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F ederal Reserve b a n k of Dallas
F IS C A L A G E N T O F T H E U N ITE D S T A T E S

DALLAS, TEXAS 7 5 2 2 2
Circular No. 68-217
October 16, 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 venth F e d e r a l Reserve District:
Y ou r 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 g ivin g d e t a il s of tw o is s u e s of T re a s 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 October 24, 1968, in th e am ount of
$2,701,807,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued October 24, 1968, in the am ount of $1,600,000,000, or there­
abouts, representing an additional am ount of bills dated Ju ly 25, 1968, and to m ature January 23, 1969, orig­
inally issued in the am ount of $1,100,161,000, 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 24, 1968, and to m ature April 24, 1969.
T he bills of both series will be issued on a discount basis under com petitive and noncom petitive 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
denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity value).
Tenders 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 21, 1968. T enders will not be received a t the T reasury D epartm ent, Washington. Each
tend 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
the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. It 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 Banks or Branches on
application therefor.
Banking institutions generally may subm it tenders for account of customers provided the 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 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 the tenders are accompanied by an express guaranty of paym ent by a n 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 th e acceptance or rejection thereof. T h e Secretary of th e T reasury 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 th e average price (in three decimals) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with th e bids m ust be m ade or com pleted a t the Federal R eserve B ank on October 24, 1968,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing October 24, 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 th e 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 th e bills, does not
have any exemption, as such, and loss from th e 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 h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
Federal or State, b u t are exem pt from all taxation now or hereafter imposed on th e principal or interest thereof by any State,
or any of the possessions of the U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount
a t which T reasury bills are originally sold by th e U nited S tates 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 med or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of T reasury bills (other th a n life insurance com panies) issued hereunder need include
in his income tax return only the difference between the price p aid 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 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 th e term s of the T reasury bills and
govern th e conditions of th e ir issue. Copies of th e 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 ,
H ou ston a n d San A n to n io u p to tw e l v e - th ir ty p .m ., C e n tral D ay lig h t S av in g Time, M o n d a y , O c to b e r 21, 1 968 . T en d e rs
m ay not b e en tered by telephone.
Y ours very truly,
P. E. C oldwell
P re s id e n t
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approximate Y ield of A ccepted Tenders
91-Day Bills
182-Day Bills
D ue Jan u ary 16, 1969
D ue April 17, 1969
$2,346,430,000______________________________ .T otal Applied F o r_____________________ _______....$2,119,170,000
$1,600,928,000______________ ________________ .Total A ccepted.................. .............. ............................... $1,101,457,000
Price
Yield
Price
Yield
98.667____________5.273% ______________ __________- H i g h ________________ ...-9 7 .2 8 4 ______ _____.5.372%
98.638......... .............. 5.388% __ __ ____________________ Low_______________________ 97.250............. ....... 5.440%
98.649____________ 5.345% ( 1 ) ____________________ Average_________ __________ 97.256............. .........5.428% (1 )
( 1 ) T h e s e rates are o n a b ank d iscount basis. T h e eq u iv ale n t coupon issue y ie ld s are 5 .4 9 % for th e 9 1 -d a y b ills, and 5 . 6 6 % for
t h e 18 2 -d a y 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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Maturing January 23,1969

Dated July 25,1968
To: Federal Reserve Bank, Station 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 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.

f

COMPETITIVE TENDERS < $
$
V

(n)
@

$
$

■

Prices should be ex­
pressed on the basis of
100, with not more than
th ree d e c im a l p laces,
e. g., 99.925. F ra ctio n s
must not be used.

■

TENDERS 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.

M aturity Value

(a) $
<> ?
B
.(S) ?
$

METHOD OF PAYMENT

1,000 ?.
5,000 ?-

□

10,000 $50,000 $-

□

By m a tu rin g bills
held by______________________________
P aym ent to be made by_______________

□ C harge our reserve account on paym ent
date
I ] D ra ft enclosed (Effectual delivery of enclosed draft

(a) $ 100,000 $(a) $ 500,000 $.
(a) $1:,000,000 $-

Bhall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment
date)

Delivery In stru ctio n s:
□
□

Pledge to secure T reasury Tax and
Loan Account

(Subscriber's full name or corporate title)

Hold in Custody Account— Member
banks fo r own account only

□

(Address)

By-

(Authorized official signature and title)

Ship to__________________________
(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 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)

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