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F

ederal

R

eserve

Bank

F IS C A L A G E N T O F TH E

U N IT E D

of

Da lla s

STATES

DALLAS, TEXAS 7 5 2 2 2
N E W O F F E R IN G —

Circular No. 68-166
July 31, 1968

T R E A S U R Y BILLS

j o A ll B a n k in g Institutions a n d O th ers C o n ce rn e d
in the Eleventh Fede ral R eserve District:
Y o u r attention is invite d to the fo llo w in g statem ent g iv in g d e ta ils of tw o issu e s of T re a su ry bills:
T h e Treasury D epartm ent, b y this pu blic notice, invites tenders for two series o f Treasury bills to the aggregate am ount of
$2,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing August 8, 1968, in the am ount o f
$2,601,196,000, as follow s:
9 1 -D A Y B IL L S (to m aturity date) to be issued August 8, 1968, in the am ount o f $1,600,000,000, or thereabouts,
representing an additional am ount o f bills dated M ay 9, 1968, and to mature N ovem ber 7, 1968, originally
issued in the am ount of $1,101,578,000, the additional and original bills to be freely interchangeable.
1 8 2 -D A Y B IL L S for $1,100,000,000, or thereabouts, to b e dated August 8, 1968, and to mature February 6, 1969.
T h e bills o f both series will be issued on a discount basis under com petitive and n oncom petitive bidding as hereinafter
provided, and at maturity their face am ount will be payable without interest. T h ey 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 aturity v a lu e).
Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving T im e, M onday, August 5, 1968. Tenders w ill not be received at the Treasury Departm ent, W ashington. Each
tender
must be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered must be expressed on
the basis o f 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made
on the 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 o f customers provided the names o f the customers are
set forth in such tenders. Others than banking institutions will not be perm itted to submit tenders except for their own account.
Tenders will be received without deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investment securities. Tenders from others must be accom panied by paym ent o f 2 percent o f the face am ount of
Treasury bills applied for, unless the tenders are accom panied b y an express guaranty of paym ent b y an incorporated bank or
trust com pany.
Im m ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which
pu blic announcem ent will be made by the Treasury Department o f the amount and price range o f accepted bids. Those
subm itting tenders will be advised o f the acceptance or rejection thereof. T h e Secretary o f 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. Su bject to
these reservations, n oncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decim als) o f accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids must be made or com pleted at the Federal R eserve Bank on August 8, 1968, in
cash or other im m ediately available funds or in a like face amount o f Treasury bills m aturing August 8, 1968. Cash and
exchange tenders will receive equal treatment. Cash adjustments will be made for differences betw een the par value o f matur­
ing bills accepted in exchange and the issue price o f the new bills.
T h e incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not
have any exem ption, as such, and loss from the sale or other disposition o f Treasury bills does not have any special treatment,
as such, under the Internal Revenue C ode of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but are exem pt from all taxation now or hereafter im posed on the principal or interest thereof b y any State,
or any o f the possessions of tire United States, or by any local taxing authority. For purposes o f taxation the amount of discount
at which Treasury bills are originally sold b y the United States is considered to be interest. Under Sections 454 ( b ) and
1221 ( 5 ) o f the Internal R evenue C ode of 1954 the amount o f discount at 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. A ccordingly, the owner of Treasury bills (other than life insurance com panies) issued hereunder need include
in his incom e tax return only the difference between the price paid for such bills, whether on original issue or on subsequent
purchase, and the amount actually received either upon sale or redem ption at 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 o f the Treasury bills and
govern the conditions o f their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch.

In accord an ce w ith the a b o v e a n n o u n ce m e n t, tenders w ill be received at this b a n k a n d its b ra n ch e s at El Paso,
a n d S a n A n to n io u p to tw elve -thirty p.m., Central D a y lig h t S a v in g Time, M o n d a y , A u g u s t 5, 1968. T enders m a y
not b e entered b y telephone.
Houston

Yo urs very truly,
P. E. C old w e ll
President
LAST P R E V IO U S O F F E R IN G O F T R E A S U R Y BILLS
Am ount, Range and A pproxim ate Y ield o f A ccep ted Tenders
9 1-D ay Bills
182-D ay Bills
D ue O ctober 31, 1968
D u e January 30, 1969
$2,621,235,000
T otal A pplied F or____________________________________ $2,319,056,000
$1,600,267,000-------------------------------------------------------- T otal A ccep ted --------------------------------------------------------- $1,100,465,000
P rice
Y ield
P rice
Y ield
98.695---------------------5 .1 6 3 % --------------------------------------------- H igh -------------------------------------- 97.344_____________ 5 .2 54 %
98.683---------------------5 .2 1 0 % ----------------------------------------------L o w -------------------------------------- 97.320 _____________ 5 .3 01 %
98.688---------------------5.1 90 % ( 1 ) ------------------------------------A verage----------------------------------- 97.327_____________ 5 .2 87 % ( 1 )
(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 5.3 3% for the 91-day bills and 5 5 1 % 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
Dated May 9, 1968

Maturing November 7 ,1 9 6 8

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

Houston 77001

75222

San Antonio 7820G

(Date)

Pursuant to the 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.

N ON CO M PETITIVE T E N D E R $_____________________________________ N O T TO E X C E E D $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
T
price (in three decimals) of accepted competitive bids.

1S
TENDERS <
V
h

-

(a
)
®
@

$
$ .........................
$
- - ____ — -

Prices should be ex­
pressed on the basis of
100, with not more than
three decimal places,
e. g., 99.925. Fractions
must not be used.

fi^ T E N D E R S M A Y NOT BE ENTERED BY TELEPHONE. TENDERS BY W IRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

Maturity Value

(a) $
(5) $

5,000

METHOD OF PAYM E N T

1,000 $.
□

(a) $
(a) $

□

100,000 ?.

(a) $

500,000 $

Charge our reserve account on payment
date
Draft enclosed

50,000 $.

(n) $

Payment to be made by_

□

10,000 $-

By maturing bills
held by__________________ _

□

?.

(E ffe c t u a l delivery o f enclosed
draft shall be on latest day which will permit present­
ment in order to obtain irrevocably collected funds on
payment date)

(® $1,,000,000 $.
Delivery Instructions:
□
□

Hold in Custody Account— Member
banks for own account only

____
(Subscriber’s full name or corporate title)

------

L o a n AcC O U nt

□

(Address)

Pledge to secure Treasury Tax and
Ship to------------------------------------------------

(Authorized official signature and title)

------(F or the account of, If tender is for another subscriber)

(A ddress)

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 (maturity
value).
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 “'I ENDER FOR TREASURY BILLS”. Since envelopes receivod
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 the
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 u.........................................................., 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 announcement)

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