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F ederal R eserve Ba n k

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

C ircular No. 68-135
June 12, 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 venth F e d e r a l R eserve District:
Y our a t t e n t i o n is in vite d to t h 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 is s u e s of T re as u ry 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 Ju n e 20, 1968, in the am ount of
$2,606,310,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued Ju n e 20, 1968, in the am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated M arch 21, 1968, and to m ature Septem ber 19, 1968, originally
issued in the am ount of $1,000,051,000, 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 Ju n e 20, 1968, and to m ature Decem ber 19, 1968.
T h e 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 without 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).
Tenders will be received a t Federal Reserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, M onday, Ju n e 17, 1968. T enders will not be received a t the T reasury D epartm ent, Washington. Each
te n d er 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
th e 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 special envelopes which will be supplied by Federal R eserve Banks or Branches
on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the names of th e customers are
set forth in such tenders. Others 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 tru st companies and from responsible and recognized
dealers in investm ent securities. Tenders from others must be accompanied by paym ent of 2 percent of the 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 the 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 the 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, noncompetitive tenders for each issue for $200,000 or less without stated price from any one bidder will be
accepted in full a t the average price (in three decimals) of accepted com petitive 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 B ank on Ju n e 20, 1968, in
cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing Ju n e 20, 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 bills accepted in exchange and the issue price of the new bills.
T h e income derived from T reasury bills, whether 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 the Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ed eral or State, but 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 th e U nited States, or by any local taxing authority. For purposes of taxation th e am ount of discount
a t which Treasury 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 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 Treasury 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 th e 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 th e term s of the T reasury bills and
govern the conditions of their issue. Copies of th e circular m ay be obtained from any Federal Reserve B ank o r 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 aso ,
Houston a n d S an A n to n io u p to tw elvc-fl iiriy p .m ., C e n tral D a y lig h t S a v in g Time, M o n d a y , J u n e 17, 19 68 . 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. Cold w ell
P re sid en t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range an d Approxim ate Yield of Accepted T enders
91-D ay Bills
182-Day Bills
D ue Septem ber 12, 1968
D ue Decem ber 12, 1968
$2,628,123,000______________________________ .T otal Applied F o r----------------------------------------------- $2,041,063,000
$1,600,372,000________________________________ T otal Accepted------------------------------------------------- $1,100,136,000
P rice
Yield
Price
Yield
98.569
5.661% _________________________ H igh_____________________ 97.088___________ 5.760%
98.552
5.728% --------------------------------------- Low______________________97.067___________ 5.802%
98.556
5.713% ( 1 ) ------------ ------------------Average____________________97.073___________ 5.790% (1 )
( 1 ) These rates are on a bank discount basis. T he equivalent coupon issue yields are 5.88% for the 91-day bills, and 6 0 5 % for
the 182-day bills.

(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

91 DAYS TO MATURITY
Maturing September 1 9 ,196S

Dated March 21,1968
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________________Branch
El Paso 79999

Houston 77001

(Date)

San Antonio 7820G

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions o f 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.

NONCOMPETITIVE TENDER §_______________________________ NOT TO EXCEED $200,000
N o n co m p etitiv e te n d e r s fo r $200,000 or le s s from a n y one bidder, w ith o u t sta te d price, w ill be a cce p te d in f u ll a t th e a v e r a g e
price (in th r e e d e c im a ls) o f a cce p te d c o m p e titiv e bids.

r;
COMPETITIVE TENDERS <?.
;

¥

Prices should be e x ­
pressed on the basis of
100, with not more than
th ree decim al p la c e s,
e. g., 99.925. Fractions
must not be used.

(ri)

$

(ft)

BSTTENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be m ade
by credit to Treasury Tax and Loan Account.

Denominations Desired
Number of
Pieces

Maturity Value

(5) $
<5> ¥
.© $

METHOD OF PAYMENT

1,000 $5,000 t

□

By m aturing bills
held by___________________________ _ _
Q Paym ent to be made by_____________

10,000 t
50,000 t

<a> $
.(5) $ 100,000 $-(5) ? 500,000

□

Charge our reserve account on paym ent
date
| [ D raft enclosed (Effectual delivery of enclosed
draft shall be on latest day which will permit present­
ment in order to obtain irrevocably collected funds on
payment date)

$l;,000,000 *
Delivery Instructions:

(Subscriber’s full name or corporate title)

Q 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
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 of 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 h e
has been so _authorized. If the tender is made by a partnership it should be signed by a member of the firm, w ho
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 in v est­
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 js
material, the tender may be disregarded.

(See reverse for announcement)