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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 7 5 2 2 2 Circular No. 68-232 October 30, 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 Eleventh F e d e r a l R e serv e District: Y our a t te 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 giving d e t a il s of tw o is s u e s of T re asury bills: T h e 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 November 7, 1968, in the am ount of $2,702,015,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued November 7, 1968, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated August 8, 1968, and to m ature February 6, 196i , orig inally issued in th e am ount of $1,103,181,000, th e additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,100,000,000, or thereabouts, to be dated November 7, 1968, and to m ature M ay 8, 1969. T he bills of both series will be issued on a discount basis under competitive and noncom petitive 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 atu rity value). T enders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard Tim e, M onday, November 4, 1968. T enders 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 the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used, I t is urged th a t tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve B anks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be p erm itted to subm it tenders except for th eir own account T enders will be received w ithout deposit from incorporated banks and tru st 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 th e face am ount of Treasury 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 Reserve Banks and Branches, following which public announcem ent will be made by the T reasury D epartm ent of th e am ount and price range of accepted bids. Those subm itting tenders will be advised of th e acceptance or rejection thereof. T he Secretary of th e T reasury 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. Subject to these reservations, noncompetitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted competitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted a t the Federal Reserve B ank on November 7, 1968, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing November 7, 1968. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m atur ing bil.s accepted in exchange and the issue price of th e new bills. T h e income derived from T reasury bills, w hether interest or gain from the sale or other disposition of th e 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 th e Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, b u t are exem pt from all taxation now or hereafter imposed on th e principal or interest thereof by an y 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 th e 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 m ed 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 at m aturity during the taxable year for which the retu rn is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe th e terms of the T reasury bills and govern th e conditions of th eir issue. Copies of the circular m ay be obtained from any Federal R eserve 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 , te 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, Houston a . i d San A n to n io u p to tw e l v e - th ir ty p .m ., C e ntral S t a n d a r d Time, M o n d a y , N o v e m b e r 4, 1968. T e n d e rs m a y not b e e n t e r e d b y t e l e p h o n e . Yours v e r y truly, P. E. Coldw ell P re s id e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approximate Yield of Accepted Tenders 91-Day Bills 182-Day Bills Due January 30, 1969 Due May 1, 1969 $2,458,553,000____________________ _____ __Total Applied For____________ ____ _______ ....$1,886,964,000 $1,600,168,000______________________________ Total Accepted___________________________ ......$1,100,392,000 Price Yield Price Yield 98.625______ _____5.440%_________ ___ ___________ High______________ __ .J..,.97.250...> '..'.'______5.440% 98.612............... 5.491%---------- ---- -------- --------- --- Low____________________ 97.222_____ S.495% 9&.617---------- .. .5.471% ( 1 ) __________________ Average_____________ ____ ..97.233....:________ 5.473% (1) ( 1 ) T h e s e r a t e s a r e o n a b a n k d i s c o u n t b a sis. T h e e q u i v a l e n t c o u p o n issu e y i e l d s a r e 5 . 6 2 % t h e 1 8 2 - d a y b i ll s . . (See reverse side for tender form) f o r t h e 9 1 - d a y bills, a n d 5 . 7 1 % for 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 91 DAYS TO MATURITY Maturing February 6,1969 Dated August 8,1968 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 $ $ _ Prices should be ex pressed on the basis of 100, with not more than th r ee d e c i m a l p laces, e. g., 99.925. F ra c tio n s must not be used. (a) (ft) V s TEN DERS 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 $■ 50,000 $. □ $ 100,000 @ $ 500,000 $@ $1,,000,000 □ Charge our reserve account on paym ent date I I D r a f t e n c l o s e d (Effectual delivery of enclosed draft <> $ g @ % <> % 3 @ $ By m a tu rin g bills held by______________________________ P ay m en t to be m ade by_______________ shall be on latest day which will permit presentment in order to obtain irrevocably collected funda on payment date) Delivery In stru c tio n s : □ □ Pledge to secure T re asu ry T ax and Loan Account □ (Subscriber’s fu ll name or corporate title) Hold in Custody A ccount— M ember banks fo r own account only Ship to__________________________ (Address) (Authorized official signature and title) (For the account of, if tender is fo r another subscriber) (Address) IMPORTANT 1. No tender for less than ?1,000 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 for announcement)