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F e d e r a l r e s e r v e Ba n k o f D a lla s 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. 68-254 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 E le venth F e d e r a l Reserve District: Y our a t t e n t i o n is in v ited to th e fo llo w in g s t a t e m e n t g iv ing d e t a il s of tw o iss u e s of T re as u ry bills: T h e 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 Decem ber 5, 1968, in the am ount of $2,701,354,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued D ecem 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 be 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 com petitive and noncom petitive bidding as hereinafter provided, and a t m atu rity their face am ount will be payable w ithout interest. T hey will be issued in bearer form only, and in denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). T enders will b e received a t Federal Reserve B anks and B ranches up to the closing hour, one-thirty p.m., E astern S tandard Tim e, M onday, Decem ber 2, 1968. Tenders will not be received a t the Treasury D epartm ent, Washington. Each tender m ust be for an even m ultiple of $1,000, and in the case of competitive tenders th e price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be made on the 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 may 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. T enders from others m ust be accom panied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve B anks and Branches, following which public announcem ent will be made 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 th e acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves the rig h t 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 th e Federal Reserve Bank on December 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 th e p ar value of m atur ing bills accepted in exchange and the issue price of the 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 T reasury 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, b u t 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 th e U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount at which T reasury bills are originally sold by the U nited States is considered to be interest. U nder 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 return only the difference between the 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 th e taxable year for which the retu rn is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of th e T reasury bills and govern th e conditions of their issue. Copies of the circular may be obtained from any Federal Reserve 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 , te 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 , Houston a n d S an A n to n io up 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, 19 68 . 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 very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approximate Yield of Accepted Tenders 90-Day Bills D ue F ebruary 27, 1969 $2,474,235,000_______________ $1,600,027,000_______________ Price Yield 98.649______ ______ 5.404% _____ 98.632______ ........ 5.472% _____ .... 98.638____________ 5.448% ( 1 ) . ..Total Applied For_ __T otal Accepted__ ....High.... __ 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 b ank discount basis. T h e e q u iv a le n t coupon issue y ie ld s are 5 .6 0 % for t h e 9 0 - d a y bills, an d 5 .8 1 % for th e 18 1-d ay 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 TREASURY BILLS 182 DAYS TO MATURITY D ated December 5, 1968 M aturing June 5, 1969 To: Federal Reserve Bank, S tation K, Dallas, Texas 75222 or — The_________________________________ Branch E l P a so 79999 H o u sto n 77001 S a n A n to n io 78206 (D a te ) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions o f 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 EX C EED $200,000 NONCOM PETITIVE T EN D ER $_ 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. /_ COMPETITIVE TENDERS h h _ @ @ .. $ $ ... Prices should be e x pressed on the basis o f 100, with not more than three d e c im a l p la ces, 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 BY WIRE, IF RECEIVED BEFORE T H E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N um ber of P ie ce s Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M a tu r ity V alu e METHOD OF PAYMENT (a) ? 1,000 ?5,000 ?- □ (a) ? (a) $ 10,000 ?50,000 ?. □ 100,000 ?. (a) $ 500,000 $(a) $1.,000,000 $. □ Charge our reserve account on p a y m e n t date I I D r a f t e n c l o s e d ( E ff e c tu a l d e liv e ry o f e n c lo s e d d r a f t s h a ll be o n la te 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 t o o b t a i n i rr e v o c a b ly co lle c te d f u n d s o n p a y m e n t d a te ) (a) $ ■< > ? 5 By m atu rin g bills held by______________________________ P ay m en t to be m ade by_______________ Delivery In stru c tio n s : □ □ Pledge to secure T reasu ry T ax and Loan Account □ ( 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 title ) Hold in Custody A ccount— M ember banks fo r own account only Ship to__________________________ (A d d resa) By( A u t h o r i z e d o f fi c ia l s i g n a t u r e a n d t i t l e ) ( 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 ) (A d d re ss) 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)