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F ederal Reserve Bank o f D allas
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 75222
Circular No. 68-262
D ecember 11, 1968

NEW OFFERING — TREASURY BILLS
To All B a n k in g In stitutions 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 R e serve District:
Y o u r a t te n t i o n is in v ite d to th e fo llo w in g s t a t e m e n t giving d e t a il s of tw o iss u e s of T re asu ry bills:
T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to th e aggregate am ount of
$2,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Decem ber 19, 1968, in th e am ount of
$2,701,750,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued D ecem ber 19, 1968, in the am ount of $1,600,000,000, or there­
abouts, representing an additional am ount of bills dated Septem ber 19, 1968 and to m ature M arch 20, 1969,
originally issued in the am ount of $1,100,108,000, 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 D ecem ber 19, 1968, and to m ature Ju n e 19, 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 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 atu rity value).
T enders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
S tandard Tim e, M onday, December 16, 1968. T enders will not be received a t the T reasury D epartm ent, Washington. Each
tender must 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 th e 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 th e customers are
set forth in such tenders. Others th an banking institutions will not be perm itted to subm it tenders except for th e ir own account
T enders 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 an incorporated bank or
tru st company.
Im m ediately a fte r th e closing hour, tenders will bo opened a t the Federal R eserve Banks and Branches, following which
public announcem ent will be m ade by th e T reasury D epartm ent of the am ount and price range of accepted bids. Those
subm itting tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of th e 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, noncompetitive 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 the respective issues. Settlem ent for
accepted tenders in accordance with th e bids m ust be m ade or com pleted a t the Federal Reserve Bank on D ecem ber 19, 1968,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing D ecember 19, 1968. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m atur­
ing bills accepted in exchange and th e issue price of the new bills.
T h e income derived from Treasury bills, w hether interest or gain from the sale or other disposition of th e 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 the principal or interest thereof by an y 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 n ited 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 the taxable year for which the
return is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (curren t revision) and this notice, prescribe the term s of th e 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 P a so
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 , D e c e m b e r 16, 1968. T en 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 .
Yours very truly,
P. E. Coldwell
P re sid 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 M arch 13, 1969
D ue Ju n e 12, 1969
$2,172,281,000---------------------------- ----------------- T otal Applied For_________ _____________________ $1,932,053,000
$1,600,021,000.............................. ..................................T otal Accepted_______________________
$ 1,100,456,000
Price
Yield
p r ice
y ’ield’
98.554----- ------------ 5.720% -------- ----- --------------------- H igh------ -----------------__97.029___________ 5.877%
98-524....................... 5.839% ------------ ------------------------- Low______________________ 97.002___________5 930%
98.537------------------5.788% ( 1 ) ------ ---------------- ----—
Average____________________ 97.014. . ___ __ ___ 5.906% (1)
t h e 1 8 2 -d a y * b iU s fr e ° ° ° b£m k d lsc o u n t b a s ls ’ T h e e q u iv a lc n t c o u p o n issu e y ie ld s a r e 5 . 9 6 %

f o r t h e 9 1 - d a y b ills, a n d 6 . 1 7 %

fo r

(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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
D ated Septem ber 19, 1968

M aturing M arch 20, 1969

To: Federal Reserve Bank, Station K, Dallas, T exas 75222
or —
The_________________________________B ranch
El F
’aso 79999

Houston 77001

San Antonio 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 bolow, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.

NONCOM PETITIVE T EN D ER $_

_NOT TO EX CEED $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 th^ee decimals) of accepted competitive bids.
<n)
•I1

(a)

$

(Ft)

COM PETITIVE TEN D ER S

Prices should be ex­
pressed on the basis o f
100, with not more than
th ree d e c im a l p la ce s,
e. g., 99.925. F r a c tio n s
must not be used.

$

$

V

23?= TEN DERS MAY NOT BE EN TER ED BY TELEPHONE. TEN DERS BY WIRE, IF RECEIVED BEFORE T H E
" CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

Denominations Desired
N um ber of
P ie ce s

M a tu rity V a lu e

@ ?
@ $
..

5,000 $.

<® $
(a) $

METHOD OF PAYMENT

1,000 ?.
10,000 $.

□ By m a tu rin g bills

50,000 $.

□ C harge our reserve account on p a y m e n t

@ $ 100,000 $.

...

...

held by______________________
P ay m en t to be m ade by.

□

date

(a) $ 500,000 $.
I

@ $1,000,000 $.

I D r a f t e n c l o s e d ( E ff e c tu a l d e liv e ry o f en c lo se d d r a f t
s h a l l b e o n l a t e s t d a y w h i c h w ill 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 ir r e 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 )

Delivery In stru c tio n s :
□
□

Pledge to secure T reasu ry T ax and
Loan Account

□

( S u b s c r i b e r ’s f u l l n a m e o r c o r p o r a t e t i t l e )

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

Ship to __________________________

(A d d ress)

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 )

( F o r t h e a c c o u n t o f , i f t e n d e r is f o r a n o t h e r s u b s c r i b e r )

(A d d ress)

IMPORTANT
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, b y .............................................................
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
in c o rp o ra te d b a n k o r t r u s t c o m p a n y .

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