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Circular No. 68-25
January 31,1968

To All B a n k i n g Institutions a n d O th e r s C o n c e r n e d
in t h e E le v en th F e d e r a l R eserv e District:
Your a t t e n t i o n is in v ite d to th e fo llo w in g s t a t e m e n t giving d e t a il s of tw o iss u e s of T re as u 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 February 8, 1968, in th e am ount of
$2,501,967,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued February 8, 1968, in the am ount of $1,500,000,000, or there­
abouts, representing an additional am ount of bills dated November 9, 1967, and to m ature M ay 9, 1968,
originally issued in the am ount of $1,000,647,000, 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 February 8, 1968, and to m ature August 8, 1968.
T h e bills of both series will be issued on a discount basis under competitive 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 atu rity value).
Tenders will be received a t Federal Reserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, February 5, 1968. T enders 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 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 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 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 th e 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 a n n o u n c e m e n t will be made by the T reasury D epartm ent of the am ount and price range o f 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 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 the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or completed a t the Federal Reserve B ank on February 8, 1968, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing February 8, 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 th e new bills.
T h e income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of the bills, does n ot
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, w hether
Federal or State, b ut 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 United States, or by any local taxing authority. F o r 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 th e Internal Revenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is n ot 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 th e 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 (cu rrent 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 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 re 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 ntral S t a n d a r d Time, M o n d a y , F eb r u a r y 5, 19 68. T e n d e rs m a y
not b e e n t e r e d by t e l e p h o n e .

Yours very truly,
W a tr o u s H. Irons
P re sid en t
Amount, Range and Approxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue M ay 2, 1968
D ue August 1, 1968
$2,469,851,000_______________________________T otal Applied F o r_______________________________$1,918,134,000
$ 1,500,206,000_________________________ ______T otal Accepted.__________________ __ __________ $1,000,052,000
P rice
4.815% __________________________H igh______________________97.515___________ .4.915%
98.767____________4.878% __________ ___
_ _
Low______________________97.478___________ .4.989%
.4.846% ( 1 ) _______________
_ Average____________________ 97.494___________ .4.957% (1)
( 1 ) T h e s e rates are on a b ank discou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 4 .9 9 % for th e 9 1 - d a y bills, and 5 . 1 7 % 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 (


Maturing May 9,1968

Dated November 9,1967
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
£1 Paso 79999

Houston 77001

(D ate)

San Antonio 78206

P u rs u a n t to th e provision s o f 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 revisio n) an d th e provision 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 rch ase T re a s u r y bills in th e 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 tted , on o r b efo re th e issue d ate, by th e m e th o d and a t th e r a t e in d ic a te d .



Noncompetitive tenders for $200,000 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.



P ric e s should b e e x ­
p ressed on th e b a sis o f

100. with not more than



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.

(E X T E N D E R S M A Y 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 L O S IN G H O U R , A R E A C C E P T A B L E .

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

Denominations Desired
Number of

M a tu rity Value


1,000 *.
5,000 ?-


10,000 $50,000 $-


<> $ 100,000 $g
(a) $ 500,000 $$1,000,000 ?-


<> $
(a) ?
(a) $
(a) $


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 l i v e r y o f enclosed
d r a f t shall be on latest day which wi]] p e rm it p r e s e n t­
m e n t in order to obtain irrevocably collected fu n d s o n
p a y m e n t date)

Delivery Instructions:

Pledge to secure Treasury Tax and
Loan Account

(S ub scriber’s full n a m 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 th e account of, if te n d e r ia f o r a n o th e r su b scrib er)

(A ddress)

1. No te n d e r f o 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 $1,0C0 ( m a tu r it y
v a lu e ).
2 . T en d ers should be fo rw a rd e d in a n envelope c learly a d d re s se d to th is b a n 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 n ite d 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 receiv ed
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 anno uncem ent, co m 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 f o 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
o r a p p ro p r ia te branch.
A ny qualified o r co nditional 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 ra tio n a u th o riz e d to m a k e t h 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 co n stru ed as 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 ad e by a p a rtn e rs h ip i t 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 c o p a rtn e rsh ip , b y .....................................................—..............................,
a m e m b er of th e firm ”.
5. T en d ers fro m th o se o th e r th a n in c o rp o ra te d b anks an d tr u s t com panies o r resp o n sib le a n d 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 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 r y bills applied fo r, or u n le ss th e te n d e rs a r e accom panied by a n ex p re ss 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 a n k o r tr u s t com pany.
6. If the language of this form is changed in any respect, which, in th e opinion of the S ecretary of the T reasu ry is

m aterial, th e tender m ay be disregarded.

(See reverse for announcement)

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