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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, TEX AS

75222

C ircular N o. 67-233
N o v e m b er 22, 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 f o llow in g sta tem ent giving details of tw o issues o f Treasury bills:
T h e T re a su ry D e p a rtm e n t, by th is public notice, invites ten d e rs for two 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 30, 1967, in th e a m o u n t of
$3,801,885,000, 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 em b er 30, 1967, in th e a m o u n t of $1,500,000,000, or th e r e ­
abouts, re p rese n tin g a n a d d itio n al a m o u n t of bills d a te d F e b ru a ry 28, 1967, a n d to m a tu re F e b ru a ry 29, 1968,
originally issued in the a m o u n t of $901,029,000 (a d d itio n al a m o u n ts of $500,040,000 a n d $1,001,441,000
w ere issued M a y 31, 1967, a n d A u g u st 31, 1967, re sp e c tiv e ly ), th e a d d itio n al a n d original bills to be freely
interchangeable.
183-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 30, 1967, in th e a m o u n t of $1,000,000,000, or th e re ­
abouts, re p rese n tin g a n a d d itio n al a m o u n t of bills d a te d M a y 31, 1967, a n d to m a tu re M a y 31, 1968, origi­
nally issued in th e a m o u n t of $900,146,000 (a n a d d itio n a l $500,686,000 w as issued A ugust 31, 196 7 ), th e
add itio n al a n d original bills to be freely interchangeable.
T h e bills of both series will be issued on a discount basis u n d e r co m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r
pro v id ed , and a t m a tu rity th eir face a m o u n t will be p a y ab le w ithout interest. T h e y will be issued in b earer form only, a n d in
d e n o m in a tio 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 ral R eserve B an k s and B ranches up 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 27, 1967. T e n d e rs will not b e 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 even m u ltip le of $1,000, a n d in th e case of co m p etitiv e tenders th e price offered m u st be expressed on
th e basis of 100, w ith n o t m ore th an th ree decim als, e.g., 99.925. F ra c tio n s m ay n o t be used. I t is urged th a t tenders be m ade
on the p rin te d form s a n d forw arded in th e special envelopes w hich will be supplied by F e d e ra l R eserv e B an k s or B ranches
on a p p lic atio 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 for account of custom ers pro v id ed th e nam es of th e custom ers are
se t fo rth in such tenders. O thers th a n banking in stitu tio n s will not be p e rm itte d to su b m it ten d e rs except for th eir own a c c o u n t
T e n d e rs will be received w ithout deposit from incorporated banks a n d tru st com panies an d from responsible a n d recognized
d e ale rs in in v estm e n t securities. T e n d e rs from oth ers m u st be accom panied by p a y m e n t of 2 p e rce n t of the face a m o u n t of
T re a su ry bills a p p lie d for, unless th e ten d e rs a re a ccom panied by a n express gu aran ty of p a y m e n t by a n in co rp o ra ted ban k or
trust com pany.
Im m e d ia te ly a f te r th e closing hour, te n d e rs will b e o pened a t th e F e d e ra l R eserve B anks a nd B ranches, follow ing w hich
p u b lic a n n o u n ce m en t will be m ade by the 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 accepted bids. T hose
su b m ittin g ten d e rs will be advised of the a ccep tan ce or rejection thereof. T h e S e cretary of th e T re a su ry expressly reserves the
rig h t to a ccept or re je ct any or all tenders, in whole or in p art, an d his action in a n y such resp ect shall be final. S u b je ct to
th ese reservations, n o n com petitive ten d e rs for each issue for $200,000 or less w ithout sta te d price from any one bid d er will be
a cc ep te d in full a t th e average price (in th re e decim als) of accep ted co m p e titiv e bids for th e respective 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 ad e or c o m pleted a t th e F e d e ra l R e se rv e B a n k on N o v e m b er 30, 1967, in
cash or o th er im m e d ia tely a v ailab le funds or in a like face a m o u n t of T re a su ry bills m a tu rin g N o v e m b er 30, 1967. Cash a nd
exchange ten d e rs will receive equal tre a tm e n t. C ash a d ju stm e n ts will be m ad e for differences betw een the p a r value of m a tu r­
ing bills a cc ep te d in exchange an d the issue price of th e new bills.
T h e incom e d e riv e d from T re a su ry bills, w h e th er in te re st or gain from th e sale o r o th e r disposition of th e bills, does n o t
h a v e a ny exem ption, as such, an d loss from the sale or o th e r disposition of T rea su ry bills does not have an y special tre a tm e n t,
as such, under the In tern a l R evenue Code of 1954. T h e bills are su b ject to estate, inheritance, gift or o th e r excise taxes, w h e th er
F e d e ra l or S tate, b u t a re e xem pt from all tax atio n now or herea fte r im posed on th e principal or in te re st th ere o f by any S ta te ,
or any of the possessions of the U n ited States, or by an y local taxing a u th o rity . F o r purposes of tax a tio n th e a m o u n t of discount
a t which T rea su ry bills are originally sold by the U n ited S tates is considered to be interest. U n d er Sections 454 ( b ) an d
1221 ( 5 ) of the In tern a l R e v en u e Code of 1954 th e am o u n t of discount a t which bills issued h e reu n d e r a re sold is not con­
sidered to accrue until such bills are sold, redeem ed or otherw ise disposed of, and such bills a re excluded from consideration as
c a p ita l assets. A ccordingly, the ow ner of T re a su ry bills (o th e r th a n life insurance c o m p a n ies) issued he reu n d e r need include
in his incom e tax re tu rn only the difference betw een th e price p a id for such bills, w hether on original issue or on su b seq u e n t
purchase, an d the a m o u n t actually received e ith e r upon sale or re d em p tio n a t m a tu rity d u rin g th e taxable y ear for which th e
re tu r n is m ade, as o rd in ary 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 re v isio n ) and th is notice, p rescrib e th e term s of th e T re a su ry bills a n d
govern th e conditions of th eir issue. Copies of th e c irc u lar m ay be o b tain e d from any F e d e ra l R eserv e B a n k or B ranch.

In accordance 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 ank an d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, M o n d a y , N ov em b e r 27, 1967. Tenders m ay
not b e entered by te le 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 roxim ate Y ield of A ccepted T e n d e rs
91-D ay B ills
181-D ay B ills
D u e F e b ru a ry 23, 1968
D u e M a y 23, 1963
$3,037,913,000________________________________.T o tal A pplied F o r -------------$2,289,430,000
$1,500,395,000__________________________________ T o ta l A c c ep ted ___________________________________$1,000,010,000
P ric e
Y ield
P ric e
Y ield
98.751
4 .9 4 1 % ___________________________ H ig h ----------------------------------- 97.255------------------- 5.460%
98.735
5 .0 0 4 % ___________________________ L o w _______________________ 97.204____________ 5.561%
98.739
.4.989% ( 1 ) ______________________A verage--------------------------------- 97.226-------------------- 5.517% ( 1 )
( 1 ) T h ese rates a re on bank d iscou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are S .1 4 % for th e 9 1 -d a y b ills, and 5 .7 7 % for th e
1 8 1 -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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated February 28, 1967

Maturing February 29, 1968

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

Houston 77001

San Antonio 78206

(D a te )

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 am ount
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 ex -------------------------------- (G ----------------- $ ------ ----------------------------------p
p r e s s e d on the basis o f

COMPETITIVE TENDERS

-------------------------@ ------------ $------------------------------| $ ---------------------------- @ __________ $ ________________________ e. g., 99.925. Fractions’
\
must not be used.

E X T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um b er of
Pieces

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

M atu rity V alue

METHOD OF PAYMENT

$

1,000 $
5,000 $

□

(a) $
(3) $

10,000 I
50,000 $.

□

(3) $ 100,000 $
(5) $ 500,000 $
(5) $1 ,000,000 $

□

.(5) $

□

By 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 nhall be on latent day which will p e rm it present­
m en t in ord er to o b ta in irrevocably collected fu n d s on
p a y m e n t d ate)

.

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account

(S u b sc rib e r’s fu ll nam e o r c o rp o rate title)

Hold in Custody Account—Member
banks for own account only

□

(A ddress)

By(A u th o rized official sig n a tu re a n d title)

Ship to___________________________
(F o r the acco u n t of, if te n d e r is fo r a n o th e r su bscriber)

(A ddress)

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 ( m a tu rity
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. If a corporation makes the tender, the form should besigned 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 “......................................................., 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 v est­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount(maturity v a lu e )
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by ^
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 ig
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