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F ederal Reserve 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, TEXAS 75222 Circular No. 68-220 October 17, 1968 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d O thers Concerned in the Eleventh Federal Reserve District: Your atten tio n is invited to th e 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 pu b lic notice, invites te n d e rs for tw o series of T re a su ry bills to th e ag g reg ate a m o u n t of $1,500,000,000, o r th ere ab o u ts, fo r cash a n d in exchange fo r T re a su ry bills m a tu rin g O cto b er 31, 1968, in th e a m o u n i of $4,201,432,000, as follow s: 273-D A Y BILLS (to m a tu rity d a te ) to be issued O ctober 31, 1968, in th e a m o u n t of $500,000,000, or th ereab 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 J u ly 31, 1968, a n d to m a tu re J u ly 31, 1969, o riginally issued in th e a m o u n t of $1,000,963,000, th e a d d itio n a l a n d o rig in al bills 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 be d a te d O ctober 31, 1968, a n d to m a tu re O cto b er 31, 1969. T h e bills of b o th series will be issued on a d iscoun 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 pro v id ed , 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 ab 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 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 w ill be receiv ed a t F e d e ra l R e se rv e B an k s a n d B ran ch es u p to th e closing h our, o n e -th irty p.m ., E a s te rn D a y lig h t S aving T im e , T h u rsd a y , O cto b er 24, 1968. T e n d e rs w ill n o t b e received 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 be for a n ev en m u ltip le of $1,000, a n d in th e case of co 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 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 ar bills will ru n for 365-days, th e disco unt ra te will b e c o m p u te d on a b a n k d isco u n t basis of 360-days, as is c u rre n tly th e p ra ctice on a ll issues of T re a su ry b ills.) I t is urg 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 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 or B ra n ch e s on a p p lic a tio n therefo 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 a cc o u n t of cu stom ers p ro v id ed th e nam es of th e custom ers a re se t fo rth in such tenders. O th ers th a n b an k in g in stitu tio n s w ill n o t be p e rm itte d to su b m it te n d e rs ex cep t for th e ir ow n account. T e n d e rs w ill be receiv ed w ith o u t de p o sit from in co rp o ra ted b a n k s a n d tru s t c o m p anies a n d from respon sible a n d recognized d ealers in in v e s tm e n t securities. T e n d e rs fro m o th ers m u st b e 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, unless th e te n d e rs a re a ccom panied 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, ten d e rs w ill b e opened 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 c e m e n t w ill be m ad e b y 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 ten d e rs will be ad v ised of th e acc ep ta n ce o r re je ctio 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 c c e p t o r re je c t a n y or all ten d ers, in w hole o r in p a rt, a n d h is actio n in a n y sucn re sp e ct shall be final. S u b je c t to th ese reservation 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 p rice from a n y one b id d e r will be acc ep te d in full a t th e av erag e p rice (in th re e d e cim als) of acc ep te d c o m p e titiv e bids for th e re sp e ctiv e issues. S e ttle m e n t for acc ep te d te n d e rs in accordance w ith th e b ids m u st be 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 O cto b er 31, 1968, in cash or 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 O cto b er 31, 1968. C ash a n d exchange te n d e rs w ill receive equal tre a tm e n t. C ash a d ju stm e n ts w ill 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 e riv e d fro m T re a su ry bills, w h e th e r in te re st o r gain from th e sale or o th e r disp osition of th e bills, does n o t have a n y exem ption , as such, a n d loss fro m th e sale o r o th e r dispositio n of T re a su ry bills does n o t h ave 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 are su b je ct to estate , in h eritan c e, g ift or o th e r excise taxes, w h e th er F e d e ra l o r S ta te , b u t a re e x em p t from a ll ta x a tio n now or h e re a fte r im po sed 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 tate, or a n y of th e possessions of th e U n ite d S tates, or b y a n y local taxin g a u th o rity . F o r p u rp oses of ta x a tio n th e a m o u n t of disco u n t a t w hich T re a su ry b ills a re originally sold b y th e U n ite d S ta te s is consid ered to be in te re st. U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e Code of 1954 th e a m o u n t of disc o u n t a t w hich b ills issued h e re u n d e r a re sold is n o t co nsidered 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 are exclu ded from c o n sid eratio n as c ap ital assets. A ccordingly, th e ow ner of T re a su ry b ills ( 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 need in clu d e in his incom e ta x re tu rn only th e d ifference b e tw ee n th e p rice p a id fo r such bills, w h e th e r on original issue or o n su b seq u e n t purchase, a n d th e a m o u n t a c tu a lly received 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 rn 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 or B ran ch. In a cco rdance with the a b o v e a n n o u n c e m e n t, ten ders will be received a t this b a n k a n d its bra 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, Thursday, O ctober 24, 1968. Tenders m ay not b e en te re d 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 Dated July 31, 1968 Maturing July 31, 1969 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_____________________________Branch El 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. N O N C O M P E T I T I V E T E N D E R $_ .NOT T O E X C E E D $200,000 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 (? 1 0 0 , with not more than C O M P E T I T I V E T E N D E R S < S. ! @ $ th ree decim al p la ces, e. g., 99.925. Fractions > @ $ m ust not be used. h TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, 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 @ $ METHOD OF PAYMENT 1,000 $_ $ 5,000 $_ $ 10,000 $_ $ 50,000 $_ □ By maturing bills held by__________________________ □ Payment to be made by____________ @ $ 100,000 @ □ Charge our reserve account on payment date $ 500,000 $_ | | D r a f t e n c l o s e d (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) @ $ 1,000,000 $_ Delivery Instructions: (Subscriber’s full name or corporate title) □ Hold in Custody Account— Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to_______________________ (Address) By_ lAuthorized 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 Fiscal A gent of the U nited States, w ith notation on the envelope reading “TENDER FOR TREASURY OFFERING”. 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. Any qualified or conditional tender w ill be rejected. 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 authorizea. 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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