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F

ederal

reserve

Bank

of

Dallas

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. 67-139
July 19, 1967

MEW OFFERING — TREASURY BILLS
To AN Banking Institutions a n d Others Concerned
In the Eleventh Federal Reserve District:
Your attention is invited to the fo llow in g statem ent giving details o f 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 T reasury bills m aturing Ju ly 27, 1967, in the am ount of
$2,300,800,000, as follows:
91-DAY B ILLS (to m aturity date) to be issued Ju ly 27, 1967, in the 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 ILLS for $1,000,000,000, or thereabouts, to be dated Ju ly 27, 1967, and to m ature Jan uary 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 am ount 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 Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, Ju ly 24, 1967. T enders will not be received a t the T reasury D epartm ent, Washington. Each
tender must be for an even multiple of $1,000, and in the case of com petitive tenders the price offered m ust 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 th a t tenders be made
on the printed forms and forwarded in the special envelopes which will be supplied by Federal R eserve Banks or Branches
on application therefor.
Banking institutions generally m ay subm it tenders for account of customers provided th e nam es of th e 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 trust companies and from responsible and recognized
dealers in investm ent securities. Tenders from others must be accompanied by paym ent of 2 percent of tire 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 th e F ederal Reserve B anks 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 the 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 p ar 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 th e bills, does not
have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatm ent,
as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, w hether
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 am ount of discount
at 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 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, w hether on original issue or on subsequent
purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the
return is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of th e Treasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve B ank or Branch.

In accord ance with the a b o v e an n ou n c em en t, tenders will b e received at this b an k a n d its branches at E! Paso,
Huston a n d San A n to n io up to twelve-thirty p.m., Central Dayiighf Saving Time, M o n d ay, July 24, 1967. Tenders
^ciy not b e entered by t ele p h o n e .
Yours very truly,
Wafrous H. Irons
President
LAST PREV10U5 OFFERING OF TREASURY BILLS
Amount, Range and Approximate Yield of Accepted Tenders
91-Day Bills
Due October 19, 1967
$2,404,475,000..
$1,400,758,000____________
Price
Yield
98.933___________ 4.221% ..
98.924___________ 4.257%...
98.927___________ 4.245% (1 ).

.Total Applied For.
..Total A ccepted—
....High.
Low ...Average.

182-Day Bills
D ue Janu ary 18, 1968
...$1,866,444,000
...$1,000,106,000
Price
Yield
...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 TREASURY BILLS

182 DAYS TO MATURITY
Dated July 27, 1967

M aturing January 25, 19G8

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or
The___________________________B r a n c h ____________________________________________ _
El Paso 79999

H ouston 77001

San Antonio 78206

(D»t«)

P u rsu an t to th e provisions of T reasu ry D epartm ent C ircular No. 418 (cu rre n t revision) and th e provisions of th e
public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am ount
shown below, and agrees to pay fo r th e am ount 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 $200,000 or less from any one bidder, w ithout sta te d price, will be accepted in full a t th e a v e rag e
price (in th ree decim als) of accepted com petitive bids.
'
Prices should be exi$ ----------------------------- @ ---------------$ ----------------------------------------- pressed on the basis of

f

COMPETITIVE TENDERS ( $------------------------@------------ $----------------------------S $___________________ @ __________$
\

e. g., 99.925. F ractio n s
m ust not be used.

g g r 5 T E N D E R S MAY NOT B E E N T E R E D BY T E L E P H O N E . TEN D ERS BY W IRE, IF RECEIV ED BEFO RE T H E
CLOSING HOUR, ARE A CCEPTABLE.
D enominations D esired
Number of
Pieces

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

Maturity Value

METHOD OF PAYM ENT

1,000 $5,000 $.

□

10,000 $50,000 S.

□

$ 100,000 s.
@ I 500,000 $______ @ $1,000,000 $-

□

.....- @

?

@ $
@ $
---------- @ $

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

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

Charge our reserve account on paym ent
date
| 1 D raft enclosed (E f f e c t u a l d e liv e r y o f e n c lo s e d
draft shall be on latest day which will permit present­
m ent in order to obtain irrevocably collected funds on
paym ent date)

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

------

Pledge to secure Treasury Tax and
Loan Account

(Address)
(Authorized official signature and title)

Ship to_________________________ ______________

(For the account of, if tender is for another subscriber)

(Address)

IM PORTANT
1. No tender fo r less than $1,000 will be considered and each tender m ust be fo r an am ount in m ultiples of $1,000 (m a tu rity
value).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of th e
U nited S tates, with 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 bank
or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation m akes the tender, the form should be signed by an officer of th e 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 m ade by a partn ersh ip it should be signed by a member of the firm, who
should sign in the form “.........................................
,acopartnership, by............................
f
a member of the firm”.
5. T enders from those other than incorporated banks and tru st 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 value)
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 an
incorporated bank or tru s t company.
6. I f the language of this form is changed in any respect, which, in th e opinion of the Secretary of th e T reasu ry i*
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