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F ederal R eserve Bank

of

Dallas

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

C ir c u la r N o . 68-89
A p r il 3, 1968

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d O th ers 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 eserve District:
Your a t t e n t i o n is in v ited 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 t w o is s u e s of 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 $2,600,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing April 11, 1968, in th e am ount of
$2,503,327,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued April 11, 1968, in the am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated January 11, 1968, and to m ature Ju ly 11, 1968, originally
issued in the am ount of $1,001,879,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,000,000,000, or thereabouts, to ba dated April 11, 1968, and to m ature October 10, 1968.
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 without in te re st 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 Reserve B anks and B lanches up to th e closing hour, one-thirty p.m.. Eastern
S tandard Tim e, M onday, April 8, 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 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 bo made
on the printed forms an d 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 nam es of the customers are
set forth in such tenders. Others than banking institutions will not bo perm itted to subm it tenders except for their 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 accom panied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve B anks 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 bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of th e 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, 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 com petitive bids for the respective issues Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal R eserve B ank on April 11, 1968, in
cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing April 11, 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 h e income derived from T reasury 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 th e 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 taxe3, 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. For purposes of taxation the am ount of discount
at which Treasury 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, 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 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 o r d i n a r y gain or loss.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the 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 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 th is 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., C en tr al S t a n d a r d Time, M o n d a y , April 8, 1968. T e n d e rs m a y n o t b e
entered b y t e l e p h o n e .
Yours v e r y truly,
P. E. Coldwell
P re s id e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and A pproxim ate Yield of Accepted Tenders
92-Day Bills
182-Day Bills
D ue Ju ly 5, 1968
D ue October 3, 1968
$2,178,769,000---------------------------------------------- T otal Applied F or___________ ___________________$1,600,795,000
$ 1,600,319,000--------------------------------------------------T otal Accepted-------------------- ---- ----------------------- $ 1,000,198,000
P rice
Yield
Price
Yield
98.711____________5.044% — ......- ......................................High................................ ............97.352__________ 5.238%
98.673
5.193% --------------------------------------- Low________________ - .9 7.320_____________5 .3 :1%
98.685____________5.146% ( 1 ) .........................................Average_________ ____ __ ___ 97.338____________ 5.265% (1)
( 1 ) T h e s e rates are on a b ank discou nt basis. T h e e q u iv a le n t coupon issu e y ie ld s are 5 . 2 9 % for th e 9 2 - d a y bills, and 5 . 4 8 % for
t h e 182-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 11, 1968

M aturing October 10, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________________Branch
£ 1 P a so 79999

H o u sto n 77001

S a n A n to n io

(Date)

78206

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions o f 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.

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 three decimals) of accepted competitive bids.
___________________

COM PETITIVE TEN D ER S

h

----------------------------___________________

-@ _

Prices should be ex ­
pressed on the basis of
100, with not more than
th ree decim al p la c e s,
e. g., 99.925. Fractions
m u s t n o t be used.

^ T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
Number of
Pieces

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

Maturity Value

<® $
@ ?
(a) $
-- v
_
(5) ?

METHOD OF PAYMENT

1,000 $
5,000 ?
10,000

□

9

□

50,000 ?

(a
)

□

C harge our reserve account on p a y m e n t
date
I I D ra ft enclosed ( E f f e c t u a l d e l i v e r y o f e n c l o s e d

$ 100,000 $
< ? 500,000 $
a>

<)
q

By m atu rin g bills
held b y ______________________________
P a y m en t to be m ade by _____________

d r a f t shall he on la te st day which will p e rm it p r e s e n t ­
m e n t in o rder to obtain irrevocably collected fu n d s o n
p a y m e n t date)

$1,000,000 $

Delivery In stru ctio n s:
□
□

Pledge to secure T re asu ry T ax and
Loan Account

(Subscriber's fu ll n a m e or c o rp o ra te title)

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

□

(Address)

By-

Ship to___________________________

(A uthorized official sig n a tu re and title)
(F o r the a ccou n t of, if te n d e r is fo r a n o th e r subscriber)

(Address)

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 (m aturity
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 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 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 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 in vest­
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 i s
material, the tender may be disregarded.
(See reverse fo r announcem ent)

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