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F ed er a l R eser ve 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 IT E D S T A T E S
DALLAS, TEXAS
75222
Circular No. 68-83
March 27, 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 le v enth F e d e r a l R e se r v e District:
Your a t t e n t i o n is in v ited to th e fo llo w in g s t a t e m e n t giving d e t a i l s of tw o iss u es of T re as u ry bills:
T h e T reasury D epartm ent, by this public notice, inviteg tenders for two series of T reasury bills to the aggregate am ount
of $2,600,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing April 4, 1968, in the am ount of
$2,501,536,000, as follows:
92-DAY B IL L S (to m aturity date) to be issued April 4, 1968, in the am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated Jan u ary 4, 1968, and to m ature Ju ly 5, 1968, originally
issued in the am ount of $1,001,047,000, 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 April 4, 1968, and to m ature October 3, 1968.
T he bills of both series will be issued on a discount basis under com petitive 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
denominations 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
Standard Tim e, M onday, April 1, 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 competitive tenders the 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 and forwarded in the special envelopes which will be supplied by Federal R eserve Banka or Branches
on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided th e names of th e customers are
set forth in such tenders. O thers th a n banking institutions will not be perm itted to subm it tenders except for their 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 accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust company.
Im m ediately after th e closing hour, tenders will be opened a t the Federal Reserve Banks and 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 bidB. Those
subm itting tenders will be advised of th e acceptance or rejection thereof. T he Secretary of the Treasury 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, noncom petitive tenders for each issue for $200,000 or less without 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 with the bids m ust be m ade or completed a t th e Federal Reserve B ank on April 4, 1968, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing April 4, 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 th e new bills.
T he income derived from T reasury 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 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, whether
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 o r purposes of taxation th e 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 th e Internal Revenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is n o t 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 Treasury bills (other than life insurance companies) issued hereunder need include
in his income tax return only the difference between th e 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 the term s of th e T reasury bills and
govern th e 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 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 S a n A n to n io u p to tw e l v e - th ir ty p .m ., C e n tral S t a n d a r d Time, M o n d a y , April 1, 1968. T e n d e rs m a y n o t b e
en tered b y t e l e p h o n e .
Yours v e r y truly,
P. E. C old w ell
P re s id e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and Approxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue June 27, 1968
D ue Septem ber 26, 1968
$3,427,133,000________________ ______________ T otal Applied For................. ........................... ..... ...........$1,836,111,000
$1,608,014,0 0 0 _ - ___ _________________________ T otal Accepted__________________ __ ____________ $1,000,373,000
Price
Yield
Price
Yield
98.691
5.178% _________________________ .H igh_____________________ 97.349__________ 5.244%
98.68 9___________ 5.186% ---------------------------------------- Low______________________97.310_____
_ 5.321%
98.68 9___________5.186% ( 1 ) ___________________ A v erage____________________ 97.320____________ 5.301% (1 )
( 1 ) T h es e rates are on a b ank discou nt basis. T h e eq u iv a lent coupon issue yield s a re 5 . 3 3 % for t h e 9 1 - d a y bills, a n d 5 . 5 2 % for
th e 1 8 2 -day 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
Dated April 4, 1968
Maturing October 3,1968
To: Federal Reserve Bank, Station E, Dallas, Texas 75222
or —
The_________________________________Branch
El Paso 79999
Houston 77001
(D ata)
S a n Antonio 78206
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 EXCEED $200,000
NONCOMPETITIVE TENDER $_
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
COMPETITIVE TENDERS
{
____ 5 -------------------------------------
_@.
)$-
“
$
------------------------------------____ $________________________
Prices should be ex
pressed on the basis of
100, with not more than
three decimal places,
e. g., 99.925. Fractions
must not be used.
B ^ T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.
Denominations Desired
Number of
Pieces
Maturity Value
(5) $
$-
(a)
$-
(5>
(5)
(®
(5)
#
1,000
5,000
$
$ 10,000
$ 50,000
$ 100,000
$ 500,000
?1 ,000,000
METHOD OF PAYMENT
□
$-
□
By maturing bills
held by___________________________
Payment to be made by___________
$.
□
1
$.
| [ D r a f t e n c l o s e d ( E f f e c t u a l d e l i v e r y o f enclosed
draft shall be on latest day which will permit present
ment in order to obtain irrevocably collected funda on
payment date)
?.
Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□ Ship to-------------------------------------
Charge our reserve account on payment
date
(Subscriber's fu ll name or corporate title)
(Address)
By-
(Authorized official signature and title)
(For the account of, if tender is for another subscriber)
(Address)
IMPORTANT
1. No tender for less than $1,000 will be considered and each tender m ust be for an amount in multiples of $1,000 (m aturity
value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of th e
United States, with notation on the envelope reading “TENDER FOR TREASURY BILLS”. Since envelopes received
with this legend will not be opened until after the closing time specified in the public announcement, communications
relating to other m atters 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 the signing of the form by an officer of the corporation will be construed as a representation by him th a t 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 ...... ........ . ...................................................... t
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 (m aturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by a n
incorporated bank or tru st 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)
@FedFRASER