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F ederal R eserve Ba n k
of
Dallas
F IS C A L A G E N T O F T H E U N ITED ST A T E S
DALLAS, TEXAS 7 5 2 2 2
Circular No. 68-193
Septem ber 4, 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 Eleventh 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 ited to the fo llo w in g s t a t e m e n t g iv ing d e t a il s of tw 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
$2,700,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing Septem ber 12, 1968, in the am ount of
$2,600,777,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued Septem ber 12, 1968, in the am ount of $1,600,000,000, or there
abouts, representing an additional am ount of bills dated Ju n e 13, 1968, and to m ature D ecember 12, 1968, origi
nally issued in the am ount of $1,100,121,000, 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 Septem ber 12,1968, and to m ature M arch 13,1969.
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).
T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving Tim e, Monday, Septem ber 9, 1968. T enders will not be received at th e T reasury D epartm ent, Washington. Each
tender must be for an even multiple 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 Reserve B anks or Branchei
on application therefor.
Banking institutions generally may subm it tenders for account of customers provided the names of th e customers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account.
T enders will be received without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investm ent securities. Tenders from others must 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 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 th e acceptance or rejection thereof. T h e 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, 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 made or completed a t the Federal Reserve Bank on Septem ber 12, 1968,
in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Septem ber 12, 1968. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made 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 Treasury 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 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 he bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but are exempt 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
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 th e am ount of discount a t which bills issued hereunder are sold is not con
sidered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of Treasury 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, whether 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 th e terms of the T reasury bills and
govern the conditions of their issue. Copies of the 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 th 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 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 aso ,
Houston a n d San A n to n io u p to tw e l v e - th ir ty p .m ., Central D a y ligh t S av in g Time, M o n d a y , S e p t e m b e r 9, 1968. T end ers
may n o t 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. Coldw ell
P re sid e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and A pproxim ate Y ield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue D ecem ber 5, 1968
D ue M arch 6, 1969
$2,491,622,000_______________________________T otal Applied F o r_______________________________ $2,705,885,000
$1,600,535,000________________________________ T otal Accepted________________________________ $1,100,039,000
Price
Yield
Price
Yield
98.693____________ 5.171% ........... ................ .......................H igh______________________ 97.354.......................5.234%
98.680
5.222% __________________________ Low______________________ 97.343___________ 5.256%
98.687
5.194% ( 1 ) ___ _________________ Average____________________ 97.346___________ 5.250% (1 )
( 1 ) T h e s e rates are on a bank discount basis. T h e eq u iv a le n t coupon issue y ie ld s are 5 . 3 4 % fo r th e 9 1 -d a y b ills, a n d 5 .4 7 % for
th e 18 2-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 (FedHistory@dal.frb.org)
TENDER FOR TREASURY BILLS
182 DAYS TO MATURITY
D ated Septem ber 12,1968
M aturing M arch 13, 1969
To: Federal R eserve Bank, S tation K, Dallas, Texas 75222
or —
T he_________________________________Branch
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 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 oi before the issue date, by the method and at the rate indicated.
.NOT TO EX CEED $200,000
NONCOM PETITIVE T E N D E R $_
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
($C 0M P3T IT IV E TEN D ER S {$/$-
Prices should be ex
p rissed on the basis of
100, with not more than
three decim al p laces,
e. g., 99.925. Fractions
must not be used.
_@ .
.(§>-
E-§r’TENr>3RS MAY NOT EE 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
Num ber of
Pieces
Maturity Value
METHOD OF PAYMENT
(a) $
(a) $
1,000 ?5,000 ?-
(a) $
(§> $
10,000 $50,000 $-
□
(a) $ 100,000 $(a) $ 500,000 $
(a) $1 ,000,000 $
□
□
By m atu rin g bills
held by_____________________________ _
P ay m en t to be m ade by______________
C harge our reserve account on paym ent
date
| [ D ra ft enclosed ( E f f e c t u a l d e liv e r y o f e n c lo s e d
d r a f t shall be on latest day which will p e rm it pres«ntm e n t in o rder to obtain irrevocably collected fu n d s on
p a y m e n t date)
Delivery In stru c tio n s :
□
Hold in Custody Account— Member
banks fo r own account only
□
Pledge to secure T reasury Tax and
Loan Account
□
(Subscriber’s full name or corporate title)
(Addresa)
B y.
(Authorized official signature and title)
Ship to_________ ___________________
(F or the account of, if tender in for another subscriber)
(Addresa)
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 (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 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, by ........... .................................................................... .
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
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 ia
material, the tender may be disregarded.
(See reverse for announcement)
@FedFRASER