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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, TEXAS 75222 Circular No. 67-22 Jan u ary 25, 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 llo w in g state m e n t giving d etails of tw o issu e s of 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 February 2, 1967, in th e am ount of $2,301,243,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued February 2, 1967, in the am ount of $1,300,000,000, or th ere abouts, representing an additional am ount of bills dated N ovem ber 3, 1966, and to m ature M ay 4, 1967, originally issued in th e am ount of $1,000,791,000, 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 F ebruary 2, 1967, and to m ature A ugust 3, 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 at 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 Federal R eserve B anks and Branches u p to th e closing hour, one-thirty p.m., E astern S tandard Tim e, M onday, Jan u ary 30, 1967. T enders will not be received a t th e T reasury D epartm ent, W ashington. 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 th e basis of 100, with not more th an three decimals, e.g., 99.925. Fractions may not be used. I t is urged th a t tenders be m ade 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. Banking institutions generally m ay subm it tenders for account of customers provided the names of th e customers are set forth in such tenders. O thers th an banking institutions will not be perm itted to subm it tenders except for their own account. T enders 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 R eserve Banks 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. Those subm itting tenders will be advised of th e acceptance or rejection thereof. T h e 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 th e average price (in three decim als) of accepted com petitive bids for the 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 Federal R eserve B ank on February 2, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing February 2, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m atu r ing bills accepted in exchange and the issue price of th e new bills. T h e income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of the bills, does not have any exemption, 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 Internal R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, b u t are exem pt from all taxation now or hereafter im posed on the principal or interest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. For purposes of taxation th e am ount of discount at which T reasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454 (b ) and 1221 (5 ) of th e Internal R evenue Code of 1954 th e am ount of discount a t 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, th e owner of T reasury bills (other th an 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 ep artm en t Circular No. 418 (curren t revision) and this 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 may be obtained from any F ederal Reserve B ank or Branch. In acc o rd a n c e with the a b o v e a n n o u n c em en t, tenders w ill b e received at this b a n k a n d its branches at El Paso, Houston a n d San A ntonio, up to twelve-thirty p.m ., Central Standard Time, M o n d ay, January 3 0 , T967. Tenders m ay hot b e entered by te le p h o n e . Yours very truly, Watrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approxim ate Y ield of A ccepted T enders 91-Day Bills 182-Day Bills D ue April 27, 1967 D ue Ju ly 27, 1967 $2,487,666,000_______________________________ T otal Applied F or_______________________________ $2,343,049,000 $1,300,866,000________________________________ -Total_Accepted_________________________________$1,001,101,000 Price Y ield Price Yield 98.822 4.660% _________________________ H igh______________________ 97.649___________ 4.650% 98.814 4.692% _________________________ X ow ______________________ 97.638___________ 4.672% 98.817 4.680% ( 1 ) ____________________ Average____________________ 97.643___________ 4.662% (1 ) ( 1 ) These ra te s a re on a b an k discount basis. T h e e q u ivalent coupon issue yields are 4 .8 0 % for th e 91-day bills, an d 4 .8 4 % 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 132 DAYS TO MATURITY M aturing August 3, 1967 Dated February 2, 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. JNOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $_ 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 pressed on the basis of 100, with not more than (a) COMPETITIVE TENDERS $ $ three decimal places, e. g., 99.925. Fractions $ ......- ....... $ must not be used. 1 S S P TENDERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Denominations Desired N um ber of Pieces M a tu rity V alue @ $ (3) $ (3) $ 1,000 $ 5,000 $ METHOD OF PAYMENT □ By m aturing bills .- 10,000 $ 50,000 $ (5) $ (a) $ 100,000 $ (3) $ 500,000 $ (5) $1,000,000 held by____________________ Paym ent to be made by. □ □ □ Charge our reserve account on paym ent date D raft 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 sh all be on la te st day w hich w ill p e rm it p r e s e n t m e n t in ord er to o b tain irrevocably collected fu n d s on p a y m e n t date) Delivery Instructions: □ □ Pledge to secure Treasury Tax and Loan Account (S ub scrib er’s fu ll n am e o r c o rp o ra te title) Hold in Custody Account—Member banks for own account only □ (A ddress) By_ (A u thorized official s ig n a tu re and title ) Ship to_________________________ (F o r th e a cco u n t of, if ten d er is fo r a n o th e r subscriber) (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 aturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of th e United States, with notation on the envelope reading “TE N D E R 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 be signed by an officer of the corporation authorized to make th e 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 valu e) 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)