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F e d er al r e s e r v e Ba n k o f Da l l a s

DALLAS, TEXAS 7 5 2 2 2

Circular N o. 68-209
O ctober 2, 1968


O F F E R IN G —


To A ll B a n k in g Institutions a n d O th ers C o ncerned
in the Eleventh Federal Reserve District:
Y o u r attention is invite d to the fo llo w in g statem ent g iv in g d eta ils of tw o issu e s o f T re a su ry bills:
T h e Treasury D epartm ent, b y this pu blic notice, invites tenders for two series o f Treasury bills to the aggregate am ount o f
$2,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing O ctober 10, 1968, in the am ount o f
$2,602,052,000, as follow s:
9 1 -D A Y B IL L S (to m aturity date) to be issued O ctober 10, 1968, in the amount o f $1,600,000,000, or there­
abouts, representing an additional amount o f bills dated July 11, 1968, and to mature January 9, 1969, orig­
inally issued in the amount of $1,102,029,000, the additional and original bills to be freely interchangeable.
182-D A Y B IL L S for $1,100,000,000, or thereabouts, to be dated O ctober 10, 1968, and to mature A pril 10, 1969.
T he bills o f both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face amount will be payable without interest. T h ey w ill be issued in bearer form only, and in
denom inations o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e).
Tenders w ill b e received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving T im e, M onday, O ctober 7, 1968. Tenders w ill not be received at the Treasury D epartm ent, Washington. Each
tender must be for an even m ultiple of $1,000, and in the case o f com petitive tenders the price offered must be expressed on
the basis o f 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be made
on the printed form s and forwarded in the special envelopes which will be supplied b y Federal Reserve Banks or Branches on
application therefor.
Banking institutions generally m ay subm it tenders for account o f customers provided the names o f the customers are
set forth in such tenders. Others than banking institutions w ill not be perm itted to subm it tenders except for their ow n account.
Tenders will be received without deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others must be accom panied b y paym ent o f 2 percent o f the face am ount o f
Treasury bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent b y an incorporated bank or
trust com pany.
Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which
pu blic announcem ent w ill be made by the Treasury D epartm ent o f the am ount and price range o f a ccepted bids. T h ose
subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly reserves the
right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Su bject to
these reservations, n oncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder w ill be
accepted in full at the average price (in three decim als) o f accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance w ith the bids must be made or com pleted at the Federal Reserve Bank on O ctober 10, 1968,
in cash or other im m ediately available funds or in a like face amount o f Treasury bills maturing O ctober 10, 1968. Cash and
exchange tenders w ill receive equal treatment. Cash adjustments will be made for differences betw een the par value o f matur­
ing bills accepted in exchange and the issue price o f the new bills.
T h e incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not
have any exem ption, as such, and loss from the sale or other disposition o f Treasury bills does not have any special treatment,
as such, under the Internal Revenue C ode o f 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 im posed on the principal or interest thereof b y any State,
or any o f the possessions o f the U nited States, or b y any local taxing authority. For purposes o f taxation the amount o f discount
at which Treasury bills are originally sold b y the United States is considered to be interest. U nder Sections 454 ( b ) and
1221 ( 5 ) o f the Internal Revenue C ode o f 1954 the am ount o f discount at which bills issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redem m ed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. A ccordingly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder need include
in his incom e tax return on ly 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 at 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 terms o f the Treasury bills and
govern the conditions o f their issue. Copies o f the circular m ay be obtained from any Federal Reserve Bank or Branch.

In acc o rd a n ce w ith the a b o v e a n n o u n ce m e n t, tenders w ill be received at this b a n k a n d its b ra n c h e s at El Paso,
H ouston a n d S a n A n to n io up to tw elve -thirty p.m., Central D a y lig h t S a v in g Time, M o n d a y , O cto b e r 7, 1968. Tenders
m ay not be entered b y telephone.
Yours very truly,
P. E. C old w e ll
Am ount, Range and Approxim ate Y ield o f A ccep ted Tenders
91-D ay Bills
D ue January 2, 1969
Y ield
-5.1 5 1 % -__
5 .2 1 4 % -__
98.690...-5 .1 8 2 % (1)__.

182-D ay B ills
D ue A pril 3, 1969
.Total A pp lied F or.
...T otal A ccep ted .
H igh.
.A verage__


Y ield
5.2 58 %
— 5 .2 83 % ( 1 )

(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 5.3 2% for the 91-day bills, and 5.5 0% 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 (


Maturing April 10,1 9 69

Dated October 1 0,1968
T o : Federal Reserve Bank, Station K , Dallas, Texas 75222
or —
El Paso 79999

H ouston 77001

San A n ton io 78206


Pursuant to the provisions o f T reasury Departm ent Circular No. 418 (current revision) and the provisions o f the
public announcement issued by the Treasu ry Departm ent, the undersigned offers to purchase Treasury bills in the am ount
shown below, and agrees to pay fo r the am ount allotted, on or b efore the issue date, by the m ethod and at the rate indicated.

_NOT TO E X C E E D $200,000


N oncom petitive tenders fo r $200,000 or less from any one bidder, without stated price, w ill be accepted in fu ll at the average
price (in three decim als) o f accepted com petitive bids.


________________ @ ____________$----------------------------------------—
------------------------- (a ------------------ $--------------------------------------- —
________________ @ ___________ $____________________________e.

Prices should be expressed on the basis o f
100, w ith not m ore than
th r e e d e c i m a l p la ce s ,
g., 99.925. F r a c t io n s
must not be used.

HgsT’ T E N D E R S M A Y N O T B E E N T E R E D B Y T E L E P H O N E . T E N D E R S B Y W IR E , IF R E C E IV E D B E F O R E T H E
C LO SIN G H O U R , A R E A C C E P T A B L E .
Paym ent fo r this issue o f bills cannot be made
by credit to Treasury T ax and Loan Account.

D enom inations D esired
Number of

Maturity Value

(S $
(5) $

5,000 $-

(5) $

10,000 $-

.(5) $

50,000 $-

(5) $

100,000 $-

.(5) $


1,000 $-

500,000 $-


By maturing bills
held by_________________________


Payment to be made by_


Charge our reserve account on payment

I I D r a f t e n c l o s e d (Effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment

.(5) $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
Loan Account


Ship to------------------------------------------------


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


1. N o tender fo r less than $1,000 w ill be considered and each tender m ust be f o r an am ount in m ultiples o f $1,000 (m atu rity
valu e).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A g en t o f the
United States, w ith notation on the envelope reading “ T E N D E R FO R T R E A S U R Y O F F E R IN G .” Since envelopes re­
ceived with this legend w ill not be opened until a fter the closing time specified in the public announcement, com m unica­
tions relating to other m atters should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank
or appropriate branch.
3. A n y qualified or conditional tender w ill be rejected.
4. I f a corporation makes the tender, the form should be signed b y an officer o f the corporation authorized to m ake the
tender and at the signing o f the form b y an officer o f the corporation w ill be construed as a representation by him that he
has been so authorized. I f the tender is m ade b y a partnership it should be signed by a m em ber o f the firm, w ho
should sign in the form “ .......................................................... , a copartnership, b y
........................................................................... .....
a m em ber o f the firm .”
5. Tenders from those other than incorporated banks and trust com panies or responsible and recognized dealers in invest­
ment securities w ill be disregarded, unless accom panied by a deposit o f 2 percent o f the total amount (m atu rity value)
o f the Treasury bills applied fo r, or unless the tenders are accom panied b y an express guaranty o f fu ll paym ent b y an
incorporated bank or trust com pany.
6. I f the language o f this form is changed in any respect, which, in the opinion o f the Secretary o f the Treasury is m aterial,
the tender m ay be disregarded.
(See reverse for announcement)

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