View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Federal Reserve Bank of Dallas


Circular No. 68-251
N ovem ber 19, 1968


To All Banking Institutions a n d Others Concerned
in ihe Eleventh Federal Reserve District:

Your atten tio n is invited to the following s ta te m e n t giving details of a n issue of Treasury bills:
T he Treasury Departm ent, by this public notice, invites tenders for $2,000,000,000, or thereabouts, of 203-day Treasury
bills (to m aturity d a te ), to be issued D ecem ber 2, 1968. on a discount basis under com petitive and noncom petitive bidding as
hereinafter provided. T hese bills will represent an additional am ount of the series of bills dated October 24, 1968, to mature
June 23, 1969, originally issued in the am ount of $3,010,446,000. T he additional and originpl bills will be freely interchangeable.
T h ey will be accepted at face value in paym ent of incom e taxes due on June 15, 1969, and to the extent they are not presented
for this purpose the face am ount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these
bills in paym ent of June 15, 1969, incom e taxes m ay subm it the bills to a Federal R eserve B ank or Branch or to the Office of
the Treasurer of the U n ited States, Washington, not more than fifteen days before that date. In the case of bills subm itted in
paym ent of incom e taxes of a corporation they shall be accom panied by a duly com pleted Form 503 and the office receiving
these item s will effect the deposit on June 15, 1969. In the case of bills subm itted in paym ent of incom e taxes of all other tax­
payers, the office receiving the bills will issue receipts therefor, the original of which the taxpayer shall subm it on or before
June 15, 1969, to the D istrict Director of Internal R evenue for the D istrict in which such taxes are payable. T he bills 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 va lu e).
T enders w ill be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard T im e, Tuesday, Novem ber 26, 1968. Tenders will n o t be received at the Treasury 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 m ay not be used. It is urged that tenders be m ade on
the printed forms and forwarded in the special envelopes which will be supplied by Federal R eserve Banks or Branches on
application therefoi.
Banking institutions generally m ay subm it tenders for account of custom ers provided the nam es of the cutomers are
■e t 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 com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of the face am ount of Treas­
ury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust
com pany.
All bidders are required to agree not to purchase or to sell, or to make any agreem ents with respect to the purchase
or sals or other disposition of any bills of this issue at a specific rate or price, until after one-thirty p.m., Eastern Standard
T im e, Tuesday, N ovam ber 26, 1968.
Im m ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which
public announcem ent will oe made by the Treasury Departm ent of the am ount and price range of accepted bids. Those sub­
m 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 reser­
vations, noncom petitive tenders for $400,000 or less w ithout stated price from any one bidder will be accepted in full at the
average price (in three decim als) of accepted com petitive bids. P aym en t of accepted tenders at the prices offered m ust be m ade
or com pleted at the Federal R eserve B ank in cash or other im m ed iately available funds on D ecem ber 2, 1968, provided, how­
ever, any qualified depositary will be perm itted to m ake paym ent by credit in its Treasury Tax and Loan account for Treasury
bills allotted to it for itself and its customers up to any am ount for which it shall be qualified in excess of existing deposits
when so notified by the Federal R eserve Bank of its District.
T he incom e derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not
have any exem ption, as auch, and loss from the sale or other disposition of Treasury bills does not have any special treatm ent,
as such, under the Internal R evenue 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 im posed 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
at which Treasury bills are originally sold by the United States is considered to be interest. Undar Sections 454 ( b ) and 1221
( 5 ) of the Internal R evenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is not considered to
accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued hereunder need include in his
incom e 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 redem ption 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 term s of the Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

In acc o rd a n c e with the a b o v e a n n o u n c em en t, te nders will be received a t this b a n k a n d its bran c h e s a t El Paso,
Houston a n d San Antonio, up to twelve-thirty p.m., Central S tan d a rd Time, Tuesday, N ovem ber 26, 1968. Venders m ay
not be e n tered by te lep h o n e .
Yours very truly,
P. E. Coldwell

(See reverse side for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (

This issue of Treasury bills will be accepted at face value in payment of income taxes due on June 15,1969

Dated October 24, 1968


Maturing June 23, 1969

T o: Federal Reserve Bank, Station K, Dallas, Texas 75222
cr —
El Paso 79999

Houston 77001

San Antonio




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.

NOT TO EXCEED $400,000

Noncompetitive tenders for $400,000 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 e x ­
pressed on the basis of
100, with not more than
th ree decim al places,
e. g., 99.925. Fractions
must not be used.

Denomination Desired

N u m b er of

M a tu rity V alues

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


Payment to be made by..... ............ ......................... ......


By charge to our reserve account on payment date.


10,000 $50,000 $-

By charge to our Treasury Tax and Loan Account


1,000 *
5,000 $.

By draft enclosed (effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment

(Name of Bank)

@ $ 100,000 *
(a) $ 500,000 $.
@ $1 ,000,000 $

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 sale of other disposi­
tion of any bills of this issue at a specific rate or price, until
after one-thirty p.m., Eastern Standard Time, Tuesday, Novem­
ber 26, 1968.

Delivery Instructions:

--------------------------------------------------------- :
(Subscriber's f u ll n a m e or corporate title)

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


□ Pledge . to Secure Treasury Tax and
Loan Account


(A uthorized official s ig n a tu re an d title)

Ship to___________________________________

(F o r th e acc o u n t of, if te n d e r is fo r a n o th e r subscrib er)
(A ddress)


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
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 alter the closing time specified in the public announcement, communications
relating to other matters should not be enclosed. Envelopes for submitting tenders may be requested 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