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F e d er a l R eser ve Ba n k

of

Dallas

F IS C A L A G E N T O F T H E U NITED S T A T E S

DALLAS, TEXAS

75222
Circulr No. 68-202
September 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 sta 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, by th is p u b lic notice, inv ites te n d e rs for tw 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, or 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 S e p te m b e r 30, 1968, in th e a m o u n t of
$1,500,396,000, as follow s:
273-D A Y B IL L S (to m a tu rity d a te ) to be issued S e p te m b e r 30, 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 a n a d d itio n al a m o u n t of bills d a te d Ju n e 30, 1968; an d to m a tu re J u n e 30, 1969, o riginally issued
in th e a m o u n t of $1,001,671,000, th e a d d itio n al a n d original bills to be fre ely in terch an g eab le.
365-D A Y B IL L S for $1,000,000,000, or th ere ab o u ts, to be d a te d S e p te m b e r 30, 1968, a n d to m a tu re
S e p te m b e r 30, 1969.
T h e bills of b o th series will b e issued on a disco u n t basis u n d e r co 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
provided, 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 terest. T h e y will be issued in b e a re r form 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 b e received a t F e d e ra l R eserv 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 , T u esd ay , S e p te m b e r 24, 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 ac h
te n d e r m u st be for &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 for 365-days, th e disco u n t ra te will be co m p u ted on a b a n k d iscoun 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 urg ed t h a t ten 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
env elop es w hich will be su p p lied b y F e d e ra l R e se rv e B a n k s o r B ran ch es on a p p lic a tio n th erefor.
B an k in g in stitu tio n s gen erally m ay su b m it te n d e rs fo r a cco u n t of custom ers p ro v id ed th e nam es of th e cu sto m ers are
se t 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 be p e rm itte d to su b m it te n d e rs e x cep 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 from in co rp o ra ted b an k s a n d tru s t com p anies an d from respon sible a n d recognized
de ale rs in in v estm e n t securities. T e n d e rs from o th ers m u st be acco 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, u nless th e te n d e rs a re a cco m p an ied b y a n express g u a ran ty o f p a y m e n t by 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 be o p e n ed a t th e F e d e ra l R e se rv e B an 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 ge of a cc ep te d bids. T h o se
su b m ittin g ten d e rs will be a d v ised of th e acc ep ta n ce o r re je ctio 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 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 ctio n in a n y such re sp e ct shall be final. S u b je ct to
th ese reservatio ns, n o n co m p e titiv e te n d e rs for each issue fo r $200,000 or less w ith o u t sta te d price from a n y one b id d er will be
a cc ep te d in full a t th e av erag e price (in th re e d e cim als) of acc ep te d co m p e titiv e bids 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 be m ad e o r co m p le te d a t th e F e d e ra l R eserv e B a n k on S e p te m b e r 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 lik e face a m o u n t of T re a su ry bills m a tu rin g S e p te m b e r 30, 1968. C ash a n d
exchange te n d e rs w ill receive eq ual tre a tm e n t. C ash a d ju s tm e n ts will be m ad e for differences b e tw ee n th e p a r valu 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 erived from T re a su ry bills, w h e th er in te re st or gain fro m th e sale o r o th e r dispositio n of th e bills, does n o t
have a n y exem ptio n, as such, a n d loss from th e sale or o th e r disp o sitio n of T re a su ry bills does n o t h av 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 ev en u e C ode of 1954. T h e bills a re su b je ct to estate , in h eritan c e, g ift or o th e r excise taxes, w h eth er
F e d e ra l or S ta te , b u t a re ex 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 cip a l or in te re st th e re o f by an 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 au th o rity . F o r p u rpo ses of tax a tio n th e a m o u n t of disco unt
a t w hich T re a su ry bills a re originally 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 )
oi 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 iscoun t a t w hich bills issued h e re u n d e r a re sold is n o t considered to
accrue u n til such bills are sold, red eem ed o r o therw ise disposed of, a n d such bills a re excluded 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 bills ( o th e r th a n life insu rance c o m p a n ies) issued h e re u n d e r n e ed in clu d e in his
incom e tax re tu rn only th e difference betw een th e price p a id for such bills, w h e th er on original issue or on su b seq u e n t purchase,
an 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 ar fo r w hich th e re tu rn is
m ade, as o rd in ary gain o r loss.
T re a su ry D e p a rtm e n t C ircu lar 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 con ditio ns of th e ir issue. C opies of th e c ircu lar m ay be 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 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 e n t, te nd ers will be 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, S eptem ber 24, 1968. Tenders
m ay not b e e n tered by te le p h o n e .
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 ADDITION TO TREASURY BILLS

273 DAYS TO MATURITY
Maturing June 30, 1969

Dated June 30,1968
T o :Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The __________________________ Branch
El Paso 79999

Houston 77001

(Date)

San Antonio 78206

P
ursuant to the p v
ro isio s o T
n
f reasury D
epartm
ent C
ircu
lar N . 4 8 (current rev
o 1
isio ) an the p v
n
d
ro
p b
u lic an o n
n u cem t issu
en
ed b the T
y
reasury D
epartm
ent, th u d
e n ersig ed o
n
ffers to p rch
u
ase T
reasury b
il
sh w b lo , an agrees to pay for the am
o n e w
d
ount allo
tted o o b
, n r efo th issu d
re e
e ate, b the m
y
eth d an at
o
d

.NOT T O E X C E E D $200,000

NONCOMPETITIVE T E N D E R $
.

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.

($
;
COMPETITIVE T E N D E R S <$
$!

tm
(cb

%
$

-

P
rices sh u
o ld b ex
e
­
p
ressed n th b
n
e asis o
f
1 0 w
0 , ith n t m re than
o
o
three decim
al places,
e g., 9 .9 5 F
.
9 2 . ractio s
n
m
ust n t b u
o e sed
.

T N E S M Y N T B E T R D B T L P O E T N E S B W E IF R C IV D B
E D R
A
O
E N E E
Y E E H N . E D R
Y
IR ,
E E E
C O IN H U , A E A C P A L .
L S G O R
R
C E T B E

Denominations Desired
Number of
Pieces

P
aym
ent for this issu o b
e f ills can o b m e
n t e ad
b cred to T
y
it
reasury T
ax an L an A c u t.
d o
c o n

Maturity Value

m $
(a) $

5,000 $
.

(cb %

10,000 $
.

<> $
S

M T O O P Y E T
E H D F A M N

50,000 ?
-

1,000 $
-

□
□
□

Charge our reserve account on payment
date
| 1 Draft enclosed (E ffectual delivery of enclosed

(cb $ 100,000 $
.
® $ 500,000 $
()
5

By maturing bills
held by___________________________
Payment to be made by___________

draft shall be on latest day which will permit present­
ment in order to obtain irrevocably collected funds on
payment date)

,000,000 $
.

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

(Subscriber’s full name or corporate title)

Hold in Custody Account— Member
banks for own account only

□

(Address)

By.

Ship to___________________________

(Authorized official signature and title)
(For the account of, if tender is for another subscriber)
(Address)

IMPORTANT

1 N tender for less than $ ,0 0 w b co sid
.
o
1 0
ill e
n
ered an each tender m
d
ust b for an am u t in m ltip
e
o n
u
les o
f
valu
e).
2 T d
.
en ers sh u b fo ard
o ld e
rw
ed in an e v
n elo e clearly ad ressed to this b k o appropriate b
p
d
an
r
ran
ch as F
is
U ited S
n
tates, w
ith notation o the en elo e reading “T N E F R T E S R
n
v
p
E D R O
R A U YO F R G S
F E IN ”. i
receiv
ed w
ith this leg d w n t b o en
en
ill o e p ed until after the clo
sin tim sp ified in th p b
g
e
ec
e u lic an o n
n u ce
catio s relating to other m
n
atters sh u
o ld n t b en lo d E v
o e
c se . n elo es for subm
p
itting tenders m
ay b o ta
e b
b k o appropriate b
an
r
ran .
ch
3 A y q alified or co d
.
n
u
n itio al tender w b rejected
n
ill e
.
4 If a co o
.
rp ratio m es th tender, the fo
n
ak
e
rm sh u b sig ed b an o
o ld e
n
y
ffic r o the co o
e
f
rp ratio au o
n
th rize
tender an the sig in o the fo
d
n g f
rm b an o
y
ffic r o the co o
e
f
rp ratio w b co stru
n ill e
n
ed as a representation
h
as b
een so au o
th rized If the tender is m e b a partnership it sh u
.
ad
y
o ld b sig ed b a m
e
n
y
em er o th
b
f
e
sh u
o ld sig in the fo
n
rm “........................................................., a co
partnership, by...........................................
am
em er o the firm
b
f
”.
5 T d
.
en ers fro
m th se other than in rp rated b k an trust co p ies o resp n
o
co o
an s
d
m an
r
o sib an reco n
le
d
g ized d
m t secu
en
rities w b d
ill e isreg
ard , u less acco p ied b a d o
ed n
m an
y
ep sit o 2 p
f
ercen o the total am u t (m
t f
o n
o th T
f
e reasury b
ills ap lied for, o u less the tenders are acco p ied b an ex ress guaranty o full
p
r n
m an
y
p
f
in rp rated b k o trust c m an .
co o
an
r
o p y
6 If the lan uage o this fo
.
g
f
rm is ch g
an ed in any resp
ect, w ic , in th o in n o th S
h h
e p io
f
e ecretary o the T
f
m
aterial, the tender m
ay b d
e isreg
ard .
ed

(See reverse for announcement)

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