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F ederal

reserve

Bank

of

Dallas

FISC AL AG ENT OF THE UNITED STA TES

DALLAS, TEXAS

75222
C ircu la r No. 67-238
N o v e m b er 29, 1967

NEW OFFERING — TREASURY BILLS
To All Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the f o llo w in g sta te m e n t giving d etails of tw o issues of Treasury 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, invites ten d e rs for tw o series of T re a su ry bills to th e aggregate a m o u n t
of $2,500,000,000, or thereab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g D e c e m b e r 7, 1967, in th e a m o u n t of
$2,401,536,000, as follows:
91-D A Y B IL L S (to m a tu r ity d a te ) to b e issued D e c e m b e r 7, 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 S e p te m b e r 7, 1967, a n d to m a tu re M a rc h 7, 1968, origi­
n a lly issued in th e a m o u n t of $1,001,208,000, th e a d d itio n a l 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 b e d a te d D e c em b er 7, 1967, a n d to m a tu re J u n e 6, 1968.
T h e bills of b o th series w ill be issued on a d isco u n t 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 b id d in g as h e re in a fte r
p rovided, an d a t m a tu rity th e ir face a m o u n t w ill be p a y ab le w ith o u t interest. T h e y will be issued in b e a re r form only, a n d in
de 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 will b e received 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, D e c em b er 4, 1967. T e n d e rs w ill 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, an 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 ay n o t be used. I t is u rged th a t ten d e rs be m ad e
on th e p rin te d form s a n d forw arded in th e special envelopes w hich will be su p p lied b y F e d e ra l R e se rv e B a n k s or B ran ch es
on a p p lic a tio n th erefor.
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 o f th e custom ers are
se t fo rth in such tenders. O thers th a n b a 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 ex cep t for th e ir own account.
T e n d e rs will be received w ith o u t deposit from in co rp o ra ted b a n k s and tr u s t com panies a n d from responsible a n d recognized
d ealers in in v estm e n t securities. T e n d e rs from o th 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 s u ry bills a p p lie d for, unless th e ten d e rs a re acco m p an ied b y a n express gu 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, ten d e rs w ill 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 an n o u n ce m en t w ill be m ad e b y 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 nd price ra n g e of acc ep te d bids. T h o se
su b m ittin g ten d e rs will be advised of th e accep ta n ce or re je ctio n thereof. T h e S ec 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 an y or all ten d ers, in w hole or in p a rt, a n d his action in a n y such resp ect shall be final. S u b je c t to
th ese reservations, n o n co m p etitiv 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 e r will be
a cc ep te d in full a t th e average p rice (in th re e decim als) of acc ep te d co m p e titiv e bids for th e resp ectiv e 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 b e m ad e or c o m p leted a t th e F e d e ra l R eserv e B a n k on D e c em b er 7, 1967, in
cash or o th er im m e d ia tely a v ailab le funds or in a like face a m o u n t of T re a su ry bills m atu rin g D e c em b er 7, 1967. C ash a n d
exchange ten d e rs will receive equal tre a tm e n t. C ash a d ju s tm e n ts will be m a d e for differences b etw 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 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
h a v e a n y exem ption, as such, an d loss from th e sale o r o th e r disposition of T re a su ry bills does n o t ha v e 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 Code of 1954. T h e bills a re subject to estate, in heritance, gift or o th er excise taxes, w h e th e r
F e d e ra l or S tate, b u t a re ex em p t from all ta x a tio n now or h e re a fte r im posed on th e prin cip a l or in te re st th ere o f by a n y State,
or a n y of th e possessions of th e U n ite d S tates, o r by a n y local tax in g a u th o rity . F o r purposes of tax 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 en u e Code of 1954 th e a m o u n t o f discount a t which bills issued h e re u n d e r a re sold is n o t con­
sidered to accrue u n til such bills a re sold, re d ee m e d or otherw ise disposed of, an d such bills a re excluded from 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 a n ies) issued h e re u n d e r n e ed include
in his incom e tax 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
p urchase, a n d th e a m o u n t actu a lly received e ith e r u p o n sale or re d e m p tio n a t m a tu rity durin g th e ta x a b le y e ar for w hich th e
re tu rn is m ade, as o rd in a ry 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, p rescribe th e term 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 irc u lar m a y be o b tain e d from a n y F e d e ra l R e se rv e B a n k or B ranch.

In accord ance with the a b o v e a n n o u n c e m e n i, fenders will be received af fhis b a n k an d ifs branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, M o n d a y , D ecem ber 4, 1967. Tenders m ay
not b e entered by t e 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
9 1-D ay B ills
183-D ay B ills
D u e F e b ru a ry 29, 1968
D u e M a y 31, 1968
$2,703,895,000
T o ta l A pplied F o r_________________________________ $2,145,009,000
$1,500,590,000----------------------------------------------------- T o ta l_A c c ep ted ___________________________________ $1,001,131,000
P ric e
Y ield
P ric e
Y ield
98.752
4 .9 3 7 % ------------------------------------------ H ig h ------------------------------------97.206____________ 5.496%
98.743
4 .9 7 3 % ____________________________Low _______________________ 97.182____________ 5 .544%
98.747
4 .957% ( 1 ) ----------------------------------A verage ______________________97.186_____________5.536% ( 1 )
( 1 ) T h ese rates are on bank d iscount basis. T h e eq u iv a le n t cou p on issue y ie ld s are 5 .1 0 % for th e 9 1 -d a y b ills, and 5 .7 9 % for th e
1 8 3 -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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated September 7, 1967

Maturing March 7, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________________Branch
El Paso 79999

Houston 77001

(D ate)

San Antonio 78206

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills m the am ount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.

_NOT TO E XCEED $200,000

NONCOM PETITIVE T E N D E R $.

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.
_______________ __

-@ -

COMPETITIVE T E N D E R S

----------- — ------------______

-@ -@ -

Prices should be expressed on the basis of
100, with not more th an
three d ecim al p la c e s ,
e. g., 99.925. Fractions
must not be used.

E X T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b e r of
Pieces

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

M a tu rity V alue

(5) $
(a) $
(a) $
(a) $

METHOD OF PAYMENT

1,000 $5,000

□

10,000 *
50,000 $.

□

By maturing bills
held b y _____________________________
Payment to be made by
_

□

Charge our reserve account on paym ent
date
| I D raft enclosed ( E f f e c t u a l d e l i v e r y of enclosed

(5) $ 100,000 $.
(5) $ 500,000 *
(5) $1,000,000 $-

d r a f t sh all be on la te st day which 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 on
p a y m e n t date)

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

(S ub scrib er’s fu ll nam e o r co rpo rate title)

Hold in Custody Account— Member
banks for own account only

□

(A ddress)

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

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

(A ddress)

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 the
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 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, b y ...........................................................................
a member of the firm”.
’
5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in v e st­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity v alu e l"
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment b y ar,
incorporated bank or trust company.
n
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury m
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