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F ed era l R ese r v e Bank

of

Dallas

F IS C A L A G E N T O F T H E U N I T E D S T A T E S

DALLAS, TEXAS

75222
C ircular No. 68-182
August 21, 1968

NEW OFFERING — TREASURY BILLS

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following sta te m e n t giving details of two issues of Treasury bills:
T h e T re a su ry D e o 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 bills to th e a g g reg ate a m o u n t
of $1,500,000,000, or th ere ab o u ts, fo r cash a n d in exchange fo r T re a su ry bills m a tu rin g A u g u st 31, 1968, in th e a m o u n t of
$1,500,511,000, as follow s:
270-D A Y B IL L S (to m a t u r i t y d a te ) to b e issued S e p te m b e r 3, 1968, in th e a m o u n t of $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 bills d a te d M a y 31, 1968, a n d to m a tu re M a y 31, 1969, o rigin ally issued
in th e a m o u n t of $1,002,217,000, th e a d d itio n a l a n d
orig in al bills to be fre ely in terchan g eab le.
365-D A Y B IL L S for $1,000,000,000, or th ere ab o u ts, to be d a te d A ugust 31, 1968, a n d to m a tu re A ug u st 31, 1969.
T h e bills of bo th series will be issued on a d isco un 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
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 ab le w ith ou t in terest. T h e y will be issued in b e a re r fo rm only, a n d in
d en 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 r ity v a lu e ).
T e n d e rs will be received a t F e d e ral R eserv e B an k s a n d B ran ch es 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 aving T im e , T u esd ay , A u gu st 27, 1968. T e n d e rs w ill n o t be received a t th e T reasu 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 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 price offered m u st be expressed on th e
basis of 100, w ith n o t m ore th a n th ree decim als, e.g., 99.925. F ra c tio n s m ay n o t be used. (N o tw ith sta n d in g th e fa c t t h a t th e oney e ar bills will run for 365-days, th e disco u nt ra te will be c o m p u te d on a b a n k disco u nt 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 bills.) I t is urg ed t h a t ten 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
en v elop es w hich w ill be sup p lied by F e d e ra l R eserv e B an k s o r B ran ch es on a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs fo r a cc o u n t of cu sto m ers p ro v id ed th e n am es o f th e custo m ers are
set fo rth in such tenders. O th ers th a n b a n kin g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs ex cep t fo r th e ir own account.
T e n d e rs will be received w ith o u t dep osit from in co rp o ra ted b an k s a n d tru s t com p an ies a n d fro m respo n sible a n d
recognized
dealers in in v estm e n t securities. T e n d e rs from 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 su ry bills a p p lie d for, unless th e te n d e rs a re accom p an ied b y a n express g u a ran ty of p a y m e n t by a n in co 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 hour, te n d e rs will b e o p e n ed a t th e F e d e ra l R e se rv e B a n 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 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 price ran g e of a cc ep te d bids. T h o se
su b m ittin g te n d e rs will be ad v ised of th e acc ep ta n ce or re je ctio n thereof. T h e S ec retary of th e T re a su ry expressly reserves th e
rig h t to a cc ep t or re je c t an y or all ten d ers, in whole or in p a rt, a n d his actio n in a n y such re sp e ct shall be final. S u b je ct to
th ese reservations, n o n c o m p e titiv e te n d e rs for each issue for $200,000 or less w ith o u t sta te d p rice fro m a n y one b id d er will be
acc ep te d in full a t th e averag e p rice ( in th re e d ecim als) of a cc ep te d c o m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for
a cc ep te d te n d e rs in acco rd an ce w ith th e bids 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 on S e p te m b e r 3, 1968,
in cash o r o th e r im m e d ia tely a v ailab le fu n d s or in a like face a m o u n t of T re a su ry bills m a tu rin g A u g ust 31, 1968. C ash a n d
exchange ten d e rs will receive eq u al tre a tm e n t. C ash a d ju s tm e n ts will be m ad e fo r differences b etw een th e p a r value of m a tu rin g
bills a cc ep te d in exchange a n d th e issue p rice of th e new bills.
T h e incom e d eriv ed from T re a su ry bills, w h e th er in te re s t or gain fro m th e sale or o th e r disp osition of th e bills, does n o t
h a v e an y ex em ptio n, as such, a n d loss from th e sale or o th e r d isp osition of T re a su ry bills does n o t hav e a n y special tre a tm e n t,
as such, u n d e r the In te rn a l R e v en u e C ode of 1954. T h e bills a re su b je ct to estate, in h eritan ce, g ift o r 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 ex em p t from all tax a tio n now o r h e re a fte r im posed on th e p rin cip a l o r in te re st th ere o f by any S ta te ,
or an y of the possessions of th e U n ited S tates, or by an y local tax in g au th o rity . F o r pu rp oses of tax a tio n th e a m o u n t of d iscou n t
a t w hich T re a su ry bills a re originally sold by th e U n ite d S ta te s is co nsidered to be in terest. U n d e r Sections 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 of d isco un t a t w hich bills issued h e re u n d e r a re sold is n o t considered to
accru e u n til such bills a re sold, red eem ed or otherw ise disposed of, a n d such bills a re excluded from co n sid eratio n as c a p ita l
assets. A ccordingly, th e ow ner of T re a su ry bills ( o th e r th a n life insuran ce c o m p a n ies) issued h e re u n d e r n eed in clud e in his
incom e tax re tu rn only th e difference b etw een th e price p a id for such bills, w h e th er on original issue or on su b seq u e n t purchase,
a n d th e a m o u n t a ctu a lly receiv ed e ith e r u p o n sale o r re d e m p tio n a t m a tu rity du rin g th e tax a b le y e ar fo r w hich th e re 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 lar No. 418 (c u rre n t rev isio n ) a n d th is notice, p rescrib e th e te rm s of th e T re a su ry b ills a n d
govern th e co nditions of th eir issue. C opies of th e circu lar m ay be o b tain e d fro m a n y F e d e ra l R e se rv e B a n k o r B ranch.

In acco rd an ce with the a b o v e a n n o u n c e m e n t, ten d ers will be 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 twelve-thirty p.m., Central Daylight Saving Time, Tuesday, A ugust 27, 1968. Tenders
m ay not be entered by 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 ADDITION TO TREASURY BILLS

270 DAYS TO MATURITY
Dated May 31,1968

Maturing May 31,1969

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.

NONCOMPETITIVE TENDER $_

JNOT TO EXCEED $200,000

Noncompetitive 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
!
tft
m ust not be used.
TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

1,000
(£ $
5,000
$
10,000
■Q> $
(a) $ 50,000
(5) $ 100,000
(5) $ 500,000
@ $1,000,000

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

Maturity Value

METHOD OF PAYMENT

$.
$.
*
$?.
$.
$

□ By maturing bill
s
held by________________________
□ Payment to be made by_________
□ Charge our reserve account on payment
date
| | D r a f t e n c l o s e d (E ffectu al delivery of enclosed
draft shall be on latest dny which will permit present
ment in order to obtain irrevocably collected funds on
payment date)

Delivery Instructions:
□

□ Pledge to secure Treasury Tax and
Loan Account
□

(Subscriber’s full name or corporate title)

Hold in Custody Account— Member
banks for own account only

(Address)

By.
(Authorized official signature and title)

Ship to______________________
(For the account of, if tender is for another subscriber)
(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 Fiscal 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 tim e specified in the public announcement, communications
relating to other m atters should not be enclosed. Envelopes for subm itting tenders may 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
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 (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
m aterial, the tender may be disregarded.

(See reverse for announcement)

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