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F

ederal

Reserve Bank

of

Da llas

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. 67-156
August 9, 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 f o llo w in g statem ent giving d etails of tw o issu e s o f Treasury bills:
T he Treasury 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 August 17, 1967, in the am ount of
$2,301,979,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued August 17, 1967, in the am ount of $1,400,000,000, or th ere­
abouts, representing an additional am ount of bills dated M ay 18, 1967, and to m ature N ovember 16, 1967,
originally issued in the am ount of $1,000,647,000, 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 August 17, 1667, and to m ature February 15, 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 their 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 th e closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, August 14, 1967. T enders will not be received a t the T reasury D epartm ent, Washington. Each
tender m ust be for an even multiple 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 th e special envelopes which will be supplied by Federal Reserve B anks or Branches
on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided th e nam es 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 th eir own account.
T enders will be received w ithout deposit from incorporated banks and trust 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 the 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 at 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. S ettlem ent for
accepted tenders in accordance with the bids m ust be m ade or completed a t the Federal Reserve B ank on August 17, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing August 17, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
T he income derived from Treasury 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 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. T he bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, bu t 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 United 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. U nder 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, 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 the taxable year for which the
return is made, as ordinary gain or loss.
T reasury D epartm ent 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 the circular may be obtained from any F ederal Reserve B ank or Branch.

In accord a n c e with fhe a b o v e a n n o u n c em en t, tenders wiil b e received at this b an k a n d its branches a t El Faso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight S avin g Time, M o n d a y, A ugust 14, 196 7. Tenders
•hay not b e entered b y t e le p h o n e .
Yours very truly,
Wafrous H. Irons
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue N ovem ber 9, 1967
D ue February 8, 1968
$2,422,189,000
.Total Applied F o r_______________________________ $1,980,155,000
$1,400,141,000________________________________ T otal_Accepted_________________________________$1,000,037,000
P rice
Yield
Price
Yield
98.956
.4.130% _________________________ H igh______________________97.610___________ 4.727%
98.934
4 .217% _________________________ X ow ______________________ 97.578___________ .4.791 %
98.945
.4.174% ( 1 ) ____________________ Average____________________ 97.595___________ .4.757% (1)
( 1 ) These rates are on a bank discount basis. T he equivalent coupon issue yields are 4 .29% for the 91-day bills, and 4.96% 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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated May 18, 1967

M aturing November 16, 1967

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

Houston 77091

75222

San Antonio 78206

(Date)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amountshown 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 ex; i I it
v ------------------------------------- pressed on the basis of
$
100, with not more than
COMPETITIVE TENDERS
-@ th ree decim al p la c e s
$ _____________________________

\

e. g ., 9 9 .9 2 5 . F r a c t i o n s

must not be used.

S3gp TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TlTF
CLOSING HOUR, ARE ACCEPTABLE.
^
Denominations Desired
Number of
Pieces

M aturity Value

.............@ $
....

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

@ $

METHOD OF PAYMENT

1,000 $.
5,000 $.

□

@ $ 10,000 $.
..... _ @ $ 50,000 $.
....... @ $ 100,000 $.

By m aturing bills
held by
_
Paym ent to be made by_________

□
□

----------@ $ 500,000 $.

Charge our reserve account on paym ent
date
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

□

.......... @ $1,000,000 $.

draft abal] be on latest day which will permit p r e se n t­
m ent in order to obtain irrevocably collected fund* on
paym ent date)

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

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

Hold in Custody Account—Member
banks for own account only

□

(Address)

Rv
(Authorized official signature and title)

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

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

“

---

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 Agent 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.
8. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be
signed by anofficer
of the corporation authorized to mak
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”.
1
5, Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in v est­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity valvxe )
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by ^
incorporated bank or trust company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury ^
material, the tender may be disregarded.
(See reverse fo r announcem ent)

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