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C ir c u l a r N o . 68-68
M a r c h 13, 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 th e E le venth F e d e r a l R e serv e District:
Your a t te n t io n is in vited to th e fo llo w in g s t a t e m e n t g ivin g d e t a il s of tw o iss 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 $2,600,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M arch 21, 1968, in the am ount of
$2,506,556,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued M arch 21, 1968, in the am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated D ecember 21, 1967, and to m ature June 20, 1968, originally
issued in the am ount of $1,006,112,000, 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 M arch 21, 1968, and to m ature Septem ber 19, 1968.
T he 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 aturity value).
Tenders will be received at Federal Reserve Banks and Branches u p to the closing hour, one-thirty p.m., E astern
Standard Tim e, Monday, M arch 18, 1968. Tenders will not be received a t the T reasury D epartm ent, Washington. Each
tender must be for an even multiple 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. 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 B ranchei
on application therefor.
Banking institutions generally may 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 th eir own account.
Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investm ent securities. Tenders from others must 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 th e 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 h e 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 th e 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 M arch 21, 1968, in
cash or other im mediately available funds or in a like face am ount of Treasury bills m aturing M arch 21, 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.
The 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 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 Treasury bills are originally sold by the U nited States is considered to be interest. Under Sections 454 (b ) and
1221 (5 ) of the Internal Revenue Code of 1954 th e 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 a i
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, whether 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.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms 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 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 a so ,
H o usto n a n d S an 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 , M arch 18, 1968. T en d e rs m a y not
b e entered by telep h o n e.
Y ours very truly,
P. E. Coldw ell
P re s id e n t
Amount, Range and Approximate Yield of Accepted T en deri
91-Day Bills
182-Day Bills
D ue Ju n e 13, 1968
D ue Septem ber 12, 1968
$2,388,692,000________________ ______________Total Applied For_______________________________$1,743,080,000
$ 1,600,012,000------------------------------------------------- T otal Accepted-------------------------------------------------$ 1,000,480,000
98.721....... ....... ........ 5.060% . - . . ........ ...............................H igh______________________ 97.335_______
98.704___________ 5.127% ____ ___ _________________ X ow ______________________97.300_______ _ 5 .3 4 1 %
5.107% (1 )............. .......................... Average_________________ 97.3 1 0 ______________ 5.321% (1)
( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 5 .2 5 % for the 91-day bills, and 5 .5 4 % for
the 182-day bills.

(S e a re v e rie side for te n d e r form)

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


Maturing September 19, 1968

D ated M arch 21,1968
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
Th e_________________________________ Branch
El Paao 79999

Houston 77001


San Antonio 78206

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount
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 $200,000


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.
Prices should be e x ­
pressed on the basis of
100, with not more than
th ree decim al p la c e s,
e. g., 99.925. Fractions
must not be used.
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

Denominations Desired
Number of

M aturity Value

@ $
(a) $
(5) $


1,000 $□

5,000 $10,000 $-


50,000 $.
$ 100,000 $(a) $ 500,000 $

By m atu rin g bills
held b y _____________________________
P ay m en t to be m ade by_____________

< $


Charge our reserve account on paym ent
D ra ft enclosed ( E f f e c t u a l d e liv e r y o f en e lo w d
draft shall be on latest day which will permit pr«««ntment in order to obtain irrevocably collected funda on
payment date)

$1.,000,000 $Delivery In stru ctio n s:

Pledge to secure T reasury T ax and
Loan Account

(Subncriber’s full n am e o r c o rp o rate title)

Hold in Custody Account— Member
banks fo r own account only




Ship to-----------------------------------------

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

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


1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (m aturity
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 BILLS”. Since envelopes received
with this legend will not be opened until after the closing time specified in the public announcement, communications
relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank
or appropriate branch.
Any qualified or conditional tender will be rejected.
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 th at 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, b y ...................................................................................
a member of the firm”.
6 Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in v e st­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity v a lu e)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by ^
incorporated bank or trust company.
6 . I f the language of this form is changed in any respect, which, in the opinion of the Secretary of the T re a s u ry jg
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