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F ederal r eser ve Ban k o f Dallas FISCAL AGENT OF THE UNITED STATES DALLAS, TEXAS 75222 C ircu la r N o. 68-159 J u ly 18, 1968 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d O thers Concerned in th e 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 fo r tw o series of T re a su ry b ills to th e a g g reg ate a m o u n t of $1,500,000,000, o r th e re a b o u ts, fo r cash a n d in exchange for T re a su ry bills m a tu rin g J u ly 31, 1968, in th e a m o u n t of $1,501,080,000, as follow s: 273-D A Y B IL L S (to m a tu r ity ) to b e issued J u ly 31, 1968, in th e a m o u n t o f $500,000,000, o r th ere ab o u ts, re p rese n tin g a n a d d itio n al a m o u n t of b ills d a te d A p ril 30, 1968, a n d to m a tu re A p ril 30, 1969, o riginally issued in th e a m o u n t of $1,000,784,000, th e a d d itio n al a n d original b ills to b e fre ely in terch an g eab le. 365-D A Y B IL L S fo r $1,000,000,000, o r th ere ab o u ts, to be d a te d J u ly 31, 1968, a n d to m a tu re J u ly 31, 1969. T h e b ills of b o th series w ill be issued on a d isc o u n t b asis 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 pro v id ed , a n d a t m a tu rity th e ir face a m o u n t will be p a y a b le w ith o u t in terest. T h e y w ill b e issued in b e a re r form only, a n d in d en o m in a tio n s o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu r ity v a lu e ). 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 h our, o n e -th irty p.m ., E a s te rn D a y lig h t S av ing T im e , W edn esd ay , J u ly 24, 1968. T e n d e rs w ill n o t be receiv ed 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 o n th e basis of 100, w ith n o t m o re th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t b e used. (N o tw ith sta n d in g th e fa c t t h a t th e oney e a r bills will ru n for 365-days, th e d iscou nt ra te w ill b e c o m p u te d on a b a n k d isco u n 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 u rg e d t h 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 velo pes w hich w ill b e su p p lied b y F e d e ra l R e se rv e B a n k s o r B ra n ch e s on a p p lic a tio n th erefo 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 fo r acc o u n t o f cu sto m ers p ro v id ed th e n a m e s of th e cu sto m ers a re se t fo rth in such ten d ers. O th e rs th a n b a n k in g in stitu tio n s w ill n o t b e p e rm itte d to su 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 be receiv ed w ith o u t d e p o sit fro m in co rp o ra ted b an k s a n d tr u s t c o m pan 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 a cco m p an ied b y p a y m e n t of 2 p e rc e n t o f th e face a m o u n t of T re a su ry b ills a p p lie d for, unless th e te n d e rs a re acco 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 c o rp o ra ted b a n k or tr u s t com pany. Im m e d ia te ly a f te r th e closing h our, te n d e rs w ill b e o p e n e d 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 a n n o u n ce m en t w ill b e 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 of a cc ep te d bids. T h o se su b m ittin g te n d e rs w ill be a d v ised of th e acc ep ta n ce o r re je c tio n th ereo f. T h e S e c re ta ry of th e T re a su ry expressly reserves th e r ig h t to a c c e p t o r re je c t a n y o r a ll te n d e rs, in w hole o r in p a rt, a n d h is a c tio n in a n y such re sp e ct sh all b e final. S u b je c t to th ese reserv ation s, n o n c o m p e titiv e te n d e rs fo r each issue fo r $200,000 or less w ith o u t sta te d p rice fro m a n y on e b id d e r w ill b e a cc ep te d in fu ll a t th e a v era g e 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 fo r th e re sp e ctiv e issues. S e ttle m e n t for a cc ep te d te n d e rs in accord ance w ith th e b id s m u st b e 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 o n J u ly 31, 1968, in cash o r o th e r im m e d ia te ly a v ailab le fu n d s or in a lik e face a m o u n t of T re a su ry b ills m a tu rin g Ju ly 31, 1968. C ash a n d exchange te n d e rs w ill receive equal tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e fo r differences b e tw ee n th e p a r v a lu e of m a tu rin g b ills a c c e p te d in exchange a n d th e issue p rice of th e new bills. T h e incom e d e riv e d fro m T re a su ry bills, w h e th e r in te re s t o r gain fro m th e sale o r o th e r d isp o sitio n of th e bills, does n o t h a v e a n y exem ption , a s such, a n d loss from th e sale o r o th e r d isp o sitio n o f T re a su ry b ills does n o t h a v e a n y special tre a tm e n t, a s such, u n d e r th e In te rn a l R e v e n u e C ode of 1954. T h e b ills a re su b je c t 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 o r S ta te , b u t a re e x e m p t fro m a ll ta x a tio n now o r h e re a fte r im po sed o n th e p rin c ip a l o r in te re s t th e re o f b y a n y S ta te , or an y of th e possessions of th e U n ite d S ta te s, o r b y a n y local tax in g a u th o rity . F o r p u rp o ses of ta x a tio n th e a m o u n t of disco unt a t w hich T re a s u ry bills a re o rig in ally sold b y th e U n ite d S ta te s is co nsid ered to be in te re st. U n d e r Section s 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e C ode of 1954 th e a m o u n t o f disco 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 co nsid ered to accrue u n til such bills a re sold, re d ee m e d o r o therw ise disp osed of, a n d such b ills 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 b ills ( o th e r th a n life insu rance c o m p a n ies) issued h e re u n d e r n e ed in clu d e in his incom e ta x r e tu rn only th e difference b e tw ee n th e p rice p a id fo r such bills, w h e th e r on o riginal issue or o n su b seq u e n t pu rchase, a n d th e a m o u n t a c tu a lly re ce iv e d e ith e r u p o n sale o r 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 a r fo r w hich th e r e tu r n is m ad e, as o rd in ary gain or loss. T re a su ry D e p a rtm e n t C ircu la r 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 a n d govern th e c o n ditions of th e ir issue. C opies of th e c irc u lar m ay be 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 or B ran ch. In acc orda n ce 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 be 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, W e d n e s d a y , July 24, 1968. Tenders m a y not b e e n te re d b y te le 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) TENDER FOR TREASURY BILLS 365 DAYS TO MATURITY Maturing July 31, 1969 Dated July 31, 1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________________ Branch E l Paso 79999 Houston 77001 (D ate) San Antonio 78206 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 or before the issue date, by the method and at the rate indicated. _NOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $_ 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 ex pressed on the basis of 100, with not more than COMPETITIVE TENDERS $ $ @ th ree d e c im a l p la ces, e. g., 99.925. Fractions - ........... - $ $ m ust not be used. agf* TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Paym ent for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Denominations Desired N u m b e r of Pieces M a tu rity V alue <5> $ <3> $ $ (5) $ METHOD OF PAYMENT 1,000 ?5,000 $ □ By maturing bills held by________________________ □ Payment to be made by_________ 10,000 t 50,000 $- □ 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 $ 100,000 ?. (cb $ 500,000 $$1:,000,000 $- d r a f t sh all be on la te s t day w hich w ill p e rm it p re s e n t m e n t in ord e r to o b ta in irrevocably collected fun da on p a y m e n t da te ) Delivery Instructions: (S u b scrib er’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 □ Pledge to secure Treasury Tax and Loan Account □ (A ddress) By. Ship to_______________________ (A u th orized official s ig n a tu re a n d title ) (F o r th e a c c o u n t of, if te n d e r is fo r a n o th e r su b sc rib e r) (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 “TENDER FOR TREASURY BILLS”. Since envelopes received with this legend w ill not be opened until after the closing tune specified in the public announcement, communications relating to other m atters should not be enclosed. Envelopes for subm itting tenders m ay be obtained 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 officer of 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 m ent 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 m ay be disregarded. (See reverse for announcement)
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