $ Delivery Instructions: □ Hold in Custody Account— Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to (S u b scrib er’s fu ll nam e o r c o rp o ra te title) (A ddress) By_ (A uthorized official s ig n a tu re a n d 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) IM PORTANT 1. No tender fo r less than $1,000 will be considered and each tender m u st be fo r an am ount in multiples of $1,000 (m aturity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of the U nited S tates, w ith notation on the envelope reading “TEND ER FOR TREASURY BILLS”. Since envelopes received with this legend will not be opened until a fte r the closing time specified in the public announcement, communications relating to other m a tte rs should not be enclosed. Envelopes for subm itting 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 make tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t he has been so authorized. If the tender is made by a p artn ersh ip it should be signed by a m em ber of the firm, who should sign in the form “...................................................... , a copartnership, by.................................................................................. , a m ember of the firm”. 5. Tenders from those other than incorporated banks and tru s t companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m aturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express g u aran ty of full paym ent by an incorporated bank or tru s t company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the T reasury is m aterial, the tender m ay be disregarded. (See reverse for announcement)
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