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F ederal






DALLAS, TEXAS 7 5 2 2 2

Circular No. 68-118
May 15, 1968

To All B a n k in g Instit utions a n d O th e r s C o n c e r n e d

t h e Ele venth F e d e r a l R e serv e District:

Y ou r 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 issues 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
$2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M ay 23, 1968, in th e am ount of
$2,500,903,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued M ay 23, 1968, in the am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated February 23, 1968, and to m ature August 22, 1968, originally
issued in the am ount of $1,000,178,000, th e additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,100,000,000, or thereabouts, to be dated M ay 23, 1968, and to m ature November 21, 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 without 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 Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, M ay 20, 1968. Tenders will not be received a t the T reasury D epartm ent, Washington. Each
tender m ust be for an even multiple of $1,000, and in th e 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. 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 B anks or Branches
on application therefor.
Banking 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 p erm itted to subm it tenders except for th eir own account.
T enders will be received without deposit from incorporated banks and trust companies and from responsible an d 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 R eserve Banks 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
rig h t 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 competitive bids for th e respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be made or com pleted a t the Federal Reserve B ank on M ay 23, 1968, in
cash or other im mediately available funds or in a like face am ount of Treasury bills m aturing M ay 23, 1968. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether 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 T reasury 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 an y State,
or any of the possessions of the U nited 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 United 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 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 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
retu rn is made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e terms of th e 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 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,
H ouston a n d S an A n to n io u p to tw e l v e - th ir ty p .m ., Centr al D ay ligh t S av in g Time, M o n d a y , M a y 20 , 19 68 . 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. Coldwell
P re sid en t
Amount, Range and Approximate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue August IS, 1968
D ue November 14, 1968
$2,416,947,000--------------------------------------- ------- T otal A pplied F o r____________ ______ ___________ $2,064,250,000
$1,600,106,000-------------------------------------------------T otal A ccepted___ ____ _ ________________
P rice
98.607------------------',.511%---------------- ----------- ---------- High.. _____________ --_.97.108-............ . ..5.720%
98.590-------------------5.578% -------------------------------------- Low______________________97.084____________5.768%
98.595------------------- 5.558% ( 1 ) ------------------------------Average_______________ ____ .97.093.. _________ 5.750% (1)
(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 5 .7 2 % for the 91-day bills, and 6 .00 % 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 May 23, 1968

Maturing November 21, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
El Paso 79999

Houston 77001


San Antonio 7820G


Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions o f 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.

NONCOMPETITIVE TENDER $____ ___________________________NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
1$___________________ (a)_________ v-------------------------------------


Prices should be expressed on the basi. of

$_______________ @________ $____________________

fti^ d e c T r L T p L ^

1$___________________ @ _________ $________________________

e. g., 99.925. Fractions
must not be used.

Denominations Desired

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

Number of


M aturity Value

(S ?
<> $


1,000 ?.
5,000 ?-



By maturing bills
held by_____________________
Payment to be made by_


50,000 t
& $ 100,000 $(a) $ 500,000
(3) $


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 e n c l o s e d
d r a f t Bhal] be on la test day which will p e rm it p r e s e n t ­
m e n t in o rder to obtain irrevocably collected f u n d s o n
p a y m e n t date)

(a) ?1:,000,000 ?.
Delivery In stru ctio n s:

Pledge to secure T reasury T ax and
Loan Account


( Subscriber’s full n a m e o r c o rp o ra te title)

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

Ship to___________________________

(A ddress)

(A uth o rized official sig n a tu re a n d title)
t - b o r t h e a c c o u n t o f , 11 tender is fo r a n o th e r subscriber)
(F o the acc
of, if


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 o f 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 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 irf 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 v est­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value)
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 js
material, the tender may be disregarded.
( See reverse fo r announcement)

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