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F ederal Reserve Bank of Dallas
F IS C A L A G E N T O F T H E U N ITE D ST A T E S
D A L L A S, T E X A S 7 5 2 2 2
Circular No. 68-212
October 9, 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 leventh F e d e r a l R eserve District:
Your a t te n t i o n is in vited to th e fo 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 Treasury bills m aturing October 17, 1968, in the am ount of
$2,703,718,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued October 17, 1968, in the am ount of $1,600,000,000, or there
abouts, representing an additional am ount of bills dated Ju ly 18, 1968, and to m ature Janu ary 16, 1969, orig
inally issued in the am ount of $1,100,618,000, 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 October 17, 1968, and to m ature April 17, 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 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).
T enders will be received a t Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving Tim e, Monday, October 14, 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 the case of com petitive 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 Banks or Branches on
application therefor.
Banking institutions generally may subm it tenders for account of customers provided th e 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 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 accompanied by a n express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after th e 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 th e 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 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, 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 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 the Federal Reserve B ank on October 17, 1968,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing October 17, 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 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 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. For purposes of taxation the 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 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, redem m ed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of T reasury 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, 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 th e 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 terms of the T reasury bills and
govern the conditions of th eir issue. Copies of th e 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 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,
H o uston a n d S an A n to n io u p to tw e l v e - th ir ty p .m ., Central D a ylig ht S aving Time, M o n d a y , O c to b e r 14, 1968. Tenders
m ay not be entered by telephone.
Yours very truly,
P. E. Coldw ell
P re sid e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approximate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue Jan u ary 9, 1969
D ue April 10, 1969
$2,104,906,000---------------------- ---- ------------------- T otal Applied F o r.................................. ........................... $1,865,997,000
$1,600,405,000_____________ ___ ______________ .Total A ccepted___ _____________________ _______$1,100,037,000
Price
Yield
Price
Yield
98.678.........
__5.230%_. ............................................. H igh______________
___ 97.302.....
5.337%
98.650----------------5.341 %_ _________________ ___ ___ Low______________________ 97.277____________5.385%
98.666------------------5.277% ( 1 ) ...... ...... .
................ ..Average________________ ___ 97.289____________5.362% (1 )
( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t b a s is . T h e e q u iv a le n t c o u p o n issu e y ie ld s a re S . 4 2 %
t h e 1 8 2 - d a y b i ll s .
f o r t h e 9 1 - d a y b ills, a n d 5 . 5 9 < f o r
&
( S e e r e v e r s e sid e f o r t e n d e r f o r m )
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
M aturing April 17,1969
D ated October 17,1968
To: F ederal R eserve Bank, S tation K, Dallas, Texas 75222
or —
The_________________________________Branch
El Paso 79999
Houston 77001
San Antonio 78206
(Date)
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 EX C EED $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.
Prices should be ex
____ I?________________________
pressed on the basis of
100, with not more than
?
COM PETITIVE TEN D ER S { $_
-@ -------------------------------------th ree d e c im a l places,
____ $________________________ e. g., 99.925. F ractio n s
must not be used.
(*-
TENDERS MAY NOT BE EN TER ED 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
(3) $
(Si $
0) $
METHOD OF PAYMENT
1,000
□
5,000 $.
10,000 $.
□
(® $ 50,000 $.
(a) $ 100,000 $.
m $ 500,000 $.
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
_
I J D ra ft enclosed (Effectual delivery o f enclosed draft
s hall be on la te st day which will p e rm it p re s e n tm e n t in
o rd e r to o b ta in irrevocably collected fun da on p a y m e n t
date)
(fi> SI:,000,000 $
Delivery In stru c tio n s :
□
□
Pledge to secure T reasury Tax and
Loan Account
□
(Subscriber’s fu ll najne or corporate title)
Hold in Custody A ccount— M ember
banks fo r own account only
Ship to__________________________
(Addresa)
By_
(Authorized official signature and title)
(For the account of, if tender is for another subscriber)
(A ddress)
IMPORTANT
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 OFFERING.” Since envelopes re
ceived with this legend will not be opened until after the closing time specified in the public announcement, communica
tions 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 at 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 is material,
the tender may be disregarded.
(See reverse for announcement)
@FedFRASER