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FEDERAL 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, T EX AS

75222
C ircular No. 67-226
N o v e m b er 15, 1967

NEW OFFERING — TREASURY BILLS
To All Banking Institutions an 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 d etails of tw o issues of Treasury bills:
T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, invites te n d e rs for tw o series of T re a su ry bills to th e aggregate a m o u n t
of $2,500,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g N o v e m b er 24, 1967, in th e a m o u n t of
$2,401,985,000, as follows:
91-D A Y B IL L S (to m a tu rity d a te ) to b e issued N o v e m b er 24, 1967, in th e a m o u n t of $1,500,000,000, or th e re ­
abouts, re p rese n tin g a n ad d itio n al a m o u n t of bills da te d A ugust 24, 1967, a n d to m a tu re F e b ru a ry 23, 1968,
originally issued in th e a m o u n t of $1,001,494,000, th e a d d itio n al a n d original bills to be freely interchangeable.
181-D A Y B IL L S for $1,000,000,000, or th ere ab o u ts, to be d a te d N o v e m b er 24, 1967, a n d to m a tu re M a y 23, 1968.
T h e bills of b o th series will be issued on a disco unt basis u n d e r c o m p e titiv e a n d no n c o m p e titiv e b idding as h e re in a fte r
p rovided, a n d a t m a tu rity th e ir face a m o u n t will be p a y ab le w ith o u t interest. T h e y w ill be issued in b e a re r fo rm only, a n d in
d en o m in atio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu rity v a lu e ).
T e n d e rs will be received a t F e d e ra l R e se rv e B a n k s a n d B ranches u p to th e closing hour, o n e -th irty p.m ., E a s te rn
S ta n d a rd T im e , M onday, N o v e m b er 20, 1967. T e n d e rs will n o t be received a t th e T re a su ry D e p a rtm e n t, W ashington. E ac h
te n d e r m u st be for a n e ven m u ltip le of $1,000, a n d in th e case of co m p e titiv e ten d e rs th e p rice offered m u st be expressed on
th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t be used. I t is u rged t h a t te n d e rs be m ad e
on th e p rin te d form3 a n d fo rw arded in th e special envelopes w hich w ill be su p p lied b y F e d e ra l R eserv e B an k s or B ran ch es
on a p p lic a tio n therefor.
B a n k in g in stitu tio n s generally m a y su b m it te n d e rs fo r acc o u n t of custom ers p ro v id ed th e n a m e s of th e custom ers are
se t fo rth in such tenders. O th ers th a n ban k in g in stitu tio n s will n o t be p e rm itte d to su b m it ten d e rs e xcept for th e ir ow n account.
T e n d e rs will be received w ith o u t d ep o sit fro m in co rp o ra ted ba n k s a n d tr u s t com panies a n d fro m responsible a n d recognized
d ealers in in v estm e n t securities. T e n d e rs fro m o th ers m u s t be a cc o m p an ied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of
T re a su ry bills a p p lie d fo r, unless th e te n d e rs a re a cc o m p an ied b y a n express g u a ran ty of p a y m e n t by a n in co rp o ra ted b a n k or
tru s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs will b e o p e n ed a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich
p u b lic a n n o u n ce m en t will be m ad e by th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d price range of a cc ep te d bids. T h o se
su b m ittin g ten d e rs will be advised of th e a cc ep ta n ce o r reje ctio n thereof. T h e S e c retary of th e T re a su ry expressly reserves th e
rig h t to a cc ep t or re je c t a n y or all tenders, in whole o r in p art, a n d his a ctio n in a n y such re sp e c t shall be final. S u b je ct to
these reservations, n o n co m p etitiv e ten d e rs for each issue fo r $200,000 or less w ith o u t sta te d price from a n y one b id d e r will b e
a cc ep te d in full a t th e a verage price ( in th re e d ecim als) of a cc ep te d co m p e titiv e bids fo r th e re sp e ctiv e issues. S e ttle m e n t for
a cc ep te d ten d e rs in accordance w ith th e bids m u st be m a d e or c o m pleted a t th e F e d e ra l R eserv e B a n k on N o v e m b er 24, 1967, in
cash or o th er im m e d ia te ly av ailab le funds or in a like face am o u n t of T re a su ry bills m a tu rin g N o v e m b er 24, 1967. C ash a n d
exchange ten d e rs will receive equal tre a tm e n t. C ash a d ju stm e n ts w ill be m a d e for differences be tw ee n th e p a r value of m a tu r ­
ing bills acc ep te d in exchange a n d th e issue p rice of th e new bills.
T h e incom e deriv ed from T re a su ry bills, w h e th e r in te re st o r gain fro m th e sale or o th e r disposition of th e bills, does n o t
h a v e a n y exem ption, as such, a n d loss from th e sale or o th e r disposition of T re a su ry bills does n o t have a n y special tre a tm e n t,
as such, u n d e r th e In te rn a l R e v en u e C ode of 1954. T h e bills a re su b je c t to estate, inheritance, g ift or o th e r excise taxes, w h e th er
F e d e ra l or S ta te , b u t a re ex em p t from all ta x a tio n now or h e re a fte r im posed on th e prin cip a l o r in te re st th e re o f b y a n y S ta te ,
or a n y of th e possessions of th e U n ite d S tates, or by a n y local tax in g au th o rity . F o r purposes of ta x a tio n th e a m o u n t of discount
a t w hich T re a su ry bills a re originally sold b y th e U n ite d S tates is considered to b e in terest. U n d e r Sections 454 ( b ) a n d
1221 ( 5 ) of th e In te rn a l R e v en u e Code of 1954 th e a m o u n t of discount a t w hich bills issued h e re u n d e r a re sold is n o t con­
sidered to accrue u n til such bills a re sold, re d ee m e d or otherw ise disposed of, a n d such bills a re excluded fro m consideration as
c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life in su ran ce co m p an ies) issued h e re u n d e r n e ed include
in his incom e ta x re tu rn only th e difference b e tw ee n th e p rice p a id for such bills, w h e th er on original issue or on su b seq u e n t
purchase, a n d th e a m o u n t actu a lly received e ith e r up o n sale o r re d e m p tio n a t m a tu rity d u ring th e tax a b le y e a r for w hich th e
re tu rn is m ade, as o rd in a ry gain or loss.
T re a su ry D e p a rtm e n t C ircular No. 418 (c u rre n t revision) a n d th is notice, p rescrib e th e te rm s of th e T re a su ry bills a n d
govern th e conditions of th e ir issue. C opies of th e c ircular m ay be o b ta in e d from an y F e d e ra l R e se rv e B a n k or B ranch.

In accordance with fhe a b o v e a n n o u n c e m e n t fenders will b e received af fhis b ank a nd its branches at El Paso,
Houston an d San Antonio up to twelve-thirty p.m., Central Standard Time, M on d ay, N o v em b e r 20, 1967. Tenders m ay
not b e entered by tele p h o n e .
Yours very truly,
Watrous H. Irons
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R a n g e a n d A p p ro x im ate Y ie ld of A ccepted T e n d e rs
9 1 -D ay B ills
182-D ay B ills
D u e F e b ru a ry 15, 1968
D u e M a y 16, 1968
.T o ta l A pplied F o r ________________________________ $1,651,611,000
$2,628,287,000----------------------------------$1,500,730,000----------------------------------.T o ta l A c c ep ted ___________________________________$1,000,022,000
P ric e
Y ield
P ric e
Y ield
98.834
4 .6 1 3 % ___________________________ .H ig h_______________________97.411____________ 5.121%
98.822
4 .6 6 0 % ___________________________ L o w _______________________ 97.382____________ 5.178%
98.825
4 .648% ( 1 ) ______________________ A verage_____________________ 97.394_____________ 5.155% ( 1 )
( 1 ) T h e s e rates are on b an k d iscount basis. T h e eq u iv a le n t coupon issue yie ld s are 4 .7 8 % for th e 9 1 -d a y bills, an d 5 .3 8 % for th e
1 8 2 -d a y bills.

(S e e 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

181 DAYS TO MATURITY
Dated November 24,1967

Maturing May 23,1968

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

Houston 77001

San Antonio 78206

(Date)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e
public announcement issued by the Treasury Department, 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.

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 competitive bids.
Prices should be e x ­
pressed on the basis o f
C O M P E T IT IV E T E N D E R S < $ ----------------------------- @ --------------- $ ________________________
/ $ ___________________ (5)__________$________________________
\

tS e ^ d e c lm a T ^ la ^ e ?
e. g., 99.925. Fractions*
must not be used.

TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N u m b e r of
Pieces

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M atu rity V alue

(0) $
(5) $

1,000 *
5,000 s.

_____________

METHOD OF PAYMENT
□

.<© $ 10,000 $.
(S) $ 50,000 $(a) $ 100,000 $(5) $ 500,000 $-

□
□
□

B y maturing bills
held by___________________________ _
Payment to be made by_

Charge our reserve account on paym ent
date
Draft enclosed ( E f f e c t u a l d e liv e r y o f e n c l o s e d
d r a f t shall be on la te st day which will p e rm it present­
m e n t in o rd e r to o b ta in irrevocably collected fu n d s o n
p a y m e n t d a te )

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

Hold in Custody Account— Member
banks for own account only

____
(S u b sc rib e r’s fu ll n a m e o r c o rp o ra te title)

----------------------------------- (—d dress)--------------—
—
A

□

Pledge to secure Treasury Tax and_____________ _____________ ______________________
Loan A c C O U n t
(A uth o rized official s ig n a tu re a n d title)

□

Ship to___________________________

____
( F o r th e acc o u n t of, if te n d e r is f o r a n o th e r su bscriber)

(A d d ress)

IMPORTANT
1. No tender for less than $1,000 will be considered and each tender must 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 Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY BILLS”. Since envelopes received
with this legend will not be opened until after the closing time specified in the public announcement, communications
relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank
or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. I f 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 “.......................................................t 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 vest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated 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 Treasury is
material, the tender may be disregarded.
(See reverse for announcement)

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