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FEDERAL RESERVE BANK OF DALLAS
FISC AL AG ENT OF THE UNITED ST A T E S

DALLAS, TEX AS

75222
C ircu la r No. 67-242
D e c e m b e r 6, 1967

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in t h e Eleventh Federa! Reserve District:
Your a t t e n t i o n is invited to the fo llo w in g sta te m e n t giving d etails of t w o is sues 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 v ites ten d e rs fo r 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 a tu rin g D e c e m b e r 14, 1967, in th e a m o u n t of
$2,400,635,000, as follow s:
91-D A Y B IL L S (to m a tu rity d a te ) to b e issued D e c em b er 14, 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 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 1 4 ,1967,a n d to m a tu re M a rc h 14,1968, origi­
na lly issued in th e a m o u n t of $1,000,527,000, 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 be d a te d D e c e m b e r 14, 1967, a n d to m a tu re J u n e 13, 1968.
T h e bills of b o th series will b e issued on a disco u n t 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 id d in g as h e re in a fte r
p ro v id e d an 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 in terest. T h e y w ill be issued in b e a re r fo rm only, a n d in
den 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 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 ra n ch e s 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 11, 1967. T e n d e rs w ill n o t be 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 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 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 b e m a d e
on th e p rin te d form s a n d forw arded in th e special envelop es w hich w ill be su p p lied b y F e d e ra l R e se rv e B an 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 n a m e s o f th e custom ers are
se t fo rth in such tenders. O th ers 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 ce p t for th e ir ow n account.
T e n d e rs will be received w ith o u t deposit fro m in co rp o ra ted b a n k s an d tru s t com panies a nd fro m responsible a n d recognized
de ale rs in in v estm e n t securities. T e n d e rs from 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 s u ry bills ap p lie d for, unless th e ten d e rs a re acco m p an ied b y 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 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 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 w ill b e 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 n d p rice range o f acc ep te d bids. T hose
su b m ittin g te n 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 tenders, in w hole or in p a rt, a nd his actio n in a n y such re sp e ct shall be final. S u b je c t to
th e s e 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 e r w ill be
a cc ep te d in full a t th e average price (in th re e d ecim als) of a cc 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 c c e p te d ten d e rs in accordance w ith th e bids m u st be m a d 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 14, 1967, in
cash or o th er im m e d ia te ly av ailab le fun d s 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 e m b e r 14, 1697. C ash a n d
exchange ten d e rs will receive e q u al tre a tm e n t. C ash a d ju s tm e n ts will be m ad e for differences b e tw ee n th e p a r value of m a tu r­
in g bills a cc ep te d in exchange an d th e issue price of th e new bills.
T h e incom e derived 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, an d loss from th e sale o r o th er 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 su b je ct to estate, in heritance, gift 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 ta x a tio n now or h e re a fte r im posed on th e p rin cip a l o r in te re st th ere o f b y a n y State,
or a n y of th e possessions of th e U n ite d S tates, or b y a n y local tax in g a u th o rity . F o r p urposes 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 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 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 ee m e d o r otherw ise disposed of, a n 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 in su ran ce c o m p a n ies) issued h e re u n d e r n e ed include
in his incom e ta x 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
p u rc h ase, a n d th e a m o u n t a c tu a lly receiv ed e ith e r u p 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 ar for w hich th e
re tu r n is m ad e, a s 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 o f th e T re a su ry bills a n d
go vern 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 acco rd a n 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 a n d its 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 11, 1967. Tenders m ay
not be en tered 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 c c ep ted T e n d e rs
91-D ay B ills
182-D ay B ills
D u e M a rc h 7, 1968
D u e J u n e 6, 1968
$2,761,710,000
.T o ta l A p p lied F o r--------------------------------------------------- $2,415,869,000
$1,500,128,000----------------------------------------------------- T o ta l-A c c ep ted ------------------------------------------------------$1,000,731,000
P ric e
Y ie ld
P ric e
Y ield
98.746
.4 .9 6 1 % ------------------------------------------.H ig h _______________________ 97.190____________ 5.558%
98.736
5 .0 0 0 % ____________________________ Low _________________
-9 7 .1 7 4 _____________5.590%
98.739
4 .989% ( 1 ) ______________________ A verage----------------------------------97.179------------------- 5 .580% ( 1 )
( 1 ) 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 4 % for th e 9 1 -d a y b ills, and 5 .8 4 % for th e
18 2 -d a y b ills.

(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
Maturing March 14, 1968

Dated September 14, 1967
T o : 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.

_NOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $_

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 <$..
$-

------------------------------------<
jj________________________

-@ -

Prices should be expressed on the basis of
100, with not more than
three decim al p laces,
e. g., 99.925. Fractions
must not be used.

^ T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
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

(5) $

METHOD OF PAYMENT

1,000 $5,000 $-

□

10,000 *
50,000 $-

□

.(O $ 100,000 $.
b

□

(5) $ 500,000 $.
.(ob $1,000,000 *

□

m

$

<® $
(5) $

By maturing bills
held by____________________________
Payment to be made by_____________
Charge our reserve account on payment
date
Draft enclosed ( E f f e c t u a l d e liv e r y o f enclosed
d r a f t sh all he on la te s t day w hich w ill p e rm it p re s e n t­
m e n t in o rd e r to o b tain irrevocably collected fu n d s on
p a y m e n t d ate)

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

(S u b scrib er’s fu ll n am e o r c o rp o rate title)

Hold in Custody Account— Member
banks for own account only

□

Ship to-----------------------------------------

(A ddress)

By.

(A uthorized official s ig n a tu re a n d title)

(F o r th e a cco u n t of, if te n d e r is f o 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 (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 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 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 ................................................................................... f
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