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F ederal R eserve 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, TE X A S 75222 C ircular No. 68-183 A ugust 21, 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 vites te n d e rs fo r tw o series of T re a su ry b ills to th e a gg reg 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 fo r T re a s u ry b ills m a tu rin g A u g u st 31, 1968, in th e a m o u n t of $1,500,511,000, as follow s: 270-D A Y B IL L S ( to m a tu rity d a te ) to b e issued S e p te m b e r 3, 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 a l a m o u n t of b ills d a te d M a y 31, 1968, a n d to m a tu re M a y 31, 1969, o rig in ally issued in th e a m o u n t of $1,002,217,000, th e a d d itio n a l a n d o rig inal b ills to b e fre ely in terch an g eab le. 365-D A Y B IL L S fo r $1,000,000,000, or th ere ab o u ts, to b e d a te d A u g ust 31, 1968, a n d to m a tu re A u g u st 31, 1969. T h e b ills of b o th series will b e issued on a d isc o 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 p ro vided , a n d a t m a tu rity th e ir face a m o u n t will b e p a y a b le w ith o u t in terest. 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 a tio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu r ity v a lu e ). T e n d e rs will b e received a t F e d e ra l R e se rv e B a n k s a n d B ra n ch e s 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 av ing T im e , T u esd ay , A u g u st 27, 1968. T e n d e rs will n o t be receiv ed 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 b e for a n e v 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 a y n o t b e used. (N o tw ith sta n d in g th e fa c t t h a t th e oney e ar bills will ru n for 365-days, th e d iscou n t ra te w ill b e co m p u te d o n a b a n k d isco u n t basis of 360-days, a s 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 urg ed t h a t ten d e rs be m ad e on th e p r in te d form s a n d fo rw ard ed in th e special en v elop es w hich will be su p p lied b y F e d e ra l R eserv e B a n k s o r B ra n ch e s on a p p lic a tio n th erefor. B a n k in g in stitu tio n s g en erally m a y su b m it te n d e rs fo r a cc o u n t o f c usto m ers p ro v id ed th e n a m e s o f th e cu stom ers are se t fo rth in such tenders. 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 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 ep o sit from in co rp o ra ted b an k s a n d tr u s t co m p anies a n d fro m resp on sib le a n d recognized dealers in in v estm e n t securities. T e n d e rs fro m o th ers m u st b e a cc o m p an ied b y 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, un less th e te n d e rs a re acco m p an ied b y a n express g u a ra n 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 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 ce m en t will 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 a n 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 be a d v ised of th e acc ep ta n ce or re je ctio n thereo f. T h e S e c re ta ry of th e T re a su ry expressly reserv es th e rig h t to a cc ep t or re je c t a n y or all ten d e rs, in whole or in p a rt, a n d his a ctio n in a n y such re sp e ct shall b e final. S u b je ct to th ese reserv ation s, n o n c o m p e titiv e te n d e rs for each issue for $200,000 o r less w ith o u t sta te d price fro m a n y one b id d e r will be acc ep te d in full a t th e a v 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 id s fo r 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 accordan ce w ith th e b id s m u s t b e m a d 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 o n S e p te m b e r 3, 1968, in cash o r 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 s u ry b ills m a tu rin g A u g ust 31, 1968. C ash a n d exchange te n d e rs will receive eq u al 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 etw een th e p a r v alu 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 e r in te re s t o r g ain from th e sale o r o th e r d isp o sitio n of th e bills, does n o t h a v e a n y ex em ptio n, as such, an d loss fro m th e sale o r o th e r d isp osition 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 en u e C ode of 1954. T h e b ills a re su b je ct 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 ex em p t from all tax a tio n now o r h e re a fte r im po sed on th e p rin c ip a l o r in te re st th e re o f by a n y S ta te , or an y of th e possessions of th e U n ite d S tates, or by a n y local tax in g a u th o rity . F o r p u rp o ses of ta x a tio n th e a m o u n t of d isco un t a t w hich T re a su ry bills are orig inally sold by th e U n ite d S ta te s is con sid ered 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 d isco u nt a t w hich bills issued h e re u n d e r a re sold is n o t co nsid ered to accru e u n til such bills a re sold, re d ee m e d o r o th erw ise disposed of, a n d such b ills a re excluded fro m c o n sid era tio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills ( o th e r th a n life in su ran ce c o m p a n ies) issued h e re u n d e r n eed inclu d e in his incom e tax r e 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 orig inal issue o r on su b seq u e n t pu rchase, a n d th e a m o u n t a ctu a lly re ce iv e d e ith e r u p o n sale o r re d e m p tio n a t m a tu r ity 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 N o. 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 o f th e T re a s u ry b ills a n d g overn th e c o nd ition s of th e ir issue. C opies of th e c irc u lar m ay b e o b ta in e d from a n y F e d e ra l R e se rv e B a n k or B ran ch . In acco rd an ce with the a b o v e a n n o u n c e m e n t, te n de rs will b e received a 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 Daylight Saving Time, Tuesday, A ugust 27, 1968. Tenders m a y not b e e n te re d by te le p h o ne . Yours 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 TREASURY BILLS 365 DAYS TO MATURITY Dated August 31,1968 Maturing August 31,1969 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The____________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 (D ate) 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. NONCOMPETITIVE TENDER $_ JNOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, w ill be accepted in full at the average price (in three decim als) of accepted com petitive bids. /_ _ _ Prices should be ex pressed on the basis of COMPETITIVE TENDERS <$______________ (ffi_______ $__________________ thJeTdecTmS^latf“ $ $ ... $ - $ _ .. . . e. g., 99.925. Fractions m ust not be used. B31P TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces 1,000 $ 5,000 <3> $ $ 10,000 $ 50,000 <a> $ 100,000 (5) $ 500,000 $i ,000,000 <8> Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M aturity V alue METHOD OF PAYMENT ?. $. $■ $. □ By maturing bills held by________________________ □ Payment to be made by_________ □ 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 se d * Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to_______________________ d raft shall be on latest day which w ill perm it present* m ent in order to obtain irrevocably collected funds on paym ent date) (Subscriber’s fu ll nam e or corporate title) (A ddress) By_ (A uthorized official signatu re and title ) (F or the account o f, if tender is fo r another subscriber) (A ddress) IMPORTANT 1. No tender for less than $1,000 w ill be considered and each tender m ust be for an amount in m ultiples of $1,000 (m aturity value). 2. Tenders should be forwarded 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 “TENDER FOR TREASURY BILLS". Since envelopes received with this legend w ill not be opened until after the closing time specified in the public announcement, communications relating to other m atters should not be enclosed. Envelopes for subm itting tenders may be obtained from this bank or appropriate branch. 3. Any qualified or conditional tender w ill 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 w ill 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, 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 w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of fu ll 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 m aterial, the tender m ay be disregarded. (See reverse for announcement)
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