View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.




Circular No. 67-85
April 26, 1967

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follow in g state m e n t giving details of two issues of Treasury bills:
T h e Treasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount
of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M ay 4, 1967, in the am ount of
$2,302,827,000, as follows:
91-DAY B ILLS (to m aturity date) to be issued May 4, 1967, in the am ount of $1,300,000,000, or there­
abouts, representing an additional am ount of bills dated February 2, 1967, and to m ature A ugust 3, 1967,
originally issued in the am ount of $1,002,103,000, the additional and original bills to be freely interchangeable.
182-DAY B ILLS for $1,000,000,000, or thereabouts, to be dated M ay 4, 1967, and to m ature N ovem ber 2, 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 at m aturity their face am ount will be payable without 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 aturity value).
T enders 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, Monday, M ay 1, 1967. Tenders will not be received a t the Treasury D epartm ent, W ashington. E ach
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 may 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 B anks or B ranches
on application therefor.
B anking institutions generally m ay 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 tru st companies and from responsible and recognized
dealers in investm ent securities. Tenders from others must 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 the closing hour, tenders will be opened at th e Federal Reserve Banks and Branches, following which
public announcem ent will be made by the Treasury 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, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be
accepted in full at 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 made or com pleted at the Federal Reserve B ank on M ay 4, 1967, in
cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing M ay 4, 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 the new bills.
T he 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 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 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
at which Treasury bills are originally sold by the U nited States is considered to be interest. Under 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, 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, 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
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 th e conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

In accordance with the a b o v e a n n o u n c em en t, tenders will b e received at this bank an d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d ay, M a y 1, 1967. Tenders
may not b e entered by tele p h o n e .
Yours very truly,
Watrous H. Irons

Amount, Range and Approxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
Due Ju ly 27, 1967
Due October 26, 1967
T otal Applied F or-----------------------------------------------$1,865,889,000
$1,300,722,000________________________________ T otal-Accepted------------------------------------------------- $1,000,339,000
Pr ic e



Pr ic e


3.691% __________________________H igh______________________98.106___________ 3.746%
3.727% __________________________Low ______________________ 98.086___________ 3.786%
3.715% ( 1 ) _____________________Average-------------------------------98.093___________ 3.772% (1 )

( 1 ) These rates are on a ban k discount basis. T h e eq uivalent coupon issue yields are 3 .8 1 % for the 91-day bills, a n d 3 .9 1 % 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 (


Dated May 4,1967

Maturing November 2,1967

To: Federal Reserve Bank, Station K, Dallas, Texas
or —
T he______________________________ Branch
E l P aso 79999

H o u sto n 77001


S a n A n to nio 78206

(D ate)

P u rs u a n t to th e p ro v ision s of T re a s u r y D e p a rtm e n t C irc u lar N o. 418 (c u r re n t rev isio n ) an d th e p ro v isio n s o f th e

public announcement issued by th e T re a s u ry D e p a rtm e n t, th e u n d ersig n ed offers to p u rch a se T re a s u ry bills in th e a m o u n t
shown below, and a g re e s to p a y fo r th e a m o u n t a llo tted , on o r b efo re th e issu e d a te , by th e m eth od an d a t th e r a t e in d ic a te d .


_NOT TO EXCEED $200,000

N on co m p etitive te n d e rs fo r $200,000 o r le ss fro m any one bidder, w ith o u t s ta te d price, will be accepted in fu ll a t the average
p rice (in th re e d ecim als) of accep ted co m p etitiv e bids.
P ric e s should be ex------------------------------- (a )---------------- $ ------ -------------------------------- p ressed on th e b a s is of
100, w ith no t m ore th a n
t h r e e d e c im a l p la c e s ,
------------------------- @ ___________ $________________________e. g., 99.925. Fractions
m u s t n o t be used.
V S T T E N D E R S M A Y N O T B E E N T E R E D B Y T E L E P H O N E . T E N D E R S BY W IR E , I F R E C E IV E D B E F O R E T H E
C LO SIN G H O U R , A R E A C C E P T A B L E .

Denominations Desired
N u m ber of

P a y m e n t f o r th is issu e o f bills can n o t be m a d e
by c re d it to T re a s u ry T a x an d L oan A ccou n t.

M a tu rity V alue

.(5) $
-< $


1,000 $___________

5,000 $____________

.<® $ 10,000 $______________
.(5) $ 50,000 $____________
(a) $ 100,000 $___________


(a) $ 500,000 $____________
(a) $ 1,000,000 $______________

By maturing bills
held by
Payment to be made by




Charge our reserve account on payment
D raft enclosed ( E f f e c t u a l d e liv e r y o f e n c l o s e d
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 rder to o bta in irrevocably collected fu n d s on
p a y m e n t date)

Delivery Instructions:

Pledge to secure Treasury Tax and
Loan Account
Ship to_________________________

(S ub scriber’s fu ll n am e o r corp orate title)

Hold in Custody Account—Member
banks for own account only


(A ddress)

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

(F o r th e acc o u n t of, if te n d e r is fo r a n o th e r su bscrib er)

(A ddress)

1. N o te n d e r fo r less th a n $1,000 w ill be considered an d eac h te n d e r m u s t be f o r a n a m o u n t in m u ltip le s o f $1,000 ( m a tu r it y
v a lu e ).
2. T en d ers should be fo rw ard e d in an envelope c le a rly ad d ressed to th is b an k o r a p p ro p ria te b ra n c h as F isca l A g e n t o f th e
U n ite d S ta te s, w ith n o ta tio n on th e envelope re ad in g “ T E N D E R F O R T R E A S U R Y B IL L S ” . Since envelopes rec e iv e d
w ith th is legend will no t be opened u n til a f t e r th e closing tim e specified in th e public a nn o u ncem en t, co m m u n ic a tio n s
re la tin g to o th e r m a tte rs should n o t be enclosed. E n v elo pes f o r su b m ittin g te n d e rs m ay be o b tain ed fro m th is b a n k
o r a p p ro p ria te bran ch .
3. A ny qualified o r conditional te n d e r w ill be re jected .
4. I f a c o rp o ratio n m ak es th e te n d e r, th e fo rm should be sig n ed b y a n officer o f th e c o rp o ra tio n a u th o rize d to m a k e th e
te n d e r an d th e sig n in g of th e form by an officer of th e c o rp o ratio n will be co n stru e d as a re p re se n ta tio n by him t h a t h e
h a s been so au th o rized . I f th e te n d e r is m ad e by a p a rtn e rs h ip it should be sig n ed by a m e m b er o f th e firm , w h o
should sign in th e fo rm “.............................................................., a c o p a rtn e rsh ip , by .......................................................................................
a m em b er of th e firm ” .
5. T e n d e rs fro m th o se o th e r th a n in c o rp o ra te d b an k s and tr u s t com panies o r re sp o n sib le and reco gn ized d e alers in in v e s t­
m e n t se c u ritie s w ill be d isreg a rd e d , u n less accom panied by a d e p o sit of 2 p e rce n t of th e to ta l a m o u n t (m a tu r ity v a lu e )
of th e T re a s u ry bills applied for, o r u n less th e te n d e rs a r e accom panied by a n e x p re s s g u a ra n ty of fu ll p a y m e n t b y a n
in c o rp o ra ted b an k o r tr u s t com pany.
6. Tf th e la n g u a g e of th is fo rm is ch an g ed in a n y re sp e ct, w hich, in th e opinion of th e S e c re ta ry of th e T r e a s u r y i a
m a te ria l, th e te n d e r m ay be d isreg ard ed .

(See reverse for announcement)

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