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F ederal

reserve

Bank

of

Dallas

FISCAL AGENT OF THE UNITED STATES

DALLAS, TE X A S

75222
C ircu la r No. 68-148
J u n e 26, 1968

NEW OFFERING
TREASURY BILLS — TAX ANTICIPATION SERIES
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your atten tion is invited to the following sta te m e n t giving d etails of tw o issues of Treasury bills:
T h e T re a su ry D e p a rtm e n t, by th is p u b lic notice, in v ites te n d e rs for two series of T re a su ry bills to th e ag greg ate a m o u n t
of $4,000,000,000, or th ere ab o u ts, as follow s:
256-day bills, for $2,000,000,000, or th ere ab o u ts, to be d a te d J u ly 11, 1968, a n d to m a tu re M a rc h 24, 1969. T h e bills
w ill be a cc ep te d a t face value in p a y m e n t of incom e tax es d u e o n M a rc h 15, 1969.
28 5-day bills, fo r $2,000,000,000, o r th ere ab o u ts, to b e d a te d J u ly 11, 1968, a n d to m a tu re A p ril 22, 1969. T h e bills
w ill b e a cc ep te d a t face v a lu e in p a y m e n t o f incom e tax es due on A p ril 15, 1969.
T h e b ills of b o th series w ill b e 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
p ro v id ed a n d a t m a tu rity , to th e e x te n t th e y a re n o t p re se n te d in p a y m e n t of incom e taxes, th e ir face a m o u n t w ill b e p a y ab le
w ith o u t in te re st. T h e y w ill be issued in b e are 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 rity v a lu e ).
T ax p a y e rs desiring to a p p ly th e se b ills in p a y m e n t of incom e tax es m a y su b m it th e b ills to a F e d e ra l R e se rv e B a n k
o r B ra n ch o r to th e Office of th e T re a su re r of th e U n ite d S tates, W ash in gto n, n o t m o re th a n fifteen day s before th e a p p ro p ria te
incom e ta x p a y m e n t date. I n th e case of b ills su b m itte d in p a y m e n t of incom e tax es of a c o rp o ratio n th e y shall b e a ccom panied
b y a d u ly c o m p le te d F o rm 503 a n d th e office receiv ing th ese ite m s w ill effect th e d e p o sit on th e d a te th e tax e s a re due. In th e
case of b ills su b m itte d in p a y m e n t of incom e taxes of all o th e r tax p ay ers, th e office receiv ing th e bills w ill issue re c e ip ts th e re ­
for, th e original of w hich th e ta x p a y e r sh all su b m it on or before th e d a te th e tax es a re due to th e D is tric t D ire c to r of In te rn a l
R e v e n u e fo r th e D is tric t in w hich such tax es a re p ayable.
T e n d e rs w ill b e re ce iv e d 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 av in g T im e , T u esd ay , J u ly 2, 1968. T e n d e rs w ill n ot b e received a t th e T re a su ry D e p a rtm e n t, W ashing ton . 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 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 ay n o t be used. I t is urg ed th a t te n d e rs b e m ad e on
th e p rin te d form s a n d fo rw ard ed in th e special en v elo p es w hich w ill be su p p lied by F e d e ra l R e se rv e B a n k s or B ra n ch e s on
a p p lic a tio n th ere fo 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 acc o u n t of cu sto m ers p ro v id ed th e n a m e s of th e c u to m e rs a re
se t fo rth in such ten d 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 s u 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 b e received w ith o u t d e p o sit fro m in co rp o ra ted b a n k s a n d tr u s t c o m p an ies a n d fro m resp o n sib le a n d recognized
d e ale rs in in v e stm e n t securities. T e n d e rs fro m o th ers m u st b e acco m p an ied by 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 s­
u ry bills a p p lie d for, unless th e te n d e rs a re a cco 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.
A ll b id d ers a re re q u ire d to a g ree n o t to p u rc h ase or to sell, or to m ak e a n y a g ree m e n ts w ith re sp e c t to th e p u rch ase
or sale or o th e r dispositio n of a n y b ills of th is issue a t a specific ra te or price, u n til a fte r o n e -th irty p.m ., E a s te rn D a y lig h t
S aving T im e , T u esd ay , J u ly 2, 1968.
Im m e d ia te ly a fte r th e closing h our, te n d e rs will b e o p en ed a t th e F e d e ra l R e se rv e B an 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 ra n g e o f a c c e p te d bids. T h o se su b ­
m ittin g te n d e rs will b e ad v ised of th e a cc ep ta n ce or re je ctio n th ere o f. T h e S e c re ta ry of th e T re a s u ry ex pressly reserves th e rig h t
to acc ep t or re je c t an y or all ten d ers, in w hole or in p a rt, a n d his actio n in a n y su ch re sp e c t shall b e final. S u b je c t to th e s e re se r­
vations, n o n c o m p e titiv e te n d e rs for $400,000 o r less fo r th e 256-day b ills a n d $400,000 or less for th e 285-day bills, w ith o u t
sta te d p rice from a n y one b id d e r will b e 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 co m p e titiv e
b id s fo r th e re sp e ctiv e issues. P a y m e n t of acc ep te d te n d e rs a t th e p rices offered m u st b e m ad e or co m p leted a t th e F e d e ra l
R e se rv e B a n k in cash or o th e r im m e d ia tely a v ailab le fu nds on J u ly 11, 1968, pro v id ed , how ever, a n y qualified d e p o sita ry will
be p e rm itte d to m ak e p a y m e n t b y c re d it in its T re a su ry T a x and L o an a cc o u n t for T re a su ry bills a llo tte d to it fo r itself an d its
custom ers u p to a n y a m o u n t for w hich it shall be qualified in excess of existing deposits w hen so notified b y th e F e d e ra l R eserv e
B a n k of its D istrict.
T h e incom e d e riv e d from T re a s u ry bills, w h e th er in te re s t o r g ain fro m th e sale o r o th e r d isp o sitio n o f th e bills, does n o t
h a v e a n y e x em ptio n, as such, an d loss fro m th e sale or o th e r disp o sitio n of T re a su ry bills 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 c t to e sta te , 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 e x em p t fro m all ta x a tio n now or 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 e re o f b y a n y S ta te ,
o r an y of th e possessions of th e U n ite d S ta te s, or b y an y local tax ing a u th o rity . F o r p urp oses of ta x a tio n th e a m o u n t of discou nt
a t w hich T re a su ry b ills a re o rig in ally sold b y 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 S ectio n s 454 ( b ) a n d 1221
( 5 ) of th e In te rn a l R e v e n u e Code of 1954 th e a m o u n t of d isco u n t a t w hich bills issued h e re u n d e r a re sold is n o t considered to
a ccru e u n til such b ills a re sold, re d ee m e d or o therw ise d isposed of, a n d such bills a re excluded from c o 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 su ra n 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 difference betw een th e p rice p aid for such bills, w h e th er on original issue or on su b seq u e n t pu rchase,
a n d th e a m o u n t a ctu a lly received e ith e r u pon sale or re d em p tio n a t m a tu rity d u rin g th e tax a b le y e a r for w hich th e re tu rn is
m ade, as o rd in ary gain or loss.
T re a su ry D e p a rtm e n t C ircu lar N o. 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 b ills an 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 an y F e d e ra l R e se rv e B a n k o r B ran ch .

In ac co rd a n c e 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 b e 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 twelve-thirty p.m., Central Daylight Saving Time, Tuesday, July 2, 1968. Tenders m ay
not b e en tered b y te le p h o n e .
Yours very truly,
P. E. C o ld w e ll

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)

This issue of Treasury bills will be accepted at face value in payment of income taxes due on March 15,1969
TAX ANTICIPATION SERIES
Dated July 11, 1968
To

256 DAYS TO MATURITY

Maturing March 24, 1969

Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
>
The____________________________________ Branch
El Paso 79999

Houston 77001

(D ate)

San Antonio 78206

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the
provisions of the public announcement, as shown on reverse side, as 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 $400,000

Noncompetitive tenders for $400,000 or less from any one bidder, without stated price, will be accepted in
full at the average price (in three decimals) of accepted competitive bids.

COMPETITIVE TENDERS

Prices should be ex­
pressed on the basis of
100, with not more than
th ree d ecim al p la ces,
e. g., 99.925. Fractions
m ust not be used.

$.________
..
$---------- —

<§>_

^ " T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.

Denomination Desired
N umber o f
Pieces

METHOD OF PAYMENT

M aturity V alnes

(a) $
(a) $

1,000 $
5,000 $

□

(3) $ 10,000 $
(5) $ 50,000 $
(5) $ 100,000 $
< * $ 500,000 $.
2

By charge to our Treasury Tax and Loan Account

□

Paym ent to be made by................................................... .
(Nam e of Bank)

□

(5) $1 ,000,000 ?

By charge to our reserve account on paym ent date.

□

By draft enclosed (effectual delivery of enclosed draft
shall be on latest day which w ill perm it presentm ent in
order to obtain irrevocably collected funds on payment
date).

We certify that we, as well as our customera, if any, listed
hereon have agreed not to purchase or to sell, or to make any
agreements with respect to the purchase or sale or other disposi­
tion of any bills of this issue at a specific rate or price, until
after one-thirty p.m., Eastern Daylig?>t Saving lim e, Tuesday,
July 2, 1968.

Delivery Instructions:
□

(Subscriber’s fu ll nam e or corporate title)

Hold in Custody Account — Member
banks for own account only

(A ddress)

By.

□ Pledge to Secure Treasury Tax and
Loan Account
□

(A uthorized official signatu re and title )

( For th e account o f, if tender is fo r another subscriber)

Ship to__________________________

(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
United States, with notation on the envelope reading “TEN D ER 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 m ay be requested 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 officerof 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 of the Treasury, is m aterial,
the tender may be disregarded.
(S e e reverse fo r announcem ent)

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