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F ederal R eserve Ba n k










Circular No. 68-128
May 29, 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:
Your a t t e n t i o n is in v ited to t h 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 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 Ju n e 6, 1968, in the am ount of
$2,602,222,000, as follows:
91-DAY BILLS (to m aturity date) to be issued June 6, 1968, in the am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated M arch 7, 1968, and to m ature Septem ber 5, 1968, originally
issued in the am ount of $1,000,041,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,100,000,000, or thereabouts, to be dated Ju n e 6, 1968, and to m ature Decem ber 5, 1968.
T h e bills of both series will be issued on a discount basis under com petitive 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 Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving Tim e, Monday, Ju n e 3, 1968. Tenders will n o t 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. 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 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 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 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 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 com pleted a t the Federal R eserve B ank on June 6, 1968, in
cash or other im mediately available funds or in a like face am ount of Treasury bills m aturing Ju n e 6, 1968. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar 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 h e bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but 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 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 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, redeemed 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 terms of the T reasury bills and
govern the conditions of th eir issue. Copies of the circular may 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 r ec 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 Paso,
Houston a n d San A n to n io up to tw e l v e - th ir ty p .m ., Centr al D a y lig h t S av in g Time, M o n d a y , J u n e 3, 1 9 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 ery truly,
P. E. Coldwell
P re sid en t
Amount, R ange and Approxim ate Yield of Accepted Tenders
90-Day Bills
182-Day Bills
D ue August 29, 1968
Due November 29, 1968
$2,291,626,000-........................... ....... ...... ..................T otal Applied For_______________________________ $2,154,576,000
$ 1,600,026,000................ ....... ....... ....................... T otal A ccepted ________________________________ $ 1,100,190,000
98.583------------------5.668% ___________ _______- ........-H ig h _____________________ 97.039____________5.857%
-------------------------------- Low______________ -_______ 97.026______ _____ 5.883%
98.566------------------5.736% .
98.576------------------5.696% ( 1 ) -------------------------------Average----------- ------------------ 97.033______ _ __ 5.869% (1 )
( 1 ) T h e s e rates are on a bank discount basis. T h e e q u iv a le n t coupon issue y ie ld s are 5 . 8 6 % for th e 9 0 -d a y bills, an d 6 . 1 3 % for
th e 182-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 (


Dated June 6,1968

Maturing December 5, 1968

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

Houston 77001

San Antonio 78206


Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions o f the
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
throe decimal p la c e s ,
e. g., 99.925. Fractions
must not be used.

Denominations Desired
N u m b e r of

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

M a tu rity Value

(a) $
(a) $


1,000 $
5,000 ?.


10,000 $.
50,000 ?.


(«) $
(a) $ 100,000 $(a) $ 500,000 $-

By m aturing bills
held by_______________________________
Paym ent to be made by_______________


Charge our reserve account on paym ent
n D raft enclosed (Effectual delivery of 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 en 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 Instructions:

Pledge to secure Treasury Tax and
Loan Account

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

Hold in Custody Account—Member
banks for own account only


(A ddresa)


Ship to___________________________

(A u th o rized official s ig n a tu re a n d title)

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

(A d d r e s s )


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.
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 willbe 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 m em ber of the firm ”.
5. Tenders from those other th an incorporated banks and tru s t companies or responsible and recognized dealers in in v e s t­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity v a lu e )
of the T reasury bills applied for, or unless th e tenders a re accompanied by an express g u ara n ty of full paym ent b y a n
incorporated bank or tru s t company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
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