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F ederal Reserve Ba n k







Circular No. 68-22
January 24, 1968

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 le v en th F e d e r a l R e serv e District:
Your a t t e 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 givin g d e t a il s of t w o is s u e s of T re a s 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 amount
of $2,500,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing F ebruary 1, 1968, in th e am ount of
$2,501,430,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued February 1, 1968, in the am ount of $1,500,000,000, or there­
abouts, representing an additional am ount of bills dated November 2, 1967, and to m ature M ay 2, 1968,
originally issued in the am ount of $999,896,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated F ebruary 1, 1968, and to m ature August 1, 1968.
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 th e ir 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 B anks and Branches u p to the closing hour, one-thirty p.m., E astern
Standard Tim e, M onday, Janu ary 29, 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 th e case of com petitive tenders the price offered m ust be expressed on
the basis of 100, with n o t more th a n 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 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 e ir 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 accom panied by paym ent of 2 percent of th e face am ount of
T reasury bills applied for, unless th e tenders are accom panied 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 R eserve B anks 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 h e Secretary of th e T reasury expressly reserves the
right to accept or reject any or all tenders, in whole or in p art, 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 the respective issues. Settlem ent for
accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t the Federal Reserve B ank on February 1, 1968, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing F ebruary 1, 1968. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p a r value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
T he income derived from T reasury bills, w hether interest or gain from th e 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 R evenue 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 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 th e U nited States is considered to be interest. U nder Sections 454 (b ) and
1221 (5 ) of th e 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, redeem ed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of T reasury bills (oth er th a n life insurance com panies) issued hereunder need include
in his income tax retu rn 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 m ade, as ordinary gain or loss.
T reasury D ep artm 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 th eir 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 e 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 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 , J a n u a r y 2 9 , 19 68 . 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,
W a t r o u s H. Irons
P re sid e n t
Amount, Range and A pproxim ate Y ield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue A pril 25, 1968
D ue Ju ly 25, 1968
$3,217,269,000_______________________________T otal Applied For.______________________________ $2,678,810,000
$1,503,317,000________________________________ T otal A ccep ted ._______________________________ $1,001,026,000
P rice
98.728____________ 5.032% _________________________ .High______________________ 97.318___________ 5.305%
98.717____________ 5.076% _________________________ .Low______________________ 97.300___________ 5.341%
98.719____________ 5.068% ( 1 ) ____________________ Average___ ________________ 97.303___________ 5.335% (1)
( 1 ) T h e s e ra tes a re on a bank discount basis. T h e eq u iv a le n t coupon issue y ie ld s are 5 . 2 2 % for t h e 9 1 -d a y b ills, an d S.5 7 % for
t h e 182 -d ay bills.

(See reverse side for tender form)

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


Dated November 2, 1967

Maturing May 2, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
El Paso 79999

Houston 77001

___ _____________________________________

San Antonio 78206


P u rs u a n t to th e provisions o f T re a s u r y D e p a rtm e n t C irc u lar No. 418 (c u r re n t rev ision ) an d th e p ro v isio n s of t h e
public ann o u n cem en t issu ed by th e T re a s u r y D e p a rtm e n t, th e u n d ersig n ed offers to p u rc h a s e T re a s u ry bills in th e a m o u n t
show n below, a n d a g re e s to p a y f o r th e a m o u n t allo tte d , on o r b efo re th e issue d ate, by th e m eth o d an d a t th e r a t e in d ic a te d .

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.

\ $ -------------------------------- @ -------------- $ ---------------------------- ----------


P ric e s should be e x p re s se d on th e b a sis o f

$_______________ @_______ $____________________
________________ @ __________ $ __________________________

e. g., 99.925. F r a c t io n s
m u s t n o t b e used.

^ T E N D E R S M A Y N O T B E E N T E R E D BY T E L E P H O N E . T E N D E R S BY W IR E , I F 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 .
D en o m in atio n s D esired
Number o f


P a y m e n t f o r th is issue of bills ca n n o t be m a d e
by c re d it to T re a s u r y T a x a n d L o an A ccount.

Maturity Value

<> $

(a) $

5,000 $-

<> $

10,000 ?-




50,000 ?-



By maturing bills
held by____________________
Payment to be made by_


Charge our reserve account on payment
I | Draft enclosed ( E f f e c t u a l d e liv e r y o f enclosed

.(a) $ 100,000 $< > $ 500,000 $a

draft shall be on latest day which will permit p r e se n t­
m ent in order to obtain irrevocably collected funds o n
payment date)

.(a) $1 ,000,000 $Delivery Instructions:

(Subscriber’s fu ll nam e or corporate title)

Hold in Custody Account— Member
banks for own account only


Pledge to secure Treasury Tax and

B y _ __________________________________

Loan A ccount


Ship to___________________________


(Authorized official signature and title)

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


1. N o te n d e r f o r less th a n $1,000 w ill be considered a n d e ach te n d e r m u s t be f o r a n a m o u n t in m u ltip les o f $1,000 ( m a t u r i t y
valu e).
2. T en ders should be fo rw a rd e d in a n envelope c le a rly a d d re s se d to th is b a n k o r a p p r o p r ia te b ra n c h a s F is c a l A g e n t o f t h e
U nited S ta te s, w ith n o ta tio n on th e envelope re a d in g “ T E N D E R F O R T R E A S U R Y B IL L S ” . Since envelopes re c e iv e d
w ith th is legend w ill n o t be opened u n til a f t e r th e closing tim e specified in th e public an n ouncem ent, co m m u n ic a tio n s
re la tin g to o th e r m a tte rs should n o t be enclosed. E n v elo p es fo r su b m ittin g te n d e rs m a y b e o btain ed fro m th is b a n k
o r a p p ro p r ia te b ran ch .
3. A n y qualified o r co nditional te n d e r w ill be rejected .
4. I f a co rp o ratio n m a k es th e te n d e r, th e fo rm should b e sig n ed b y a n officer of th e c o rp o ra tio n a u th o riz e d to m a k e t h e
te n d e r an d th e sig n in g of th e fo r m b y a n officer o f th e co rp o ratio n w ill be co n stru ed a s a re p re s e n ta tio n b y h im t h a t h e
h a s been so a u th o rized . If th e te n d e r is m ad e by a p a rtn e rs h ip i t should be sig n ed b y a m e m b er o f th e firm , who
should sig n in th e fo rm “ ........................................................... , a c o p a rtn e rsh ip , b y .......................................................................................
a m e m b er of th e firm ”.
5. T en d ers fro m th o se o th e r th a n in c o rp o rated b a n k s a n d tr u s t com panies o r resp o n sib le an d recognized d ealers in i n v e s t­
m e n t secu rities w ill be d isreg ard ed , u nless accom panied b y a dep o sit of 2 p e rc e n t o f th e to ta l a m o u n t (m a tu r ity v a l u e )
of th e T re a s u r y bills applied fo r, o r u n le ss th e te n d e rs a r e accom panied b y a n ex p ress g u a r a n ty of fu ll p a y m e n t b y a n
in c o rp o rated b a n k o r t r u s t com pany.
6. If th e la n g u a g e of th is fo rm is ch anged in a n y re sp e c t, w hich, in th e opinion of th e S e c re ta ry o f th e T r e a s u r y i s
m a te ria l, th e te n d e r m a y be d isreg ard ed .

(See reverse fo r announcem ent)

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