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Federal reserve b an k of Dallas FISCAL AGENT OF THE UNITED STATES DALLAS, TEXAS 7 5 2 2 2 N E W O F F E R IN G — Circular No. 68-155 July 10, 1968 T R E A S U R Y BILLS To A ll B a n k in g Institu tions a n d O th e rs C o n ce rn e d in Your the Eleventh Fede ral R eserve District: attention is invited to the fo llo w in g statem ent g iv in g d e ta ils of tw o issu e s of T re a su ry bills: T h e Treasury Departm ent, b y this pu b lic notice, invites tenders for two series o f Treasury bills to the aggregate amount o f $2,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing July 18, 1968, in the am ount o f $2^603,215,000, as follow s: 9 1 -D A Y B IL L S (to m aturity date) to be issued July 18, 1968, in the amount o f $1,600,000,000, or thereabouts, representing an additional amount o f bills dated April 18, 1968, and to mature O ctober 17, 1968, originally issued in the am ount o f $1,102,644,000, the additional and original bills to be freely interchangeable. 1 8 2 -D A Y B IL L S for $1,100,000,000, or thereabouts, to be dated July 18, 1968, and to mature January 16, 1969. T h e bills o f both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face am ount will be payable without interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e). Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D ayligh t Saving T im e, M onday, July 15, 1968. Tenders will not be received at the Treasury D epartm ent, W ashington. E ach tender must be for an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed on the basis o f 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be made on the printed forms and forw arded in the special envelopes which w ill be supplied b y Federal R eserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account o f customers provided the names o f the 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. Tenders will be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accom panied b y paym ent o f 2 percent o f the face am ount o f Treasury bills a pplied for, unless the tenders are accom panied b y an express guaranty o f paym ent b y an incorporated bank or trust com pany. Im m ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which p u b lic announcem ent w ill be made by the Treasury Departm ent o f the amount and price range o f accepted bids. T h ose subm itting tenders will be advised o f the acceptance or rejection thereof. T h e Secretary o f 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. Su bject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder w ill be a ccep ted in full at the average price (in three decim als) o f accepted com petitive bids for the respective issues. Settlem ent for a ccepted tenders in accordance with the bids must be made or com pleted at the Federal R eserve Bank on July 18, 1968, in cash or other im m ediately available funds or in a like face am ount o f Treasury bills maturing July 18, 1968. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value o f matur ing bills accepted in exchange and the issue price o f the new bills. T h e incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not have any exem ption, as such, and loss from the sale or other disposition o f Treasury bills does not have any special treatment, as such, under the Internal R evenue C ode o f 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exem pt from all taxation now or hereafter im posed on the principal or interest thereof by any State, or any o f the possessions o f the United States, or by any local taxing authority. For purposes o f taxation the amount o f discount at which Treasury bills are originally sold b y the United States is considered to be interest. U nder Sections 454 ( b ) and 1221 ( 5 ) o f the Internal R evenue Code o f 1954 the amount o f discount at which bills issued hereunder are sold is not con sidered to accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital assets. A ccordingly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e tax return on ly the difference betw een the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular N o. 418 (current revision) and this notice, prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular m ay be obtained from any Federal R eserve Bank or Branch. In a cc o rd an ce w ith the a b o v e a n n o u n ce m e n t, tenders w ill be received at this b a n k a n d its b ra n c h e s at El Paso, H ouston a n d S a n A n to n io up to tw elve -thirty p.m., Central D a y lig h t S a v in g Time, M o n d a y , J u ly 15, 1968. T en ders m a y not b e entered b y te leph o ne. Yours very truly, P. E. C o ld w e ll President LAST P R E V IO U S O F F E R IN G O F T R E A S U R Y BILLS Am ount, R ange and Approxim ate Y ield o f A ccep ted Tenders 91-D ay Bills 182-D ay B ills D ue O ctober 10, 1968 D u e January 9, 1969 $2,635,946,000 T ota l A pp lied F or------------------------------------------------------ $1,993,870,000 $1,600,346,000_____________________________________T ota l-A ccep ted --------------------------------------------------------- $1,100,154,000 P rice Y ield P rice Y ie ld 98.660______________5 .3 0 1 % _____________________________ H igh _________________________97.290____________ 5 .3 60 % 98.636______________5 .3 9 6 % _____________________________ L ow _________________________ 97.249_____________5.442 % 98.643--------------------- 5.3 68 % ( 1 ) ------------------------------------Average----------------------------------- 97.265_____________5 .4 10 % ( 1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 5.5 2% for the 91-day bills, and 5.6 4% for the 182-day 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 18,1 9 68 Maturing January 1 6 ,1 9 6 9 T o : Federal Reserve Bank, Station K , Dallas, Texas or — The_______________________________________Branch E l Paso 79999 Houston 77001 75222 ________________ San Antonio 78206 (Date) Pursuant to the provisions o f T reasury Departm ent Circular N o. 418 (current revision) and the provisions o f the public announcement issued by the Treasury D epartm ent, the undersigned offers to purchase Treasury bills in the am ount shown below, and agrees to pa y fo r the am ount allotted, on or b efore the issue date, b y the m ethod and at the rate indicated. N ON CO M PETITIVE T E N D ER $_____________________________________ N O T TO E X C E E D $200,000 Noncom petitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decim als) of accepted competitive bids. f Prices should be ex pressed on the basis of CO M PETITIVE T E N D E R S h ----------------------------- @ ---------------$------------------------------------1$______________________ @ ___________$ V e.g., 99.925. Fractions must not be used. ^ T E N D E R S M A Y NOT BE E N T E R E D B Y TE LE PH O N E. TE N D E R S B Y W IR E , IF R E C E IV E D B E F O R E TH E C L O S IN G H O U R , A R E A C C E P T A B L E . Denom inations D esired Number of Pieces Paym ent fo r this issue o f bills cannot be made by credit to Treasu ry T ax and Loan A ccount. Maturity Value <> $ 3 (5) $ 5,000 I (3) $ 10,000 $. .(S $ > 50,000 $- (a) $ 100,000 $- .(ob $ M ETH O D O F P A Y M E N T 1,000 $- 500,000 $. □ By maturing bills held by_________________________ □ Payment to be made by_ □ Charge our reserve account on payment date | I D r a f t e n c l o s e d (E ffe c t u a l d elivery o f enclosed 1 draft shall be on latest day which will permit present ment in order to obtain irrevocably collected funds on payment date) .dob $1 ,000,000 $. Delivery Instructions: □ □ Pledge to secure Treasury Tax and □ Ship to_______________________________ (Subscriber’s full name or corporate title) Hold in Custody Account— Member banks for own account only (Address) gy L o a n AcCOUnt (Authorized official signature and title) ____ (F or the account of, if tender is for another subscriber) (Address) IMPORTANT 1. N o tender fo r less than $1,000 w ill be considered and each tender m ust be fo r an am ount in m ultiples o f $1,000 (m atu rity valu e). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A g en t o f the United States, with notation on the envelope reading “ T E N D E R FO R T R E A S U R Y B IL L S ” . Since envelopes received w ith this legend will not be opened until a fter the closin g time specified in the public announcement, com m unications relating to other m atters should n ot be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank or appropriate branch. 3. A n y qualified or conditional tender w ill be rejected. 4. I f a corporation makes the tender, the form should be signed by an officer o f the corporation authorized to m ake the tender and the signing o f the form b y an officer o f the corporation w ill be construed as a representation by him that he has been so authorized. I f the tender is made by a partnership it should be signed by a m em ber of the firm , who should sign in the form “ .........................................................., a copartnership, by ............................... t a mem ber o f the firm ” . 5. Tenders from those other than incorporated banks and trust com panies or responsible and recognized dealers in in vest ment s e cu ritie s will be disregarded, unless accom panied by a deposit o f 2 percent o f the total amount (m atu rity valu e) o f the T r e a s u ry bills applied fo r, or unless the tenders are accompanied b y an express guaranty o f fu ll paym ent b y an incorporated bank or trust company. 6. I f the language o f this form is changed in any respect, which, in the opinion o f the Secretary of the T reasu rv is material, the tender may be disregarded. (See reverse for announcement)