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F ederal reserve bank of Dallas


Circular N o. 67-228
Novem ber 16, 1967


To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:

Your atte n tio n is invited to the following s ta te m e n t giving details of tw o issues of Treasury bills:
T h e Treasury D epartm ent, by this public notice, invites tenders for tw o series of Treasury bills to th e aggregate am ount
of $1,500,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing N ovem ber 30, 1967, in the am ount of
$3,801,885,000, as follows:
2 75-D A Y B IL L S (to m aturity date) to be issued N ovem ber 30, 1967, in the am ount of $500,000,000, or there­
abouts, representing an additional am ount of bills dated A ugust 31, 1967, and to mature August 31, 1968,
originally issued in the am ount of $1,000,336,000, the additional and original bills to be freely interchangeable.
3 66-D A Y B IL L S for $1,000,000,000, or thereabouts, to be dated N ovem ber 30, 1967, and to mature N ovem ber 30,
T h e bills of both series w ill 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 h ey 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 v a lu e ).
Tenders will b e received at F ederal R eserve B anks and Branches u p to th e closing hour, one-thirty p.m., Eastern
Standard T im e, W ednesday, N ovem ber 22, 1967. T enders will not be received at the Treasury Departm ent, Washington.
E ach tender 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 the basis of 100, with not more than three decim als, e.g., 99.925. Fractions m ay not be used. (N otw ithstanding th e fact that
the one-year bills will run for 366-days, the discount rate w ill be com puted 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 m ade on the printed forms and forwarded in th e special
envelopes which w ill be supplied by Federal R eserve Banks or Branches on application therefor.
Banking institutions generally m ay subm it tenders for account of custom ers provided the nam es of th e custom ers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account.
Tenders w ill be received w ithout deposit from incorporated banks and trust com panies 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 the face am ount of
Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
trust company.
Im m ediately after the closing hour, tenders will be opened at th e Federal R eserve Banks and Branches, follow ing which
public announcem ent will be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. T hose
subm itting tenders w ill be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves the
right to accept or reject any or all tenders, in w hole 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 w ill be
accepted in full at the average price (in three decim als) 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 com pleted at the Federal R eserve B ank on N ovem ber 30, 1967,
in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing N ovem ber 30, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een the par value of m aturing
bills accepted in exchange and the issue price of the new bills.
T h e incom e derived from Treasury bills, whether interest or gain from th e sale or other disposition o f the bills, does not
have any exem ption, 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 R evenue Code of 1954. T h e 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 im posed on th e principal or interest thereof by any State,
or any of the possessions of the U n ited 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 n ited States is considered to be interest. Under Sections 454 ( b ) and 1221 ( 5 )
of the Internal R evenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is not considered 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 com panies) issued hereunder need include in his
incom e tax return only the difference betw een the price paid for such hills, whether on original issue or on subsequent purchase,
and the am ount actually received either upon sale or redem ption at m aturity during th e taxable year for which the return is
made, as ordinary gain or loss.
Treasury D epartm ent Circular N o. 418 (current revision) and this notice, prescribe the term s o f th e Treasury bills and
govern the conditions of their issue. Copies o f the circular m ay be obtained from any Federal R eserve B ank or Branch.

In ac c o rd a nc e with th e a b o v e a n n o u n c e m e n t, te n d e rs will b e received a t this b a n k a n d its b ra n c h e s a t El Paso,
Houston a n d San Antonio, up to tw elve-thirty p.m., Central S ta n d a rd Time, W e d n e s d a y , N ovem ber 22, 1967. Tenders
m a y not b e en te re d by te leph on e.

Yours very truly,
Watrous H. Irons
(See reverse aide for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


366 D A Y S TO M A T U R IT Y
Dated N ovem ber 30, 1967

Maturing Novem ber 30, 1968

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

Houston 77001

San Antonio 78206

(D a te )

P u r su a n t to th e p ro v isio n s o f T r ea su r y D e p a r tm e n t Circular N o . 418 (c u r re n t r e v isio n ) and th e p r o v isio n s o f th e
public a n n o u n cem en t issu e d b y th e T r e a su r y D e p a r tm en t, th e u n d ersig n ed offers to p u rch ase T r ea su r y b ills in th e a m oun t
sh o w n b elow , and a g r e e s to p a y f o r th e a m o u n t a llo tte d , on or b e fo re th e issu e d ate, b y th e m eth o d and a t th e r a te ind icated .

NONCOMPETITIVE TENDER $_____________________________ NOT TO EX C E E D $200,000
Noncompetitive tenders for $200,000 or less from anyone bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
P ric es should be e x 5 ----------------------------------@ -----------------$ ----------------------------------------------- p r e sse d on th e b a sis o f


'.u iv ii- m in v r ,

2 ^


--------------------------------- @ ------------------ $ ----------------------------------------S e e ^ d S a r ^
__________________ @ ____________ $ __________________________ e. g., 99.925. F ra c tio n s
m u st n o t be used.

T E N D E R S M A Y N O T B E E N T E R E D B Y T E L E P H O N E . T E N D E R S B Y W IR E , I F R E C E IV E D B E F O R E T H E
C L O SIN G H O U R , A R E A C C E P T A B L E .

Denominations Desired
N u m b e r of

P a y m e n t f o r th is issu e o f b ills c a n n o t b e m a d e
b y cred it to T r ea su r y T a x and L oan A ccou n t.

M aturity V alue

(3) $
(5) $

5,000 $

(3) $

10,000 $

(3) $


1,000 $ .......-

50,000 $



(3) $ 100,000 $


(3) $ 500,000 $


(5) $1 ,000,000 $

B y m aturing bills
held by_______________________
P aym ent to be made by_
Charge our reserve account on paym ent
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
d r a f t shall be on la te st day w hich will p e rm it p re s e n t­
m e n t in order to o b tain irrevocably collected fun d s on
paym ent d ate)


D elivery In stru ction s:

(S u b sc rib e r’s full na m e o r c o rp o ra te title)


Hold in Custody Account— Member
banks fo r own account only


Pledge to secure T reasury Tax and
Loan Account
Ship to ____________________________

(A ddress)


(A uthorized official s ig n a tu re a n d title)

( F o r th e a ccou nt of, if te n d e r is f o r a n o th e r subscriber)

( A d dress)

1. N o ten d er fo r le s s th a n $1,000 w ill be c o n sid ered and ea ch ten d er m u st be f o r a n a m ou n t in m u ltip le s o f $1,000 (m a tu r ity
v a lu e ).
2. T en d ers sh ould be fo r w a rd ed in a n e n v e lo p e c le a r ly a d d ressed to th is b an k or a p p ro p ria te branch a s F is c a l A g e n t o f th e
U n ite d S ta te s, w ith n o ta tio n on th e en v elo p e r ea d in g “T E N D E R F O R T R E A S U R Y B IL L S ”. S in ce e n v e lo p es received
w ith th is leg e n d w ill n o t be opened u n til a fte r th e c lo s in g tim e sp ecified in th e public a n n o u n cem en t, c om m u n ication s
r e la tin g to oth er m a tte r s sh ould n o t be en closed . E n v e lo p e s fo r su b m ittin g ten d e r s m a y be ob tain ed fr o m th is bank
or a p p ro p ria te branch.
3. A n y qu alified or conditional tender will be rejected.
4. I f a c o rp o ra tio n m a k e s th e ten d er, th e fo r m sh ould be sig n e d b y a n officer o f th e corp o ra tio n a u th o rized to m a k e th e
ten d er and th e sig n in g o f th e fo r m b y a n officer o f th e corp oration w ill be con stru ed a s a r ep re se n ta tio n by him th a t he
h a s been so a u th o rized . I f th e ten d e r is m a d e b y a p a r tn e r sh ip it should be sig n e d by a m em b er o f th e firm , w ho
should s ig n in th e fo r m “ .............................................................. t a co p a rtn ersh ip , b y ............................................................................................. f
a m em b er o f th e firm ” .
5. T en d ers fr o m th o se o th er th a n in corp o ra ted b an ks and tr u st co m p a n ies or resp o n sib le and rec o g n iz ed d e a ler s in in v e s t­
m en t se c u r itie s w ill b e d isreg ard ed , u n le ss a c com p a n ied by a d e p o sit o f 2 p e r cen t o f th e to ta l am o u n t (m a tu r ity v a lu e )
o f th e T r e a su r y b ills ap p lied fo r, or u n le ss th e te n d e r s a r e a c co m p a n ied b y an e x p r e s s g u a r a n ty o f f u ll p a y m e n t by an
in co rp orated b an k or t r u s t co m pany.

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