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Federal Reserve bank






Circular No. 68-101
April 24, 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 Ele venth F e d e r a l R e serv e District:
Y our 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 giv ing d e t a i l 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 th e aggregate am ount of
$2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M ay 2, 1968, in the am ount of
$2,500,107,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued M ay 2, 1968, in the am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated February 1, 1968, and to m ature August 1, 1968, originally
issued in the am ount of $999,988,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S (to m aturity date) to be issued M ay 2, 1968, in the am ount of $1,100,000,000, or thereabouts,
representing an additional am ount of bills dated October 31, 1967, and to m ature October 31, 1968, originally
issued in the am ount of $1,001,770,000 (an additional $500,170,000 was issued January 31, 1968), the addi­
tional and original bills to be freely interchangeable.
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 without interest. T hey will be issued in bearer form only, and in
denom inations 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
D aylight Saving Tim e, M onday April 29, 1968. Tenders will not be received a t the Treasury D epartm ent, Washington. Each
tend er m ust be for an even multiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on
th e 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 Banks or Branches
on application therefor.
B anking institutions generally may 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 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 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 th e 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 find. 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 the bids m ust be m ade or completed a t the Federal Reserve Bank on M ay 2, 1968, in
cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing M ay 2, 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 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, w hether
Federal or State, b u t 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. For purposes of taxation the am ount of discount
a t which Treasury bills are originally sold by the United States is considered to be interest. Under Suctions 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 as
capital assets. Accordingly, the owner of T reasury 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 at m aturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (curren t 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 , te n d e r s will b e rec 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 San A n to n io u p to tw e l v e - th ir ty p. m., Centr al D aylig ht Saving Time, M o n d a y , April 29, 1968. T en de 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,
P. E. Co ld w ell
P re sid e n t
Amount, Range and A pproxim ate Yield of Accepted Tenders
91-Day Bills
D ue Ju ly 25, 1968
98.614____ _______ 5.483%_...... .
98.593___________ 5.566% _____
98.599____ _______ 5.542% (1 ) .

-Total Applied For.
— T otal Accepted_
-H igh-------------... Low___
Average . ------

182-Day Bills
D ue October 24, 1968
* 2 5 ____ __ _ ___ 1$2,327,710,000
_______________________ $1,100,332,000
P rice
- ....... —97.138—___ ______ 5.661%
— ........... 97.124___ _________ 5.689% (1)

( 1 ) These rates are on a bank discount basis. T he equivalent coupon issue yields are 5 . 7 0 % for the 91-day bills and 5 9 4 % for
the 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 (


Dated February 1, 1968

Maturing August 1, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
T h e________________________________ Branch
El Paso 79099

Houston 77001

San Antonio 7820S


Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.

NONCOMPETITIVE TENDER $_______________________________ 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 ex­
----------------------------- pressed on the basis of
100, with not more than
----------------------------- th ree decim al p la ce 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 atu rity Value

(5) $
((}) $
(a) $

5,000 $_

10,000 $_

(a) $


1,000 $_

50,000 $


By m atu rin g bills
held by______________________________
P ay m en t to be m ade by______________


$ 100,000 $_
m $ 500,000 $_

Charge our reserve account on p ay m en t

|_ t D r a f t e n c l o s e d ( E f f e c t u a l d e liv e r y o f e n c lo s e d
d r a f t shall be on latest d ay which will p e rm it p re s e n t­
m e n t in o rder to o b ta in irrevocably collected funda o n
p a y m e n t date)

Delivery In stru ctio n s:

(S u b sc rib e r’s full n am e or c o rp o ra te title)

□ ' Hold in Custody Account— M ember
banks fo r own account only

Pledge to secure T reasu ry T ax and
Loan Account

(A ddress)


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

(Authorized official signature and title)
( F o r the acc o u n t of, if te n d e r is fo r a n o th e r subscriber)

( Addresa)

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 th e
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.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make th e
tender and the signing of the form by an officer of the corporation will be construed as a representation by him that h e
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, w ho
should sign in the form “...................... ................................. , a copartnership, by .................................................................................
a member of the firm”.
5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in vest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount m a tu rity valu e)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or trust company.
6. 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 fo r announcem ent)

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