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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


Circular No. 67-160
August 23, 1967

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the f o llow in g statem ent giving 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 31, 1967, in the am ount of
$3,805,643,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued August 31, 1967, in the am ount of $1,400,000,000, or there­
abouts, representing an additional am ount of bills dated N ovember 30, 1966, and to m ature Novem­
ber 30, 1967, originally issued in the am ount of $900,493,000, (additional am ounts of $499,956,000 and
$1,000,993,000 were issued F ebruary 28, 1967, and Ju n e 1, 1967, respectively), the additional and original
bills to be freely interchangeable.
182-DAY B IL L S (to m aturity date) to be issued August 31, 1967, in the am ount of $1,000,000,000, or there­
abouts, representing an additional am ount of bills dated February 28, 1967, and to m ature February 29, 1968,
originally issued in the am ount of $901,029,000 (an additional $500,040,000 was issued M ay 31, 1967), the
additional and original bills to be freely interchangeable.
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 without 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 value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Time, Monday, August 28, 1967. T enders will not be received a t the T reasury D epartm ent, Washington. Each
tender must be for an even multiple 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 at 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 the 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 without deposit from incorporated banks and trust 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
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 be opened at the Federal 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 Treasury 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, noncompetitive tenders for each issue for $200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted competitive 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 31, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing August 31, 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 the 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, 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 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 United States is considered to be interest. Under 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, redeemed 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, w hether on original issue or on subsequent
purchase, and tire am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the T reasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

In accord ance with the a b o v e an n o u n c em en t, tenders will be received at this bank an d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving l i m e , M o n d ay , A ugu st 28, 1967. Tenders
may not b e entered by teleph one.
Yours very truly,
Wafrous H. Irons
Amount, R ange and A pproxim ate Yield of Accepted Tenders
92-Day Bills
183-Day Bills
D ue Novem ber 24, 1967
D ue F ebruary 23, 1968
$2,231,100,000____________________ .._________.Total Applied F o r_______________________________ $2,022,231,000
$1,400,149,000-------------------------------------------------T otal Accepted________________________________ $1,000,676,000
P rice
Y ield
98.905____________ 4.285% _________________________ H igh______________________97.524___________ .4.871%
98.884____________.4.370% _________________________ Low______________________ 97.489___________ 4.940%
4.336% ( 1 ) ------------------------------ Average____________________ 97.498___________ 4.922% (1 )
( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4.46% for the 92-day bills, and 5.13% for
the 183-day bills.

(See reverse for tender Bank
This publication was digitized and made available by the Federal Reserve form) of Dallas' Historical Library (


Dated November 30,1966

M aturing November 30, 1967

T o : Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_______________________________ Branch
El Paso 79999

H ouston 77001

San Antonio 78206

(D ate)

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.

N O N C O M P E T IT IV E T E N D E R $________________________________N O T 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 the av erage
price (in three decimals) of accepted com petitive bids.
Prices should be ex­
pressed on the basis of
C O M PE T IT IV E T E N D E R S (%___________________ @ _________ $_______________
100,with not more t
@ ....
th r e e d ec im a l p la c e s ,
e. g., 99.925. F ractions
m ust not be used.
D enominations D esired
Number of

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

M aturity Value


(a) $

1,000 $
5,000 $


(a) $
(a) $

10,000 $
50,000 $

B y m aturing bills
held by


Paym ent to be made by_

$ 100,000 $


0 $ 500,000 $
@ $1 ,000,000 $


Charge our reserve account on paym ent
D raft enclosed ( E f f e c t u a l d e l i v e r y o f e n c l o s e d

(a) $



d r a f t shall be on la te st day which will p e rm it p r e s e n t­
m e n t in order to ob tain irrevocably collected fu n d s on
p a y m e n t date)

Delivery Instructions:

Pledge to secure Treasury Tax and
Loan Account


(Subscriber’s full name or corporate title)

Hold in Custody Account—Member
banks for own account only

Ship to_________________________


(Authorized official signature and title)
(F or the account of, if tender is for another subscriber)

( A ddress)

1. No tender for 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 atu rity
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of th e
U nited States, w ith notation on th e envelope reading “TE N D E R 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 announcement, 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 b ank
or appropriate branch.
3. A ny qualified or conditional tender will be rejected.
4. If a corporation m akes the tender, the form should be signed by an officer of th e corporation authorized to m ake th e
tender and the signing of the form by an officer of th e 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 artnership it should be signed by a m em ber of the firm, w ho
ta copartnership, by
should sign in the form
a mem ber 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 be disregarded, unless accompanied by a deposit of 2 percent of th e to ta l am ount (m atu rity v alu e)
of the T reasury bills applied for, or unless th e tenders are accompanied by an express g u ara n ty of full paym ent by a n
incorporated bank or tru s t company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of th e T re a su ry i s
m aterial, the ten d er m ay be disregarded.
(See reverse for announcement)

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