View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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. 67-159
August 16, 1967

NEW OFFERING — TREASURY BILLS
To All Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the f ollo w in g statem ent giv ing d etails of tw o is sues of Treasury bills:
T he 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 the am ount of
$2,300,088,000, as follows:
92-DAY B ILLS (to m aturity date) 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 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. They will be issued in bearer form only, and in
denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value).
T enders will be received a t F ederal 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. Each
tender must be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered must 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 made
on the printed forms and forwarded in the 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 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.
Tenders 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 must be accompanied by paym ent of 2 percent of the face am ount of
Treasury 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 be opened a t the Federal Reserve B anks 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 th e 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 w ith the bids m ust be m ade or com pleted a t the Federal Reserve B ank on August 24, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury 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, whether
Federal or State, bu t 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 United States, or by any local taxing authority. For purposes of taxation the am ount of discount
at which T reasury 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 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 the difference between the 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
return is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s of the Treasury bills and
govern th e conditions of their issue. Copies of the circular may be obtained from any Federal Reserve B ank or Branch.

In accord ance with the a b o v e an n ou n c em en t, fenders will be received at this b a n k an d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., C n r l Daylight Saving Time, M o n d ay , A ugust 21, 1967. Tenders
eta
may not b e entered by t ele p h o n e .
Yours very truly,
W efraus H. Irons
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and Approxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
Due N ovem ber 16, 1967
D ue February 15, 1968
$2,348,296,000
T otal A pplied F o r_______________________________ $1,979,738,000
$1,400,515,000------------------------------------------------- T otal A ccepted_________________________________ $1,000,361,000
Price
Yield
Price
Yield
98.948
4.162% _________________________ H igh______________________ 97.588__________ .4.771%
98.934
.4.217% _________________________ X ow ______________________ 97.568__________ .4.811%
98.940
.4.193% ( 1 ) ____________________ Average_____________________ 97.578__________ 4.791% (1 )
( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4.31% for the 91-day bills, and 4 .9 9 % 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

183 DAYS TO MATURITY
Dated August 24, 1967

M aturing February 23, 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

S an Antonio 78206

(Data)

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

NONCOMPETITIVE TENDER $_____________________________ NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full at the average
price (in th ree decim als) of accepted com petitive bids.
«
Prices should be ex1$-----------------------— (a)-------------$-------------------------------- pressed on the basis of
/ $_______________ (ft-..
/^\
a?
COMPETITIVE TENDERS <* i
________ $
J°0’ e d not a orf thnn ,
n.ot ™ p c e s
. . ____ @________$___________________ 100.ewithec im mlorelath*n
'
^
^
th r
•V
; ... . _ . . .
e. g., 99.925. F ractions
$
..
_
.
.
m ust not be used.

Is

E i P T E N D E R S MAY NOT BE E N T E R E D BY T E L E P H O N E . TEN D ERS BY W IRE, IF RECEIV ED BEFO RE T H E
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired

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

Tr i

Number of
Pieees

Maturity Value

@ $
(5) $
(5) $

METHOD O F PAYM ENT

1,000 $.
5,000 $.

□

10,000 $50,000 s.

□

(3) $
(fib $ 100,000 *■
(3) $ 500,000 I
_(§> n ,000,000 $-

Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan

□

By m aturing bills
held by____________________
Paym ent to be made by_

□

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

□

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

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

----(Address)
g y ___________________________________

A cC O U nt

(Authorized official signature and title)

Ship to__----------- ------------------------ ---------------------

(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 ten der 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 appropriate branch as Fiscal A gent of the
U nited States, w ith notation on the envelope reading "T E N D ER FOR TREA SU RY 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
rela tin g to other m a tte rs should n o t be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank
or approp riate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation m akes the tender, th e form should be signed by an officer of the corpoi’ation authorized to make the
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 m ade by a p artnership it should be signed by a member of the firm, who
should sign in the form “............................................................. a copartnership, by.........................................
1
a member of the firm”.
5. Tenders from those other th a n incorporated banks and tru s t com panies or responsible and recognized dealers in in v e st­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total 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 an
incorporated bank or tru st company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury ia
m aterial, 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