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FED ER AL RESERVE B AN K 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. 67-174
Septem ber 6, 1967

NEW OFFERING — TREASURY BILLS
To AH Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llo w in g sta te m e n t giving details of two issu e s 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 Septem ber 14, 1967, in the am ount of
$2,301,559,000, as follows:
91-DAY B IL L S (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 Ju n e 15, 1967, and to m ature D ecem ber 14, 1967,
originally 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 Septem 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 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 value).
T enders will be received a t Federal Reserve B anks and B ranches 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. E ach
ten d er 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 th an three decimals, e.g., 99.925. Fractions may not be used. I t is urged th a t tenders be m ade
on th e printed forms and forwarded in th e special envelope* which will be supplied by Federal R eserve Banks or Branches
on application therefor.
B anking institutions generally may subm it tenders for account of customers provided th e names of th e customers are
set forth in such tenders. O thers 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 tru st companies and from responsible and recognized
dealers in investm ent securities. T enders 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 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, tenders will b e opened a t th e F ederal R eserve Banks and Branches, following which
public announcem ent will be made 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 he 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 a t the average price (in three decimals) of accepted com petitive bids for th e respective issues. Settlem ent for
accepted tenders in accordance w ith the 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 a r value of m atur­
ing bills accepted in exchange and th e issue price of th e new bills.
T h e income derived from T reasury bills, w hether interest or gain from the sale or other disposition of the 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 h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ederal 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 U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount
a t 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 th e 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 th an life insurance com panies) issued hereunder need include
in his income tax retu rn only th e difference between the price paid for such bills, whether on original issue or on subsequent
purchase, and th e am ount actually received either upon sale or redem ption a t m aturity during th e taxable year for which the
retu rn is made, as ordinary gain or loss.
T reasury D epartm ent 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 may be obtained from any F ederal R eserve B ank or Branch.

In a cc o rd a n c e with the a b o v e an n o u n c em en t, fenders will be received at this b a n 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 on d ay, Septem ber 11, 1 967 . Tenders
may not b e entered b y tele p h o n e .
Yours very truly,
Watrous H. Irons
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Y ield 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----------------------------------------------.Total Applied F o r_______________________________ $1,632,297,000
$1,400,299,000------------------------------------------------- T otal A ccepted___________________________
$1,000,029,000
P rice
Y ield
Price
Yield
98.912
.4.304% _________________________ .H igh_______________
97.604______4.739%
98.904
4.336% _________________________ Low______________________ 97.572_________
4.803%
98.907
4.324% ( 1 ) ____________________ Average......_________________ 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 (FedHistory@dal.frb.org)

TENDERS FOR TREASURY BILLS

182 DAYS TO MATURITY
Dated September 14, 1967

Maturing March 14, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_
B r a n c h
El Paso 79999

Houston 77001

_

San Antonio 78206

(D ate)

P u rsu an t 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 reasury D epartm ent, the undersigned offers to purchase T reasury bills in th e am ount
shown below, and agrees to pay fo r th e am ount allotted, on or before the issue date, by th e m ethod and a t the ra te indicated.

NONCOMPETITIVE TENDER $_____________________________ NOT 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 e rag e
price (in three decimals) of accepted com petitive bids.
Prices should be ex­
pressed on the basis of
100, w ith not m ore th a n
(a)
COMPETITIVE TENDERS $
$
th r e e d ec im a l p la c e s ,
e. g., 99.925. F ra ctio n s
$
@
$ .....
_
- .........- .......... - ......
m ust not be used.
E X T E N D E R S MAY NOT BE E N TE R E D BY TELEPH O N E. TEN D ERS BY W IRE, IF RECEIV ED BEFO RE T H E
CLOSING HOUR, ARE ACCEPTABLE.
D enominations Desired
Number o f
Pieces

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

M aturity Value

METHOD O F PAYM ENT

(5) $
(5) $

1,000 $
5,000 $

(5) $
(5) $

10,000 $
50,000 $

□

(5) $ 100,000 $
(5) $ 500,000 $
(a) $1.,000,000 $

□

□

-

□

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 will perm it p resent­
m ent in order to obtain irrevocably collected funds on
paym ent date)

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

___

□

Pledge to secure Treasury Tax and
Loan Account

g y ____________________ _______________

Ship to_________________________

___

□

(Subscriber’s fu ll name or corporate title)

------

(Address)
(Authorized official signature and title)

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

( Address)

IM PORTANT
1. No tender for less th a n $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
value).
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
U nited States, w ith notation on the envelope reading “TEN 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 announcement, com m unications
relatin g to other m atters should no t be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this b an k
or appropriate branch.
3. A ny qualified or conditional tender will be rejected.
4. If a corporation makes the tender, th e 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 h e
has been so authorized. I f th e ten der is m ade by a partnership it should be signed by a m em ber of the firm, w ho
should sign in the form “ ..................................
,a copartnership, by.
f
a member of the firm ”.
5. Tenders from those other th an 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 the to tal 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 tr u s t company.
6. I f the language of this form is changed in any respect, which, in the opinion of the S ecretary of th e T re a su ry is
m aterial, th e tender m ay be disregarded.
(See reverse fo r announcem ent)

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