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F ederal Reser ve Ban 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 75222 Circular No. 68-203 September 18, 1968 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d O thers Concerned in the Eleventh Federal Reserve District: Your atte n tio n 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, b y th is p u b lic notice, in v ite s te n d e rs fo r tw o series of T re a su ry b ills to th e a g g 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 su ry b ills 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 b e issued S e p te m b e r 3 0 ,1 9 6 8 , 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 Ju n e 30, 1968, a n d to m a tu re J u n e 30, 1969, o rig in a lly issued in th e a m o u n t of $1,001,671,000, th e a d d itio n a l a n d original 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, o r th e re a b 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 o f b o th series w ill 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 a s h e re in a fte r p rov ided , a n d a t m a tu rity th e ir face a m o u n t w ill be p a y a b 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 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 avin g 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 fo r 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 b e exp ressed o n 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 ay 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 a r b ills w ill ru n for 365-days, th e d isc o u n t ra te w ill b e c o m p u te d o n a b a n k d isc o u n t basis of 360-days, a s is c u rre n tly th e p ra c tic e on a ll issues o f T re a su ry b ills.) I t is u rg e d t h a t te n d e rs b e m ad e on th e p rin te d form s a n d fo rw a rd ed in th e special envelopes w hich w ill b e 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 ra n ch e s o n a p p lic a tio n th ere fo r. B a n k in g in stitu tio n s gen erally m a y su b m it te n d e rs fo r acc o u n t o f c usto m ers p ro v id ed th e n a m e s of th e cu sto m ers a re se t fo rth in such ten d ers. O th e rs th a n b a n k in g in stitu tio n s w ill 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 b e re ce iv e d w ith o u t d e p o sit fro m in c o rp o ra te d b a n k s a n d tr u s t c o m p an ies a n d fro m resp o n sib le 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 b e a cco m p an ied b y p a y m e n t of 2 p e rc e n t o f th e fa ce a m o u n t of T re a su ry b ills a p p lie d for, unless th e te n d e rs a re a cc o 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 c o rp o ra te d b a n k o r tr u s t com pany. Im m e d ia te ly a f te 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 ranch es, 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 s u b m ittin g te n d e rs will be a d v ised of th e a cc ep ta n ce or re je ctio n th ereof. T h e S e c retary of th e T re a su ry expressly reserves th e rig h t to a c c e p t or re je c t a n y or all ten d e rs, in w hole or in p a rt, a n d his actio 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 b e a cc ep te d in full a t th e a v erag e price ( in th re e d e cim als) o f a cc ep te d c o m p e titiv e b id s 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 b e m ad 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 on S e p te m b e r 30, 1968, in cash o r o th e r im m e d ia te ly a v ailab le fu n d s o r in a lik e face a m o u n t of T re a su ry b ills 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 receiv e e q u al tre a tm e n t. C ash a d ju s tm e n ts w ill b e m a d e fo r differences b e tw ee n th e p a r v a lu e o f m a tu rin g b ills a c c e p te d in exchange a n d th e issue p rice o f 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 fro m th e sale o r o th e r disp o sitio n o f th e bills, d oes n o t h a v e a n y e x em ptio n, a s such, a n d loss fro m th e sale o r o th e r d isp o sitio n o f T re a s u ry b ills does n o t h a v e a n y sp ecial 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 o f 1954. T h e b ills 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 e m p t fro m a ll ta x a tio n now o r h e re a fte r im p osed on th e p rin c ip a l o r in te re s t th e re o f b y a n y S ta te , o r a n y of th e possessions of th e U n ite d S ta te s, o r b y a n y local tax in g a u th o rity . F o r p u rp o ses o f ta x a tio n th e a m o u n t o f d iscoun t a t w hich T re a su ry b ills a re o riginally sold b y th e U n ite d S ta te s is co nsid ered to b e in te re st. U n d e r S ection s 4 54 ( 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 iscou nt 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 a re sold, re d ee m e d o r otherw ise d isposed of, a n d such bills a re excluded from c o n sid eratio n a s 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 n e ed inclu de in his incom e ta x r e tu rn only th e difference b e tw ee n th e p rice p a id fo r such bills, w h e th er on original issue or on su b seq u e n t purchase, a n d th e a m o u n t a c tu a lly re ce iv e d e ith e r u p o n sale or 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 rn is m ade, a s o rd in a ry gain o r 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 no tice, p re sc rib e th e te rm s o f th e T re a su ry b ills a n d govern th e c o n d 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 fro m a n y F e d e ra l R e se rv e B a n k o r B ranch . In a c co rd an ce w ith the a b o v e a n n o u n c e m e n t, te n d e 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, T uesday, Septem ber 24, 1968. Tenders m a y n ot b e e n te re d by te le p h o n e . Y ou rs v e r y truly, P. E. C o ld w e ll P r e sid e n t (Seereversesidefortenderform) 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 Maturing September 30, 1969 Dated September 30, 1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The____________________________ Branch E l Paso 79999 Houston 77001 (Date) San Antonio 78206 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. .NOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $_ Noncom petitive tenders for $ 2 0 0 , 0 0 0 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 1 0 0 , with not more than (a) COMPETITIVE TENDERS I $ th ree d e c im a l p laces, e. g., 99.925. Fractions ; (a) $ ......m ust not be used. s BSP TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces (a) $ <® $ (a) $ 1,000 5,000 10,000 <a> $ 50,000 -O $ 100,000 (5) $ 500,000 (a) $1 ,000,000 Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Maturity Value METHOD OF PAYMENT $$ $$$. $?. Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to_______________________ □ By maturing bills held by________________________ □ Payment to be made by-------------□ Charge our reserve account on payment date | [ Draft enclosed (E ffectual delivery of enclosed draft shall be on latest day which will permit present ment in order to obtain irrevocably collected funds on payment date) (Subscriber’s full name or corporate title) (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 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 F iscal A gent of the United States, with notation on the envelope reading “TEN DER FOR TREASURY O FFER IN G ”. Since envelopes received w ith this legend w ill not be opened until after the closing tim e specified in the public announcement, communi cations 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 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 m aterial, the tender may be disregarded. (See reverse for announcement)
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