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FEDERAL 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
C ircular No. 67-223
N o v e m b er 8, 1967

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llo w in g s t a t e m e n t g iving d e ta ils of tw o iss u e s of T re a s u ry bills:
T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, in v ites te n d e rs for two series of T re a su ry bills to th e aggregate a m o u n t
of $2,500,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g N o v e m b er 16, 1967, in th e a m o u n t of
$2,400,412,000, as follows:
91-D A Y B IL L S (to m a tu r ity d a te ) to be issued N o v e m b er 16, 1967, in th e a m o u n t o f $1,500,000,000, or th e re ­
abouts, re p rese n tin g a n a d d itio n al a m o u n t of bills d a te d August 17, 1967, a n d to m a tu re F e b ru a ry 15, 1968, origi­
na lly issued in th e a m o u n t of $1,000,569,000, th e ad d itio n al a n d original bills to be freely interchangeable.
182-D A Y B IL L S for $1,000,000,000, or th ere ab o u ts, to be d a te d N o v e m b er 16, 1967, a n d to m a tu re M a y 16, 1968.
T h e bills of b o th series w ill b e issued on a discou nt basis u n d e r co m p e titiv e a n d n o n c o m p e titiv e bidding as h e re in a fte r
provided, a n d a t m a tu r ity th e ir face a m o u n t will be p a y ab le w ith o u t interest. T h e y w ill be issued in b e a re r form only, a n d in
d en o m in atio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu rity v a lu e ).
T e n d e rs w ill be received a t F e d e ra l R eserv e B an k s a n d B ranches u p to th e closing hour, o n e -th irty p.m ., E a s te rn
S ta n d a rd T im e, M onday, N o v e m b er 13, 1967. T e n d e rs will n o t b e received a t th e T re a su ry D e p a rtm e n t, W ashington. E ac h
te n d e r m u st be for a n e ven m u ltip le of $1,000, a n d in th e case of co m p e titiv e ten d e rs th e p rice offered m u st be expressed on
th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t be used. I t is u rg e d t h a t ten d e rs be m a d e
on th e p rin te d form s a n d forw arded in th e special envelopes w hich w ill be supplied b y F e d e ra l R e se rv e B an k s or B ranches
on a p p lic atio n therefor.
B a n k in g in stitu tio n s generally m a y su b m it te n d e rs for a cc o u n t of custom ers p ro v id ed th e nam es of th e custom ers a re
set fo rth in such tenders. O thers th a n b anking in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs except for th e ir own account.
T e n d e rs will be received w ith o u t deposit fro m in co rp o ra ted ba n k s a n d tr u s t com panies a n d fro m responsible a n d recognized
dealers in in v estm e n t securities. T e n d e rs fro m oth ers m u st be a ccom panied by p a y m e n t of 2 p e rc e n t of th e face a m o u n t of
T re a su ry bills a p p lie d for, unless th e te n d e rs a re acco m p an ied by a n express g u a ran ty of p a y m e n t b y a n in co rp o ra ted b a n k or
tr u s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill be o p e n ed a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich
pu b lic a n n o u n ce m en t will be m ade by th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d price range of acc ep te d bids. T h o se
su b m ittin g te n d e rs will be a dvised of th e a cc ep ta n ce or rejectio n thereof. T h e S e c retary of th e T re a su ry expressly reserves th e
rig h t to a cc ep t o r re je c t a n y or all ten d ers, in whole or in p a rt, a n d his a ction in a n y such re sp e ct shall be final. S u b je ct to
th ese reservations, n o n c o m p e titiv e ten d e rs for each issue for $200,000 or less w ith o u t sta te d p rice from a n y one b id d er will be
a cc ep te d in full a t th e a verage price (in th re e d ecim als) of acc ep te d co m p e titiv e bids for th e re spective issues. S e ttle m e n t for
a cc ep te d ten d e rs in accordance w ith th e bids m u st be m ad e or c o m pleted a t th e F e d e ra l R e se rv e B a n k on N o v e m b er 16, 1967, in
cash or o th e r im m e d ia tely a v ailab le funds or in a lik e face a m o u n t of T re a su ry bills m a tu rin g N o v e m b er 16, 1967. Cash an d
exchange ten d e rs will receive equal tre a tm e n t. C ash a d ju stm e n ts will be m a d e for differences betw een th e p a r value of m a tu r ­
ing bills a cc ep te d in exchange a n d th e issue price of th e new bills.
T h e incom e deriv ed from T re a su ry bills, w h e th e r in te re st or gain from th e sale o r o th e r disposition of th e bills, does n o t
h a v e a n y exem ption, as such, a n d loss from th e sale o r o th e r disposition of T re a su ry bills does n o t h a v e a n y special tre a tm e n t,
as such, u n der th e In te rn a l R e v en u e Code of 1954. T h e bills are su b je ct to estate, in heritance, g ift or o th e r excise taxes, w h e th er
F e d e ra l or S tate, b u t a re e x em p t from all tax a tio n now or h e re a fte r im posed on th e p rin cip a l or in te re st th ere o f by a n y S tate,
or an y of th e possessions of th e U n ite d S tates, or b y a n y local tax in g au th o rity . F o r p urposes of ta x a tio n th e a m o u n t of d iscount
a t w hich T re a su ry bills a re originally sold by th e U n ite d S tates is considered to be interest. U n d e r Sections 454 ( b ) an d
1221 ( 5 ) of th e In te rn a l R e v en u e C ode of 1954 th e a m o u n t of discount a t which bills issued h e re u n d e r are sold is not con­
sidered to accrue u n til such bills a re sold, re d ee m e d or otherw ise disposed of, a n d such bills a re excluded fro m consideration as
c ap ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insurance c o m p a n ies) issued h e reu n d e r n eed include
in his incom e tax r e tu rn only th e difference b etw een th e price p a id for such bills, w h e th er on original issue or on su b seq u e n t
purchase, a n d th e a m o u n t a ctu a lly received e ith e r u p o n sale o r re d e m p tio n a t m a tu rity d u rin g th e tax a b le y e ar for w hich th e
re tu rn is m ade, as o rd in ary gain or loss.
T re a su ry D e p a rtm e n t C ircular No. 418 ( c u rre n t re v isio n ) a n d th is notice, pre sc rib e th e term s of th e T re a su ry bills an d
govern th e conditions of th e ir issue. C opies of th e c ircu lar m ay be o b tain e d from a n y F e d e ra l R eserv e B a n k or B ranch.

In accordance with the a b o v e an n o u n c em en t, t e n d e r s will b e r e c eiv e d at this b a n k a n d its b r a n c h e s at ES P aso,
Houston an d San Antonio u p to twelve-thirty p.m ., C entral S t a n d a r d Time, A^londcsy, N ov em b e r 13, 1967. T en d e rs m a y
not b e en tered by te le p h o n e .
Yours very truly,
Watrous H. Irons
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R a n g e a n d A p p ro x im ate Y ield of A ccepted T e n d e rs
91-D ay B ills
182-D ay B ills
D u e F e b ru a ry 8, 1968
D u e M a y 9, 1968
$2,381,279,000________________________________ T o ta l A p p lied F e u ________________________________ $1,756,372,000
$1,501,143,000___________________________________T o ta l A c c ep ted ___________________________________$1,000,242,000
P ric e
Y ield
P ric e
Y ield
98.827____________ 4 .6 4 0 % ____________________________H ig h _______________________ 97.406____________ 5.131%
98.814____________ 4 .6 9 2 % ____________________________X o w _______________________ 97.369____________ 5.204%
98.819____________ 4 .6 7 2 % ( 1 ) ______________________ Average______________________97.381____________ 5.180% ( 1 )
( 1 ) T h e s e rates a re on bank d iscou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 4 .8 1 % for th e 9 1 -d a y b ills, and S .4 1 % for the
1 8 2 -d a y bills.

(S e e 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)

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Maturing May 16, 1968

Dated November 16, 1967
T o: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78206

(D a te )

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 $_

not

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 e x ­
pressed on the basis o f
$
(a)
$
COMPETITIVE TENDERS <?-------------------------@------------ $--------------

I

$

@

$

tS e ^ fe d m a T p fa ^

- ..................................... -

■■

e. g., 99.925. Fractions*
must not be used.

0 ^ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

Denominations Desired
N u m b e r of
Pieces

M a tu rity V alue

METHOD OF PAYMENT

(a) $
(a) $

1,000 $5,000 $-

□

(a) $
(a) $

10,000 $50,000 $-

□

.(3 $ 100,000 ?.
.(3 $ 500,000 $-

□
□

By maturing bills
held by_________________________ _
Paym ent to be made by_________ __
Charge our reserve account on paym ent
date
Draft 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
d r a f t shall be on la te st day w hich will p e rm it p r e s e n t­
m e n t in o rd e r to o b ta in irrevocably collected fu n d s on
p a y m e n t d a te )

■(3 $1 ,000,000 $.

Delivery Instructions:
(S u b scrib er’s fu ll n am e o r c o rp o ra te title)

□

Hold in Custody Account— Member
banks for own account only

□

Pledge to secure Treasury Tax and
Loan Account

□

(A d d ress)

By_
( A u thorized official s ig n a tu re a n d title )

Ship to___________________________

(F o r th e a cc o u n t of, if te n d e r is f o r a n o th e r su bscrib er)

(Address)

IMPORTANT
1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity
value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY BILLS”. Since envelopes received
with this legend will not be opened until after the closing time specified in the public announcement, communications
relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank
or appropriate branch.
3. Any qualified or conditional tender w ill be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation 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 made by a partnership 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 than incorporated banks and trust companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or trust company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.

(See reverse for announcement)

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