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F e d e r a l R e s e r v e Ba n k
F ISC A L

AGENT

OF

THE

of

U N IT E D

Dallas

STATES

DALLAS, TEXAS 7 5 2 2 2

Circular No. 68-157
July 17, 1968

NEW OFFERING — TREASURY BILLS
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 E le venth F e d e r a l R e se r v 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 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 ly 25, 1968, in the am ount of
$2,603,374,000, as follows:
91-DAY BILLS (to m aturity date) to be issued Ju ly 25, 1968, in th e am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated April 25, 1968, and to m ature October 24, 1968, originally
issued in the am ount of $1,100,682,000, 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 ly 25, 1968, and to m ature January 23, 1969.
T he 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 aturity value).
Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, Ju ly 22, 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 the 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. 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.
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.
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 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 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 ht 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 Reserve B ank on Ju ly 25, 1968, in
cash or other im mediately available funds or in a like face am ount of Treasury bills m aturing Ju ly 25, 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.
T h e 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 he bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, b u t are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State,
or any of the possessions of th e 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. U nder Sections 454 (b ) and
1221 (5 ) of the Internal Revenue Code of 1954 the am ount of discount at 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 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
retu rn is made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (current 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 R eserve 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 e c e iv e d a t fhis 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 ay ligh t S av in g Time, M o n d a y , Ju ly 22, 196 8. T e n d e 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 .
Y ours v e r y truly,
P. E. Coldwell
P re s id e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange an d Approxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue October 17, 1968
D ue January 16, 1969
$2,624,827,000-----------------------------------------------T otal Applied F or_________ — ___ ________________$2,475,490,000
$1,600,562,000_______________________ _____ _____ T otal A ccepted________________________________ $1,100,412^000
Price
Yield
Price
Yield
98.625
5.440% -------------------------------------- H igh__________________
_97.204___________ 5.531 %
98.612
5.491% ------------ ---- ----------------------Low______________________.97.185___________5.568%
98.618
5.467% (I)..* ---------------------------- Average____________________ 97.192___________5.554% (1)
(J ) ^T' "w' ■

■

are on a bank discount basis. These equivalent coupon issue yields are 5.62% for the 91-day bills, and 5.79% for

(See reverse side for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

TENDER FOB TREASURY BILLS

182 DAYS TO MATURITY
Dated July 25, 1968

Maturing January 23, 1969

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

Houston 77001

San Antonio 78206

(Date)

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 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.

1
TENDERS < 1
\
j!S

(a)
Gt
(ffl

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.

$
?
___ S.

U ^ T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b er of

Pieces

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

Maturity Value

METHOD OF PAYMENT

1,000 $.
5,000 $.

□

10,000 $.
50,000 ?.

□

(a) $ 100,000 ?(a) $ 500,000 $-

□

(a)

$

(a)

$

(ft) $
<s> $

By m aturing bills
held by_____________________
Paym ent to be made by_
Charge our reserve account on paym ent
date
D raft enclosed ( E f f e c t u a l deli ve ry o f e n c lo s e d

□

draft shall be on latest day which will permit present­
ment in order to obtain irrevocably collected funda on
payment date)

(a) $1:,000,000 $Delivery Instructions:
□
□

___
(Subscriber's full name or corporate title)

Hold in Custody Account—Member
banks for own account only

-----

Pledge to secure Treasury Tax and

gy.

L oan A ccount

□

Ship to___________________________

(Address)

(Authorized official signature and title)

___
(For the account o f, if tender ia for another subscriber)

(Addresa)

IMPORTANT
1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity
value).
“
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 the
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 besigned
by a member of the firm, who
should sign m 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 invest­
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 bv 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 for announcement)

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