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F ederal Reserve Bank of Dallas
F IS C A L A G E N T O F TH E UN ITED S T A T E S

DALLAS, TEXAS

75222
Circular No. 67-255
December 18, 1967

N E W OFFERING — TREASURY BILLS

To AH Banking Institutions an d Others Concerned
in the Eleventh Federal Reserve District:

Y ou r 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 $1,500,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing December 31, 1967, in the amount of
$1,401,121,000, as follows:
272-DAY BILLS (to maturity date) to be issued January 2, 1968, in the amount of $500,000,000, or thereabouts,
representing an additional amount of bills dated September 30, 1667, and to mature September 30, 1968,
originally issued in the amount of $1,000,206,000, the additional and original bills to be freely interchangeable.
366-DAY BILLS for $1,000,000,000, or thereabouts, to be dated December 31, 1967, and to mature December 31,
1968.
The bills of both aeries will bo 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, Tuesday, December 26, 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. (Notwithstanding the fact that
the one-year bills will run for 366-days, the discount rate will be computed on a bank discount basis of 360-days, as is currently
the practice on all issues of Treasury bills.) 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 January 2, 1968,
in cash or other immediately available funds or in a like face amount of Treasury bills maturing December 31, 1967. Cash and
exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing
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 considered 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 a b ove announcement, tenders w ill be received at this b ank an d its branches a t El Paso,
Houston and San Antonio, up to tw elve-thirty p.m., Central Standard Time, Tuesday, December 26, 1967. Tenders may
not be entered by telephone.
Yours very truly,
Watrous H. Irons
President

(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 ADDITION TO TREASURY BILLS

272 DAYS TO MATURITY
M aturing September 30,1968

Dated September 30,1967
T o: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_______________________________ Branch
E l Paso 79999

Houston 77001

San Antonio 78206

(D a te)

Pursuant to the provisions of T reasury Departm ent Circular N o. 418 (current revision) and the provisions o f the
public announcement issued by the T reasury D epartm ent, the undersigned offers to purchase Treasury bills in the am ount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and a t the rate indicated.

NONCOMPETITIVE TENDER $_

.NOT TO EXCEED $200,000

Noncom petitive 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 competitive bids.
(^
x-v
Prices should be ex ­
pressed on the basis of

$
(a)
COMPETITIVE TENDERS < $---------------------- @-------------%
$----------------------------$

.

@

-

§

................................................................

e. g., 99.925. Fractions*
must not be used.

8 ^ T E N D E R S M AY NOT BE E N T E R E D BY TELE PH O N E . T E N D E R S BY W IRE, IF RECEIVED B EFO R E THE
CLOSING HOUR, ARE ACCEPTABLE.
P aym ent fo r this issue of bills cannot be made
by credit to Treasury T ax and Loan Account.

Denominations Desired
N u m b er of
P iece s

M a tu rity V alu e

(3) $
(a) $

METHOD OF P A Y M E N T

1,000 $
5,000 $

(3) $ 10,000 $
(3) $ 50,000 $
(3) % 100,000 $
.(5) $ 500,000 $.(5) $1,000,000
%

□
□
□
□

□

Charge our reserve account on paym ent
date
D raft enclosed ( E f f e c t u a l d e li v e r y o f e n c l o . e d
d ra ft shall be on la te st day w hich w ill p e r m it p r e s e n t­
m en t in order to ob ta in irrevocab ly collected fu n d a o n
p a y m e n t d a te)

-

Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□

By m aturing bills
held by
_
Paym ent to be made by___________

Pledge to secure Treasury Tax and
Loan Account

(S u b scrib e r’s fu ll n am e or co r p orate t it le )

(A d d re ss)

By_
(A u th o rized official sig n a tu r e and t it le )

Ship to_________________________

( F o r th e acc o u n t o f, if ten d er is f o r an o th e r su b scrib e r)

( A d d r e ss )

IMPORTANT
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 (maturity
value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as F iscal Agent of the
U nited States, w ith notation on the envelope reading “T E N D E R FOR T R E A SU R Y BILLS”. Since envelopes received
with this legend w ill not be opened until a fter the closing tim e specified in the public announcement, comm unications
relating to other m atters should not be enclosed. Envelopes for subm itting tenders m ay be obtained from this bank
or appropriate branch.
3. A ny qualified or conditional tender w ill 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, 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 w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity v alu e)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of fu ll p aym ent by an
incorporated bank or trust company.
6. If the langu age o f this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, 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