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FE D E R A L R E SE R V E B A N K O F D A LLA S FISCAL. AGENT O F THE UNITED STATES Circular No. 67-4 Dallas, Texas, January 4, 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 fo llo w in g sta te m e n t giving d etails o f tw o issu es o f Treasury bills: T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to th e aggregate am ount of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Jan u ary 12, 1967, in th e am ount of $2,301,558,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued Jan uary 12, 1967, in th e am ount of $1,300,000,000, or th ere abouts, representing an additional am ount of bills dated October 13, 1966, and to m ature A pril 13, 1967, originally issued in the am ount of $999,944,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated Jan u ary 12, 1967, and to m ature Ju ly 13, 1967. T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and a t m aturity th eir face am ount will be payable w ithout interest. They 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 atu rity value). T enders will be received a t F ederal R eserve B anks and B ranches up to th e closing hour, one-thirty p.m., E astern S tandard Tim e, M onday, Janu ary 9, 1967. T enders will not be received a t the T reasury D epartm ent, Washington. E ach tender m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders the price offered m ust be expressed on the basis of 100, with not more th a n three decimals, e.g., 99.925. Fractions may 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 Federal R eserve Banks or Branches on application therefor. B anking institutions generally may subm it tenders for account of customers provided th e nam es of th e customers are set forth in such tenders. O thers th a n banking institutions will not be perm itted to subm it tenders except for th eir own account. Tenders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized dealers in investm ent securites. T enders from others m ust be accompanied 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 Reserve B anks and Branches, following which public announcem ent will be made by th e T reasury D epartm ent of the 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 th e 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 a t the average price (in three decimals) of accepted com petitive bids for th e respective issues. Settlem ent for accepted tenders in accordance with th e bids m ust be m ade or com pleted a t th e F ederal Reserve Bank on Jan u ary 12, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Jan u ary 12, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e par value of m a tu 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 th e bills, does not have any exemption, as such, and loss from th e sale or other disposition of Treasury bills does not have any special treatm ent, as such, under th e In tern al R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, b u t are exem pt from all taxation now or hereafter im posed on th e principal or interest thereof by any State, or any of th e possessions of th e U nited States, or by any local taxing authority. F or purposes of taxation th e am ount of discount a t which T reasury bills are originally sold by th e U nited States is considered to be interest. U nder Sections 454 (b ) and 1221 (5 ) of th e Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is no t 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 T reasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only th e difference between th e 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 a t m aturity during th e taxable year for which th e return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (cu rren t revision) and this notice, prescribe th e term s of th e T reasury bills and govern the conditions of th eir issue. Copies of the circular may be obtained from any Federal R eserve B ank or Branch. In accord ance with th e a b o v e an n ou n c em en t, tenders will b e received a t this b an k 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 ay , January 9, 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 Amount, Range and A pproxim ate Yield of Accepted Tenders 91-Day Bills 182-Day Bills Due A pril 6, 1967 D ue Ju ly 6, 1967 $2,040,518,000_______________________________T o tal Applied F o r-------------------------------------------— $2,131,979,000 $1,300,022,000________________________________ T otal A ccepted________________________________ $1,000,324,000 Price Yield Price Yield 98.792 4.779% _________________________ H igh______________________ 97.528___________ 4.890% 98.776 4.842% __________________________Low______________________ 97.512___________ 4.921% 98.781 4.822% ( 1 ) ____________________ Average------------------------------- 97.517----------------- 4.911% (1) ( 1 ) These rates are on a ban k discount basis. T h e eq uivalent coupon issue yields are 4 .9 5 % for th e 91-day bills, a n d 5 .1 1 % for th e 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 TREASURY BILLS 182 DAYS TO MATURITY Dated January 12, 1967 Maturing July 13, 1967 To: Federal Reserve Bank, Station K, Dallas, Texas or — The_______________________________ Branch El Paso 79999 Houston 77001 75222 San Antonio 78206 (D ate) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the 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. / T" Prices should be expressed on the basis of @ -------------- 5------------------------------------/ $ i7f\ ^ 100, with not more than ■> p----------------------------- --------------------------------------------------------- three decim al p laces, -« f $ ___________________ @ _________ $________________________ e. g., 99.925. Fractions \ must not be used. ESr5TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b er of Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M a tu rity V alue <> $ 5 <> $ a (5) $ (jn $ b METHOD OF PAYMENT 1,000 $ 5,000 $ 10,000 $ □ □ 50,000 ? (5) $ 100,000 $ (5) $ 500,000 $ (5) $1,000,000 $ □ □ □ Charge our reserve account on payment date Draft enclosed ( E f f e c t u a l d e l i v e r y o f e n c l o s e d d r a f t sh all be on la te st day w hich w ill p e rm it p re s e n t m e n t in o rd e r to o b tain irrevocably collected fu n d s on p a y m e n t d ate) Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ By maturing bills held by____________________________ Payment to be made by_ Pledge to secure Treasury Tax and Loan Account Ship to_________________________ (S u b sc rib e r’s fu ll n am e o r c o rp o ra te title ) (A ddress) By (A uth o rized official s ig n a tu re a n d title ) (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 subscrib er) (A dd 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 A gent 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 t.bia bank or appropriate branch. 3. Any qualified or conditional tender will be rejected. 4. If a corporation makes the tender, the form should be signed by anofficerof the corporation authorized to make 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 ,acopartnership, by................................ ....................... should sign in the form “..................................... a member of the firm”. 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest 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 ia material, the tender may be disregarded. (See reverse for announcement)