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F ederal Reserve Bank of Dallas
F IS C A L A G E N T O F T H E U N IT E D S T A T E S

DALLAS, TEXAS

75222
Circular No. 68-221
October 17, 1968

NEW OFFERING — TREASURY BILLS

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

Your attention is invited to th e follow ing s ta te m e n t giving d etails 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, invites 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 ere ab o u ts, fo r cash a n d in ex change fo r T re a su ry bills m a tu rin g O c to b er 31, 1968, in th e a m o u n t of
$4,201,432,000, as follow s:
273-D A Y B IL L S (to m a tu r ity d a te ) to b e issued O ctober 31, 1968, in th e a m o u n t of $500,000,000, o r th ere ab o u ts,
re p re se n tin g a n a d d itio n a l a m o u n t of bills d a te d J u ly 31, 1968, a n d to m a tu re J u ly 31, 1969, o rig in ally issued
in th e a m o u n t o f $1,000,963,000, th e a d d itio n al a n d orig in al b ills to b e fre ely in terchangeab le.
365-D A Y B IL L S fo r $1,000,000,000, o r th ere ab o u ts, to b e d a te d O cto b er 31, 1968, a n d to m a tu re
O c to b er 31, 1969.
T h e b ills o f b o th series w ill b e issued on a d isc o u n 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 a s h e re in a fte r
pro v id ed , a n d a t m a tu r ity th e ir face a m o u n t w ill b e p a y ab le w ith o u t in te re st. T h e y will be issued in b e a re r fo rm only, a n d in
den 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 be received- 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 hour, o n e -th irty p.m ., E a s te rn
D a y lig h t S av in g T im e , T h u rsd a y , O c to b er 24, 1968. T e n d e rs w ill n o t b e re ce iv e d a t th e T re a s u ry D e p a rtm e n t, W ashington. E a c h
te n d e r m u st b e 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 b e exp ressed 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 b ills w ill ru n fo r 365-days, th e d isco u n t ra te w ill b e co 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 o n a ll 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
envelopes w h ich 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 generally m a y su b m it te n d e rs fo r a cc o u n t o f custom ers p ro v id ed th e n am es of th e cu sto m ers a re
se t fo rth in such tend 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 w ill b e received w ith o u t d e p o sit from in co rp o ra ted b an k s a n d tru s t c o m panies a n d fro m resp o n sib le a n d recognized
de ale rs in in v e s tm e n t securities. T e n d e rs fro m o th ers m u s t b e a cc o m p an ied b y 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 s u ry b ills a p p lie d for, unless th e te n d e rs a re a ccom panied b y a n express g u a ra n ty of p a y m e n t b y 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 w ill b e o pen 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 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 ran g e of a c c e p te d bids. T h o se
su b m ittin g te n d e rs will b e a d v ised o f th e acc ep ta n ce o r rejectio n thereof. T h e S e c retary o f th e T re a s u ry expressly reserves th e
rig h t to a c c e p t o r re je c t a n y o r a ll ten d e rs, in w hole o r in p a rt, a n d his actio n in a n y such re sp e c t sh a ll b e final. S u b je c t to
th ese reservatio ns, n o n c o m p e titiv e te n d e rs fo r each issue fo r $200,000 o r less w ith o u t sta te d p rice fro m a n y one b id d e r will b e
a cc ep te d in full a t th e a v era g e p rice ( in th re e de 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 fo r
a cc ep te d te n d e rs in accord ance w ith th e bids m u st be m ad e or c o m p leted a t th e F e d e ra l R e se rv e B a n k on O c to b er 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 o r in a lik e face a m o u n t of T re a su ry bills m a tu rin g O c to b er 31, 1968. C ash a n d
exchange te n d e rs w ill receiv e e q u al tre a tm e n t. C ash a d ju stm 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
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 e riv e d fro m T re a su ry bills, w h e th e r in te re st 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 av e a n y exem ption , as such, a n d loss fro m th e sale o r o th e r d ispositio 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,
as such, u n d e r th e In te rn a l R e v e n u e C ode o f 1954. T h e b ills are su b je ct to estate , in h eritan c e, g ift o r o th e r excise taxes, w h e th e r
F e d e ra l o r S ta te , b u t a re e x em p t from a ll ta x a tio n now or h e re a fte r im po sed on 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 a n y of th e possessions of th e U n ite d S ta te s, or b y a n y local tax in g a u th o rity . F o r p u rp o se s o f ta x a tio n th e a m o u n t of d iscou nt
a t w hich T re a s u ry b ills a re o rig in ally sold b y th e U n ite d S ta te s is con sidered to b e in te re st. U n d e r S ections 454 ( b ) a n d 1221 ( 5 )
of th e In te rn a l R e v e n u e C ode o f 1954 th e a m o u n t of d isco u n t a t w hich bills issued h e re u n d e r a re sold is n o t co nsidered to
accrue u n til such bills a re sold, re d ee m e d or o therw ise disposed of, a n d such bills a re excluded fro m c o n sid era tio n as c ap ital
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 re tu r n o n ly 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 original issue o r o n su b seq u e n t p u rchase,
a n d th e a m o u n t a c tu a lly received e ith e r u p o n sale o r re d em p tio n a t m a tu rity d u rin g th e tax 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 a ry gain o r 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 d itio n s of th e ir issue. C op ies of th e c irc u la r m a y b e 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 acco rd a n c e 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 tw elve-thirty p.m., Central Daylight Saving Time, Thursday, O ctober 24 , 1968. Tenders
m a y n ot b e e n te re d b y te le p h o n e .
Yours very truly,
P. E. Coldwell
President

(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

365 DAYS TO MATURITY
Dated October 31, 1968

Maturing October 31, 1969

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The___ _______ ___________________ .Branch
El Paso 79999

Houston 77001

(Date)

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 T E N D E R $

-NOT T O E X C E E D $200,000

N oncom petitive tenders for $200,000 or less from any one bidder, without stated price, w ill be accepted in fu ll at the average
price (in three decim als) o f accepted com petitive bids.
Prices should be ex­
(a)
pressed on the basis of
1 0 0 , w ith not more than
h
(rf)
th ree d ecim al p la ces,
e. g., 99.925. Fractions
m ust not be used.

/$

$
$

@

Jpgr5 TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

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

Maturity Value

METHOD OF PAYMENT

1,000

□ By maturing bills

5,000 $-

held by_________________

10,000 $

□ Payment to be made by.

50,000 $

100,000 $■-

□

$ 500,000

Charge our reserve account on payment
date

[31 D r a f t e n c l o s e d (Effectual delivery of enclosed
draft shall be on latest day which will permit present­
ment in order to obtain irrevocably collected funds on
payment date)

$1,000,000
Delivery Instructions:

(Subscriber’s full name or corporate title)

□ Hold in Custody Account— Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□

Ship to_______________________

(Address)

By-

authorized official signature and title)
(For the account of, if tender is for another subscriber)
(Address)

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).
Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as F iscal A gent of the
U nited States, w ith notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes
received w ith this legend w ill not be opened until after the closing tim e specified in the public announcement, communi­
cations relating to other m atters should not be enclosed. Envelopes for subm itting tenders m ay be obtained from this
bank or appropriate branch.
Any qualified or conditional tender w ill be rejected.
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
ment 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.

2

(See reverse for announcement)

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