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F ederal Reserve Bank





Circular No. 67-136
July 12, 1967

To AH Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llo w in g sta te m e n t giving details o f tw o issues o f 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 $2,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Ju ly 20, 1967, in the am ount of
$2,301,411,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued Ju ly 20, 1967, in the am ount of $1,400,000,000, or there­
abouts, representing an additional am ount of bills dated A pril 20, 1967, and to m ature October 19, 1967,
originally issued in the am ount of $1,000,713,000, 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 Ju ly 20, 1967, and to m ature Jan uary 18, 1968.


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 th eir 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 aturity valu e).
T enders will be received at Federal R eserve Banks and Branches u p to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, Ju ly 17, 1967. T enders will not be received a t the T reasury D epartm ent, Washington. Each
ten der m ust be for an even m ultiple of $ 1 ,0 0 0 , and in th e case of com petitive tenders the price offered m ust be expressed on
th e basis of 100, w ith 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 th e printed forms and forwarded in the special envelopes which will be supplied by F ederal Reserve Banks or Branches
on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the nam es of th e 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 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 th e tenders are accompanied 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 th e 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 th e 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
rig ht 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 $ 2 0 0 , 0 0 0 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 com petitive bids for th e 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 Ju ly 20, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Ju ly 20, 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 he income derived from T reasury bills, w hether interest or gain from th e 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 the Internal R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ederal 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 th e possessions of th e U nited States, or by any local taxing authority. F or purposes of taxation th e am ount of discount
a t 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 the Internal R evenue 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, redeem 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 com panies) issued hereunder need include
in his income tax retu rn only th e difference between th e 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 th e taxable year for which the
retu rn is made, as ordinary gain or loss.
T reasury D epartm en t Circular No. 418 (current revision) and this notice, prescribe th e term s of th e Treasury bills and
govern th e conditions of their issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank or Branch.

In acc ord an c e with ik e a b o v e an n o u n c em en t, tenders will be received at this b a n k a n d its branches at El Paso,
Huston a n d San Antonio up to twelve-thirty p.m., Centra! Daylight Saving Time, M o n d a y , July 17, 19 67. Tenders
not b e entered by t e le p h o n e .
Yours very truly,
Watrous H. Irons
Amount, Range and A pproxim ate Y ield of Accepted Tenders
92-Day Bills
182-Day Bills
Due October 13, 1967
D ue Jan u ary 1 1 , 1968
$2,206,519,000----------------------------------------------.T otal A pplied F o r----------------------------------------------- $1,645,824,000
$1,400,279,000------------------------------------------------ .T otal-A ccepted--------------------------------------------------$1,000,024,000
P rice
Y ield
98.918------------------.4.234% -------------------------------------- H igh--------------------------------- 97.652___________ .4 .6 4 4 %
98.899------------------ 4.308% -------------------------------------- Low----------------------------------97.605___________ 4.737%
98.905------------------- 4.285% ( 1 ) ------------------------------ Average------------------------------- 97.630___________ 4 .6 8 8 % ( 1 )
( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4 .40% for the 92-day bills, and 4 88% for
the 182-day bills.

(See reverse for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated April 20, 1967

M aturing October 19, 1967

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
E l Paso 79999

H ouston 77001


S an Antonio 78206

(D ate)

P u rsu an t to th e provisions of T reasury D epartm ent C ircular No. 418 (cu rre n t revision) and the provisions of th e
public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ou nt
shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by th e method and a t th e r a te indicated.


$_________________________ .

NOT TO E X C E E D §200,000

Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t th e a v e rag e
price (in three decim als) of accepted com petitive bids.
/ .
Prices should be ex | $------------------------------ @ -------------- $ ------------------------------------pressed on th e basis o f

COMPETITIVE T E N D E R S <§ --------------------------- @ ________ $_____________________


________________@ __________ $ _______________________ e. g., 99.925. F ra ctio n s
m ust n o t be used.

eft ten d ers m ay not be en ter ed by teleph o n e



by w ir e , if

r e c e iv e d

befo re


D enom inations D esired
Number of

P aym ent fo r th is issue of bills cannot be m ade
by credit to T reasu ry T ax and Loan Account.

Maturity Value

_(5) $
(a) $
_(5) $


1,000 *
5,000 $10,000 *


50,000 *
-<§> ? 100,000 ?.
..(a) $ 500,000 &
$1,000,000 $.


By m aturing bills
held by____________________
Paym ent to be made by.
Charge our reserve account on paym ent
I D raft enclosed ( E f f e c t u a l d e liv e r y o f e n c lo s e d
draft shall be on latest day which w ill permit p resen t­
ment in order to obtain irrevocably collected funds on
payment date)

Delivery Instructions:

Pledge to secure Treasury Tax and
Loan Account

(Subscriber’s fu ll name or corporate title)

Hold in Custody Account—Member
banks for own account only



By —

Ship to_________________________

(Authorized official signature and title)

(jl1o x the a b b u u u t u i , u
(For m e account of, if

tender is for another subscriber)


1. No tender fo r less th a n $1,000 will be considered and each tender m ust be fo r an am ount in m ultiples of $1,000 (m a tu rity
2. Tenders should be forw arded in an envelope clearly addressed to th is bank or approp riate branch as Fiscal A gent of th e
U nited S tates, w ith notation on th e envelope reading “TEN D ER FOR TREA SU RY B IL L S ” . Since envelopes received
with th is legend will not be opened until a fte r the closing tim e specified in th e public announcem ent, com m unications
relatin g to o ther m a tte rs should not be enclosed. Envelopes fo r subm itting tenders may be obtained from th is b an k
or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation m akes th e tender, th e form should be signed by an officer of the corporation authorized to m ake th e
tender and the signing of th e form by an officer of the corporation will be construed as a representation by him th a t he
has been so authorized. If the tender is made by a p artnership it should be signed by a member of th e 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 tru s t companies or responsible and recognized dealers in in v e st­
m ent securities will he disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity valu e)
of th e T reasury bills applied for, or unless the tenders are accompanied by an express g u aran ty of full paym en t by an
incorporated bank or tr u s t company.
6. I f th e language of this form is changed in any respect, which, in the opinion of the S ecretary of the T re asu ry is
m aterial, the tender m ay be disregarded.
(See reverse fo r announcem ent)

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