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F ederal Reserve Bank of Dallas F IS C A L AGENT OF THE U N IT E D STATES DALLAS, TEXAS 7 5 2 2 2 Circular No. 68-201 September 18, 1968 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O th e r s C o n c e r n e d in t h e E leven th F e d e r a l R e serv e District: Your a t t e n t i o n is in v ite d to th e fo llo w in g s t a t e m e n t giv ing d e t a il s o f tw o is s u e s of T re asury bills: T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Septem ber 26, 1968, in the am ount of $2,600,526,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued Septem ber 26, 1968, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated Ju n e 27, 1968, and to m ature December 26, 1968, originally issued in the am ount of $1,105,037,000, 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 Septem ber 26,1968, and to m ature M arch 27,1969. T he 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 w ithout 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 aturity value). Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m. Eastern D aylight Saving Tim e, Monday, Septem ber 23, 1968. Tenders will not be received a t the T reasury D epartm ent, Washington. Each tender m ust 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 th e 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 m ade 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 may subm it tenders for account of customers provided th e names of 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. T enders will be received w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust 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 the closing hour, tenders will be opened a t the Federal R eserve Banks and Branches, following which public announcem ent will be m ade by th e T reasury 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 h e Secretary of th e Treasury expressly reserves the rig ht 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 a t the average price (in three decimals) of accepted com petitive bids for th e respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or completed a t the Federal Reserve Bank on Septem ber 26, 1968, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing Septem ber 26, 1968. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the p ar value of m atur ing bills accepted in exchange and th e 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 the 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 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 imposed on th e principal or interest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount a t which T reasury bills are originally sold by the U nited States is considered to be interest. U nder 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, redem med or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other than life insurance com panies) 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 retu rn is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (curren t revision) and this notice, prescribe the term s of the T reasury bills and govern the conditions of th eir issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch. In a c c o r d a n c e w ith th 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, H ouston a n d San A n to n io up to tw e l v e - th ir ty p .m ., Central D a ylig ht S av ing Time, M o n d a y , S e p t e m b e r 2 3 , 1968. T enders may not b e entered by telephone. Y ours very truly, P. E. Coldwell P re s id e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approximate Y ield of A ccepted Tenders 91-Day Bills 182-Day Bills D ue D ecem ber 19, 1968 D ue M arch 20, 1969 $2,525,037,000.................. .......................................... .Total Applied F o r_______________________________ $2,261,515,000 $ 1,600,82 5,000------------- ----- ------------------------------T otal A ccepted________________________________$ 1,100,108,000 Price Yield Price Yield 98.684____________5.206% __ _______________ _______H igh________________ ___ 97.352____________5.238% 98.678------------------5.230% --------------------------------------- Low.................... ....................... .97.341_____ 5.260% 98,681...... 5.218% (1).....___ ______________ Average__________________ ....97.347_________ .5.248% (1 ) ( 1 ) T h e s e rates are on a b an k discount basis. T h e eq u iv a le n t coupon issue y ie ld s are S .3 6 % for th e 9 1 -d a y bills, a n d 5 .4 7 % for t h e 1 8 2 - d a y b ills . (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 September 26, 1968 Maturing March 27, 1969 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________________Branch El Paso 79999 Houston 77001 San Antonio 78206 (Date) 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 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. (* COMPETITIVE TENDERS /;ip $ (a) (0) $ ? .. Prices should be ex-essed on the basis of 100, with not more than th ree d e c im a l places, e. g., 99.925. F ra ction s must not be used. BSr1 TENDERS MAY NOT BE EN T ER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Maturity Value ■< $ ® $ METHOD OF PAYMENT 1,000 ¥■ 5,000 ?- □ .< > $ 10,000 ?. ,a (n) $ 50,000 ?. (a) $ 100,000 $. (a) $ 500,000 $. By m a tu rin g bills held by____________________ _ P ay m en t to be m ade by. □ □ C harge our reserve account on paym ent date D r a f t e n c l o s e d (E ffectual delivery o f enclosed d r a f t shall be on latest day which will permit presentment in order to obtain irrevocably collected funda on payment date) <0 $1.,000,000 Delivery In stru c tio n s : □ □ (Subscriber’s full name or corporate title) Hold in Custody A ccount— M ember banks fo r own account only Pledge to secure T reasury T ax and Loan Account □ (Addresa) (Authorized official signature and title) Ship to ---------------------------------------(For the account of, if tender is fo r another subscriber) (Address) IMPORTANT 1. No tender for less than 51,000 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 OFFERING.” Since envelopes re ceived with this legend will not be opened until after the closing time specified in the public announcement, communica tions 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 at 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 invest 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 fo r announcem ent)