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F ederal Reserve Bank




DALLAS. TEXAS 7 5 2 2 2

Circular No. 68-138
June 19, 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 venth F e d e r a l R eserv e District:
Your a t t e n t i o n is in vite d to t h e f o llo w in g s t a t e m e n t giv ing d e t a il s of t w o is s u e s of T re as u ry bills:
T he 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 T reasury bills m aturing Ju n e 27, 1968, in the am ount of
$2^610,998,000, as follows:
91-DAY BILLS (to m aturity date) to be issued Ju n e 27, 1968, in the am ount of $1,600,000,000, or thereabouts,
representing an additional am ount of bills dated M arch 28, 1968, and to m ature Septem ber 26, 1968, originally
issued in the am ount of $1,000,527,000, 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 Ju n e 27, 19P8, and to m ature Decem ber 26, 1968.
T he 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 without 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).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, M onday, Ju n e 24, 1968. T enders will not be received a t the T reasury D epartm ent, Washington. Each
te n d er m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on
th e basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be us ed. 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
o n application therefor.
B a n k in g institution s generally m a y su b m it ten d e rs for account of custom ers p ro v id ed th e nam es of t h e c ustom ers are
s e t fo rth in such tenders. O th e rs t h a n b a n k in g institutions will n o t be p e rm itte d to su b m it te n d e rs except fo r th e ir own account.
T e n d e r s will be received w ith o u t de p osit from inco rp o ra ted b ank s a n d t r u s t c om panies a n d from responsible a n d recognized
d e ale rs in in v estm e n t securities. T e n d e rs from oth ers m u st be a c c o m p an ied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of
T r e a s u ry bills a p p lie d for, unless th e ten d e rs a re a c c o m p an ied b y a n express gu a ran ty of p a y m e n t b y a n in c o rp o ra ted b a n k or
t r u s t com pany.

Im m ediately after the 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 bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves the
righ t 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 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 completed a t the Federal Reserve B ank on Ju n e 27, 1968, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing June 27, 1968. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
T h e 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 th e Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether
F ed eral or State, but 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 United States, or by any local taxing authority. F or purposes of taxation the am ount of discount
a t which Treasury bills are originally sold by the United 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
retu rn 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 the 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 a so ,
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 tr a l D ay li g ht S a v in g Time, M o n d a y , J u n e 24, 1 9 6 8 . T e n d e rs m a y
not b e e n t e r e d by 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
Amount, Range an d A pproxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue Septem ber 19, 1968
D ue Decem ber 19, 1968
$2,589,745,000---------------------------------------------- T otal Applied F o r------------- --------------------------------- $1,967,935,000
$1,600,098,000---------------------------------------- --- .. ..Total A ccepted_________________________________$1,100,255,000
P rice
Y ield
5.558% --------------------------------------H igh_________ __ __________97.170___________ 5.598%
98.584------------5.602% ------------------------------- ------ .Low______________________ 97.142____ _ ____ 5.653%
5.578% ( 1 ) ------------------------------Average------------------------------- 97.152___________ 5.633% (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 issue y ie ld s are 5 . 7 4 % fo r th e 9 1 - d a y bills
th e 1 8 2 -day bills.
J U“

an d 5 . 8 8 % for

(See reverse side for tender form)

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


Maturing September 2 6 ,1 9 6 8

Dated March 28,1968
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
El Paso 79999

Houston 77001

San Antonio 78206

(D ate)

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

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.





Prices should be e x ­
pressed on the basis o f
100, with not more than
th ree decimnl p la c e s ,
e. g., 99.925. Fractions
must not be used.


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

Denominations Desired
Number of

Maturity Value


(a) ?

1,000 ?.
5,000 ?.


(rt> $

10,000 $.



50,000 $.
$ 100,000 ?.
$ 500,000 $-


$1,,000,000 $-

.<§> $


By m aturing bills
held by_
Paym ent to be made by_


Charge our reserve account on paym ent
| ( D raft enclosed (Effectual delivery of enclosed
draft shall be on latest day which will permit present­
ment in order to obtain irrevocably collected funds on
paym ent date)

Delivery Instructions:
(Subscriber’s full name or corporate title)

Q Hold in Custody Account— Member
barks for own account only

Pledge to secure Treasury Tax and
Loan Account



Ship to-----------------------------------------

(Authorized official signature and title)

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


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
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f 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 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
corporation authorized to make t
tender and the signing of the form by an officer of the corporation will be construed as a representation by him that h e
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 in vest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity va lu e)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment b y 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 js
material, the tender may be disregarded.

(See reverse for announcement)

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