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F ederal Reserve bank of Dallas F IS 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 C ircular No. 67-16 Jan u ary 18, 1967 NEW OFFERING — TREASURY BILLS To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of two issues of Treasury bills: T h e T reasury D epartm ent, by th is public notice, invites tenders for tw o series of T reasury bills to th e aggregate am ount of $1,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Jan u ary 31, 1967, in th e am ount of $1,001,391,000, as follows: 273-DAY B IL L S (to m atu rity d ate ) to be issued January 31, 1967, in th e am ount of $500,000,000, or th ere abouts, representing an additional am ount of bills dated O ctober 31, 1966, and to m ature O ctober 31, 1967, originally issued in th e am ount of $904,640,000, the additional and original bills to be freely interchangeable. 365-DAY B IL L S for $900,000,0000, or thereabouts, to be dated Jan u ary 31, 1967, and to m ature Jan u ary 31, 1968. 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 a t m aturity th e ir face am ount w ill be payable w ithout interest. T hey w ill b e 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 v alu e). T enders will be received a t F ederal R eserve B anks and B ranches u p to th e closing hour, one-thirty p.m., E astern S tandard Tim e, Tuesday, Jan u ary 24, 1967. T enders will n ot be received a t th e T reasury D epartm ent, W ashington. E ach te nder m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders th e price offered m ust be expressed on th e basis of 100, w ith not more than three decimals, e.g., 99.925. F ractions m ay n o t be used. (N otw ithstanding th e fact th a t th e one-year bills will run for 365-days, th e discount ra te will be com puted on a bank discount basis of 360-days, as is currently th e practice on all issues of T reasury bills.) I t is urged th a t tenders be m ade on th e prin ted form s and forw arded in th e special envelopes which will be supplied by F ederal R eserve B anks or B ranches on application therefor. B anking institutions generally m ay subm it tenders for account of custom ers provided th e nam es of th e custom ers are set forth in such tenders. O thers th an banking institutions will not be perm itted to subm it tenders except for th e ir own account. T enders will be received w ithout deposit from incorporated banks and tru st com panies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by p aym 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 com pany. Im m ediately after th e closing hour, tenders will be opened a t th e F ederal R eserve B anks 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. T hose subm itting tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of th e T reasury expressly reserves th e rig ht to accept or reject any or all tenders, in whole or in p art, and his action in any such respect shall be final. S ubject 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 th ree decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for accepted tenders in accordance w ith th e bids m ust be m ade or com pleted a t th e Federal R eserve B ank on Jan u ary 31, 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 a ry 31, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences betw een th e p ar value of m aturing bills accepted in exchange and th e issue price of th e new bills. T h e incom e derived from T reasury bills, w hether in terest or gain from th e sale or other disposition of th e bills, does not have any exem ption, as such, and loss from th e sale or other disposition of T reasury bills does not have any special treatm ent, as such, under th e Intern al R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether F ederal or S tate, b u t are exem pt from all taxation now or hereafter im posed on th e principal or in terest 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 S tates is considered to be interest. U nder Sections 454 (b ) and 1221 (5 ) of th e In tern al R evenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is n o t considered to accrue u ntil such bills are sold, redeem ed or otherw ise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, th e owner of T reasury bills (o th er th an life insurance com panies) issued hereunder need include in his income tax retu rn only th e difference betw een th e 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 atu rity during th e taxable year for which th e retu rn is made, as ordinary gain or loss. T reasury D ep artm en t C ircular No. 418 (cu rren t revision) and th is notice, prescribe th e term s of th e T reasury bills and govern th e conditions of th eir issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank or B ranch. In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso, Houston and San Antonio, up to twelve-thirty p.m., Central Standard Time, Tuesday, January 24, 1967. Tenders may not be entered by telephone. Yours very truly, Wafrous H. Irons President (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 365 DAYS TO MATURITY Dated January 31, 1967 Maturing January 31,1968 To: Federal Reserve Bank, Station E, Dallas, Texas 75222 or — The____________________________ Branch E l Paso 79999 Houston 77001 ----------------------------------------------------- San Antonio 78206 (Data) Pursuant to the provisions of Treasury Departm ent 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. / Prices should be exi $___________________ @_________$---------------------------------pressed on the basis of ; @---------- $ $--------------------------COMPETITIVE TENDERS <$---------------------- (a) X> ; (a) t^e^decT m aT Jla^ e. g., 99.925. Fractions must not be used. $ Btgp3 TENDERS MAY NOT BE EN TERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment for this issue of bills cannot be made Number of by credit to Treasury Tax and Loan Account. Pieces M aturity Value 1,000 (5) $ (a) $ 5,000 (a) $ 10,000 (5) % 50,000 (5 $ 100,000 > <> $ 500,000 5 <> $1,000,000 5 METHOD OF PAYMENT $ $ $ $ ? $ ? Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to_______________________ □ □ □ By maturing bills held by__________________ Payment to be made by_ Charge our reserve account on payment date | | D r a f t e n c l o s e d ( E f fe c tu a l d e liv e ry o f en clo sed d ra ft shall be on latest day which will perm it present m ent in order to obtain irrevocably collected funds on paym ent date) ____ (Subscriber’s full nam e or corporate title) -----(Address) ________________________________ (Authorized official signature and title) ____ (For the account of, if tender is fo r another subscriber) (Address) IMPORTANT 1. No tender for less than $1,000 will be considered and each tender m ust be for an amount in multiples of $1,000 (m aturity 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 m atters 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 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 th a t 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 tru st 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 (m aturity 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 tru st company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is m aterial, the tender may be disregarded. (See reverse for announcement)