View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal Reserve Bank
F ISC A L

AGENT

OF

THE

U N IT E D

of

Dallas

STATES

DALLAS, TEXAS 7 5 2 2 2

Circular No. 68-153
July 3, 1968

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O th ers C o n c e r n e d
in t h e E le venth F e d e r a l R eserv e District:
Your a t t e n t i o n is in v ite d to t h e f o llo w in g s t a t e m e n t giv ing d e t a i l s of tw o is s u e s of T re as u ry bills:
T he Treasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of
$2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing July 11, 1968, in the am ount of
$2,602,364,000, as follows:
91-DAY BILLS (to m aturity date) to be issued Ju ly 11, 1968, in the am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated April 11, 1968, and to m ature October 10, 1968, originally
issued in the am ount of $1,000,511,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,100,000,000, or thereabouts, to be dated Ju ly 11, 1968, and to m ature January 9, 1969.
T h e bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter
provided, and a t m aturity their face am ount will be payable without interest. T hey will be issued in bearer form only, and in
denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity value).
Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, Ju ly 8, 1968. Tenders will not be received a t the T reasury D epartm ent, Washington. Each
tender must be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on
the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged th a t tenders be made
on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the names of th e customers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account.
T end ers will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securities. Tenders from others must be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after th e closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which
public announcem ent will be made by the Treasury D epartm ent of the am ount and price range of accepted bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T he Secretary of the Treasury expressly reserves the
right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to
these reservations, noncompetitive tenders for each issue for $200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or completed a t the Federal Reserve B ank on Ju ly 11, 1968, in
cash or other im mediately available funds or in a like face am ount of Treasury bills m aturing July 11, 1968. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
T he income derived from Treasury bills, w hether interest or gain from the sale or other disposition of th e bills, does not
have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatm ent,
as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ederal or State, but are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State,
or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the am ount of discount
a t which Treasury bills are originally sold by th e United States is considered to be interest. Under Sections 454 ( b ) and
1221 (5 ) of the Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include
in his income tax return only the difference between the price paid for such bills, w hether on original issue or on subsequent
purchase, and the am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In a c c o r d a n c e w ith t h e a b o v e a n n o u n c e m e n t , t e n d e r s will b e r e c e iv e d a t this b a n k a n d its b r a n c h e s a t El P aso ,
Houston a n d San A n to n io u p to tw e l v e - th ir ty p .m ., Centr al D ay lig h t S av in g Time, M o n d a y , July 8, 19 68. T e n d e rs m a y
not b e e n t e r e d by t e l e p h o n e .
Yours v e r y truly,
P. E. Cold w ell
P re s id e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and Approxim ate Yield of Accepted Tenders
90-Day Bills
D ue October 3, 1968
$2,117,716,000________________
$1,600,236,000________________
Price
Yield
98.665___________ 5.340% _____
98.625
5.500% ____
98.650___________ 5.400% ( 1 ) .

-T o tal Applied For_
__T otal A ccepted__
— H igh—
__ Low_
_
.-Average-

181-Day Bills
D ue Janu ary 2, 1969
------------------------- $1,981,180,000
------------------------- $1,100,325,000
Price
Yield
...97.218-------------------5.533%
...97.184---------- ----....5.601%
...97.190------------------ 5.589% (1)

( 1 ) T h es e rates are o n a bank discou nt basis. T h e e q u iv a le n t coupon issue y ie ld s a re S.5 5 % for th e 9 0 - d a y bills, and 5 . 8 3 % for
th e 181-d ay bills.

(See 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

182 DAYS TO MATURITY
Dated July 11, 1968

Maturing January 9, 1969

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

Houston 77001

______________

San Antonio 78206

(D ate)

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 oi before the issue date, by the method and at the rate indicated.

NONCOMPETITIVE TENDER $_______________________________ NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 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.
/_

_

Prices should be ex­
pressed on the basis of

(a)
COMPETITIVE TENDERS <$________________ @________ $-------------------------------$
?
S
..
@

thre^decTmaT^a*fs,
e. g ., 99.925. Fractions
must not be used.

H SfTENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired

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

Number of
Maturity Value

P ie c e s

METHOD OF PAYMENT

$

1,000 $
5,000 $

□

(a) $
(a) $

10,000 $
50,000 $

□

(a) $ 100,000 $
(a) ? 500,000 ?
(a) $1.,000,000 $

□

@ ?

Delivery Instructions:
□
□

Charge our reserve account on paym ent
date
D raft 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 r a f t shall be on latest day which will p e rm it p r e s e n t­
m e n t in order to o btain irrevocably collected fu n d s on
p a y m e n t date)

___
(S u b sc rib e r’s full n am e or co rp o ra te title)

Hold in Custody Account— Member
banks for own account only

-----

Pledge to secure Treasury Tax and

By._____________________________________

Loan

□

□

By m aturing bills
held by_____________________
Paym ent to be made by_

A ccount

Ship to___________________________

(Address)

(Authorized official signature and title)

___

(F or the account of, if tender is fo r another subscriber)

(Address)

IMPORTANT
1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity
value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY BILLS”. Since envelopes received
with this legend will not be opened until after the closing time specified in the public announcement, communications
relating to other matters should not be enclosed. Envelopes for submitting 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 the
tender and the signing of the form by an officer of the corporation will 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 in vest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full 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
material, the tender may be disregarded.

(See reverse for announcement)

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