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F ed er a l Res er v e Ba n k o f D a lla s

DALLAS, TEX A S 7 5 2 2 2
Circular No. 68-279
D ecem ber 31, 1968

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 leventh F e d e r a l Reserve District:
Y o u r a t te n t io n is in vited to t h e f o llo w in g s t a t e m e n t giv ing d e t a il s of tw o iss u e s of T re as u ry bills:
The 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 January 9, 1969, in the am ount of
$2,702,784,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued January 9, 1969, in the am ount of $1,600,000,000, or there­
abouts, representing an additional am ount of bills dated O ctober 10, 1968, and to m ature April 10, 1959,
originally issued in the am ount of $1,103,127,000, 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 January 9, 1969, and to m ature Ju ly 10, 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 b earer 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 R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, January 6, 1969. T enders will not be received a t th e T reasury D epartm ent, Washington. Each
tender must be for an even m ultiple of $1,000, and in th e case of com petitive-tender a the price offered m ust be expressed on
th e basis of 100, with not more than three decimals, £ g., 99.925. Fractions may 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 Banks or Branches on
application therefor.
Banking institutions generally m ay 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 th e ir own account.
T enders will be received without 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 th e 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 th e closing hour, tenders will be opened a t th e Federal Reserve Banks and Branches, following which
public announcem ent will be m ade by the 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 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, noncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder will be
accepted in full a t th e 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 completed a t the Federal Reserve B ank on Jan u ary 9, 1969,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing January 9, 1969. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atur­
ing bills accepted in exchange and the 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 T reasury bills does not have any special treatm ent,
as such, under the Internal Revenue Code of 1954. T he 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 the 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 th e United States is considered to be interest. U nder Sections 454 (b ) and
1221 (5) of the Internal Revenue Code of 1954 th e 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 companies) issued hereunder need include
in his income tax retu rn 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
return is made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the T reasury bills and
govern the conditions of their issue. Copies of the circular may 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 re c e iv e d c t this b a n k a n d its b r a n c h e s a t El P a so ,
H o u sto n a n d S an A n to n io u p to tw e l v e - th ir ty p .m ., Centra! Standard Time, M o n d a y , J a n u a r y 6, 1 96 9. T en d e rs m a y
not b e entered by te lephone.
Yours v e r y truly,
P. E. Coldw ell
P re s id e n t
Amount, R ange and Approximate Yield of Accepted T enders
91-Day Bills
D ue April 3, 1969
$1,600,404,000___ ___________
98.451...................... 6.128% ____
98.407 __ ________ 6.302% _____
98.433................ ....... 6.199% (1 )

182-Day Bills
D ue July 3, 1969
— otal A pplied F o r__
_ .
----T otal A ccepted____________ ----------------------- ---- $1,100,248,000
.....96.816....--- ----------------- 6.298%
—..96.785 ‘
___________ 6.359%
------ Average_
.66.799-.......... ............. 6.332% (1)

< : i T \ *>' : ....... are o n a b ank discount basis. T h e eq u iv a le n t cou p o n issue y ie ld s are 6 .3 9 % for th e 9 1 -d a y b ills
tn e lS 2 - d a y Diiis.

and 6


(See reverse sid for tender form

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


M aturing A pril 10, 1969

D ated October 10, 1968
To: Federal Reserve Bank, S tation K, Dallas, T exas 75222
or —
The_______________________________ _B ranch
El Paso 79999

Houston 77001

San Antonio 78206


Pursuant to tlie 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 EX C EED $200,000


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.
Prices should be ex­
pressed on the basis of
v -------------------------------1O0, with not. more than
_ th ree d e c im a l p laces,
e. g., 99.925. F ra c tio n s
must not be used.
Payment for this issue of bills cannot be made
Denominations Desired
by credit to Treasury Tax and Loan Account.
N u m b e r of
M a tu rity V alu e

P ie ce s

(r) $
@ $
M $
(a) $


1,000 ?5,000 $-

□ By m a tu rin g bills

10,000 $-


50,000 $.(a) $ 100,000 $-< > $ 500,000 s
(a) $1 ,000,000 $.


held by_____________________
P a y m en t to be m ade by.
Charge our reserve account on p aym ent
D ra ft enclosed ( E f f e c t u a l d e l i v e r y o f e n c l o s e d d r a f t
B h a ll b e o n l a t e s t d a y w h i c h w ill p e r m i t p r e s e n t m e n t i n
o r d e r to o b t a i n irr e v o c a b ly c o lle c te d f u n d a o n p a y m e n t
d a te )

Delivery In stru c tio n s :
( S u b s c r ib e r 's f u ll n a m e o r c o r p o r a t e t itle )


Hold in Custody A ccount— M ember
banks fo r own account only


Pledge to secure T reasury T ax and
Loan Account


(A d d re ss)

By( A u t h o r i z e d o f f i c ia l s i g n a t u r e a n d t i t l e )

Ship to_________________________
( F o r t h e a c c o u n t o f , i f t e n d e r in f o r a n o t h e r s u b s c r i b e r )

(A d d resa)


-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
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
tender will be
4. If a corporation
makes the
tender, the form should be signed by an officer of the corporation authorized to mak
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 announcem

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