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F ederal Reserve Bank









Circular No. 68-8
January 10, 1968

To All B a n k in g In stitutions a n d O th e r s C o n c e r n e d
in t h e E leven th F e d e r a l R eserv e District:
Your a t te n t i o n is in v ite d to th e f o llo w in g s t a t e m e n t giv ing d e t a il s of t w 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 $2,500,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing January IS, 1968, in the am ount of
$2,501,068,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued January 18, 1968, in the am ount of $1,500,000,000, or there­
abouts, representing an additional am ount of bills dated October 19, 1967, and to m ature April 18, 1968,
originally issued in the am ount of $1,000,119,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated Janu ary 18, 1968, and to m ature Ju ly 18, 1968.
T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive 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
denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value).
T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard Tim e, M onday, January 15, 1968. Tenders 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 th e 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. I t is urged th a t tenders be made
on the printed forms an d forwarded in the special envelopes which will be supplied by Federal Reserve B anks 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.
T enders will be received w ithout deposit from incorporated banks and tru st 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 the 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 th e 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 th e 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 T reasury 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, noncom petitive 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 com petitive bids for th e respective issues. Settlem ent for
accepted tenders in accordance with th e bids m ust be m ade or completed a t th e Federal Reserve Bank on January 18, 1968, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Janu ary 18, 1968. 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 and the issue price of the new bills.
T h e income derived from Treasury bills, w hether interest or gain from the sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other disposition of T reasury bills does not have any special treatm ent,
as such, under the Internal Revenue Code of 1954. T h e 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 the U nited States is considered to be interest. U nder 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 con­
sidered 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 th a n life insurance com panies) issued hereunder need include
in his income tax return only the difference between the 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 aturity during the taxable year for which the
return is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the T reasury bills and
govern th e 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 , t e n d e r s will b e r ec eiv e d c t this b a n k a n d its b r a n c h e s a t El P aso,
H o uston a n d San A n to n io u p to tw e l v e - th ir ty p.m ., Central S t a n d a r d Time, M o n d a y , J a n u a r y 15, 1968. T e n 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 .
Yours v e r y truly,
W a t r o u s H. Irons
P re sid e n t
Amount, R ange and Approximate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue Ju ly 11, 1968
Due April 11, 1968
_ _____ _______$2,000,758,000
____T otal Applied For..
______________________ __ $1,000,562,000
_____ T otal A ccepted__
P rice
______ __ 97.301____________ 5.339%
98.731______ ___ 5.020% .
.................. 97.272....
98.708___________ 5.111%._..
98.716____________5.080% ( 1 ) __ ____________
Average______ __ _______ ___97.282... _________ 5.376% (1 )
( 1 ) These rates are on a bank discount basis. T he equivalent coupon issue yields are 5.23 % for the 91-day bills, and 5.62% for
th e 182-day bills.

(See reverse side for tender form)

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


Maturing April 18, 1968

Dated October 19, 1967
To: Federal Reserve Bank, Station E, Dallas, Texas 75222
or —
El Paso 79999

Houston 77001

(D ate)

San Antonio 78206

P u rs u a n t to th e provisions of T re a s u r y D e p a rtm e n t C irc u lar No. 418 ( c u r re n t rev ision ) and th e p rovision s of t h e
public ann o u n cem en t issued by th e T re a s u r y D e p a rtm e n t, th e u n d ersig n ed offers to p u rc h a se T re a s u ry b ills in th e a m o u n t
show n below, and a g re e s to p ay fo r th e a m o u n t allo tted , on o r before th e issue d ate, b y th e m ethod a n d a t th e r a t e in d icated .


_NOT TO EXCEED $200,000

N oncom petitive te n d e rs fo r 5200,000 o r less t'rom an y one bidder, w ith out s ta te d price, w ill be accepted in fu ll a t th e a v e r a g e
price (in th re e decim als) of accepted com p etitiv e bids.



v------------- ----(i
f $ ____________________ (a)__________ ij>

P ric e s should be e x ­
p re s se d on th e b a sis o f
100, w ith n o t m o re t h a n
t h r e e d e c im a l p l a c e s ,
e. g., 99.925. F r a c tio n s
m u s t n o t be used.

S I ^ T E N D E R S M AY N O T B E E N T E R E D BY T E L E P H O N E . T E N D E R S BY W IR E , I F R E C E IV E D B E F O R E T H E
C LO SIN G H O L R , A R E A C C E P T A B L E .
D en o m in atio n s D esired
Number of

P a y m e n t f o r th is issue o f bills ca n n o t be m ad e
by c re d it to T re a s u r y T a x an d L o an A ccount.

M a tu rity V alue


(® ?
(a) ?

1,000 $
5,000 ?


10,000 $



50,000 $

(5) $

By maturing bills
held by_____________________________
Payment to be made by_____________


<® $ 100,000 $
<® $ 500,000 $


Charge our reserve account on payment
Draft enclosed (Effectual delivery of enclosed
draft shall be on latest day which will permit present­
ment in order to obtain irrevocably collected funds o n
payment date)

(a) ?1:,000,000 $
Delivery Instructions:

Pledge to secure Treasury Tax and
Loan Account

(Subscriber’s full name or corporate title)

Hold in Custody Account—Member
banks for own account only




(Authorized official signature and title)

Ship to----------------------------------------(For the account of, if tender is for another subscriber)


No te n d e r fo r less th a n $1,000 will be considered and each te n d e r m u s t be f o r a n a m o u n t in m u ltip les o f $1,000 ( m a tu r it y
valu e).
2 . T enders should be fo rw a rd e d in a n envelope clearly a d d ressed to th is b a n k o r a p p ro p r ia te b ran ch a s F isc a l A g e n t of t h e
U n ited S ta te s , w ith n o ta tio n on th e envelope re a d in g “ T E N D E R F O R T R E A S U R Y B IL L S ” . Since envelopes re c e iv e d
w ith th is legend w ill n o t be opened u n til a f te r th e closing tim e specified in th e public an n o u n cem en t, co m m u n ic atio n s
re la tin g to o th e r m a tte r s should n o t be enclosed. E nv elo p es f o r su b m ittin g te n d e rs m a y be obtained fro m th is b a n k
o r a p p ro p r ia te branch.
A ny qualified o r conditional te n d e r w ill b e rejected .
I f a co rp o ratio n m a k es th e te n d e r, th e fo rm should be signed by a n officer of th e c o rp o ra tio n a u th o riz e d to m a k e t h e
te n d e r and th e sig n in g of th e fo rm by an officer of th e co rp o ratio n will be co n stru ed as a re p re s e n ta tio n by him th a t h e
has been so a u th o rized . If th e te n d e r is m ad e b y a p a rtn e rs h ip it should be sig n ed by a m e m b e r o f th e firm , w h o
should sig n in th e fo rm “ ..........................................................., a c o p a rtn e rsh ip , b y ....................................................................................... t
a m em b er of th e firm ” .
T en d ers fro m those o th e r th a n in c o rp o ra te d b anks and tr u s t com panies or resp o n sib le and recognized d e a le rs in in v e s t­
m e n t secu rities w ill be d isreg ard ed , u nless accom panied b y a deposit of 2 p e rc e n t o f th e to ta l a m o u n t ( m a tu r ity v a lu e )
of th e T re a s u r y bills applied fo r, o r u n le ss the te n d e rs a re accom panied by a n ex p re s s g u a r a n ty o f fu ll p a y m e n t b y a n
in co rp o rated b an k o r t r u s t com pany.

If the language of this form is changed in any respect, which, in the opinion of the Secretary of the T reasury is
m aterial, the tender m ay be disregarded.
(See reverse fo r announcem ent)

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