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F ederal Reserve Bank

of

Dallas

FISC AL AG ENT OF THE UNITED STA TES

DALLAS, TEXAS

75222

C ircular No. 67-239
N o v e m b er 29, 1967

NEW OFFERING — TREASURY BILLS
To All Bonking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to fhe fo llo w in g state 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, in vites 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 th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m atu rin g D e c em b er 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 rity 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 of $1,500,000,000, or th e re ­
abouts, re p rese n tin g an 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 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 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 b e issued on a discou nt basis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b idding as h e re in a fte r
p rovided, 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 a b le w ith o u t interest. T h e y v/ill be issued in b e a re r form only, a n d in
den o m in atio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 an d $1,000,000 ( m a tu rity v a lu e ) .
T e n d e rs w ill b e received a t F e d e ra l R eserv 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 a c h
te n d e r m u st b e for a n e ven m u ltip le of $1,000, a n d in th e case of c o 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 ree decim als, e.g., 99.925. F ra c tio n s m a y 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 w ill 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 ranches
on a p p lic atio n therefor.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs for a ccount of custom ers p ro v id ed th e n a m e s of th e custom ers are
set fo rth in such tenders. O thers 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 ten d e rs e xcept for th e ir ow n account.
T e n d e rs will be received w ith o u t deposit from in co rp o ra ted ba n k s an d tru s t com panies an d from responsible a n d recognized
dealers in in v estm e n t securities. T e n d e rs from oth ers m u st be accom panied 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 su ry bills a p p lie d for, unless th e ten d e rs a re a ccom panied 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
tru s t com pany.
Im m e d ia te ly a f te r th e closing hour, te n 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 an k s a n d B ranches, follow ing w hich
public an n o u n ce m en t w ill be m ad e 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 range of acc ep te d bids. T hose
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 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 or all ten d ers, in w hole or in p a r t, a n d his a ction in a n y such re sp e ct shall be final. S u b je c t to
these 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
accep ted in full a t th e a verage price (in th re e decim als) of a cc ep te d c o m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for
accep ted 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 D e c em b er 7, 1967, in
cash or o th er im m e d ia tely available funds or in a like face a m o u n t of T re a su ry bills m a tu rin g D e c e m b e r 7, 1967. C ash an d
exchange ten d e rs w ill receive equal tre a tm e n t. C ash a d ju s tm e n ts will be m ad e for differences b etw een th e p a r value of m a tu r ­
ing bills acc ep te d in exchange an 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 o f th e bills, does n o t
ha v e an y exem ption, as such, a nd loss from th e sale or o th er 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 Code of 1954. T h e bills a re subject to estate, inheritance, gift or o th er 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 ta x 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 b y a n y S tate,
or a n y of th e possessions of th e U n ite d S tates, or by a n y local tax in g au th o rity . F o r p urposes 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 are 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 C ode 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 are 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 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 co m p a n ies) issued h e reu n d e r n eed include
in his incom e ta x re tu rn only th e difference betw 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 actu a lly received e ith e r u p o n sale or re d em 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 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 rescrib e th e term s o f 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 from a n y F e d e ra l R e se rv e B a n k or B ranch.

In accordance with the a b o v e a n n o u n c em en t, tenders will be received at this bank a n d its branches a t El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, M on d ay, D ecem ber 4, 196 7. Tenders m ay
not be en tered b y te le p h o n e .
Yours very truly,
Watrous H. Irons
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Am ount, Range and Approxim ate Y ield of Accepted Tenders
91-D ay Bills
183-Day B ills
D u e February 29, 1968
D u e M ay 31, 1968
$2,703,895,000
.Total A pplied For_________________________________ $2,145,009,000
$1,500,590,000__________________________________ .Total_A ccepted___________________________________ $1,001,131,000
Price
Y ield
Price
Y ield
98.752
4.937% ___________________________ H igh_______________________ 97.206____________ 5.496%
98.743
.4.973% ___________________________ Low________________________97.182____________ 5.544%
98.747
4.957% ( 1 ) _____________________ A verage______________________97 .186_____________5.536% ( 1 )
( I ) T h ese 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 5 .1 0 % for th e 9 1 -d a y b ills, an d 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated December 7, 1967

Maturing June 6, 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 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.

COMPETITIVE TENDERS

Prices should be ex ­
pressed on the basis of
100, with not more than
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 TH E
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b e r of
Pieces

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

M a tu rity V alue

METHOD OF PAYMENT

1,000

□

5,000
10,000

□

By maturing bills
held b y ____________________
Payment to be made by_

50,000
□

100,000

500,000

|

I

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 en clo se d

$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 rder to o b tain 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 uth o rized official s ig n a tu re a n d title)

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

(A ddress)

IM P O R T A N T

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 a tu rity
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 b a n k
or appropriate branch.
3. Any qualified or conditional tender will he 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, 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 est­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity v alu 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 i s
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