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F I S C A L A G E N T O F T H E U N IT E D S T A T E S

DALLAS. TEXAS

75222
Circular No. 67-138
Ju ly 19, 1967

NEW OFFERING — TREASURY BILLS
To All B a n k in g Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follo w in g state m e n t giving details of tw o issues of Treasury bills:
T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount
of $2,400,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing Ju ly 27, 1967, in the am ount of
$2,300,800,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued Ju ly 27, 1967, in th e am ount of $1,400,000,000, or there­
abouts, representing an additional am ount of bills dated April 27, 1967, and to m ature October 26, 1967,
originally issued in the am ount of $1,000,257,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated Ju ly 27, 1967, and to m ature Janu ary 25, 1968.
T he bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face amount will be payable without interest. T hey will be issued in bearer form only, and in
denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value).
Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, M onday, July 24, 1967. T enders will not be received a t the T reasury D epartm ent, Washington. E ach
te n d er
must be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on
th e basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged th a t tenders be made
on the printed forms and forwarded in the special envelopes which will be supplied by F ederal R eserve Banks or Branches
on application therefor.
Banking institutions generally may subm it tenders for account of customers provided the names of the customers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account.
T enders will be received without deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securities. Tenders from others must be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T he Secretary of the T reasury 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, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or completed a t th e Federal Reserve B ank on Ju ly 27, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Ju ly 27, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
T he income derived from T reasury bills, w hether 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 T reasury bills does not have any special treatm ent,
as such, under the Internal R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but are exem pt 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 am ount of discount
a t which Treasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454 (b ) and
1221 (5 ) of the Internal Revenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of T reasury bills (other than life insurance com panies) 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 am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

In accord ance with the a b o v e an n o u n c em en t, tenders will be received at this b ank an d its branches at El Paso,
Huston a n d S an A n to n io up to twelve-thirty p.m., Central Daylight Saving Tim e, M o n d a y , July 24, 1 967 . Tenders
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
Amount, Range and A pproxim ate Yield of Accepted Tenders
91-Day Bills
D ue October 19, 1967
$2,404,475,000
$1,400,758,000
P rice
Yield
98.933___________ 4.221% ____
98.924___________ 4.257% ____
98.927___________ 4.245% (1)

..Total Applied For.
T otal A ccepted....
H igh.
Low___
-Average.

182-Day Bills
D ue Janu ary 18, 1968
----------------------- $1,866,444,000
$1,000,106,000
Price
Y ield
.97.614___
4.720%
..97.594____
4.759%
.97.601____
— 4.745% (1)

( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4.36% for the 91-day bills and 4 94% for
the 182-day bills.
’
'

(See reverse 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
Bated April 27, 1967

M aturing October 26, 1967

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The___________________________ B r a n c h _______________________________________ _____ _
E l Paso 79999

H ouston 77001

S an Antonio 78206

(D»t«)

P u rsu a n t to the provisions of T reasury Department C ircular No. 418 (cu rre n t revision) and the provisions of th e
public announcem ent issued by the Treasury Department, the undersigned offers to purchase T reasury 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 th e r a te 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 com petitive bids.
/„
_
P rices should be e x ­
pressed on the basis of

$
(a)
COMPETITIVE TENDERS < $------------------------ @------------$----------------------------@
_
S_ _ .
$

th r^ d e c im a l^ Ia ’J'e?
e. g., 99.925. F ractions
m ust not be used.

gSP" T E N D E R S MAY N OT BE E N T E R E D BY T E L E P H O N E . TEND ERS BY W IR E , IF RECEIVED BEFO RE T H E
CLOSING HOUR, ARE A CCEPTABLE.
Denom inations D esired
Number of
Pieces

P aym ent fo r this issue of bills cannot be m ade
by credit to T reasury Tax and Loan Account.

M aturity V alue

________@ $

1 ,0 0 0 $_________________

METHOD OP PAYMENT

@ $
^
$

5,000 $______________
10,000 $---------------------------

D ^ m aturing bills
held by_
j—i Paym ent to be made by_

$

5 0 ,0 0 0 $_________________

____________________________

@ $ 100,000 $______________
' ^
e
@ $
5 0 0 ,0 0 0
<
7}' <21 AAA n m
----------------(Cu $ l , U U U , U v U

□
□

Charge our reserve account on paym ent
date

__j J ) r a f t e n c l o s e d ( E f f e c t u a l d e liv e r y of enclosed
$ _________________________________________________________ j
draft shall be on latest day which will permit presentm ent in order to obtain irrevocably collected funds o n
payment date)

«p----------------------------------

Delivery Instructions:
□

□

________
(Subscriber’s fu ll nam e or corporate title)

Hold in Custody Account—Member
banks for own account only

------------

Pledge to secure Treasury Tax and
Loan Account

gy

Ship to_________________________

___

(Address)

(Authorized official signature and title)
(For the account of, if tender is for another subscriber)

(Address)

IM PO RTA N T
1. No tend er fo r less th an $1,000 will be considered and each tender m ust he fo r an am ount in m ultiples of $1,000 (m a tu rity

value).
2. Tenders should he forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of th e
U nited S tates, w ith notation on the envelope reading “TEN D ER FOR TREASURY BILLS”. Since envelopes received
w ith this legend will not be opened until a fte r the closing tim e specified _in the public announcem ent, com m unications
relating to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is ban k
or appropriate branch.
3. Any qualified or conditional ten d er will be rejected.
4. If a corporation m akes the tender, th e form should be signed by an officer of the corporation authorized to m ake th e
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 partn ersh ip it should be signed by a member of th e firm, w ho
should sign in the form “.......................................
,a
copartnership, by.........................
f
a member of the firm”.
5. Tenders from those other than incorporated banks and tru s t companies or responsible and recognized dealers in in v e st­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m atu rity v alu e )
of the T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by a n
incorporated bank or tru s t company.
6. If the language of this form is changed in any respect, which, in the opinion of th e S ecretary of th e T re a su ry jg
m aterial, the tender may be disregarded.
(See reverse fo r announcem ent)

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