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Circular No. 68-15
January 17, 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 E leven th 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 f o llo w in g s t a t e m e n t giving d e t a i l s of tw o iss u es of T re asury 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 January 25, 1968, in th e am ount of
$2,501,384,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued January 25, 1968, in the am ount of $1,500,000,000, or there­
abouts, representing an additional am ount of bills dated October 26, 1967, and to m ature April 25, 1968,
originally issued in the am ount of $1,000,763,000, 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 25, 1968, and to m ature Ju ly 25, 1968.
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 th eir 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 atu rity value).
Tenders will be received at Federal Reserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, January 22, 1968. Tenders will not be received a t the T reasury D epartm ent, Washington. Each
tender must 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 may not be used. It is urged th a t tenders be made
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 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.
T enders will be received without 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 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 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 the 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 at 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 made or completed a t the Federal R eserve B ank on January 25, 1968, in
cash or other im m ediately available funds or in a like face amount of T reasury bills m aturing January 25, 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 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 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, b ut 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 United 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 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 than life insurance companies) 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 term s of the T reasury bills and
govern the 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 e 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 ,
Houston a n d S an A n to n io u p to tw e l v e - th ir ty p.m .. C e n tral S t a n d a r d Time, M o n d a y , J a n u a r y 22, 19 68. T e n d e rs m c y
not b e e n t e r e d by t e l e p h o n e .
Y ours v e r y truly,
W a t r o u s H. Irons
P re sid en t
Amount, Range and Approximate Yield of Accepted Tenders
91-D ay Bills
182-Day Bills
D ue April 18, 1968
D ue Ju ly 18, 1968
...Total Applied For..
$1,502,048,000________________ __ _
_T otal Accepted___
..97.360______ ___5.222%
98.723_____ ___ .....5.05 2 % _____ ________________ ___ H igh—
97.348___________ 5.246%
98.716____________ 5.080% .....
________________ Low__
..5.238% (1)
98.718.................... -.5 .0 7 2 % ( 1 ) ________ ____________Average..
( 1 ) T h e s e rates are on a bank discount basis. T h e eq u iva le n t coupon issue y ie ld s are 5 . 2 2 % for th e 9 1 -d a y bills, and S .4 7 % for
t h e 18 2-d ay 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 25, 1968

Dated October 26, 1967
To: Federal Reserve Bank, Station K, 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 revision) and th e p ro visions of t h e
public anno uncem 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 bills in th e a m o u n t
show n below, and a g re e s to p a y fo r th e a m o u n t allo tted , on oi befo re the issue d ate, by th e m etho d an d a t th e r a t e in d ic a te d .

NONCOMPETITIVE TENDER $_______________________________ NOT TO EXCEED $200,000
N o n com petitiv e te n d e rs fo r $200,000 or less from any one bidder, w ith o J t 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 d ecim als) o f accepted co m petitiv e bids.


P ric e s should be e x ­
p re sse d on th e b a sis o f
100. -vith 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.




C LO SIN G H O U R , A R E A C C E P T A B L E .
P a y m e n t fo r th is issue of bills ca n n o t be m a d e
by c re d it to T re a su ry T a x and L oan A ccount.

D en o m in atio n s D esired
N u m b e r of

M a tu rity Value


<) $
(q) $

1,000 ?
5,000 $


<> ?

10,000 $


50,000 $

(® ?
(S) ? 100,000 ¥
& $ 500,000

By maturing bills
held by__________________________ _
Payment to be made by_____________



Charge our reserve account on payment
|~| Draft enclosed ( E f f e c t u a l d e liv e r y o f enclosed
d r a f t shall be on latest day w hich will p e rm it p r e s e n t ­
m e n t in o rd e r to obtain irrevo cab ly collected fu n d s o n
p a y m e n t date)

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

Pledge to secure Treasury Tax and
Loan Account

(S ubscriber’s fu ll n am e or c o rp o ra te title )

Hold in Custody Account— Member
banks for own account only




Ship to____________________ ______

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

(F o r the acco un t of, if te n d e r is fo r a n o th e r subscriber)


1. N o te n d e r fo r less th a n $1,000 w ill be considered an d each te n d e r m u s t be fo r a n a m o u n t in m u ltip les of $1,000 ( m a t u r i t y
v a lu e ).
2. T en d ers should be fo rw ard ed in a n envelope cle a rly ad d re s se d to th is b an k or a p p ro p r ia te b ran ch as F is c 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 t e r th e clo sin g tim e specified in th e public an nou ncem ent, co m m u n ic atio n s
re la tin g to o th e r m a tte rs should n o t be enclosed. E nv elo p es fo r su b m ittin g te n d e rs m a y be o b ta in ed fro m th is b a n k
or a p p ro p r ia te b ranch.
A ny qualified o r conditional te n d e r w ill be 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 sig n ed by a n officer of th e co rp o ratio n a u th o riz e d to m a k e t h e
te n d e r a n d th e sig n in g of th e fo rm by a n officer o f th e corporation w ill be co n stru ed a s a re p re s e n ta tio n by him t h a t h e
h a s been so au th o rized . If th e te n d e r is m ade by a p a rtn e rs h ip i t should be sig n ed by a m e m b er of 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 ....................................................................................... ,
a m e m b er of th e firm ”.
T en d ers fro m th o se o th e r th a n in c o rp o rated b a n k s 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 will be d isreg ard ed , u nless accom panied by a dep o sit 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 nless th e te n d e rs a re accom panied by a n ex p ress g u a r a n ty o f fu ll p a y m e n t b y a n
in c o rp o rated b an k o r tr 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 i s

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