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federal

R e s e r v e Ba n k

of

Dallas

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

DALLAS, TEX AS

75222
Circular No. 68-266
December 16, 1968

NEW OFFERING — TREASURY BILLS

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statement giving details of two 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 ub lic notice, invites te n d e rs for tw o series of T re a su ry b ills to th e ag 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 for T re a su ry bills m a tu rin g D e c em b er 31, 1968, in th e a m o u n t of
$1,499,494,000, as follow s:
273-D A Y B IL L S (to m a tu rity d a te ) to be issued D e c em b er 31, 1968, in th e a m o u n t of $500,000,000, or th e re ­
ab outs, re p re se n tin g a n a d d itio n al a m o u n t of bills d a te d S e p te m b e r 30, 1968, a n d to m a tu re S e p te m b e r 30, 1969,
originally issued in th e a m o u n t of $1,000,607,000, th e a d d itio n a l a n d o riginal bills to b e fre ely in terch an geable.
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 D e c em b er 31, 1968, a n d to m a tu re D ecem ­
b e r 31, 1969.
T h e bills of b o th series will b e issued on a disco 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 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 o u t in terest. T h e y will b e issued in b e a re r fo rm only, a n d in
d e n o m in a tio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu rity v a lu e ).
T e n d e rs will be received a t F e d e ra l R eserv 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
S ta n d a rd T im e , M o nday, D e c em b er 23, 1968. T e n d e rs w ill no t b e receiv ed a t th e T re a su 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 expressed on th e
basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay 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 disco u n t ra te w ill be co m p u te d on a b a n k disco u n t basis of 360-days, as is c u rre n tly th e
p ra ctice on a ll issues of T re a su ry b ills.) I t is u rg e d th a t te n d e rs be m ad e on th e p rin te d form s a n d forw ard ed in th e special
envelopes w hich w ill be su p p lied b y F e d e ra l R e se rv e B a n k s or 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 gen erally m a y su b m it te n d e rs for acco u n t o f cu sto m ers p ro v id ed th e nam es of th e custo m ers a re
set fo rth in such ten ders. O th ers th a n b an k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it te n d e rs ex cep t for th e ir ow n account.
T e n d e rs w ill b e re ce iv e d w ith o u t d e p o sit from in co rp o ra ted b a n k s a n d tru s t c o m pan ies a n d fro m resp onsible a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs from 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 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 a ccom pan ied b y a n express g u a ran 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 fte r th e closing hour, te n d e rs w ill b e opened 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 w ill be 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 c c e p te d bids. T h o se
su b m ittin g te n d e rs will be ad vised of th e acc ep ta n ce o r re je ctio n thereof. T h e S e c retary of th e T re a su ry expressly reserves th e
rig h t to a c c e p t or re je c t a n y or all ten d e rs, in w hole or in p a rt, a n d h is actio n in a n y such re sp e ct shall b e final. S u b je c t to
th ese reserv atio ns, 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 e r w ill be
a cc ep te d in full a t th e average p rice (in th re e d e cim als) of a cc ep te d co m p e titiv e b ids for th e re sp ectiv e issues. S e ttle m e n t for
a cc ep te d te n d e rs in acco rdan ce wi*h th e b id s m u st be m ad e o r 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 D e c em b er 31, 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 lik e face a m o u n t of T re a su ry b ills m a tu rin g D e c em b er 31, 1968. C ash a n d
exchange te n d e rs w ill receive e q u al tre a tm e n t. C ash a d ju stm e n ts will be m ad e fo r differences b e tw ee n th e p a r valu 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 or gain from th e sale or o th e r dispositio n of th e bills, does n o t
have a n y exem ption , as such, a n d loss fro m th e sale o r o th e r dispositio n of T re a su ry b ills does n o t h av 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 ev en u e C ode of 1954. T h e bills are 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 or S ta te , b u t a re e x em p t from all ta x a tio n now o r h e re a fte r im po sed on th e p rin c ip a l or in te re st 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 tates, or b y a n y local taxin g au 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 discou nt
a t w hich T re a su ry bills are o rig in ally sold b y th e U n ite d S ta te s is con sidered to be in te re st. U n d e r Sectio ns 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 discou nt 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 or otherw ise disposed of, a n d such bills are excluded from co n sid eratio n as c ap ital
assets. A ccordingly, th e ow ner of T re a su ry bills ( o th e r th a n lif t in suran ce c o m p a n ies) issued h e re u n d e r n e ed includ e in his
incom e ta x re tu rn only th e difference b e tw ee n th e p rice p a id for such bills, w h e th e r o n original issue o r o n su b seq u e n t purchase,
an d th e a m o u n t a c tu a lly received e ith e r uDon sale or 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 for w hich th e r e tu rn is
m ade, 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 No. 4X8 (c u rre n t rev 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 con ditio ns of th e ir issue. C opies of th e c ircu lar m ay b e 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 or B ranch.

In accordance with the a bove announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, December 23, 1968. Tenders
may not be entered by telephone.
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 ADDITION TO TREASURY BILLS

273 DAYS TO MATURITY
Maturing September 30, 1969

Dated September 30,1968
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________________ Branch
El Paso 79999

Houston 77001

(Date)

San Antonio 78206

P u rsu an t to the provisions of T reasu ry D epartm ent Circular No. 418 (current revision) and the provisions of the
public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the amount
shown below, and agrees to pay for the am ount allotted, on or before the issue date, by the method and a t the ra te indicated.

NONCOMPETITIVE TENDER $_

.NOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from pny one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
ILCU

($ ­
COMPETITIVE TENDERS

-(a).

-----------------------------

-@ -

----------------------------___________________

-@ -

Prices should be ex­
pressed on the basis of
100, with not m ore th an
th r e e dec im a l places,
e. g., 99.925. Fractions
m ust not be used.

TEN D ERS MAY NOT BE E N TE R E D BY T E L EPH O N E . T EN D ER S BY W IRE, IF RECEIV ED BEFO RE TH E
CLOSING HOUR, ARE ACCEPTABLE.

Denominations Desired
Num ber of
Pieces

P aym ent for this issue of bills cannot be made
by credit to T reasury T ax and Loan Account.

M aturity V ilue

METHOD OF PAYM ENT

1,000 $_
□

5,000 $_
10,000 $.

□

By maturing bills
held by______________________________
Paym ent to be made by______________

50,000 $.
□

Charge our reserve account on payment
date
| | Draft enclosed (E f fe c tu a l d eliv e ry o f en clo sed

100,000 $_
500,000 $.

d raft shall be on latest day which will perm it 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

2.

3.
4.

5.

6.

No tender fo r less th an $1,000 will be considered and each tender m ust be for an am ount in m ultiples of $1,000 (m aturity
value).
Tenders should be forw arded in an envelope clearly addressed to this ban1 or ap pro priate branch as Fiscal A gent of the
*
U nited States, w ith notation on th e envelope reading “TEN D ER FOR TREA SU RY O FF E R IN G ” . Since envelopes
received w ith this legend will not be opened until a fte r the closing tim e specified in the public announcement, communi­
cations relating to other m a tte rs should not be enclosed. Envelopes for subm itting tenders m ay be obtained from this
bank or ap prop riate branch.
Any qualified or conditional tender will be rejected.
If a corporation m akes the tender, th e form should be signed by an officer of the corporation authorized to m ake the
tender and th e signing of the form by an officer of the corporation will be construed as a representation by him th a t he
has been so authorized. If the tender is m ade by a partnership it should be signed by a m em ber of the firm, who
should sign in th e form “ ........................................................ , a copartnership, by..................................................................................,
a m em ber of the firm”.
Tenders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers in invest­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m atu rity value)
of th e T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an
incorporated bank or tr u s t company.
If th e language of this form is changed in any respect, which, in the opinion of the S ecretary of th e T reasu ry is
m aterial, th e tender m ay be disregarded.

(See reverse for announcement)

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