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F ederal R eserve Bank







Circular No. 68-9
January 10, 1968

To All B a n k in g Institutions a n d O th e r s C o n c e r n e d
in t h e Eleventh F e d e r a l R e serv e District:
Your a t t e n t i o n is in v ited 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 t w o is s u e s of T re asu ry bills:
T h e 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 Jan uary 18, 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 Jan u 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 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
denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value).
Tenders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
S tandard Tim e, M onday, Jan uary 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 the case of competitive 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 th e printed forms and 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 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.
Tenders will be received w ithout deposit from incorporated bank3 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 the face am ount of
T reasury bills applied for, unless the tenders are accom panied 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 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 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 reservations, noncompetitive tenders for each issue for $200,000 or less without 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 th e bids m ust be m ade or com pleted a t the Federal Reserve B ank 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 January 18, 1968. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
T h e income derived from T reasury 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 Treasury 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, b u t are exempt 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. F or purposes of taxation the am ount of discount
a t which Treasury bills are originally sold by the U nited States is considered lo 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 ep artm ent Circular No. 418 (curren t revision) and this notice, prescribe the 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 t h 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 rec eiv 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,
Houston a n d San A n to n io up 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 en t
Amount, R ange and Approxim ate Yield of Accepted Tenders
91-Day Bills
D ue April 11, 1968
$1,500,255,0 0 0 _ ______________
P rice
98.731______ ____ 5.020% _____
98.708___________ 5.111% _____
98.716___________ 5.080% ( 1 ) .

182-Day Bills
D ue Ju ly 11, 1968
_____________ $2,000,758,000
-T otal Applied F o r__ __ _________
______ ______ $1,000,562,000
__ T otal Accepted____________ ___
—97.282___________ 5.376% (1)

( 1 ) T h e s e ra tes are o n a bank discount basis. T h e e q u iv a le n t coupon issue y ie ld s are S.2 3 % for th e 9 1 -d a y bills, and 5 . 6 2 % for
t h e 1 8 2 - d a y b i ll s .


(See reverse side for tender form)

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


Dated January 18, 1968

Maturing July 18, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
E l P aso 79999

H ouston 77001

S an A nton io



P u rs u a n t to th e pro visions 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 revision ) an d th e provisions of t h e
public an noun cem ent issued b y th e T re a s u ry D e p a rtm e n t, th e u ndersign ed offers to p u rch ase T re a s u r y bills in the a m o u n t
show n below, an d a g re e s to p a y fo r th e a m o u n t allo tte d , on or before th e issue d ate, b y th e m ethod an d a t th e r a te in d ic a te d .



N oncom petitive te n d e rs fo r $200,000 or less from any one bidder, w itho ut s ta te d price, w ill be accep ted in fu ll a t the a v e r a g e
price (in th re e decim als) of accepted com p etitiv e bids.


$ ....
e x t e n d e r s





P ric e s should be e x ­
p re s se d on th e b asis o f
100, w ith n o t m "re th 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.





teleph o n e

, t e n d e r s b y w ir e , if r e c e iv e d b e f o r e t h r

C LO SIN G H O U R , A R E A C C E P T A B L E .
D enom in atio ns D esired
Number of

P a y m e n t f o r th is issu e of bills can n o t be m a d e
by c re d it to T re a s u r y T a x a n d L oan A ccount.

Maturity Value

<® $
(5> $

5,000 $
10,000 ?

® ?


1,000 $

50,000 $


By maturing bills
held b y _________________________
Payment to be made by___________ _

& ? 100,000 $
(® ? 500,000 $


Charge our reserve account on payment
I I Draft enclosed ( E f f e c t u a l d e liv e r y o f enclosed

(a) $1,,000,000 ?

draft flhall be on latest day which will permit p r « e n t ment in order to obtain irrevocably collected fund* on
payment date)

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

Ship to................................... ....... ...........


(Authorized official signature and title)
(For the account of, if tender is for another subscriber)


1. No te n d e r fo r less th a n $1,000 w ill be considered and each te n d e r m u s t be f o r a n am o u n t in m u ltip les of $1,000 ( m a tu r it y
2. T enders should be fo rw a rd e d in a n envelope c learly a d d ressed to th is b an k o r a p p ro p r ia te b ran ch a s F is c a l A g e n t o f t h e
U nited 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 received
w ith th is legend w ill n o t be opened u n til a f t e r th e closing tim e specified in th e public anno uncem ent, com m u n icatio n s
re la tin g to o th e r m a tte r s should n o t be enclosed. E n v elo p es fo r s u b m ittin g te n d e rs m a y be ob tained fro m th is bank
or a p p ro p ria te b ranch.
3. A ny qualified or conditional te n d e r w ill be rejected .
4. If a corp o ratio n m a k es the te n d er, th e fo rm should be sig ned by a n officer of th e co rp o ratio n au th o rized to m a k e th e
te n d e r an d th e sig n in g of th e fo rm by a n officer of th e corp o ratio n w ill be construed as a re p re s e n ta tio n by him t h a t h e
has been so a u th o rized . I f th e te n d e r is m ade by a p a rtn e rs h ip it should be sig n ed by a m e m b er o f th e firm , w h o
should sig n in th e fo rm “ ..............................................
a co p a rtn e rsh ip , b y ......................................................................................
a m em b er of th e firm ” .
5. T en d ers fro m those o th e r th a n in c o rp o rated b anks and tr u s t com panies o r resp o n sib le an d recognized d ealers in in v e s t­
m e n t secu rities w ill be d isreg ard ed , u nless accom panied by a dep o sit of 2 p e rc e n t of 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 ry bills applied fo r, o r u nless th e te n d e rs a re ' accom panied by a n ex p re ss g u a ra n ty o f fu ll p a y m e n t b y an
in c o rp o rated b an k o r t r u s t com pany.

G 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