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F ederal Reserve Bank of Dallas

D A L L A S, T E X A S 7 5 2 2 2
Circular No. 68-208
October 2, 1968

To All B a n k in g Institutions a n d O th ers C o n c e r n e d
in t h e Ele venth F e d e r a l R e serve District:
Y our a t t e n t i o n is invited to th e fo llo w in g s t a t e m e n t g iv ing d e ta ils of tw o is s 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 the aggregate am ount of
$2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing October 10, 1968, in the am ount of
$2,602,052,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued October 10, 1968, in the am ount of $1,600,000,000, or there­
abouts, representing an additional am ount of bills dated July 11, 1968, and to m ature January 9, 1969, orig­
inally issued in the am ount of $1,102,029,000, 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 October 10, 1968, and to m ature April 10, 1969.
T he 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 w ithout 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 at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, October 7, 1968. Tenders will not be received a t the Treasury D epartm ent, Washington. Each
tender m ust be for an even multiple of $1,000, and in the case of com petitive tenders the price oSered m ust be expressed on
the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may 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.
B anking institutions generally m ay 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 w ithout deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust 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 Banks and Branches, following which
public announcem ent will be m ade by the T reasury D epartm ent of th e 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 th e T reasury expressly reserves the
righ 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, noncom petitive 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 th e respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or completed a t the Federal Reserve B ank on October 10, 1968,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing October 10, 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 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 he 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 any State,
or any of the possessions of the U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount
a t which T reasury bills are originally sold by the U nited 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 a t which bills issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redem med 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 com panies) 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 th e 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 th e terms of th e T reasury bills and
govern the conditions of their issue. Copies of th e 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 th 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 P aso ,
H ousto n a n d San A n to n io u p to tw e l v e - th ir ty p.m ., C e n tral D ay lig h t S av ing Time, M o n d a y , O c to b e r 7, 19 68. T en d e rs
m=y n o t b e e n t e r e d b y t e l e p h o n e .
Y ours very truly,
P. E. Coldw ell
P re s id e n t
Amount, R ange and Approximate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue Jan u ary 2, 1969
D ue April 3, 1969
$2,337,089,000___________________ __________ T otal Applied For_______________________________$1,828,790,000
$1,600,052,000________________________________.Total A ccepted________________________________ $1,100,380,000
5.151% _________________________ H igh_____ ________________ 97.342___________ 5.258%
5.214% ........................................... ....... Low_____________ __ ______ 97.316___________ 5.309%
98.690____________ 5.182% ( 1 ) ____________________ Average_____________________97.329___________ 5.283% (1 )
( 1 ) T h e s e rates are o n a b ank discount basis. T h e eq u ivale n t coupon issue y ie ld s are 5 .3 2 % for th e 9 1 -d a y b ills, and 5 . 5 0 % for
th e 1 8 2 -d a y bills.

(See reverse side for tender form)

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


Maturing January 9,1969

Dated July 11,1968
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________ ________Branch
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
N o n co m p etitiv e ten d ers for $200,000 or le s s from a n y o n e bidder, w ithou t sta te d price, w ill be accepted in fu ll at the a v e ra g e
price ( in three d e c im a ls) o f accepted c o m p etitiv e bids.



______________ @ __________ $_______________________
p---------------$ ----------------------------------—
______________ @ __________ $_______________________

Prices should be ex­
pressed on the basis of
100, with not more than
three d e c im a l places,
e. g., 99.925. F ra ctio n s
must not be used.

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

D e n o m in a tio n s D e sir ed
Number o f

Maturity V alue

(a) $
(a) $
(a) $


1,000 ?5,000 t
10,000 ?50,000 $-


@ ?
(5) $ 100,000 $-<> $ 500,000 ?5
-(5) ?1 ,000,000 $.


By m a tu rin g bills
held by__________
P ay m en t to be m ade by_
C harge our reserve account on paym ent
d ate
D ra ft enclosed (Effectual delivery o f enclosed draft

shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment

Delivery In stru c tio n s:
(Subscriber’s full nam e or corporate title)


Hold in Custody A ccount— M ember
banks fo r own account only


Pledge to secure T reasury T ax and
Loan Account



By(Authorized official signature and title)

Ship to---------------------------------------(For the account of, if tender is for another subscriber)


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
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 OFFERING.” Since envelopes re­
ceived with this legend will not be opened until after the closing time specified in the public announcement, communica­
tions 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 at 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 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 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 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 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