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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. 67-137
Ju ly 12, 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 follo w in g state 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 atu rity date) 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 April 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 ILLS 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 a t m aturity their face am ount will be payable w ithout interest. T h ey 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).
Tendei-s 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, M onday, 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 $1,000, 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 th e special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Banking institutions generally may subm it tenders for account of customers provided th e nam es of th e customers are
set forth in such tenders. Others th an banking institutions will not be perm itted to subm it tenders except for th eir 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 th e tenders are accompanied 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 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 th e 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 $200,000 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 the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal R eserve B ank on July 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 made for differences between the par value of m atur­
ing bills accepted in exchange and th e issue price of the new bills.
T he income derived from T reasury bills, w hether interest or gain from th e 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 Revenue Code of 1954. T he 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 the 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 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 T reasury bills (other than life insurance com panies) issued hereunder need include
in his income tax return only th e difference between the price paid for such bills, w hether on original issue or on subsequent
purchase, and th e am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the
retu rn is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of th e T reasury bills and
govern th e conditions of th eir issue. Copies of th e circular m ay be obtained from any F ederal Reserve B ank or Branch.

In accord ance with She a b o v e an n o u n c em en t, fenders will b e received at this b a n k a n d ifs branches af El Paso,

Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d a y , July 17, 1967. Tenders
^ay 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 A pproxim ate Y ield of Accepted T enders
92-Day Bills
182-Day Bills
D ue October 13, 1967
D ue Janu ary 11, 1968
$2,206,519,000
T otal A pplied F o r-----------------------------------------------$1,645,824,000
$1,400,2 79,000T o ta l A ccepted-------------------------------------------------$1,000,024,000
Price
Yield
Price
Yield
98.918.
.4.234%
— H igh-------------------------------- 97.652___________ .4.644%
_4.308%
98.899,
— Low---------------------------------97.605___________ .4.737%
98.905.
4.285% ( 1 ) ------------------------------ A verage------------------------------ 97.630___________ .4.688% (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 (FedHistory@dal.frb.org)

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Dated July 20, 1967

M aturing January 18, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The___________________ B r a n c h ____________________ ____________________________
E l Paso 79999

H ouston 77001

San Antonio 78206

(Date)

P u rsu an t to th e provisions of T reasury D epartm ent Circular No. 418 (current revision) and th e provisions of th e
public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in th e am ount
shown below, and agrees to p ay fo r the am ount allotted, on or before the issue date, by th e m ethod and a t th e ra te indicated.

Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t
the av erage
price (in three decimals) of accepted com petitive bids.
(„
„
Prices should be ex ­
pressed on th e basis of

;
(a)
$
COMPETITIVE T E N D E R S <f$-------------------------- @ ------------- $______________________
;
@ .
$ -...
............ -

th re ^ d lS m M ^ la ^ S 1
,
e. g., 99.925. Fractions'
m ust n o t he used.

[ ^ T E N D E R S MAY NOT BE E N TE R E D BY TE L EPH O N E . TEN D ERS BY W IRE, I F RECEIV ED BEFO RE T H E
CLOSING HOUR, ARE ACCEPTABLE.
Denom inations D esired
Number o f
Pieces

P aym ent fo r this issue of bills cannot be m ade
by credit to T reasury Tax and Loan Account.

M aturity V alue

@ $
.< > $
§

5,000 $

$

10,000 $

$

50,000 $

_

METHOD O F PAYM ENT

1,000 ?
□

..............
.... .
.. .

□
□

. .

$ 100,000 $
@ $

□

5 0 0 ,0 0 0 $

$ 1 ,0 0 0 ,0 0 0 $

□

draft shall be on latest day which w ill perm it present­
m ent in order to obtain irrevocably collected funds on
paym ent date)

.... .

____
(Subscriber’s fu ll nam e or corporate title)

Hold in Custody Account—Member
banks for own account only
-----(Address)
Pledge to secure Treasury Tax and____________ ___________________________________
L oan

□

date

□

Delivery Instructions:
□

held by_
Paym ent to be made by.

A cC O U nt

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

(Authorized official signature and title)

-----

(For the account of, if tender is for another subscriber)
(Address)

IM PORTANT
1. No tender fo r less th an $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
value).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appro priate branch as F iscal A g ent of th e
U nited S tates, w ith notation on th e envelope reading “TE N D E R FOR TREA SU RY B ILLS”. Since envelopes received
w ith th is legend will not be opened u n til a fte r th e closing tim e specified in th e public announcem ent, com m unications
relating to o ther m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is b an k
or app ro p riate branch.
8. Any qualified or conditional ten d er will be rejected.
4. If a corporation m akes th e tender, the 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 h e
has been so authorized. I f th e tender is m ade by a p artn ersh ip it should be signed by a m em ber of th e firm, who
should sign in th e form “.............................................
, a copartnership, by---------1
a mem ber of th e firm ” .
5. Tenders from those other th a n incorporated banks and tr u s t com panies or responsible and recognized d ealers in in v est­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of th e to ta l am ount (m a tu rity value)
of th e T reasury bills applied for, o r unless the tenders a re accompanied by an express g u ara n ty of full paym ent by a n
incorporated bank or tr u s t company.
6. If th e language of th is form is changed in any respect, which, in th e opinion of th e Secretary of th e T re asu ry is
m aterial, th e 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