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F ederal R eserve 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. 67-158
August 16, 1967
MEW OFFERING — TREASURY BILLS
To All Ba n king Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the f ollo w in g state m e n t giving d etails of tw o is sues 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 August 24, 1967, in th e am ount of
$2,300,088,000, as follows:
92-DAY B IL L S (to m aturity d ate) to be issued August 24, 1967, in the am ount of $1,400,000,000, or there
abouts, representing an additional am ount of bills dated M ay 25, 1967, and to m ature N ovember 24, 1967,
originally issued in the am ount of $1,000,329,000, the additional and original bills to be freely interchangeable.
183-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated August 24, 1967, and to m ature February 23, 1968.
T he 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 amount will be payable w ithout 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 v alue).
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, August 21, 1967. T enders will not be received a t the T reasury D epartm ent, Washington. E ach
tender must be for an even multiple 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 m ade
on the 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 may subm it tenders for account of customers provided the 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 their own account.
Tenders 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 the face am ount of
T reasury bills applied for, unless the 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 b e opened at the F ederal 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 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 com pleted a t the Federal R eserve B ank on August 24, 1967, in
cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing August 24, 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 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 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, w hether
F ederal or State, but are exempt 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. 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 T reasury 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 rrent revision) and this notice, prescribe th e term s of th e Treasury bills and
govern th e conditions of their issue. Copies of the circular may be obtained from any B'ederal Reserve B ank or Branch.
In accord a n c e with the a b o v e a n n o u n c em en t, fenders will be received at this b an k 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 o n d a y , August 21, 1967. Tenders
may 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, Range and Approximate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue Novem ber 16, 1967
D ue F ebruary 15, 1968
$2,348,296,000
T otal Applied For_______________________________ $1,979,738,000
$1,400,515,000------------------------------------------------- T o tal A ccepted_________________________________$1,000,361,000
Price
Yield
Price
Yield
98.948
4.162% -------------------------------------- H igh_______________________97.588__________ .4.771%
98.934
4.217% -------------------------------------- l o w ______________________ 97,568..._______ .....4.811 %
98.940
.4.193% ( 1 ) ------------------------------ Average_____________________ 97.578__________ 4.791% (1 )
( U ,T}?e!e rates are on a bank discount basis. The equivalent coupon issue yields are 4 .31% for the 91-day bills, and 4.99% 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
92 DAYS TO MATURITY
Dated May 25, 1967
M aturing November 24, 1967
To: Federal Reserve Bank, Station K, Dallas, Texas
or —
The________
Branch
El Paso 79999
H ouston 77001
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 amount
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 $_____________________________ N O T TO EXCEED $200,000
N oncom petitive te n d e rs fo r $200,000 o r less from a n y one bidder, w ith o u t s ta te d price, w ill be accepted in full a t th e a v e ra g e
price (in th ree d ecim als) of accepted co m p etitiv e bids.
(m
COMPETITIVE
Prices should be ex
pressed on the basis of
(a)
(5)_________
$$_______________________________ wit,h n.ot ® 01’e th a n
T E N D E R S { $$___________________
_
'
th r e e d ec im a l p la c e s ,
e. g., 99.925. F ractio n s
$
@
- ...... $ - ....m ust not be used.
HSiT* TENDERS MAY NOT BE ENTERED BY TELEPH O N E. TEN D ERS BY W IRE, IF RECEIV ED BEFO RE T H E
CLOSING HOUR, ARE ACCEPTABLE.
Denominations D esired
P aym ent fo r this issue of bills cannot be m ade
by credit to T reasury T ax and Loan Account.
Maturity Value
1 0 0 0 $ ________________
METHOD OF PAYM ENT
g qaq ?,
’
1 0 . 0 0 0
......
□
By m aturing bills
held by_
$
j~
50.000 $_____________
@ $ 100,000 $
□
{CV
/7h
- 't r
v 500,000
AAA AA A
j
p
a y m
e n t
£ 0
k
e
m
a d e
Charge our reserve account on paym ent
date
j— J J ) r a f t 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 presentment in order to obtain irrevocably collected funds on
payment date)
f 1 ,W o , u u u tp
Delivery Instructions:_________________________ _________________ ________________________________
n
□
□
Hold in Custody Account—Member
banks for own account only
Pledge to secure Treasury Tax and
uoan AcCOUnt
(Subscriber’s fu ll name or corporate title)
y------g y___________________________________
(Authorized official signature and title)
Ship to._
(For the account of, if tender is for another subscriber)
(Addreos)
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
v a lu e ).
2
Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as F iscal A gent of th e
United S tates, w ith notation on the envelope reading “TEN D ER FOR TREASURY BILLS”. Since envelopes received
w ith this legend will not be opened until a fte r the closing tim e specified in the public announcem ent, com m unications
relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank
or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4 If a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to m ake th e
tender and the signing of the 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 m ade by a p artn ersh ip it should be signed by a member of the firm, who
should sign in the form “
, a copartnership, b y .--------------,
a mem ber of the firm”.
fi T enders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers in in v e st
m e n t securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity valu e)
of the T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by a n
in c o rp o rated bank or tru st company.
(; if the language of this form is changed in any respect, which, in the opinion of the Secretary of th e T re asu ry ia
m aterial, the tender may be disregarded.
(See reverse fo r announcem ent)
@FedFRASER