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Reserve

federal

bank of

Dallas

FISCAL AGENT OF THE UNITED STATES

DALLAS, TE X A S

75222
C ircu lar No. 68-149
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 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 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 $4,000,000,000, o r th ere ab o u ts, as follow s:
256-day bills, for $2,000,000,000, o r 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 valu e in p a y m e n t of incom e taxes d u e on M a rc h 15, 1969.
28 5-day bills, for $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 be a cc ep te d a t face valu e in p a y m e n t of incom e tax es due on A p ril 15, 1969.
T h e bills of b o th series w ill be issued on a disco u n t basis u n d e r co 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 are 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 a re 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 a x p a y e rs desiring to a p p ly th ese bills 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 or 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 days before th e a p p ro p ria te
incom e tax p a y m e n t date. In th e case of bills su b m itte d in p a y m e n t of incom e taxes of a c o rp o ratio n th e y shall be a cco m p an ied
by 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 will effect th e de p o sit o n th e d a te th e tax es a re due. I n th e
case of bills su b m itte d in p a y m e n t of incom e tax es of all o th er tax p ay ers, th e office receivin g th e bills w ill issue re ce 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 il on or before th e d a te th e taxes a re d ue 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 taxes a re payable.
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 ho ur, o n e -th irty p.m ., E a s te rn
D a y lig h t S av ing T im e , T u esd ay , J u ly 2, 1968. T e n d e rs will not be receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington. E a c 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 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. 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 by F e d e ra l R e se rv e B an k s o r B ran ch es on
a p p lic a tio n th ere fo r.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs for acco u n t of c usto m ers p ro v id ed th e n am es of th e cu to m e rs are
se t fo rth in such ten d ers. O thers th a n bu nking in stitu tio n s will n o t be p e rm itte d to su b m it ten d e rs ex cep t for th e ir ow n account.
T e n d e rs will be receiv ed w ith o u t d e p o sit from in co rp o ra ted b an k s an d tru s t c o m pan ies an d fro m resp o n sib le a n d recognized
d ealers in in v e stm e n t secu rities. T e n d e rs iro n o th ers m u st be a ccom panied 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 ccom panied by 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 tru s t
com pany.
All b id ders a re re q u ire d to ag ree n o t to p u rch ase or to sell, or to m ak e a n y a g ree m e n ts w ith re sp e ct to th e p u rch ase
or sale o r o th e r d ispo sition 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 hour, te n d e rs will b e o p ened a t th e F e d e ra l R e se rv e B a n k s a n d B ran ches, follow ing w hich
p u b lic an 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 ra n g e of a cc ep te d bids. T h o se su b ­
m ittin g ten d e rs will be advised of th e a ccep tan ce or reje ctio n th ereo f. T h e S e c retary of th e T re a su ry expressly reserves th e rig h t
to acc ep t or re je c t any or all tend ers, in w hole or in p a rt, an d his action in an y such re sp e c t sh all be final. S u b je c t to th ese re se r­
vations, n o n c o m p e titiv e ten d e rs for $400,000 or less for th e 256-day bills a n d $400,000 o r 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 er will be 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 for th e resp e ctiv e issues. P a y m e n t of a cc ep te d te n d e rs a t th e p rices offered 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 in cash or o th e r im m e d ia tely a v ailab le fu n d s 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 an d L o an a cco u n t for T re a su ry b ills a llo tte d to it for itself a n d its
custo m ers u p to a n y a m o u n t for w hich it shall b e qualified in excess of existin g depo sits 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 eriv ed fro m T re a su ry bills, w h e th er in te re st or gain fro m th e sale or o th e r d isp o sitio n of th e bills, does n o t
h a v e an y e x em p tion, 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 av e an 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 Code of 1954. T h e bills a re su b je ct to e sta te , in h eritan c e, g ift or o th er excise taxes, w h eth 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 posed on th e p rin c ip a l or in te re st th e re o f b y an y S ta te ,
or any of th e possessions of th e U n ite d S tates, or b y a n y local tax in g a u th o rity . F o r purposes of ta x a tio n th e a m o u n t of disco unt
a t w hich T re a su ry bills a re o rig in ally sold b y th e U n ited S ta te s is consid ered to be in te re st. U n d e r S ectio ns 454 ( b ) an d 1221
( 5 ) of th e In te rn a l R ev en u e Code of 1954 th e a m o u n t of d isco u n t a t w hich b ills issued h e re u n d e r a re sold is n o t considered to
accrue u n til such bills are sold, re d ee m e d or o th erw ise disposed of, an d such bills a re excluded fro m 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 su ran ce co 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 etw een th e p rice p a id for such bills, w h e th er on original issue o r on su b seq u e n t purchase,
and th e a m o u n t actu a lly receiv ed e ith e r u pon sale or re d e m p tio n a t m a tu rity d u rin g th e ta x a b le y e ar fo r 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 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 b ills an d
govern th e co nditions of th e ir issue. Copies of th e c irc u lar m ay b e o b tain e d fro m an y F e d e ra l R e se rv e B a n k or B ranch .

In a ccord ance 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 bra n c h e s a t El Paso,
Houston a n d San Antonio, up to tw elve-thirty p.m., Central Daylight Saving Time, Tuesday, July 2, 1968. Tenders m ay
not be en te re d by tele 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)

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

285 DAYS TO MATURITY

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_____________________ _______________Branch
El Paso 79999

Houston 77001

San Antonio

Maturing April 22, 1969

_____
(D ate)

78206

Pursuant to the provisions c f 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, w ill be accepted in
full at the average price (in three decim als) of accepted com petitive bids.

------ $------------COMPETITIVE TENDERS

------ $------------- § ___
()

$ ----------------------------

Prices should be ex­
pressed on the basis of
100, with not more than
th r e e d ec im a l p la ce s,
e. g., 99.925. Fractions
m u st not be used.

(E X T E N D E R S MAY NOT BE E N TE R E D BY T E LEPH O N E. T EN D ERS BY W IRE, IF RECEIVED BEFO RE TH E
CLOSING HOUR, ARE ACCEPT A.BLE.,
Denomination Desired
N um ber of
Pieces

METHOD OF PAYMENT

M a tu rity V alues

(a) $
(5) $
(5) $

1,000 $
5,000 $

□

By charge to our T reasury T ax and Loan Account

□

P aym ent to be m ade by.............................................................

□

By charge to our reserve account on paym ent date.

□

By d ra ft enclosed (effectual delivery of enclosed d ra ft
shall be on la test day which will perm it presentm ent in
order to obtain irrevocably collected funds on paym ent
d ate).

10,000 $
50,000 $

(N am e of Bank)

@ ?
(a) $ 100,000 $
(5) $ 500,000 $
(5) $1 ,000,000 $-

We certify that we, as w ell as our custom ers, if any, listed
hereon have agreed not to purchase or to sell, or to make any
agreem ents 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 D aylight Saving Time, Tuesday,
July 2, 1968.

Delivery Instructions:
□

(S u b sc rib e r’s fu ll n a m e o r c o rp o ra te title )

Hold in Custody Account — Member
banks for own account only

□

By_

Pledge to Secure Treasury Tax and
Loan Account

□

(A d d re ss)

S ln p to _____________________________

(A u th o rized 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 su b scrib er)

(A d d re ss)

IMPORTANT
1. No tender fo r less th a n $1,000 will be considered and each tender m ust be fo r an am ount in multiples of $1,000 (m atu rity
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 States, w ith notation on the envelope reading “ T E N D E R FO R T R E A SU R Y B IL L S ”. Since envelopes received
with this legend will not be opened u ntil a fte r the closing tim e specified in the public announcement, comrr.unications
relating to other m a tte rs should not be enclosed. Envelopes for subm itting tenders m ay be requested from this bank or
app rop riate branch.
3. A ny 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 m ake the
ten der 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 th e firm, who
should sign in the form “ ..........................................................., a copartnership, by.......................................-........................................,
a m em ber of th e firm” .
5. Tenders from those other th an incorporated banks and tr u 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 th e to tal am ount (m aturity
value) of th e T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent
by an incorporated bank or tr u s t company.
6. I f the language of this form is changed in any respect, which, in the opinion of the S ecretary of the T reasury, is m aterial,
the tender m ay be disregarded.
(S ee reverse fo r announcem ent)

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