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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. 68-82 March 27, 1968 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O th ers C o n c e r n e d in t h e E le v enth F e d e r a l R e serve District: Y our a t t e n t i o n is inv ite d to th e f o llo w in g s t a t e m e n t giving d e t a i l s of tw o iss u e s of T re as u ry bills: T h e Treasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $2,600,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing April 4, 1968, in the am ount of $2,501,536,000, as follows: 92-DAY BILLS (to m aturity date) to be issued April 4, 1968, in th e am ount of $1,600,000,000, or thereabouts, representing an additional am ount of bills dated January 4, 1968, and to m ature Ju ly 5, 1968, originally issued in the am ount of $1,001,047,000, the additional and original bills to be freely interchangeable. 182-DAY BILLS for $1,000,000,000, or thereabouts, to be dated April 4, 1968, and to m ature October 3, 1968. T h e bills of both aeries will be issued on a discount basis under com petitive and noncompetitive bidding as hereinafter provided, and a t m aturity their face am ount will be payable without in te re s t T hey will be issued in bearer form only, and in denominations 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 th e closing hour, one-thirty p.m., E astern S tandard Tim e, M onday, April 1, 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 th e case of competitive 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 th e printed forms and forwarded in the spocial 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 th e customers are set to rth in such tenders. O thers 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 th e face am ount of T reasury bills applied for, unless the tenders are accom panied 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 th e Federal Reserve Banks and Branches, following which public announcem ent will be made 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 th e acceptance or rejection thereof. T he Secretary of the Treasury 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 w ithout 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. S ettlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal Reserve Bank on April 4, 1968, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing April 4, 1968. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur ing bills 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 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 th e possessions of the U nited States, or by any local taxing authority. F o r 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, redeem 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 companies) 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. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and govern th e 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 t h 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 a so , Houston a n d S a n A n to n io u p to tw e i v e - th ir iy p . m ., C e n tral S t a n d a r d Time, M o n d a y , April 1, 1968. T e n d e rs m a y n o t b e entered b y t e l e p h o n e . Yours v e r y truly, P. E. C o ldw e ll P re s id e n t LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range an d A pproxim ate Y ield of Accepted Tenders 91-Day Bills 182-Day Bills D ue June 27, 1968 D ue S eptem ber 26, 1968 $3,427,133,000______________________________ T o tal Applied F o r_______________________________$1,836,111,000 $1,608,014,000________________________________ T o tal Accepted________________________________ $1,000,373,000 P rice Y ield Price Y ield 98.691 5.178% __________________________High__________________ ___ 97.349____________5.244% 98.68 9__________ 5.186% __________________________l o w ______________________ 97.310___________ 5.321% 98.68 9__________ 5.186% ( 1 ) ____________________ Average------------------------------- 97.320___________ 5.301% (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 s is . T h e e q u i v a l e n t c o u p o n i s s u e y i e l d s a r e 5 . 3 3 % t h e 1 8 2 - d a y b i lls . f o r t h e 9 1 - d a y b i ll s , a n d 5 .5 2 % for (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 92 DAYS TO MATURITY Dated January 4, 1968 Maturing July 5, 1968 To: Federal Reserve Bank, Station E , 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 th e 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. JSTOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $_ Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. /_ _ (a) COMPETITIVE TENDERS <$. ¥ ? - - _ ¥ @ Prices should be e x pressed on the basis o f 100, with not more than th ree decim al p la c e s, e. g., 99.925. Fractions must not be used. ¥ E X T E N D E R S MAY NOT HE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Number of Pieces M atu rity Value @ ¥ 1,000 $ ¥ 5,000 ¥10,000 ¥- <> ¥ P □ □ 50,000 ¥(db ¥ 100,000 ¥- m METHOD OF PAYMENT By maturing bills held by_______________________ _ Paym ent to be made by_________ ___ ¥ □ <® ¥ 500,000 ¥. ¥1 ,000,000 ¥■ □ Charge our reserve account on paym ent date Draft enclosed ( E f f e c t u a l d e liv e r y o f eneloMd d r a f t s h a l l be o n l a t e a t d a y w h i c h w i l l p e r m i t p r e s e n t m e n t in o r d e r to o b t a i n i r r e v o c a b l y c o lle c te d f u n d a o n p a y m e n t d a te ) Delivery Instructions: □ □ Pledge to secure Treasury Tax and Loan Account □ ( 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 te t itle ) Hold in Custody Account— Member banks for own account only Ship to----------------------------------------- (Addreea) By( A u t h o r i z e d o f fi c ia l s i g n a t u r e a n d t i t l e ) ( F o r t h e a c c o u n t o f , i f t e n d e r is f o r a n o t h e r s u b s c r i b e r ) (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 (m aturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f th e United States, with notation on the envelope reading “TENDER FOR TREASURY BILLS”. Since envelopes received with this legend will not be opened until after the closing time specified in the public announcement, communications 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 th e tender and 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, b y ................................................................................... 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 arc 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)