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F e d e r a l r e s e r v e Ba n k o f D a lla s
F IS C A L A G E N T O F T H E U N ITE D S T A T E S

DALLAS, TEXAS 7 5 2 2 2
Circular No. 68-242
November 13, 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 Eleventh F e d e r a l R eserv e District:
Y ou r a t t e n t i o n is in v ite d to th e f o llo w in g s t a t e m e n t giving d e t a il s of tw o issues o f 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 Treasury bills m aturing November 21, 1968, in th e am ount of
$2,701,648,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued November 21, 1968, in the am ount of $1,600,000,000, or there­
abouts, representing an additional am ount of bills dated August 22, 1968, and to m ature F ebruary 20, 1969,
originally issued in the am ount of $1,101,172,000, 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 November 21, 1968, and to m ature M ay 22, 1969.
T h e bills of both series will be issued on a discount basis under com petitive and noncompetitive bidding as hereinafter
provided, and a t m atu rity 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).
T enders 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, November 18, 1968. Tenders 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 th e 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 an d 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 th e names of the customers are
set forth in such tenders. Others than banking institutions will not be p erm 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 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 the closing hour, tenders will be opened a t the Federal Reserve B anks an d 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 h e Secretary of the T reasury 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, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be
accepted in full a t th e average price (in three decimals) of accepted competitive bids for th e respective issues. S ettlem ent for
accepted tenders in accordance with the bids m ust be m ade or completed a t the Federal Reserve B ank on November 21, 1968,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing November 21, 1968. Cash and
exchange tenders will receive equal tre a tm e n t Cash adjustm ents will be m ade for differences between th e p ar value of m atur­
ing bill* accepted in exchange and the issue price of th e new bills.
T h e income derived from Treasury bills, w hether interest or gain from th e sale or other disposition of th e 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 h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
Federal or State, b u t are exem pt from all taxation now or hereafter imposed on the principal or interest thereof b y 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 th e 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 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 th e 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 th e 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 ec eive 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 S an A n to n io u p to t w 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 , N o v e m b e r 18, 1 9 6 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. Co ldw ell
P re s id e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approximate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue F ebruary 13, 1969
D ue M ay 15, 1969
$2,429,107,000------------------ ------ ------ ------------- T otal Applied F o r________________________________ $1,942,985,000
$ 1,600,239,000--------------------------------------------- _ T o t a l Accepted_________________________________ $1,100,117,000
Price
Yield
Price
Yield
98.624-...................... 5.444%-,.------------------------------------ H igh______________________97.186____________5.566%
98.609------------------5.503% --------------------------------------- JLow______________________97.160____________5.618%
98.614-...................... 5.483% ( 1 ) ------ --------------------- Average--------------------—
97.168____________ 5.602% (1 )
( 1 ) T h e s e rates are on a bank discount basis. T h e e q u iv a le n t coupon issue y ie ld s are 5 .6 4 % for th e 9 1 -d a y b ills, an d 5 .8 5 % for
th e 1 82-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 (FedHistory@dal.frb.org)

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
M aturing May 22,1969

D ated Novem ber 21,1968
T o: Federal Reserve Bank, Station E , Dallas, T exas 75222
or —
The__________________________________ Branch
E l P a so 79999

H o u sto n 77001

S a n A n to n io 78206

(Date)

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.

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

NONCOMPETITIVE T E N D E R $_

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
m
100, with not more than
COMPETITIVE T E N D E R S ( ¥--------------------- ' = --------------- *------------------------------------ th ree d e c im a l p laces,
______________ @ __________ $________________________ e. g., 99.925. F r a c tio n s
must not be used.
8® = TENDERS MAY NOT BE EN T ER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um ber of
P ieces

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

Maturity Value

(5) ¥
(5) ¥

METHOD OF PAYMENT

1,000 ¥-

(a) ¥
O

□

5,000 ¥10,000 ¥-

By m a tu rin g bills
held by_____________________
P ay m en t to be m ade b y

50,000 ¥-

¥

□

□ Charge our reserve account on paym ent
date
_
I ] D ra ft enclosed (Effectual delivery of enclosed draft

< > ¥ 100,000 ¥a
.(5) ¥ 500,000 ¥-

s h a l l be o n l a t e s t d a y w h i c h w i l l p e r m i t p r e s e n t m e n t i n
o r d e r to o b t a i n irre v o c a b ly c o lle c te d f u n d s o n p a y m e n t
d a te )

.(a) $1 ,000,000 ¥

Delivery In stru c tio n s :
□
□

Pledge to secure T reasu ry T ax and
Loan Account

□

( S u b s c r ib e r 's f u ll n a m e o r c o r p o r a t e t itle )

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

Ship to__________________________

(A d d resa)

By( A u t h o r i z e d o f f i c ia l s i g n a t u r e a n d t i t l e )

(For the account of, if tender is for another subscriber)
(A d d ress)

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 announcem
ent)

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