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F ederal

reserve

Bank

of

Dallas

FISCAL AGENT OF THE UNITED STATES

DALLAS, TEXAS

75222
C ircu la r No. 68-158
J u ly 18. 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 ite s te n d e rs for tw o series of T re a s u ry b ills to th e ag greg 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 J u ly 31, 1968, in th e a m o u n t of
$1,501,080,000, as follow s:
273-D A Y B IL L S (to m a tu rity ) to b e issued J u ly 31, 1968, in th e a m o u n t of $500,000,000, or th ere ab o u ts,
re p re se n tin g an a d d itio n al a m o u n t of bills d a te d A p ril 30, 1968, a n d to m a tu re A p ril 30, 1969, originally
issued in th e a m o u n t of $1,000,784,000, th e a d d itio n al a n d original bills to be fre ely in terchangeab le.
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 J u ly 31, 1968, a n d to m a tu re J u ly 31, 1969.
T h e bills of b o th series will be issued on a d iscou nt 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 bid ding as h e re in a fte r
p ro 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 te re st. T h e y will 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 will be receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ran ch es u p to th e closing hour, o n e -th irty p.m ., E a s te rn
D a y lig h t S aving T im e , W ednesday, J u ly 24, 1968. T e n d e rs w ill 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 ac h
te n d e r m u st be 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 be 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 be used. (N o tw ith sta n d in g th e fa c t th a t th e oney e a r bills will ru n fo r 365-days, th e d iscoun t ra te w ill be c o 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 all issues of T re a su ry b ills.) I t is u rg 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 fo rw ard ed in th e special
e nv elopes w hich w ill be su p p lied b y F e d e ra l R e se rv e B an k s o r B ran ch es on a p p lic a tio n therefor.
B a n k in g in stitu tio n s generally m a y su b m it te n d e rs fo r a cc o u n t of custom ers p ro v id ed th e nam es of th e custom ers a re
set fo rth in such tenders. O th e rs 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 e x ce p t fo r th e ir ow n account.
T e n d e rs will be received w ith o u t d e p o sit fro m in co rp o ra ted b a n k s a n d tr u s t com p anies a n d from respon sible a n d recognized
d e ale rs in in v e stm e n t securities. T e n d e rs fro m 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 o f th e face a m o u n t of
T re a su ry bills a p p lie d for, unless tlie te n d e rs a re acco m p an 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 will b e o p e n e d 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 will b e 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 a n d p rice rang e of a cc ep te d bids. T h o se
su b m ittin g te n d e rs will be a d v ised of th e acc ep ta n ce or re je c tio 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 cc ep t or re je c t a n y o r all ten d ers, in whole o r in p a rt, a n d his a c tio n in a n y such re sp e ct shall be final. S u b je c t to
th ese reserv ation s, 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 av erag e p rice (in th re e d e cim als) of a cc ep te d c o 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 accordance w ith th e b id s m u st b e m ad e or 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 J u ly 31, 1968,
in cash or o th e r im m e d ia tely a v ailab le fu n d s o r in a like face a m o u n t of T re a su ry b ills m a tu rin g Ju ly 31, 1968. C ash a n d
exchange ten d e rs will receive eq u al tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e fo r d ifferences b etw een 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 from T re a su ry bills, w h e th er in te re s t or gain fro m th e sale o r o th e r dispositio n of th e bills, does n o t
h a v e a n y exem ption , 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 have 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 o r 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 posed 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 tax in g a u th o rity . F o r p u rpo ses of tax a tio n th e a m o u n t of d isco unt
a t w hich T re a su ry bills a re o rig in ally sold by th e U n ite d S ta te s is co nsid ered to be in terest. U n d e r S ections 454 ( b ) a n d 1221 ( 5 )
of th e In te rn a l R ev en u e C ode of 1954 th e a m o u n t of disco u n t a t which bills issued h e re u n d e r a re sold is n o t c onsidered to
accru e u n til such bills a re sold, re d ee m e d or o therw ise disposed of, a n d such bills a re exclu ded fro m co n sid eratio n as c ap ita l
assets. A ccordingly, th e ow ner of T re a su ry b ills ( o th e r th a n life in suran ce c o m p a n ies) issued h e re u n d e r need in clude in his
incom e ta x re tu rn only th e difference b etw een th e p rice p a id for such bills, w h e th e r on original iLsue o r 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 receiv ed e ith e r u p o n sale or 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 re tu r n is
m ad e, 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. 418 (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 co nditions of th e ir issue. C opies of th e c irc u lar m ay be o b tain e d from a n y F e d e ra l R e se rv e B a n k o r B ranch.

In acco rd an ce with the a b o v e a n n o u n c e m en t, tend ers will be received a t this b a n k a n d its bran c h e s a t El Paso,
Houston a n d San Antonio, up to tweive-thirty p.m., Central D ay^ght Saving Time, W e d n e s d a y , July 24, 1968. Tenders
m ay not be en tered by tele p h o n e .
Yours very truly,
P. E. Coldwell
President
(S ee 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
Dated April 30, 1968

Maturing April 30, 1969

T o :Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_____________________________ Branch
El Paso 79999

Houston 77001

(D ate)

San Antonio 78206

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 the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am ount
shown below, and agrees to pay for th e am ount allotted, on or before the issue date, by the method and a t the ra te indicated.

JNOT T O E X C E E D $200,000

N O N C O M P E T I T I V E T E N D E R $_

Noncom petitive tenders for $200,000 or less from any one bidder, without stated price, w ill be accepted in full at the average
price (in three decim als) of accepted com petitive bids.
/_
_
_
Prices should be ex­
pressed on the basis of
100, with not more than
C O M P E T I T I V E T E N D E R S <$
.
.
@ . _ ..$
th r e e d e c i m a l p la ce s,
e. g., 99.925. Fractions
.-$
“
'
“
/$ ....
\
m ust not be used.
jc g p TEN D ERS MAY NOT BE E N TER ED BY T E L EPH O N E . TEN D ERS BY W IRE, IF RECEIVED BEFORE TH E
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b e r 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

<® $

(a) $

5,000 $
.

() $
5

10,000 $
.

<® $

METHOD OF PAYM ENT

1,000 $
-

50,000 $
.

□ By maturing bil s
l
held by________________________
□ Payment to be made by_________

() $ 100,000 $
a
.

□ Charge our reserve account on payment
date
| | Draft enclosed ( E f f e c t u a l d e liv e r y o f e n c lo s e d

( ) $ 500,000 $
a
-

d r a f t shall be on la te s t day w hich will p e rm it p re sen t­
m e n t in o rd e r to o b ta in irrevocably collected fund s on
p a y m e n t date)

000,000 $
<® $1 ,
.
Delivery Instructions:

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

□ Hold in Custody Account— Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□

(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 bscrib er)

(A ddress)

IMPORTANT

1. 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).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of the
U nited States, with notation on the envelope reading “TEN D ER FOR TREASURY 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 asters should not be enclosed. Envelopes fo r subm itting tenders may be obtained from this bank
or appropriate branch.
3. Any qualified or conditional tend er will be rejected.
4. If a corporation makes the tender, th e form should be
signed by an officer
of the corporation authorized to m ake
tender and the signing of the form by an officer of the corporation will be construed as a representation by hir», th a t he
has been so authorized. If the tender is m ade by a p artn ersh ip it should be signed by a m em ber of the firm, who
should sign in the form “...................................................... , a copartnership, by.................................................................................. ,
a m em ber of th e firm”.
5. 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 the T reasury bills applied for, or unless th e 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 reasury is
m aterial, the tender m ay be disregarded.
(S e e reverse for announcem ent)

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