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federal

reserve

Bank of Dallas

FISCAL AGENT OF THE UNITED STATES
DALLAS, TEXAS

75222

Circular No. 67-94
M ay 10, 1967

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llow in g statem en t giving details of tw o issues o f Treasury bills:
T he T reasury D epartm ent, by this public notice, invites tenders for two series of Treasury 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 M ay 18, 1967, in the am ount of
$2,302,320,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued M ay 18, 1967, in th e am ount of $1,300,000,000, or there­
abouts, representing an additional am ount of bills dated February 16, 1967, and to m ature August 17, 1967,
originally issued in the am ount of $1,001,414,000, 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 18, 1967, and to m ature N ovem ber 16, 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 atu rity v alu e).
Tenders 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 15, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. Each
tender must 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
th e 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 F ederal R eserve Banks or Branches
on application therefor.
Banking 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 the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
tru3t company.
Im m ediately after th e closing hour, tenders will be opened a t th e Federal R eserve 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 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 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 Bank on M ay 18, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M ay 18, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
T h e income derived from T reasury bills, whether interest or gain from th e sale or other disposition of th e bills, does not
have any exemption, as such, and loss from the sale or other disposition of T reasury bills does not have any special treatm ent,
as such, under the Internal Revenue Code of 1954. The 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 United 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 at which bills issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redeem ed 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 th e taxable year for which the
return is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (cu rren t revision) and this notice, prescribe the term s of th e 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 an n o u n c em en t, tenders will b e received at this b ank a n d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M on d a y, M a y 15, 1967. Tenders
Nay not b e entered b y t e le p h o n e .
Yours very truly,
W atrous H. Irons
President

LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and A pproxim ate Y ield of Accepted Tenders
91-Day Bills
D ue August 10, 1967
$2,224,344,000________________
$1,300,764,000________________
P rice
Yield
99.079___________ 3.644% ____
99.069___________ 3 .683% ____
99.072___________ 3.671% (1 ) .

-T otal Applied For_
T otal A ccepted—
—High—
Low__
.Average..

182-Day Bills
D ue N ovem ber 9, 1967
-------------------------$1,786,946,000
-------------------------$1,000,098,000
Price
Y ield
-98.069____________ 3.820%
-98.056____________3.845%
-98.063____________ 3.831% (1 )

( 1 ) These ra te s are on a b a n k discount basis. T h e equivalent coupon issue yields are 3 .7 7 % for th e 91-day bills, a n d 3 .9 7 % for
th e 182-day bills.

(See reverse 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
Bated February 16,1967

M aturing August 17, 1967

To: Federal Reserve Bank, 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 am ount
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.
(
^
Prices should be e x ­
pressed on the basis of
100, with not more than
(a)
COMPETITIVE TENDERS ;
$
three decim al p la c e s
>
fa)
e. g., 99.925. Fractions
$
.
.
must not be nsed.
^

TENDERS MAY NOT BE EN TER ED 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) $

<® ?
< > $
8

METHOD OF PAYMENT

1,000 $
5,000 ?

10,000 $
50,000 ?
( ) $
3
_ .(a) $ 100,000 $
( ) $ 500,000 $
5

□ By m aturing bills
-

□

held by____________________
Paym ent to be made by.

□ Charge our reserve account on paym ent
date
[U 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 s h a l l be o n l a t e s t day w hich will p e rm it p r e s e n t­
m e n t i n o r d e r to o b ta in irrevocably collected f u n d s o n
p a y m e n t date)

@ $l;,000,000 $
Delivery In structions:
□
□

Pledge to secure Treasury Tax and
Loan Account

(S ub scrib er’s fu ll n am e o r co rpo rate title)

Hold in Custody Account—Member
banks for own account only

□

(A ddress)

By.
(A u tho rized official s ig n a tu re an d title )

Ship to---------------------------------------

(F o r the a cco un t of, if te n d e r is fo r a n o th e r sub scrib er)
(A ddress)

IMPORTANT
1. N o te n d e r fo r less th a n $1,000 w ill be considered an d e a ch te n d e r m u s t be f o r a n am o u n t in m u ltip les o f $1,000 ( m a t u r i t y
v a lu e).
2. T e n d e rs should be fo rw a rd e d in an envelope c le a rly ad d ressed to th is h a n k o r a p p ro p ria te b ra n c h as F isc a 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 rea d in g “ T E N D E R FOR TREASURY B IL L S ” . Since envelopes re c e iv e d
w ith th is legend will n ot be opened u n til a f t e r th e closing tim e specified in th e public an n o un cem en t, c o 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 velo 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 b ranch.
3. A ny qualified o r conditional te n d e r will be reje cted .
4. I f a co rp o ra tio n m a k es th e te n d e r, th e fo rm should be signed b y an officer of th e c o rp o ratio n a u th o rized to make the
te n d e r and th e sig n in g of th e fo rm by an officer of th e co rp o ratio n will be c o n stru e d as a re p re se n ta tio n by him t h a t he
h a s been so au th o rized . I f th e te n d e r is m a d e by a p a rtn e rs h ip it should be sig n e d by a m e m ber o f th e firm , w h o
should sig n in th e fo rm “.............................................................., a c o p a rtn e rsh ip , by...........................................- .......
f
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 resp o n sib le and reco g nized d e a le rs in i n v e s t ­
m e n t se c u ritie s will be d isre g a rd e d , un less accom panied by a d ep o sit of 2 p e rc en t of th e to ta l am o u n t (m a tu r ity v a lu e )
o f th e T re a s u ry bills applied for, o r u n le ss 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 te d b ank o r tr u s t com pany.
6. I f th e la n g u a g e of th is fo rm is ch an g ed in a n y respect, w hich, in th e opinion o f the S e c re ta ry o f the Treasury is
m a te ria l, th e te n d e r m a y be d isre g a rd e d .

(See reverse for announcement)

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