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F e d e r a l R es 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. 68-264 Decem ber 16, 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 leventh F e d e r a l Reserve District: Y o u r a t t e n t i o n is in vited 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 iss u e s o f T re as u ry bills: CO JO i» K g (j 0 ^ ^ Q jjj t (D Z 35 0 H Uj ^ 0) 0 Ill The 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 December 26, 1968, in the am ount of $2,709,535,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued D ecember 26, 1968, in the am ount of $1,600,000,000, or there abouts, representing an additional am ount of bills dated Septem ber 26, 1968, and to m ature M arch 27, 1969, originally issued in the am ount of $1,102,282,000, 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 26, 1968, and to m ature Ju n e 26, 1969. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and a t m aturity their face am ount will be payable w ithout interest. T hey will be issued in bearer form only, an d in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard Tim e, Friday, D ecember 20, 1968. Tenders will not be received at 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 com petitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. I t is urged th at tenders be made on the printed forms and forwarded in th e special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of th e 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. T enders from others m ust 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 tru st company. Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve Banks 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 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 th e 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 made or completed a t the Federal Reserve B ank on D ecem ber 26, 1968, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Decem ber 26, 1968. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents 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 T reasury bills, w hether interest or gain from the sale or other disposition of th e 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 he bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, b u t 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. F or purposes of taxation th e am ount of discount a t which T reasury 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 considered 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 than life insurance companies) issued hereunder need include in his income tax return 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 atu rity during the taxable year for 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 the term s of th e T reasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch. In a c c o r d a n c e w ith th 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 H o u s to n a n d San A n to n io u p to tw e lv e - th ir ty p.m ., Central S t a n d a r d Time, not b e entered by telephone. cst this b a n k a n d its b r a n c h e s a t El P a so , Friday, December 20, 1 968 . T e n d e rs m Y ours very truly, P. E. Coldw ell P re sid e n t Figures co n ce rn in g offering of 9 1 -Day Treasur y Bills maturi ng March 2 0 , 1 9 6 9 , a n d 1 8 2 -D ay Treasur y Bills ma turing Ju n e 19, 1 9 6 9 , not a v a i l a b l e w h e n this circular w as prin ted. (See reverse 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 M aturing March 2 7 ,1 9 6 9 Dated Septem ber 2 6 ,1 9 6 8 To: Federal Reserve Bank, Station K, Dallas, T exas 75222 or — The__________________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 (Data) 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 E X C E E D $200,000 20, 1968 NONCOMPETITIVE T E N D E R $_ Noncompetitive tenders foi $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. (n) CLOSING DATE — FRIDAY, DECEMBER (a ) OBSERVE Prices should be e x pressed on the basis of 100, with not more than th ree d e c im a l p la ce s, e. g., 99.925. F r a c tio n s m ust not be used. (fh ($ COMPETITIVE T E N D E R S ($ $ $ I z / ' ' TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account, Denominations Desired N um ber of P ie ce s M a tu rity V a lu e METHOD OF PAYMENT (a) $ (n) $ 1,000 $. 5,000 $. (ft $ 10,000 $. 50,000 $. □ < $ 100,000 $ i> (a) $ 500,000 ?. <> $1:,000,000 * S □ $ □ By m atu rin g bills held by_____________________ P ay m en t to be m ade by_ Charge our reserve account on p a y m en t date I j D ra ft enclosed _ (Effectual delivtry of eneloacd draft s h a l l b e o n l a t e s t d a y w h i c h w i l l p e r m i t pm entm oit in o r d e r t o o b t a J n i r r e v o c a b l y c o l l e c t e d f u n d a o n payment date) Delivery In stru c tio n s : ( 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 ) □ Hold in Custody A ccount— Member banks fo r own account only □ Pledge to secure T reasu ry T ax and Loan Account □ (A d d resa) By- (Authorized official signature and title) Ship to---------------------------------------- PLEASE ( 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 ddress) 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 o f 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)