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F ederal Reserve Ba n k of Dallas
F IS C A L A G E N T O F TH E U N ITED S T A T E S

DALLAS, TEXAS

75222

Circular No. 67-254
December 18, 1967

MEW OFFERING — TREASURY BILLS
To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follow ing statement giving details of two issues of Treasury bills:
The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $2,500,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing December 28, 1967, in the amount of
$2,401,593,000, as follows:
91-DAY BILLS (to maturity date) to be issued December 28, 1967, in the amount of $1,500,000,000, or there­
abouts, representing an additional amount of bills dated September 28, 1967, and to mature March 28, 1968,
originally issued in the amount of $1,000,271,000, the additional and original bills to be freely interchangeable.
182-DAY BILLS for $1,000,000,000, or thereabouts, to be dated December 28, 1967, and to mature June 27, 1968.
The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form only, and in
denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard Time, Friday, December 22, 1967. Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on
the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made
on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Banking institutions generally may submit tenders for account of customers provided the names of the customers are
set forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their own account.
Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or
trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the
right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to
these reservations, noncompetitive tenders for each issue for $200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for
accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on December 28, 1967, in
cash or other immediately available funds or in a like face amount of Treasury bills maturing December 28, 1957. Cash and
exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of matur­
ing bills accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment,
as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State,
or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454 (b ) and
1221 (5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include
in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent
purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
In accordance with the ab ove announcement, tenders will be received at this b ank and its branches at El Paso,
Houston a n d San A n to n io up to tw elve-thirty p.m., Central Standard Time, F rid ay, D ecem ber 22, 1967. Tenders m ay
not be entered by telephone.
Yours very truly,
Watrous H. Irons
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, Range and Approximate Yield of Accepted Tenders
91-Day Bills
Due March 21, 1968
$2,724,011,000_____________________
$1,500,699,000____ ___ ____________
Price
Yield
98.723___________ 5.052%_________
98.696___________ 5.159%_________
98.704___________ 5.127% ( 1 ) _____

.Total Applied For..
Total Accepted.
....High....
Low__
..Average.

182-Day Bills
Due June 20, 1958
-------------------- $2,298,112,000
. $ 1,0 0 0 ,0 1 0 ,0 0 0

Price
Yield
.97.189________
5.560%
______ 97.131. -__ -_____ 5.675%
97.139. _________ 5.659% (1 )

(1) These rates are on a bank discount basis. The equivalent coupon issue yields are 5.28% for the 91-day bills, and 5.92% for the

1 8 2 -day bills.

(See 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 28, 1967

M aturing June 27, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The
Branch
El P aso 79999

H ouston 77001

__________________________________

San A ntonio 78206

(D a te)

Pursuant to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions o f the
public announcement issued by the T reasury D epartment, 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.

PLEASE

OBSERVE

CLOSING DATE — FRIDAY, DECEMBER

22, 1967

NONCOM PETITIVE T E N D E R $

NOT TO EX CEED §200,000

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, w ill be accepted in full at the average
price (in three decim als) of accepted com petitive bids.
^
1«P------------------------------- @ --------------- * --------------------------------------p

COM PETITIVE TEN D ER S < $______________________
^

$________________

Y

I $ _____________________@ __________ $ __________________________
\

Prices should be expressed on the basis of

J,00’ wit,h n.ot

than

th r e e d e c im a l p la c e s,
e. g., 99.925. F ractions
m ust not be used.

BggPTENDERS M AY NOT BE E N T E R E D BY T EL E PH O N E . T E N D E R S BY W IRE, IF RECEIVED B E F O R E THE
CLOSING HOUR, ARE ACCEPTABLE.
Denom inations D esired
N u m b er o f
P iece s

P aym ent for this issu e of bills cannot be m ade
by credit to Treasury Tax and Loan A ccount.

M a tu rity V a lu e

@ $
<a $
(5) $

METHOD OF P A Y M E N T

1,000 $
5,000 $

□

10,000 $
50,000 $

□

O $
(5) $ 100,000 $
(5) $ 500,000 $
(5) $1,000,000 $

By m aturing bills
held by___________________
Paym ent to be made by_

□

Charge our reserve account on paym ent
date

|

| D r a f t e n c l o s e d ( E f f e c t u a l d e l i v e r y o f e n c lo s e d
d r a ft sh a ll be on la te st day w h ich w ill p e r m it p r e s e n t ­
m e n t in order to ob tain irrevocab ly c o llec ted f u n d 3 o n
p a y m e n t date)

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan ACCOUnt
Ship to_________________________

(S u b scrib er’s f u ll n a m e or corporate tit le )

Hold in Custody Account—Member
banks for own account only

□

(A d d ress)

gy.
(A u th o rized official s ig n a t u r e an d title )

___
(F o r th e a c c o u n t o f, i f ten d er is f o r an o th e r sub scrib er)

(A d d ress)

IM PORTANT
1. N o tender for less than $1,000 w ill be considered and each tender m ust 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 A g en t o f the
United States, w ith notation on the envelope reading “T E N D E R FOR T R E A SU R Y B IL LS”. Since envelopes received
with this legend w ill not be opened until after the closing tim e specified in the public announcement, com m unications
relating to other m atters should not be enclosed. E nvelopes for subm itting tenders m ay be obtained from this bank
or appropriate branch.
3. Any qualified or conditional tender w ill be rejected.
4. If a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to m ake the
tender and the signin g of the form by an officer of the corporation w ill 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
m ent securities w ill be disregarded, unless accompanied by a deposit of 2 percent o f the total amount (m aturity v a lu e)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of fu ll paym ent by an
incoi’porated 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 T reasu ry is
m aterial, the tender m ay be disregarded.

(See reverse for announcement)

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