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FEDERAL RESERVE BANK OF DALLAS
FISC AL AG ENT OF THE UNITED STA TES

DALLAS, T EX A S

75222
C ircu la r No. 67-225
N o v e m b er 15, 1967

NEW OFFERING — TREASURY BILLS
^ All Banking Institutions an 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 tw o issues o f Treasury bills:
T h e T re a su ry D e p a rtm e n t, by th is p u b lic notice, invites te n d e rs for two series of T re a su ry bills to th e a ggregate 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 24, 1967, in th e a m o u n t of
$2,401,985,000, as follow s:
91-D A Y B IL L S ( to m a tu rity d a te ) to b e issued N o v e m b er 24, 1967, in th e a m o u n t of $1,500,000,000, or th e re ­
abouts, re p re se n tin g a n ad d itio n al a m o u n t of bills d ated A ug ust 24, 1967, a n d to m a tu re F e b ru a r y 23, 1968,
originally issued in th e a m o u n t of $1,001,494,000, th e a d d itio n al a n d original bills to b e freely in terchangeable.
181-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 24, 1967, a n d to m a tu re M a y 23, 1968.
T h e bills of bo th series will be issued on a d iscount basis u n d e r co m p e titiv e a n d no n c o m p e titiv e b id d in g as h e re in a fte r
pro v id ed , a n d a t m a tu rity th eir face a m o u n t w ill be p a y a b le w ith o u t in te r e s t T h e y will be issued in b e are r fo rm only, a n d in
d e n o m in a tio 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 receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ran ch es 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 20, 1967. T e n d e rs w ill not be received a t th e T re a su ry D e p a rtm e n t, W ashington. E a c 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 b e used. I t ig u rged t h a t ten d e rs b e m a d e
on th e p rin te d form s a n d fo rw ard ed in th e special envelopes w hich will b e su p p lied b y F e d e ra l R e se rv e B a n k s or B ra n ch e s
o n a p p lic a tio 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 fo r a ccount of custom ers p ro v id e d th e nam es of th e custom ers a re
se t fo rth in such tenders. O th ers th a n ba n k in g 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 e xcept for th e ir ow n account.
T e n d e r s w ill be received w ith o u t d ep o sit 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
d e a le rs in in v estm e n t securities. T e n d e rs fro m o th ers m u s t be acco m p an ied b y 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 s u ry bills a p p lie d for, unless th e te n d e rs a re a cc o m p an ied b y a n express g u a ran ty of p a y m e n t by a n in co rp o ra ted b a n k o r
t r u s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs will b e o p e n ed a t th e F e d e ra l R eserv e B a n k s a n d B ranches, follow ing w hich
p u 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 p rice ran g e of a cc ep te d bids. T hose
s u b m ittin g ten d e rs will be advised of th e a cc ep ta n ce o r reje ctio 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 or re je c t a n y o r all ten d ers, in w hole o r in p a rt, a n d his a c tio n 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 te n d e rs for each issue for $200,000 or less w ith o u t sta te d price from a n y one bid d er will be
a c c e p te d in full a t th e a v erag e price ( in th re e de cim als) of a cc ep te d co m p e titiv e bids for th e respective issues. S e ttle m e n t for
a c c e p te d te n d e rs in accordance w ith th e bids m u s t be m ad e o r 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 24, 1967, in
cash or o th e r im m e d ia te ly a v ailab le funds or in a like face am o u n t of T re a su ry bills m atu rin g N o v e m b er 24, 1967. C ash a n d
exchange te n d e rs will receive equal tre a tm e n t. C ash a d ju stm e n ts w ill be m a d e for differences b e tw ee n th e p a r value of m a tu r ­
ing bills a c c e p te d in exchange a n d th e issue p rice of th e new bills.
T h e incom e d e riv e d from T re a su ry bills, w h e th er in te re st or gain from th e sale or o th e r disposition of th e bills, does n o t
ha v e a n y exem ption, as such, a n d loss fro m th e 3ale or o th e r disposition of T re a su ry bills does n o t have a n y special tre a tm e n t,
as such, u n d e r th e In te rn a l R e v en u e C ode of 1954. T h e bills a re su b je ct to estate, in h eritan ce, 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 are e x e m p t from a ll ta x a tio n now o r h e re a fte r im posed on th e p rin cip a l or in te re st th e re o f by a n y S ta te ,
or a n y of th e possessions of th e U n ite d S tates, or by a n y local taxing au th o rity . F o r purposes of ta x a tio n th e a m o u n t of discount
a t w hich T re a su ry bills a re originally sold by th e U n ite d S ta te s is considered to be interest. U n d e r Sections 454 ( b ) a n d
1221 (5) of th e In te rn a l R e v e n u e Code of 1954 th e a m o u n t of discount a t w hich bills issued h e re u n d e r a re sold is n o t con­
sid e red to accrue u n til such bills a re sold, re d e e m e d or otherw ise disposed of, a n d such bills a re excluded fro m consideration as
c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills ( o th e r th a n life insurance co m p an ies) issued h e re u n d e r n e ed include
in his incom e ta x re 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 up o n sale or 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 a r for w hich th e
re tu rn is m ade, as o rd in a ry g ain or loss.
T re a su ry D e p a rtm e n t C ircu la r No. 418 ( c u rre n t rev isio n ) a n d th is notice, pre sc rib e th e te rm s of th e T re a su ry bills a n d
govern th e conditions of th e ir issue. C opies of th e c ircular m a y be o b tain e d fro m a ny F e d e ra l R e se rv e B a n k or B ranch.

. In a cc ord an c e with the a b o v e a n n o u n c em en t, tenders will b e received at this b a n k an d its branches at El Paso,
“ouston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, M on d ay, N o v em b e r 20, 1967. le n d er s m a y
be entered by t e le p h o n e .
Yours very truly,
¥ /a tro u s 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 ie ld 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 15, 1968
D u e M a y 16, 1968
$2,628,287,000_______________________ ________ .T o tal A p p lied F o r _________________________________$1,651,611,000
$1,500,730,000_______________________
T o ta l A c c ep ted ___________________________________$1,000,022,000
P ric e
Y ie ld
P ric e
Y ield
98.834
.4 .6 1 3 % ___________________________ H ig h _______________________ 97.411____________5.121%
98.822
.4 .6 6 0 % ___________________________ JLow_______________________ 97.382____________5.178%
98.825
4 .6 4 8 % ( 1 ) ______________________ A verage______________________ 97.394____________5.155% ( 1 )
( 1 ) These ra te s a re on b an k discount basis. T h e eq uivalent coupon issue yields are 4 .7 8 % for th e 91-day bills, a n d 5 .3 8 % for the
182-day 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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated August 24,1967

Maturing February 23,1968

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 a n n o u n c e m e n t 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 <$-------------------------@------------ $------------------------------$

- $

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

to e ^ fe c ta a T p fa te ?
e. g., 99.925. Fractions’
must not be used.

TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING I-IOUR, ARE ACCEPTABLE.
Denominations Desired
N um ber
Pieces,

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

of
M atu rity V alue

(5) $
(5) $

METHOD OF PAYMENT

1,000 $5,000 $.

□

(a) ? 10,000 $(5) ? 50,000 *
(3) ? 100,000 $(5) ? 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 liv 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 funds o n
p a y m e n t d a te )

(a) $1 ,000,000 $Delivery Instructions:__________________________ ____

(S u b sc rib e r’s fu ll n a m e o r c o rp o ra te title )

□

Hold in Custody Account— Member
banks for own account only

------

(A ddress)

□

Pledge to secure Treasury Tax and__________ j>y_____________________________________
Loan Account
(A u th o rized official s ig n a tu re a n d title)

□

Ship to___________________________

____

( F o r th e acco u n t of, if te n d e r is fo r a n o th e r su bscriber)

(A d d ress)

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 (m aturity
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 will be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make th e
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, w ho
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 in v est­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity va lu e)
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 jg
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