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R eserve Ba n k









DALLAS, TEXAS 7 5 2 2 2
C ir c u la r N o . 6 8 -1 6 7
J u l y 31, 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

t h e E le venth F e d e r a l R e serve District:

Y o ur a t te n t io n is in vite d 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

issu es of T re as ury bills:

T he Treasury 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 August 8, 1968, in th e am ount of
$2,601,196,000, as follows:
91-DAY BILLS (to m aturity date) to be issued August 8, 1968, in the am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated M ay 9, 1968, and to m ature November 7, 1968, originally
issued in the am ount of $1,101,578,000, 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 August 8, 1968, and to m ature February 6, 1969.
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. They 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., Eastern
D aylight Saving Tim e, Monday, August 5, 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 the case of com petitive tenders the price offered must be expressed on
the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. I t is urged th at 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.
Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by paym ent of 2 percent of the face am ount of
Treasury 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 Banks and Branches, following which
public announcem ent will be made by the Treasury 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
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 the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be made or completed a t the Federal Reserve B ank on August 8, 1968, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing August 8, 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.
T he income derived from Treasury bills, w hether interest or gain from th e 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, 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 United States, or by any local taxing authority. For purposes of taxation the am ount of discount
at 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 the am ount of discount at 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.
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 may 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 , te 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 Paso ,
Houston a n d San A n to n io u p to tw e l v e - th ir ty p.m., C entr al D ayli gh t S av in g Time, M o n d a y , A u g u s t 5, 19 68. T e n d e rs m a y
not b e e n t e r e d by t e l e p h o n e .
Yours v e r y truly,
P. E. Coldwell
P re sid e n t
Amount, R ange and A pproxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue October 31, 1968
D ue Janu ary 30, 1969
$2,621,235,000...--------------------------------------------Total Applied F o r_______________________________ $2,319,056,000
$1,600,267,000-------------------------------------------------T otal A ccepted._______________________________ $1,100,465,000
98.695------------------5.163% -------------------------------------- H igh----------------------------------97.344____________5.254%
98.683....................... 5.210% ---------------------------------------Low---------------------------------- 97.320____________5.301%
98.688------------------ 5.190% ( 1 ) -------------------- ---- ..Average------------------------------- 97.327___________ 5.287% (1)
( 1 ) T h e se ra te s a re on a b a n k
t h e 1 8 2 - d a y b i ll s .

d is c o u n t b a s is . T h e e q u iv a l e n t c o u p o n issue y ie ld s a r e 5 . 3 3 %

fo r t h e 9 1 - d a y bills

an d 5 .5 1 % for

( S e e r e v e r s e side f o r t e n d e r f o r m )

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


Dated August 8, 1968

Maturing February 6,1969

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 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 $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
Prices should be exk$___________________ @ ----------------$ ------------------------------------pressed on the basis of

COMPETITIVE TENDERS ' $ ------------------------ @------------- $-----------------------------\

___________________ @ __________ $_______________________

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

Denominations Desired
Number o f

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

Maturity Value


(a) 9
(g) 9

1,000 $.
5,000 9-


© 9

10,000 9.
50,000 9.


(a) 9 100,000 9
(a) 9 500,000 9




Hold in Custody Account— Member
banks for own account only

Charge our reserve account on payment

| [ 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 se d
draft shall be on latest day which will permit present­
ment in order to obtain irrevocably collected funds on
paym ent date)

(a) $1,,000,000 9
Delivery Instructions:

By m aturing bills
held by_____________________
Paym ent to be made by_

(Subscriber’s full name or corporate title)


Pledge to secure Treasury Tax and
Loan Account
Ship to___________________________



(Authorized official signature and title)
(For the account of, if tender is for another subscriber)


1. No te n d e r fo r less th a n $1,000 w ill b e considered a n d each te n d e r m u s t be f o r a n a m o u n t in m u ltip les o f $1,000 ( m a tu r ity
2. T en d ers should be fo rw ard ed in an envelope c le a rly ad d ressed to th is b an k or a p p ro p r ia te b ran ch a s F iscal A g e n t o f th e
U n ited S ta te s , w ith n o ta tio n on th e envelope re a d in g “T E N D E R F O R T R E A S U R Y B IL L S ”. Since envelopes received
w ith th is legend will n o t be opened u n til a f t e r th e clo sin g tim e specified in th e public an n ouncem ent, com m unication s
re la tin g to o th e r m a tte rs sh ould n o t be enclosed. E nvelopes fo r su b m ittin g te n d e rs m a y be o b ta in ed fro m th is b an k
o r a p p ro p r ia te branch.
3. A ny qualified o r conditional te n d e r w ill be rejected .
4. If a co rp o ratio n m ak es th e te n d e r, th e fo rm should be signed by a n officer of th e co rp o ratio n a u th o riz e d to m a k e th e
te n d e r an d th e sig n in g of th e form by a n oflicer of th e co rp o ratio n will be co n stru ed as a re p re se n ta tio n by him t h a t he
h a s been so au thorized. If th e te n d e r is m ade by a p a rtn e rs h ip it should be sign ed by a m e m b er o f th e firm , who
should sig n m th e fo rm “.......................................................
a c o p a rtn e rsh ip , by
a m em b er of th e firm ”.
......... ,
5. T en d ers fro m tho se o th e r th a n in c o rp o rated b a n k s and t r u s t com panies o r resp o n sib le an d recognized d ealers in in v e st­
m e n t secu rities will be d isreg ard ed , u n le ss accom panied by a d epo sit o f 2 p e rc e n t o f th e to ta l a m o u n t ( m a tu r ity v alue)
of th e T re a s u r y bills applied fo r, o r u nless the te n d e rs a re accom panied by a n ex p re ss g u a r a n ty o f fu ll p a y m e n t by an
in c o rp o rated b an k o r t r u s t com pany.
6. If th e la n g u a g e o f th is fo rm is changed in a n y re s p e c t, w hich, in th e opinion of th e S e c re ta ry of th e T re a s u ry is
m a te ria l, th e te n d e r m a y be d isreg ard ed .

(See reverse for announcement)

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