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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. 68-221 October 17, 1968 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d O thers Concerned in the Eleventh Federal Reserve District: Your attention is invited to th e follow ing s ta te m e n t giving d etails 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, invites 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, fo r cash a n d in ex change fo r T re a su ry bills m a tu rin g O c to b er 31, 1968, in th e a m o u n t of $4,201,432,000, as follow s: 273-D A Y B IL L S (to m a tu r ity d a te ) to b e issued O ctober 31, 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 bills d a te d J u ly 31, 1968, a n d to m a tu re J u ly 31, 1969, o rig in ally issued in th e a m o u n t o f $1,000,963,000, th e a d d itio n al a n d orig in al b ills to b e fre ely in terchangeab le. 365-D A Y B IL L S fo r $1,000,000,000, o r th ere ab o u ts, to b e d a te d O cto b er 31, 1968, a n d to m a tu re O c to b er 31, 1969. T h e b ills 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 pro v id ed , a n d a t m a tu r ity th e ir face a m o u n t w ill b e p a y ab 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 den o m in a tio n s o f $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 w ill 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 av in g T im e , T h u rsd a y , O c to b er 24, 1968. T e n d e rs w ill n o t b e re ce iv e d a t th e T re a s u 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 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 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 a r b ills w ill ru n fo r 365-days, th e d isco u n t ra te w ill b e co 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 o n a ll issues of 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 ard ed in th e special envelopes w h ich 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 on a p p lic a tio n th erefo r. B a n k in g in stitu tio n s generally m a y su b m it te n d e rs fo r a cc o u n t o f custom ers p ro v id ed th e n am es of th e cu sto m ers a re se t fo rth in such tend 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 w ill b e 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 c o m panies a n d fro m resp o n sib le a n d recognized de ale rs in in v e s tm e n t securities. T e n d e rs fro m o th ers m u s t 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 s u ry b ills 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 f te r th e closing hour, te n d e rs w ill b e o pen 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 ran ches, follow ing w hich p u b lic a n n o u n ce m en t w ill b e 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 ran g e of a c c e p te d bids. T h o se su b m ittin g te n d e rs will b e a d v ised o f th e acc ep ta n ce o r rejectio n thereof. T h e S e c retary o f th e T re a s u ry expressly reserves th e rig h t to a c c e p t o r re je c t a n y o r a ll ten d e rs, in w hole o r in p a rt, a n d his actio n in a n y such re sp e c t sh a ll b e final. S u b je c t to th ese reservatio ns, n o n c o m p e titiv e te n d e rs fo r each issue fo r $200,000 o r less w ith o u t sta te d p rice fro m 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 era g e p rice ( in th re e de cim als) of a cc ep te d c o m p e titiv e b ids fo r th e re sp e ctiv e issues. S e ttle m e n t fo r a cc ep te d te n d e rs in accord ance w ith th e bids m u st be m ad e or c o m p leted a t th e F e d e ra l R e se rv e B a n k on O c to b er 31, 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 bills m a tu rin g O c to b er 31, 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 stm e n ts w ill be m ad e fo r differences b e tw ee n th e p a r v a lu 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 fro m th e sale o r o th e r d isp o sitio n of th e bills, does n o t h av e a n y exem ption , as such, a n d loss fro m th e sale o r o th e r d ispositio n o f T re a su ry b ills 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 e n u e C ode o f 1954. T h e b ills are 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 e r 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 o r in te re s t th e re o f b y a n y S ta te , or a n y of th e possessions of th e U n ite d S ta te s, or b y a n y local tax in g a u th o rity . F o r p u rp o se s o f ta x a tio n th e a m o u n t of d iscou nt a t w hich T re a s u ry b ills a re o rig in ally sold b y th e U n ite d S ta te s is con sidered to b e in te re st. U n d e r S ections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e C ode o f 1954 th e a m o u n t of d isco u n t a t w hich bills issued h e re u n d e r a re sold is n o t co nsidered to accrue 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 a re excluded fro m c o n sid era tio 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 n e ed in clu d e in his incom e ta x re tu r n o n ly th e difference 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 o r o n su b seq u e n t p u rchase, 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 o r re d em 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 r e tu r n is m ad e, as 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 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 c o n d itio n s of th e ir issue. C op ies of th e c irc u la r m a y 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 or B ran ch. In acco rd a n c e with the a b o v e a n n o u n c e m e n t, te n d e rs 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, Thursday, O ctober 24 , 1968. Tenders m a y n ot b e e n te re d b y 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 TREASURY BILLS 365 DAYS TO MATURITY Dated October 31, 1968 Maturing October 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. NONCOMPETITIVE T E N D E R $ -NOT T O E X C E E D $200,000 N oncom petitive tenders for $200,000 or less from any one bidder, without stated price, w ill be accepted in fu ll at the average price (in three decim als) o f accepted com petitive bids. Prices should be ex (a) pressed on the basis of 1 0 0 , w ith not more than h (rf) th ree d ecim al p la ces, e. g., 99.925. Fractions m ust not be used. /$ $ $ @ Jpgr5 TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces Paym ent for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Maturity Value METHOD OF PAYMENT 1,000 □ By maturing bills 5,000 $- held by_________________ 10,000 $ □ Payment to be made by. 50,000 $ 100,000 $■- □ $ 500,000 Charge our reserve account on payment date [31 D r a f t e n c l o s e d (Effectual 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- 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). Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as F iscal 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 m ay 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 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. 2 (See reverse for announcement)
@FedFRASER