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F ederal Reserve Bank o f Dallas
F IS C A L A G E N T O F T H E U N ITE D S T A T E S

DALLAS, TEXAS 75222
Circular No. 68-272
December 23, 1968

NEW OFFERING — TREASURY BILLS
| To All B a n k in g Institutions a n d O th ers C o n c e r n e d
in t h e Ele venth F e d e r a l R eserv e District:

KVi OX0 ./V t/ / 3 /O >» £

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 giv ing d e t a il s of tw o is s u e s of T re as u 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 Janu ary 2, 1969, in th e am ount of
$2,701,605,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued January 2, 1969, in the am ount of $1,600,000,000 or there­
abouts, representing an additional am ount of bills dated October 3, 1968, and to m ature April 3, 1959,
originally issued in the am ount of $1,101,507,000, 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 January 2, 1969, and to m ature Ju ly 3, 1969.
T he 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, and in
denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value).
Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard Tim e, Friday, December 27, 1968. T enders 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 com petitive tenders the price offered m ust be expressed on
th e basis of 100, with not more th an three decimals, e.g., 99.925. Fractions m ay not be used. It is urged th a t tenders be m ade
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 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 w ithout deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accompanied 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 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 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 th e acceptance or rejection thereof. T he Secretary of the Treasury expressly reserves the
righ 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 the Federal Reserve B ank on Jan u ary 2, 1969,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing January 2, 1969. 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 an d the issue price of the new bills.
T he income derived from Treasury 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, whether
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 T reasury bills are originally sold by th e U nited States is considered to be interest. U nder Sections 454 (b ) and
1221 (5 ) of the Internal Revenue Code of 1954 th e 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 than life insurance com panies) issued hereunder need include
in his income tax retu rn 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 redem ption a t m aturity during th e 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 th e terms of the T reasury bills and
govern the 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 th 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 ou ston a n d San A n to n io u p to t w e l v e - th ir ty p .m ., Central S t a n d a r d Time, Friday, D e c e m b e r 27, 1968. T en 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 .
Y ours very truly,
P. E. Coldw ell
P re s id e n t

Figures co n ce rn in g offering o f 9 1 -D ay Treas ur y Bills ma turing M a rch 2 7 , 1 9 6 9 , a n d 1 8 2 - D a y Treasury Bills ma turing Ju n e 26,
1 9 6 9 , n o t a v a i l a b l e w h e n this circular w a s printe d .

(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
D ated October 3, 1968

M aturing April 3, 1969

To: Federal Reserve Bank, Station K, Dallas, T exas 75222
or —
The_________________________________Branch
El Paso 79999

Houston 77001

San Antonio 78206

(D a ta )

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.

OBSERVE

CLOSING

DATE — FRIDAY, DECEMBER

27, 1968

NONCOM PETITIVE TEN D ER $_

.NO T TO EX C EED $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.

;
COM PETITIVE TEN D ER S j $.
;

()
a
()
a

$

.........

Prices should be ex ­
pressed on the basis of
100, with not more than
th ree d e c im a l p laces,
e. g., 99.925. F r a c tio n s
must not be used.

a S P TEN DERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY 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.

N umber of
M a tu rity V alu e

P ieces

METHOD OF PAYMENT

(do $
(5) $

1,000 $.
5,000 $

?

10,000 $.
50,000 $■

□

& $ 100,000 $.
(a) $ 500,000 $.
(a) $1 ,000,000

□

#

$

□ By m a tu rin g bills

I

held by______________________
P ay m en t to be m ade by.

Charge our reserve account on pay m en t
date
I

Dl

a f t e n d O S G 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 ra ft
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 in
o r d e r t o o b t a i n i r r e v o c a b l y c o lle c te d f u n d a o n p a y m e n t
d a te )

Delivery In stru c tio n s :
□
□

Pledge to secure T reasury T ax and
Loan Account

□

( S u b s c r ib e r '* f u ll n a m e o r c o r p o r a t e tit le )

Hold in Custody A ccount— M ember
banks fo r own account only

Ship to__________________________

(A ddress)

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 )

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)

IM P O R T A N T

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)