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F ed er a l R eserve Ba n k

of

Dallas

F IS C A L A G E N T O F T H E U NITED S T A T E S

DALLAS, TEXAS

75222
C ircu la r N o. 68-214
O cto b er 11, 1968

NEW OFFERING
TREASURY BILLS — TAX ANTICIPATION SERIES

To All Banking Institutions a n d O thers Concerned
in the Eleventh Federal Reserve District:

Your atten tio n is invited to the following sta te m e n t giving details of a n issue 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, in v ite s te n d e rs for $3,000,000,000, or th ere ab o u ts, o f 242-day T re a su ry
bills, to b e issued on a d isco unt 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 p rov ided . T h e b ills of th is
series w ill be d a te d O cto b er 24, 1968, a n d will m a tu re J u n e 23, 1969. T h e y w ill be a cc ep te d a t face valu e in p a y m e n t of incom e
tax es d u e on J u n e 15, 1969, an d to th e e x te n t th e y a re n o t p re se n te d fo r th is p u rp o se th e face a m o u n t of th ese bills w ill be
p a y a b le w ith o u t in te re st a t m a tu rity . T a x p a y e rs desirin g to a p p ly th ese b ills in p a y m e n t of J u n e 15, 1969, incom e tax es m ay
su b m it th e b ills to a F e d e ra l R e se rv e B a n k or B ra n ch o r to th e Office of th e T re a su re r of th e U n ite d S tates, W ash in gto n, n o t
m ore th a n fifteen d ays befo re t h a t d ate. In th e case of bills su b m itte d in p a y m e n t of incom e tax es of a c o rp o ratio n th e y shall
be acco m p an ied b y a d u ly co m p le te d F o rm 503 a n d th e office re ce iv in g th ese ite m s w ill effect th e d e p o sit on J u n e 15, 1969. In
th e case of bills su b m itte d in p a y m e n t of incom e taxes of all o th e r tax p ay ers, th e office receiv in g th e bills w ill issue re ce ip ts
th ere fo r, th e o rig in al of w hich th e ta x p a y e r shall su b m it o n o r b efore J u n e 15, 1969, to th e D is tric t D ire c to r o f In te rn a l
R e v en u e fo r th e D istric t in w hich such taxes a re pay ab le. T h e b ills will be issued in b e a re r form only, a n d in d e n o m in atio 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 b e receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ran ch es u p to th e closing hour, o n e -th irty p.m ., E a s te rn
D a y lig h t S aving T im e , T h u rsd a y , O cto b er 17, 1968. T e n d e rs will n o t be received a t th e T re a su ry D e p a rtm e n t, W ashing ton . E a c h
te n d e r m u st be for a n ev en 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 on
th e basis of 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 ay n o t b e used. I t is u rg ed 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 envelo pes w hich will be su p p lied b y F e d e ra l R e se rv e B a n k s or B ra n ch e s on
a p p lic a tio n th erefor.
B an k in g in stitu tio n s g en erally m ay su b m it tend er* fo r a cc o u n t of cu sto m ers p ro v id ed th e nam es of th e cu to m e rs are
se t fo rth in such ten ders. O th ers th a n b an k in g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs ex cep t fo r th e ir ow n account.
T e n d e rs will be received w ith o u t d e p o sit from in co rp o ra ted b a n k s an d tru s t co m pan ies a n d fro m resp o n sib le an d recognized
d ealers in in v e stm e n t securities. T e n d e rs from o th ers m u st b e acco m p an ied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of T re a s­
u ry bills a p p lie d for, unless th e te n d e rs a re a cco m p an ied by a n express g u a ra n ty of p a y m e n t b y a n in co rp o ra ted b a n k o r tru s t
com pany.
All b id d ers are re q u ire d to ag ree n o t to p u rc h ase or to sell, or to m ak e a n y a g ree m e n ts w ith re sp e ct to th e p u rc h ase
or sale o r o th e r dispositio n of a n y bills of th is issue a t a specific ra te o r p rice, u n til a fte r o n e -th irty p.m ., E a s te rn D a y lig h t
S aving T im e , T h u rsd a y , O cto ber 17, 1968.
Im m e d ia te ly a fte r th e closing hour, te n d e rs will b e opened a t th e F e d e ra l R e se rv e B an k s and B ran ches, follow ing w h ich
p u b lic an n o u n ce m en t will 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 ran ge of acc ep te d bids. T h o se su b ­
m ittin g ten d e rs will b e a d v isee of th e a cc ep ta n ce or reje ctio n th ere o f. T h e S e c re ta ry of th e T re a su ry expressly reserves th e rig h t
to accep t or re je ct any or all ten d e rs, in w hole or in p a rt, and his action in a n y such re sp e ct shall be final. S u b je c t to th e s e re se r­
vations, n o n c o m p e titiv e ten d e rs fo r $400,000 or less w ith o u t sta te d p rice from 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) of acc ep te d c o m p e titiv e bids. P a y m e n t of a cc ep te d te n d e rs a t th e p rices offered m u st b e 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 in cash o r o th e r im m e d ia te ly a v ailab le fu n d s on O cto b er 24, 1968, p ro v id ed , how ever,
a n y qualified d e p o sita ry w ill be p e rm itte d to m ak e p a y m e n t b y c re d it in its T re a su ry T a x a n d L o an a cco u n t fo r T re a su ry bills
a llo tte d to it for itself a n d its cu stom ers u p to a n y a m o u n t fo r w hich it sh all be qualified in excess of ex isting d ep o sits w h en so
notified b y th e F e d e ra l R e se rv e B a n k of its D istrict.
T h e incom e d e riv e d from T re a su ry bills, w h e th er in te re s t or g ain from th e sale o r o th e r d ispositio n of th e bills, does n o t
h a v e an y e x em ptio n, as snch, an d loss fro m th e sale or o th e r d isp o sitio n of T re a su ry bills does no t h a v e an y sp ecial tre a tm e n t,
as such, u n d e r th e I n te r n a 1 R e v en u e C ode of 1954. T h e bills a re su b je c t to e sta te , 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 o r S ta te , b u t a re ex em p t fro m all ta x a tio n now or h e re a fte r im posed on th e p rin cip a l o r in te re st th e re o f b y a n y S ta te ,
o r an y of th e possessions of th e U n ite d S ta te s, or b y a n y local tax in g a u th o rity . F o r p urp oses of ta x a tio n th e a m o u n t of discou nt
a t w hich T re a su ry bills a re o rig in ally sold by th e U n ite d S ta te s is consid ered to b e in te re st. U n d e r Sections 454 ( b ) an d 1221
( 5 ) of th e In te rn a l R e v en 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 co nsid ered to
a ccru e u n til such bills a re sold, re d ee m e d or o therw ise d isposed of, an d such bills a re exclu ded fro m c o n sid eratio n as c a p ita l
assets. A ccordingly, th e ow ner of T re a su ry b ills ( o th e r th a n life in su ran ce co m p a n ies) issued h e re u n d e r n e ed in clu d e in hia
incom e tax re tu rn only th e difference betw een th e p rice p a id for such bills, w h e th e r on original issue o r on su b seq u e n t p u rchase,
a n d th e a m o u n t a ctu a lly received e ith e r u p o n sale o r 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 ia
m ade, as o rd in ary g ain or loss.
T re a su ry D e p a rtm e n t C ircu la r 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 con ditio ns of th e ir issue. C opies of th e c irc u lar m ay be o b tain e d fro m an y F e d e ra l R e se rv e B a n k o r B ranch.

In a c co rd an ce with th e a b o v e a n n o u n c e m e n t, te n d e rs will b e received a t this b a n k a n d its b ra n c h e s a t El Paso,
Houston a n d San Antonio, up to tw elve-thirty p.m., Central Daylight Saving Time, Thursday, O ctober 17, 1968. Tenders
m a y not be en te re d by te le p h o n e .
Yours very truly,
P. E. Coldwell
President

( e rv r esd frt n e f r )
S e ee s ie o e d r o m

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

T his issue o f Treasury bills will be accepted at face value in paym ent of income tax es due on June 1 5,1 96 9
T A X A N T I C I P A T I O N SERIES
Dated October 24, 1968

242 D A Y S T O M A T U R I T Y

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

Houston 77001

San Antonio

Maturing June 23, 1969

_____

78206

(D ate)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the
provisions of the public announcement, as shown on reverse side, as 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 T E N D E R $
_

_„NOT T O E X C E E D $400,000

Noncom petitive tenders for $400,000 or less from any one bidder, without stated price, w ill be accepted in
full at the average price (in three decim als) of accepted com petitive bids.

1
[
COMPETITIVE TENDERS <

$

«
(5)

*
1

$
$

---

, ________

________

Prices should be ex­
pressed on the basis of
1 0 0 , with not more than
th ree d ecim al p la ces,
e. g., 99.925. Fractions
m ust not be used.

BjgrTENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denomination Desired
Number of
Pieces

METHOD OF PAYMENT

Maturity Values

(a) $

1,000 $

□

By charge to our Treasury Tax and Loan Account

() $
a

5,000 $

□

Paym ent to be made by...................................................

() $
5

10,000 $

() $
a

50,000 $

(Nam e of Bank)
□

( > $ 500,000
3
() $1,000,000 $
a

By charge to our reserve account on payment date.

□

(a) $ 100,000 $

By draft enclosed (effectual delivery of enclosed draft
shall be on latest day which w ill permit presentment in
order to obtain irrevocably collected funds on payment
date).

We certify that we. as well as our customers, if any, listed
hereon have agreed not to purchase or to sell, or to make any
agreements with respect to the purchase or sal° or other disposi­
tion of any bills of this issue at a specific rate or price, until
after one-thirty p.m., Eastern Daylight Saving Time, Thursday,
October 17, 1968.

Delivery Instructions:

------------------------------------------------------------(Subscriber’s full name or corporate title)

□ Hold in Custody Account — Member
banks for own account only

(A
ddreaa)

□ Pledge .to Secure Treasury Tax and
-r
.
Loan Account

By-----------

[~| S h i p t o _______________________________________________

(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 w ill be considered and each tender must be for an amount in m ultiples of $1,000 (maturity
value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of the
United States, with notation on the envelope reading “TEN DER FOR TREASURY BILLS”. Since envelopes received
with this legend w ill not be opened until af^er the closing time specified in the public announcement, communications
relating to ether m atters should not be enclosed. Envelopes for subm itting tenders may be requested from this bank or
appropriate branch.
3. Any qualified or conditional tender w ill be rejected.
4. If a corporation makes the tender the form should be signed by an c fiicer of the corporation authorized to make the
tender and the signing of thp form by an officer of the corporation w ill 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 w ill 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