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F ederal Reserve Bank of Dallas
F IS C A L A G E N T O F T H E U N ITE D ST A T E S

DALLAS, TEXAS 7 5 2 2 2
Circular No. 68-227
October 23, 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 leventh F e d e r a l Reserve District:
Your a t t e n t i o n is inv ited to th e fo llo w in g s t a t e m e n t giv ing d e t a il s of t w o iss u e s of T re asury 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 Treasury bills m aturing October 31, 1968, in the am ount of
$4,201,432,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued October 31, 1968, in the am ount of $1,600,000,000, or there­
abouts, representing an additional am ount of bills dated August 1, 1968, and to m ature Janu ary 30, 1969, orig­
inally issued in the am ount of $1,100,928,000, 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 31, 1968, and to m ature M ay 1, 1969.
T h e bills of both series will be issued on a discount basis under competitive and noncom petitive 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
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 R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
S tandard Tim e, Monday, October 28, 1968. T enders will not 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 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 Banks or Branches on
application therefor.
Banking 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 th eir own account.
Tenders will be received w ithout deposit from incorporated banks and trust 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 th e face am ount of
T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by a n incorporated bank or
tru st company.
Im m ediately after th e closing hour, tenders will be opened a t the Federal R eserve Banks and Branches, following which
public announcem ent will be m ade 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 th e T reasury 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 w ithout 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 completed a t the Federal Reserve Bank on October 31, 1968,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing October 31, 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 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 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, b u t are exem pt from all taxation now or hereafter imposed on th e 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 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, whether 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 th e term s of the T reasury bills and
govern the conditions of their issue. Copies of th e 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 th 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 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,
Houston a n d San A n to n io u p to tw e l v e - th ir ty p .m ., Central S t a n d a r d Time, M o n d a y , O c to b e r 2 8, 1968 . 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 very truly,
P. E. Coldw ell
P re sid e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and Approximate Yield of A ccepted Tenders
91-Day Bills
182-Day Bills
D ue January 23, 1969
D ue April 24, 1969
$2,293,605,000-------------------------------- -------------- T otal Applied F o r_______________________________$2,096,086,000
$ 1,600,205,000---------------------------- --------------------T otal Accepted_________ ______________________ $ 1,100,077,000
Price
Yield
Price
Yield
98.651----------------- 5.337% _____________________ ___ -High_____________________97.263____________ 5.414%
98.623----------------- 5.447% ---------------------------------------- Low_____________________ 97.234....... ....... ......... 5.471%
98.636----------------- 5.396% ( 1 ) ------------------------------- Average___________________ 97,241.................. ...... 5.457% (1 )
( 1 ) T h e s e rates are on a b ank discount basis. T h e eq u iv a le n t coupon issue y ie ld s are 5 .5 5 % for th e 9 1 -d a y b ills, a n d 5 6 9 % for
t h e 182-d ay bills.

( S e e r e v e r s e sid e 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 (FedHistory@dal.frb.org)

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Maturing May 1, 1969

Dated October 31, 1968
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________._______ Branch
El Paso 79999

Houston 77001

San Antonio 7820G

(D a te )

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 ex­
____ $___________________ _____ pressed on the basis of
q
.
100, with not more than
_(n )_
COM PETITIVE T E N D E R S <$
-------'t>
------------------------------------- th ree d e c i ma l places,
____ $________________________
e. g., 99.925. F r a c tio n s
must not be used.

f

£27= TENDERS MAY NOT BE EN TER ED BY TELEPHONE. TEN DERS BY WIRE, IP RECEIVED BEFORE TH E
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made
Denominations Desired
by credit to Treasury Tax and Loan Account.
Number o f
Maturity Value

Pieces

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

METHOD OF PAYMENT

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

□
□

■< > $
5
(a) ? 100,000 $(a) $ 500,000 ?.
M

□
□

By m atu rin g bills
held by______________________
P ay m en t to be m ade by_
Charge our reserve account on paym ent
date
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 paym ent
date)

,000,000

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

□

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

□

Pledge to secure T reasury Tax and
Loan Account

□

(A ddress)

Ship to__________________________

By(Authorized official signature and title)
(F or the a ccount of, if te n d e r is fo r a n o th e r subscriber)

(Addreas)

IM P O R T A N T

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 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