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F ederal R eser v e Bank

of

Da lla s

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, TE X A S

75222
C ircu lar No. 68-98
A p ril 17, 1968

NEW OFFERING — TREASURY BILLS

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

Your attention is invited to the following s ta te m e n t giving details 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, in v ites te n d e rs for W o series of T re a su ry bills to th e ag greg ate a m o u n t
of $1,500,000,000, o r th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g A p ril 30, 1968, in th e a m o u n t of
$1,402,294,000, as follow s:
276-D A Y B IL L S (to m a tu rity d a te ) to be issued A pril 30, 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 al a m o u n t of bills d a te d J a n u a ry 31, 1968, a n d to m a tu re J a n u a r y 31, 1969, originally
issued in th e a m o u n t of $1,000,078,000, th e a d d itio n a l a n d original bills to be freely in terch an geable.
365-D A Y B IL L S fo r $1,000,000,000, or th ere ab o u ts, to be d a te d A pril 30, I9 60, a n d to m a tu re A p ril 30, 1969.
T h e bills of b o th series w ill be issued on a d isco 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 w ill be p a y ab le w ith o u t in te re st. T h e y w ill be issued in b e a re r fo rm only, a n d in
d e n o m in atio 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 w ill b e receiv ed a t F e d e ra l R e se rv e B an k s a n d B ra n ch e s u p to th e closing h our, o n e -th irty p.m ., E a s te rn
S ta n d a rd T im e , T u esd ay , A pril 23, 1968. T e n d e rs will n o t be received 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 be fo r 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 be expressed on 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 ay n o t be used. (N o tw ith sta n d in g th e fa c t th a t th e one-year
b ills w ill ru n fo r 365-days, th e d iscou nt 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 bills.) I t is urg ed t h 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 will be su p p lied by F e d e ra l R e se rv e B a n k s or B ran ch es on a p p lic a tio n th erefor.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs fo r a cc o u n t of cu stom ers p ro v id ed th e n am es of th e custo m ers are
set fo rth in such ten ders. O th ers th a n b an k in g in stitu tio n s will n o t b e p e rm itte d to su b m it te n d e rs ex cep t fo r th e ir ow n account.
T e n d e rs will be receiv ed w ith o u t d e p o sit fro m in c o rp o ra ted b a n k s a n d tr u s t co 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 be acco m p an ied by 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, u nless th e te n d e rs a r t a ccom panied 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
tru s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs will be o p e n 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 ranches, follow ing w hich
p u b lic a n n o u n c e m e n t w ill be m ad e by th e T re a su ry D e p a rtm e n t of th e a m o u n t an d p rice ran g e of a cc ep te d bids. T h o se
su b m ittin g te n d e rs will b e a d v ised of th e acc ep ta n ce or re je c tio n th ereo f. 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 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 shall b e final. S u b je c t to
th ese reservations, n o n c o m p e titiv e te n d e rs fo r each issue fo r $200,000 or less w ith o u t sta te d p rice from a n y one b id d e r will 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 c o m p e titiv e b id s for th e re sp e ctiv e issues. S e ttle m e n t for
a cc ep te d te n d e rs in accordance w ith th e b ids m u st b e 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 A pril 30, 1968,
in cash or o th e r im m e d ia tely a v ailab le fu n d s or in a like face a m o u n t of T re a su ry biils m a tu rin g A p ril 30, 1968. C ash a n d
exchange te n d e rs will receiv e eq ual tre a tm e n t. C ash a d ju s tm e n ts will 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 er in te re s t o r gain fro m th e sale or o th e r disposition of th e bills, does n o t
h av e a n y e x em p tion, as such, a n d loss from th e sale o r o th e r d isp o sitio n of T re a su ry bills 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 of 1954. T h e bills a re 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 ex em p t from a ll ta x a tio n now or h e re a fte r im posed on th e p rin c ip a l o r 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 tax in g a u th o rity . F o r pu rp o ses of ta x a tio n th e a m o u n t of disco u n t
a t w hich T re a su ry bills a re o riginally sold by th e U n ite d S ta te s is co usidered to be in terest. U n d e r Sections 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 disco u n t a t w hich bills issued h e re u n d e r a re sold is n o t considered to
a ccrue u n til such bills a re sold, re d ee m e d or otherw ise disposed of, a n d such bills a re excluded from c o n sid eratio n as c ap ita l
assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insurance c o m p a n ies) issued h e reu n d e r n eed in clu d e in his
incom e ta x re tu rn o nly th e difference b e tw ee n th e p rice p a id fo r such bills, w h e th er on original issue or on su b seq u e n t pu rchase,
a n d th e a m o u n t a c tu a lly re ce iv e d e ith e r up o n sa’e o r re d e m 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 rn is
m ad e, as o rd in ary g ain or loss.
T re a su ry D e p a rtm e n t C ircu la r No. 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 ition s of th e ir issue. C opies of th e circ u lar m ay b e o b tain e d from a n y F e d e ra l R e se rv e B a n k or B ranch.

In acco rd ance with the a b o v e a n n o u n c e m e n t, tend ers will be received c 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 S randard Time, Tuesday, April 23, 1968. Tenders m ay
not be en tered by telep h o ne.
Ycurs 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

276 DAYS TO MATURITY
Dated January 31,1968

Maturing January 31,1969

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

H ouston 77001

San Antonio 78206

(D ate)

P u rsu a n t to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of the
public announcem ent issued by th e T reasury D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ount
shown below, and agrees to pay fo r 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 $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t the average
price (in three decimals) of accepted competitive bids.
Prices should be ex­
($------------- @ _______ $
----------------------------- pressed on the basis of
100, with not more than
COMPETITIVE TENDERS < $____________
-$----------------------------- th r e e d e c im a l p la ce s,
___________________ e. g., 99.925. Fractions
$m ust not be used.

iS T

TEN D ERS MAY NOT BE E N TER ED BY T E LEPH O N E. T EN D ERS BY W IRE, I F RECEIV ED BEFO RE TH E
CLOSING HOUR, ARE ACCEPTABLE.
D enominations Desired

N u m b er of
Pieces

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

M a tu rity V alue

<> $
S
m $
$
(a) $

METHOD OF PAYM ENT

1,000 $5,000 $.

□

10,000 $.
50,000 $.

□

<® $ 100,000 $(a) $ 500,000 $.
@ $1 ,000,000 $.

By maturing bills
held by___________________________
Payment to be made by___________

□

Charge our reserve account on payment
date

|

| D r a f t e n c l o s e d ( E f f e c t u a l d e liv e r y o f e n c lo s e d
d r a f t Bhall be on la te st d a y w hich w ill p e rm it p re sen t­
m e n t in o rd e r to o b ta in irrevocably collected fu n d s on
p a y m e n t date)

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

(S u b scrib er’s fu ll nam e o r c o rp o ra te title )

Hold in Custody Account— Member
banks fcr own account only

□

(A ddress)

By_
(A uthorized official s ig n a tu re a n d title )

Ship to__________________________
(F o r th e a cc o u n t of, if te n d e r is fo r a n o th e r su b scrib er)
(A ddress)

IM PORTANT

1. No tender fo r less th an $1,000 will be considered and each tender m ust be fo r an am ount in m ultiples of $1,000 (m aturity
value).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of the
United States, with notation on the envelope reading “TEND ER FOR TREA SU RY BILLS”. Since envelopes received
w ith this legend will not be opened until a fte r the closing tim e specified in the public announcement, communications
relating to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank
or appropriate branch.
3. Any qualified or conditional
tender will be rejected.
4. If a corporation m akes the
tender, the form should be
signed by an officer
of the corporation authorized to m ake t
tender and the 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 made by a p artn ersh ip it should be signed by a memDer of the firm, who
should sign in the form “...................................................... , a copartnership, by.................................................................................. ,
a m em ber of the firm ”.
5. Tenders from those other than 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 to tal am ount (m aturity value)
of the 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.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the T reasu ry is
m aterial, the tend er m ay be disregarded.
(See reverse for announcement)

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