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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 7 5 2 2 2 Circular No. 68-253 November 27, 1968 NEW OFFERING — TREASURY BILLS To All B a n k in g Institutions a n d O th e r s C o n c e r n e d in t h e Eleventh F e d e r a l R e serve District: Your a t t e n t i o n is in v ite d to th e fo llo w in g s t a t e m e n t giving d e t a il s of tw o issues of T re asu ry bills: T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing D ecem ber 5, 1968, in th e am ount of $ 2 ^ 7 0 1,354,000, as follows: 91-DAY BILLS (to m aturity date) to be issued Decem ber 5, 1968, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated Septem ber 5, 1968 and to m ature M arch 6, 1969, originally issued in the am ount of $1,102,679,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,100,000,000, or thereabouts, to b s dated December 5, 1968, and to m ature Ju n e 5, 1969. T h e bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and a t m aturity th eir face am ount will be payable without in terest T hey will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard Tim e, Monday, Decem ber 2, 1968. Tenders will not be received a t the T reasury D epartm ent, Washington. Each tender m ust be for an even m ultiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay co t be used. I t is urged th a t tenders be made on th e printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve B anks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account. T enders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of th e face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by a n incorporated bank or tru st company. Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve B anks an d Branches, following which public announcem ent will be m ade by the T reasury D epartm ent of the am ount and price range of accepted bids. Those subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of th e Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted competitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or completed a t the Federal Reserve Bank on D ecem ber 5, 1968, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing D ecember 5, 1968. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atur ing bills accepted in exchange and th e issue price of th e new bills. T h e income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatm ent, as such, under the Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount a t which Treasury bills are originally sold by the U nited States is considered to be interest. Under Sections 454 (b ) and 1221 (5 ) of the Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not con sidered to accrue until such bills are sold, redem med or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other th a n life insurance companies) issued hereunder need include in his income tax retu rn only the difference between th e price paid for such bills, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m aturity during the taxable year fo r which the return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (curren t revision) and this notice, prescribe th e term s of the T reasury bills and govern th e conditions of their issue. Copies of the circular may be obtained from any Federal R eserve B ank or Branch. In a c c o r d a n c e w ith t h e a b o v e a n n o u n c e m e n t , t e n d e r s will b e re c e iv e d a t this b a n k a n d its b r a n c h e s a t El P aso, H ouston a n d San A n to n io u p to tw e l v e - th ir ty p.m ., Central S t a n d a r d Time, M o n d a y , D e c e m b e r 2, 1968. T e n d e rs m a y not b e e n t e r e d b y t e l e p h o n e . Yours v e r y truly, P. E. Coldw ell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and A pproxim ate Yield of Accepted Tenders 90-Day Bills D ue F ebruary 27, 1969 $2,474,235,000_______________ $1,600,027,000_______________ P rice Yield 98.649___________ 5.404% ......... 98.632___________ 5.472% ____ 98.638_____ __ 5.448% ( 1 ) . ..Total Applied For_ __T otal A ccepted__ — H igh— __ Low__ .Average_ 181-Day Bills D ue M ay 29, 1969 ------------------------ $2,031,093,000 -------------------- ----$1,100,157,000 Price Yield -97.208________________ 5.553% -97.188............................._5.593% -97.198____________ 5.573% (1) ( 1 ) T h e s e rates are on a bank discou nt basis. T h e eq u iv a le n t coupon issue y ie ld s a re 5 .6 0 % for th e 9 0 - d a y b ills, and 5 . 8 1 % for t h e 1 8 1 -d a y bills. (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 91 DAYS TO MATURITY D ated Septem ber 5, 1968 M aturing March 6, 1969 T o: Federal R eserve Bank, Station E , Dallas, T exas 75222 or — The___________________________________Branch El Paso 79999 Houston 77001 ______________________________ San Antonio 78206 (Date) 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 TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. / ^ Prices should be exV?___________________ (a)_________ _________________________ pressed on the basis of COMPETITIVE T E N D E R S h --------------------------- @ ------------- $----------------------------I $____________________ @ __________$_______________________ e. g., 99.925. F r a c tio n s \ must not be used. TEN DERS MAY NOT BE EN TER ED BY TELEPHONE. TEN DERS EY WIRE, IF RECEIVED BEFORE TH E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Number of P ie ce s M a tu rity V alu e < $ fi) (a) $ 5,000 $- (® $ 10,000 s. (a) $ METHOD OF PAYMENT 1,000 $- 50,000 $- □ □ □ (cb $ 100,000 $. (a) $ 500,000 $. □ □ □ Hold in Custody A ccount— M ember banks fo r own account only Charge our reserve account on p a y m e n t date __I D r a f t e n c l o s e d ( E f f e c t u a l d e l i v e r y o f e n c l o s e d d r a f t I s h a ll be o n l a t e s t d a y w h ic h w ill p e r m i t p r e s e n t m e n t I n o r d e r to o b t a i n ir r e v o c a b l y c o lle c te d f u n d s o n p a y m e n t d a te ) (cb $1 ,000,000 $- Delivery In stru c tio n s : By m a tu rin g bills held by_ P ay m en t to be m ade by_ ___ ( S u b s c r ib e r 's f u ll n a m e o r c o r p o r a t e ----- Pledge to secure T re asu ry T ax and Loan Account (A d d ress) g Ship to__________________________ title) ___ (Authorized official signature and title) ( F o r t h e a c c o u n t o f , i f t e n d e r is f o r a n o t h e r s u b s c r i b e r ) (Addresa) IMPORTANT 1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING.” Since envelopes re ceived with this legend will not be opened until after the closing time specified in the public announcement, communica tions relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank or appropriate branch. 3. Any qualified or conditional tender will 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 at the signing of the form by an officer of the corporation will 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 will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity 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 material the tender may be disregarded. (See reverse for announcem ent)