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11

d
federa l

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. 67-201
October 4, 1967

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follo w in g sta tem ent giving d etails 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 T reasury bills m aturing October 13, 1967, in the am ount of
$2,400,976,000, as follows:
90-DAY B IL L S (to m a tu rity d ate) to be issued October 13, 1967, in the am ount of $1,400,000,000, or there­
abouts, representing an additional am ount of bills dated Ju ly 13, 1967, and to m ature Jan u ary 11, 1968, origi­
nally issued in the am ount of $1,000,444,000, the additional and original bills to be freely interchangeable.
181-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated O ctober 13, 1967, and to m ature A pril 11, 1968.
T he bills of both series will be issued on a discount basis under com petitive a n d n o n c o m p e titiv e b id din g as h e re in a fte r
provided, and a t m aturity their face am ount will be payable w ithout interest. T hey will be issued in b e a re r form only, a n d in
denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity value).
T enders will be received a t F ederal R eserve B anks and Branches up to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, M onday, O ctober 9, 1967. T enders will not be received a t the T reasury D e p a rtm e n t, W ashington. Each
te n d er m ust 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 th a n three decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be made
on th e printed forms and forwarded in th e special envelopes which will be supplied by F ederal R eserve Banks or Branches
on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided th e names of the customers are
set forth in such tenders. Others th an banking institutions will not be perm itted to subm it tenders except for their own account.
T enders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of th e face am ount of
T reasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after th e closing hour, tenders will be opened a t the Federal R eserve Banks and Branches, following which
public announcem ent will be m ade by th e T reasury D epartm ent of th e am ount and price range of accepted bids. Those
subm itting tenders will be advised of th e acceptance or rejection thereof. T he Secretary of the T reasury expressly reserves the
rig h t 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 a t th e average price (in three decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for
accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t the Federal Reserve B a n k on October 13, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing October 13, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m atu r­
ing bills accepted in exchange and the issue price of th e 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 Treasury bills does not have any special treatm ent,
as such, under th e Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ed eral or State, bu t 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 U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount
a t which T reasury 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 R evenue Code of 1954 the am ount of discount a t 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 th an life insurance com panies) 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 th e am ount actually received either upon sale or redem ption a t m aturity during th e taxable year for which the
re tu rn is made, as ordinary gain or loss.
T reasury D epartm en t 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 m ay be obtained from any F ederal Reserve B ank or Branch.

In accord ance 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 an k an d its branches a t El Faso,
Houston a n d San A ntonio up to tw elve-thirty p.m., Central Daylight Saving Time, M o n d ay, October 9, 1967. Tenders
may not b e entered by tele p h o n e .
Yours very truly,
Wafrous H. Irons
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and A pproxim ate Y ield of Accepted T enders
91-Day Bills
D ue Jan u ary 4, 1968
$2,064,468,000.
$1,400,424,000Price
Yield
98.868________
.4.478% .
98.852________
.4.542% .
98.859________ -___4.514% ( 1 ) ____

.T otal A pplied For.
T otal Accepted.
.H igh—
.Low__
.Average..

182-Day Bills
D ue A pril 4, 1968
$1,907,005,000
$ 1,000, 100,000

P rice
Yield
97.440____________ 5.064%
97.418____________ 5.107%
97.427____________ 5.089% (1)

( 1 ) These rates are on bank discount basis. The equivalent coupon issue yields are 4 .64% for the 91-day bills, and 5.31% for
the 182-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 T R E A S U R Y BILLS

181 DAYS TO MATURITY
Dated October 13, 1967

M aturing April 11, 1968

T o: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_______________________________ Branch
El Paso 79999

Houston 77001

______________________________________

San Antonio 78206

(D ate)

P ursuant to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of the
public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in th e 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 the ra te indicated.

NONCOMPE TITIVE TENDER $_____________________________ NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full at the average
price (in three decimals) of accepted com petitive bids.
/
Prices should be exs $ ----------------------------- @ --------------- $________________________ pressed on the basis of

COMPETITIVE TENDERS { $----------------------- @------------ *----------------------------- t r7 ? e c ? rL 7 p la ? “
7
I

________________ @ __________$________________________ e. g., 99.925. Fractions
m ust not be used.

TENDERS MAY NOT BE E N TE R E D BY TELEPH O N E. TEND ERS BY W IRE, IF RECEIVED BEFO RE TH E
CLOSING HOUR, ARE ACCEPTABLE.
D enominations Desired
Number of
Pieces

Paym ent fo r this issue of bills cannot be made
hy credit to T reasury T ax and Loan Account.

Maturity Value

@ $
(a) $
_(a) $

METHOD O F PAYM ENT

1,000 $
5,000 $

10,000 $
(a) $ 50,000 $
(5) $ 100,000 $
(5) $ 500,000 $

□
□

By m aturing bills
held by____________________
Paym ent to be made by~

-

□
□

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

(a) $1:,000,000 $
Delivery Instructions:

___
(Subscriber’s full name or corporate title)

□

Hold in Custody Account—Member
banks for own account only

-----

(Address)

□

Pledge to secure Treasury Tax and____________ _______________________________ _
Loan Account
(Authorized official signature and title)

□

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

-----

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

( Address)

IM PORTANT
1. No tender for less than $1,000 will be considered and each tender m ust be for an am ount in multiples of $1,000 (m atu 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
United States, w ith notation on th e envelope reading “T E N D E R 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 announcement, com munications
relatin g to other m a tte rs should not be enclosed. Envelopes for subm itting tenders m ay be obtained from this bank
or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, th e form should be signed by an officerof 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 m ade by a partnership it should be signed by a m em ber of the firm, who
should sign in the form “......................................................., a copartnership, by...................................................................................,
a member of th e firm”.
5. Tenders 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 to tal 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 a n
incorporated bank or tru st company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the T re asu ry is
m aterial, the tender m ay be disregarded.
(See reverse for announcem ent)

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