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FEDERAL RESERVE BANK OF DALLAS
FISCAL AGENT OF THE UNITED STATES

DALLAS, T EX A S

75222
Circular No. 68-267
December 16, 1968

NEW OFFERING —- TREASURY BILLS

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statement giving details of two 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 for 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, or th ere ab o u ts, fo r cash a n d in exchange for T re a su ry b ills m a tu rin g D e c em b er 31, 1968, in th e a m o u n t of
$1,499,494,000, as follow s:
273-D A Y B IL L S (to m a tu rity d a te ) to be issued D e c em b er 31, 1968, in th e a m o u n t of $500,000,000, o r th e re ­
ab o u ts, re p rese n tin g a n a d d itio n al a m o u n t of b ills d a te d S e p te m b e r 30, 1968, a n d to m a tu re S e p te m b e r 30, 1969,
o rig in ally issued in th e a m o u n t of $1,000,607,000, th e a d d itio n a l a n d o riginal b ills to b e fre ely in terch an g eab 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 D e c e m b e r 31, 1968, a n d to m a tu re D ecem ­
b e r 31, 1969.
T h e b ills of b o th series w ill be issued on a d iscou nt 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 as h e re in a fte r
pro v id ed , a n d a t m a tu rity th e ir face a m o u n t will be p a y ab le w ith o u t in terest. T h e y will b e issued in b e a re r fo rm only, a n d in
d e n o m in a tio n s of $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 h o ur, o n e -th irty p.m ., E a s te rn
S ta n d a rd T im e , M o nday, D e c em b er 23, 1968. T e n d e rs w ill no t be receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington. E ac h
te n d e r m u st be for an even 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 be expressed o n th e
basis o f 100, w ith n o t m ore 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 ar b ills will ru n for 365-days, th e d iscou nt ra te w ill b e co m p u te d o n a b a n k d isco u n t basis o f 360-days, as is c u rre n tly th e
p ra ctice on 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
env elop es w hich 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 o n a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s g enerally m a y su b m it te n d e rs fo r a cc o u n t of c usto m ers p ro v id e d th e n a m e s of th e custom ers a re
se t fo rth in such ten d 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 for th e ir ow n account.
T e n d e rs w ill be receiv ed w ith o u t de p o sit fro m in co rp o ra ted b a n k s a n d tr u s t com panies a n d from resp o n sib le a n d recognized
d ealers 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 cco m p an ied b y p a y m e n t o f 2 p e rc e n t of th e face a m o u n t of
T re a su ry bills a p p lie d for, un less th e te n d e rs a re a cco m p an ied b y a n express g u a ra n ty o f p a y m e n t b y a n in co rp o ra ted b a n k or
tru 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 pened a t th e F e d e ra l R e se rv e B an k s a n d B ranch es, follow ing w hich
p u b lic a n n o u n ce m en t w ill be 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 ra n g e of a cc ep te d bids. T h o se
su b m ittin g te n d e rs will b e ad v ised of th e acc ep ta n ce o r re je ctio n thereof. T h e S e c re ta ry of th e T re a su ry exp ressly reserv es th e
rig h t to a c c e p t o r re je c t a n y or all ten d e rs, in w hole or in p a rt, a n d h is a ctio n in a n y such re sp e c t shall be final. S u b je c t to
th ese reservations, n o n c o m p e titiv e te n d e rs for each issue fo r $200,000 o r less w ith o u t s ta te d p rice fro m a n y one b id d e r will b e
a cc ep te d in fu ll a t th e av erag e p rice ( in th re e d e cim als) o f a cc ep te d c o m p e titiv e b id s fo r th e re sp e ctiv e issues. S e ttle m e n t for
a cc ep te d te n d e rs in accordance w ith th e b id s m u st be m ad e o r c o m p le te d a t th e F e d e ra l R e se rv e B a n k on D e c e m b e r 31, 1968,
in cash or o th e r im m e d ia te ly a v ailab le fu n d s or in a lik e face a m o u n t of T re a su ry b ills m a tu rin g D e c e m b e r 31, 1968. C ash a n d
exchange te n d e rs w ill receiv e eq u al tre a tm e n t. C ash a d ju stm e n ts w ill b e m a d e fo r differences b e tw ee n th e p a r v a lu e o f m a tu rin g
bills a cc ep te d in exchange a n d th e issue p ric e of th e new bills.
T h e incom e d eriv ed from T re a su ry bills, w h e th e r in te re st or gain from th e sale or o th e r d isp o sitio n of th e bills, does n o t
ha v 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 of 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 en u e C ode of 1954. T h e b ills are su b je ct to estate , in h eritan c e, g ift or o th e r excise taxes, w h e th er
F e d e ra l or S ta te , b u t a re e x em p t from all ta x a tio n now or h e re a fte r im po sed o n th e p rin c ip a l or in te re st 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 tates, o r b y a n y local tax in g a u th o rity . F o r p u rp o ses o f ta x a tio n th e a m o u n t of disco u n t
a t w hich T re a su ry bills are originally sold b y th e U n ite d S ta te s is con sidered to be in te re st. U n d e r Section s 454 ( b ) a n d 1221 (5 )
of th e In te rn a l R e v e n u e Code of 1954 th e a m o u n t of d isc o u n t a t w hich b ills issued h e re u n d e r a re sold is n o t con sidered to
accrue u n til such bills a re sold, re d ee m e d or otherw ise disposed of, a n d such bills a re excluded from c o n sid eratio n as c ap ital
assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life in su ran ce c o m p a n ies) issued h e re u n d e r need in clu d e in his
incom e ta x r e tu rn on ly th e d ifference 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 or on su b se q 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 or re d e m p tio n a t m a tu rity d u rin g th e ta x a b le y e a r fo r w hich th e r e tu rn is
m ade, as o rd in ary gain or loss.
T re a su ry D e p a rtm e n t C ircu lar No. 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 o f th e T re a s u ry b ills a n d
govern th e co nditions of th e ir issue. C opies of th e circ u lar 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 o r B ran ch.

In accordance with th e a b o v e announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, December 23, 1968. Tenders
may not b e entered by telephone.
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 December 31, 1968

Maturing December 31,1969

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________________ Branch
El Paso 79999

Houston 77001

_________ _______________________________

San Antonio 78206

<
Dat«)

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 TENDER $______________________________ NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
Prices should be ex$ ------- -------------------- @ _________ $----------------------------------pressed on the basis of

TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, RE ACCEPTABLE.
Denominations Desired

(S) $
(5) $
(a) $
(a) $

p
1,000 <
5,000 S

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M aturity Value

METHOD OF PAYMENT

□ By maturing bills
held by_____________________________
^ paymenf ke ma(j by____________
.
e

10,000 $ . _
_
50,000 $-----------

------------------------------□ Charge our reserve account on payment
date
Q D raft enclosed ( E f fe c tu a l d e liv e ry o f en clo sed

(a) $ 100,000 $______________
(a) $ 500,000 t -----------------------------(a) $1,000,000

d ra ft shall be on latest day which will perm it present­
m ent in order to obtain irrevocably collected funds on
paym ent date)

ly------------------------ ------

Delivery Instructions:

____________________________________________________
(Subscriber’s full nam e or corporate title)

□
□

Hold in Custody Account— Member
banks for own account only
Pledge to secure Treasury Tax and
Loan Account

— -------------- ----------

(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 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
received with this legend will not be opened until after the closing time specified in the public announcement, communi­
cations 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 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 announcement)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102