View PDF

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



Circular No. 67-173
Septem ber 6, 1967

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 of tw o issu es of Treasury bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount
of $2,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Septem ber 14, 1967, in the am ount of
$2,301,559,000, as follows:
91-DAY B ILLS (to m aturity date) to be issued Septem ber 14, 1967, in the am ount of $1,400,000,000, or there­
abouts, representing an additional am ount of bills dated June 15, 1967, and to m ature D ecem ber 14, 1967,
riginaily issued in the am ount of $1,000,134,000, 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 S eptem ber 14, 1967, and to m ature M arch 14, 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 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 atu rity v alu e).
Tenders will be received a t F ederal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, M onday, Septem ber 11, 1967. T enders will not be received a t the T reasury D epartm ent, Washington. Each
te n 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, with not more than three decimals, e.g., 99.925. F ractions 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 envelope# which will be supplied by F ederal R eserve Banks or B ranches
on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided the nam es 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.
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 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, tender# will be opened a t the F ederal R eserve B anks and Branches, following which
public announcem ent will be m ade by the T reasury D epartm ent of th e am ount and price range of accepted bids. Those
subm itting tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of th e T reasury expressly reserves th e
rig h t 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 decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for
accepted tenders in accordance with th e bids m ust be m ade or completed a t the Federal R eserve B ank on Septem ber 14, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Septem ber 14, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m atur­
ing bills accepted in exchange and the issue price of th e new bills.
T h e income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of th e bills, does not
have any exem ption, as such, and loss from th e sale or other disposition of Treasury bills does not have any special treatm ent,
as such, under the Internal R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether
F ederal or State, b u t are exem pt from all taxation now cr 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 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 In tern al Revenue Code of 1954 th e 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 th an life insurance com panies) issued hereunder need include
in his income tax return only the difference between th e 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
re tu rn is made, as ordinary gain or loss.
T reasury D epartm en t Circular No. 418 (cu rren t revision) and this notice, prescribe th e 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 acc o rd a n c e with the 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 an 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 ay, S eptem ber 11, 1967. Tenders
may not b e entered by t e le p h o n e .
Yours very truly,
Wafrous H. irons
Amount, R ange and Approxim ate Yield of A ccepted Tenders
91-Day Bills
182-Day Bills
D ue D ecem ber 7, 1967
D ue M arch 7, 1968
$2,678,295,000----------------------------------------------.T otal A pplied F o r_______________________________ $1,632,297,000
$1,400,299,000------------------------------------------------- T otal A ccepted_________________________________$1,000,029,000
Y ield
.4.304% _________________________ .H igh______________________97.604___________ 4.739%
98.904---------------- 4.336% __________________________ Low______________________ 97.572___________ .4.803%
98.907------------------ 4.324% ( 1 ) ___________________ A v erage________________ - __ 97.591____________ 4.765% (1 )
( 1 ) These rates are on a bank discount basis. T he equivalent coupon issue yields are 4.44% for the 91-day bills, and 4 .96% for
the 182-day bills.

(See reverse side for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated June 15, 1967

M aturing December 14, 1967

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

Houston 77001

San Antonio 78206

(D ate)

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

NONCOMPETITIVE TENDER $___________________________ _N Q T 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 exv ----------------------------- --------------------------------------------------------- pressed on the basis of




\« ----------------------------@ --------------*----------------------------------- tT r^ e c T m a T p L t™
/ $ ----------------------------- @ _________ $ ________________________ e. g., 99.925. F ractions
m ust no t be used.

Denominations Desired
Number o f

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

M aturity Value






1,000 $
5,000 $


10,000 ?
50,000 $
(5) $ 100,000 $
(5) $ 500,000 $
(5) $
(5) $



By m aturing bills
held by____________________
Paym ent to be made by.
Charge our reserve account on paym ent
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 will perm it present­
m ent in order to obtain irrevocably collected funds on
paym ent date)

$1 ,000,000 $

Delivery In structions:
□ Hold in Custody Account—Member
banks for own account only





Pledge to secure Treasury Tax and
Loan Account
Ship to_________________________

(Subscriber’s full name or corporate title)


(Authorized official signature and title)

(F or the account of, if tender is fo r another subscriber)

( Address)

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 atu rity
2. Tenders should be forw arded in an envelope clearly addressed to this bank or approp riate branch as F iscal A g ent of th e
United States, w ith notation on th e envelope reading “T E N D E R FOR TREA SU RY B ILLS”. Since envelopes received
w ith this legend will not be opened until a fte r th e closing tim e specified in the public announcement, communications
relatin g to other m atters should n o t be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank
or appropriate branch.
3. A ny qualified or conditional tender w ill be rejected.
4. I f 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 th e ten der 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, by...................................................................................}
a member of the firm ”.
5. Tenders 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 ent 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 th e tenders are accompanied by an express g u a ra 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 S ecretary of th e T re asu ry is
m aterial, th e tender m ay be disregarded.

(See reverse for


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