Federal Reserve Bank of Dallas. "New Offering - Treasury Bills, Circular No. 68-262," District Notices (Federal Reserve Bank of Dallas) (December 11, 1968). https://fraser.stlouisfed.org/title/5569/item/543970, accessed on May 7, 2025.

Title: New Offering - Treasury Bills, Circular No. 68-262

Date: December 11, 1968
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image-container-0 F e d e r a l R e s e r v e B a n k o f D a l l a s F IS C A L A G E N T O F T H E UN ITED ST A T E S DALLAS, TEXAS 75222 NEW OFFERING — TREASURY BILLS To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statem ent giving details of two issues of Treasury bills: Circular No. 68-262 December 11, 1968 The Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of $2,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing December 19, 1968, in the amount of $2,701,750,000, as follows: 91-DAY BILLS (to m aturity date) to be issued December 19, 1968, in the amount of $1,600,000,000, or there abouts, representing an additional amount of bills dated September 19, 1968 and to mature M arch 20, 1969, issued in the amount of $1,100,108,000, the additional and original bills to be freely interchangeable. 182-DAY BILLS for $1,100,000,000, or thereabouts, to be dated December 19, 1968, and to mature June 19, 1969. T he bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at m aturity their face am ount will be payable without interest. They 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., Eastern Standard Time, Monday, December 16, 1968. Tenders will not be received a t the Treasury Department, Washington. Each tender must be for an even multiple 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 not be used. It is urged th at tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit 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 Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accompanied 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 trust company. mediately after the closing hour, tenders will bo opened a t the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury D epartm ent of the amount and price range of accepted bids. Those subm itting tenders will be advised of the acceptance or rejection thereof. T he Secretary of the 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 without 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 must be made or completed a t the Federal Reserve Bank on December 19, 1968, cash or other immediately available funds or in a like face am ount of Treasury bills maturing December 19, 1968. Cash and exchange tenders will receive equal treatm ent. Cash adjustments will be made for differences between the par value of m atur ing bills accepted in exchange and the issue price of the new bills. T he income derived from Treasury bills, whether interest or gain from the 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 treatment, as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the am ount of discount 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 amount of discount a t which bills issued hereunder are sold is not con sidered to accrue until such bills are sold, redemmed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redemption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. In accordance with the above announcem ent, tenders will be received a t this bank and its branches a t El Paso Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, M onday, December 16, 1968. Tenders may not be entered by telephone. Yours very truly, LAST PREVIOUS OFFERING OF TREASURY BILLS P. E. Coldwell Amount, Range and Approximate Yield of Accepted Tenders 91-Day Bills 182-Day Bills Due M arch 13, 1969 D ue June 12, 1969 $2,172,281,000---------------------------- ----------------- Total Applied For_________ _____________________ $1,932,053,000 $1,600,021,000.............................. ..................................Total Accepted_______________________ $ 1,100,456,000 Price Yield p rice y ’ield’ 98.554----- ------------ 5.720%-------- ----- --------------------- High------ ------------------ __97.029___________ 5.877% 98-524....................... 5.839% ------------ ------------------------- Low______________________97.002___________5 930% 98.537------------------5.788% ( 1 ) ------ --------------------— Average____________________97.014. . ___ __ ___ 5.906% (1) President t h e 1 8 2 -d a y * b iU s fr e °° ° b£m k d lsc o u n t b a s ls ’ T h e e q u iv a lc n t c o u p o n issu e y ie ld s a r e 5 . 9 6 % fo r t h e 9 1 - d a y b ills, a n d 6 . 1 7 % fo r (See reverse side for tender form) publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
image-container-1 TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY D ated Septem ber 19, 1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________________Branch El F’aso 79999 Houston 77001 San Antonio 78206 M aturing March 20, 1969 (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 bolow, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated. NONCOMPETITIVE TEN DER $_ _NOT TO EXCEED $200,000 COMPETITIVE TENDERS Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in th^ee decimals) of accepted competitive bids. Prices should be ex pressed on the basis of 100, with not more than three d ecim a l places, e. g., 99.925. F ra c tio n s must not be used. 23?= TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E " CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. <n) $ •I1 (a) $ (Ft) $ V N u m b e r o f P ie ce s Denominations Desired M a t u r i t y V a lu e @ ? 1,000 ?. @ $ 5,000 $. <® $ 10,000 $. . . (a) $ 50,000 $. ... @ $ 100,000 $. ... (a) $ 500,000 $. @ $1,000,000 $. Delivery In stru ctio n s: METHOD OF PAYMENT By m aturing bills held by______________________ □ □ Paym ent to be m ade by. □ □ Hold in Custody Account— Member banks fo r own account only □ Pledge to secure T reasury Tax and Loan Account □ Ship to__________________________ Charge our reserve account on paym ent 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 b e o n l a t e s t d ay w h ic h will 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 irr e v o c a b ly c o lle c te d f u n d s o n p a y m e n t d a te ) ( 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 t itle ) (A d d re ss ) By- ( A u th o r iz e d official s i g n a t u r e a n d t it le ) ( F o r th 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 ib e r ) (A d d r e s s ) 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, b y ............................................................. 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 in c o rp o ra te d b a n k o r t r u s t c o m p a n y . 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 announcement)
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