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F ederal reserve Bank of Dallas
F I S 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

Circular No. 67-30
February 1, 1967

NEW OFFERING — TREASURY BILLS
To Al! Banking institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follo w in g statem en t giving d etails of tw o issu es of Treasury bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to th e aggregate am ount
of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing F ebruary 9, 1967, in th e am ount of
$2,300,458,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued February 9, 1967, in the am ount of $1,300,000,000, or th e re­
abouts, representing an additional am ount of bills dated November 10, 1966, and to m ature M ay 11, 1967,
originally issued in the am ount of $1,000,135,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated February 9, 1967, and to m ature August 10, 1967.
T h e 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 atu rity th e ir face am ount will be payable w ithout interest. They 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).
T enders will be received a t Federal Reserve Banks and B ranches u p to th e closing hour, one-thirty p.m., E astern
S tandard Tim e, M onday, F ebruary 6, 1967. T enders will riot be received a t the T reasury D epartm ent, W ashington. E ach
tender m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders the price offered m ust be expressed on
the basis of 100, with not more th an three decimals, e.g., 99.925. Fractions may not be used. It is urged th a t tenders be m ade
on th e printed forms and forwarded in th e special envelopes which will be supplied by F ederal Reserve Banks or Branches
on application therefor.
B anking institutions generally may subm it tenders for account of customers provided the names of the customers are
set forth in such tenders. O thers 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 securites. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless th e tenders are accom panied by an 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 Banks 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 he Secretary of the 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, noncom petitive 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 th ree decim als) of accepted com petitive bids for th e respective issues. Settlem ent for
accepted tenders in accordance w ith the bids m ust be made or completed a t th e Federal R eserve Bank on February 9, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing F ebruary 9, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e 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 T reasury bills does not have any special treatm ent,
as such, under th e Internal R evenue 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 im posed on the principal or interest thereof by any State,
or any of th e possessions of the U nited States, or by any local taxing authority. For purposes of taxation th e am ount of discount
at which T reasury bills are originally sold by th e U nited States is considered to be interest. U nder Sections 454 (b ) and 1221 (5 )
of th e Internal R evenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is not considered to
accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, th e owner of T reasury bills (o th er th a n life insurance com panies) issued hereunder need include in his
income tax retu rn only th e difference between th e price paid for such bills, whether on original issue or on subsequent purchase,
and th e am ount actually received either upon sale or redem ption at m aturity during th e taxable year for which the retu rn is
made, as ordinary gain or loss.
T reasury D ep artm en t Circular No. 418 (curren t revision) and this notice, prescribe th e term s of th e T reasury bills and
govern the conditions of their issue. Copies of th e circular may be obtained from any Federal Reserve B ank or Branch.

In a cco rd ance with the a b o v e an n o u n c em en t, tenders will b e received at this b a n k a n d its branches at El Paso,
Houston an d San Antonio, up to twelve-thirty p.m., Centra! Standard Time, M on d ay, February 6, 1967. Tenders m a y
not b e entered by te le p h o n e .
Yours very truly,
Watrous H. Irons
President

LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Yield of Accepted T enders
91-Day Bills
182-Day Bills
D ue M ay 4, 1967
D ue August 3, 1967
$2,489,584,000_________________________......___ T otal Applied F or_______________________________ $2,226,672,000
$1,301,207,000_____________________
- ___ T otal A ccepted_________________________________$1,000,902,000
Price
Y ield
Price
Yield
98.875
4.451%_____________
....High____________________ 97.762___________ 4.427%
98.864
4.494% __________________________ Low______________________ 97.743___________ 4.464%
98.866
4.486% ( 1 ) ____________________ Average____________________ 97.745----------------- 4.460% (1 )
( 1 ) These rates are on a b an k discount basis. T h e equivalent coupon issue yields are 4 .6 0 % for th e 91-day bills, a n d 4 .6 3 % for
th 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 February 9,1967

Maturing August 10,1967

To: Federal Reserve Rank, Station K, Dallas, Texas
or —
The_______________________________ Branch
El Paso 79999

Houston 77001

75222

San Antonio 78206

(D ata)

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.
(n.
/->
<
p
Prices should be ex----------------------------- (£P
pressed on the basis of

COMPETITIVE TENDERS <:$_______________ @________$______________________________ ™T * i ^
' ~

— —

U _____________________@ __________ $ ___________________________

—

\

e.g., 99.925.^ r a c t i o lf s

must not be used.

TENDERS MAY NOT BE EN TERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b er of
Pieces

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

M a tu rity V alue

(a) $
.(5) $
.(ob $

METHOD OF PAYMENT

1,000
□

5,000 *
10,000 $.

□

50,000 $■
(a) $ 100,000 $.(ob $ 500,000 $.(ob $1 ,000,000

By maturing bills
held by_______________________ _
Payment to be made by___________

.(ob $

□
□

Charge our reserve account on payment
date
Draft enclosed ( E f f e c t u a l d e liv e r y o f enclosed
d r a f t sh all be on la te st day w hich w ill p e rm it p r e s e n t ­
m e n t in o rd e r to o b ta in irrevocably collected fu n d s o n
p a y m e n t d ate)

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account
Ship to_________________________

(S u b scrib er’s fu ll n am e o r c o rp o ra te title )

Hold in Custody Account—Member
banks for own account only

□

(A ddress)

By-

(A u thorized official s ig n a tu re and title )

(F o r th e acco u n t of, if te n d e r is f o r a n o th e r 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 (m aturity

value).
2 . Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of 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.
Any qualified or conditional tender will be rejected.
If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make th e
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, w ho
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 b y a a
incorporated bank or trust company.
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 for announcement)

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