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F R ederal eser ve B ank o f D allas 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. 67-29 February 1, 1967 NEW OFFERING — TREASURY BILLS To Ail Banking Institutions a n d Others Concerned in th e Eleventh Federal Reserve District: Your attention is invited to the follo w in g state m e n t giving details of tw o issues 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 the aggregate am ount of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing F ebruary 9, 1967, in th e am ount of $2,300,458,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued February 9, 1967, in the am ount of $ 1,300,000 ,000, or th e re abouts, representing an additional am ount of bills dated N ovem ber 10, 1966, and to m ature M ay 11, 1967, originally issued in th e am ount of $ 1,000,135,000, 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 9, 1957, and to m ature August 10, 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 without interest. T hey 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, F ebruary 6, 1967. T enders will not be received a t the 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 tire price offered m ust be expressed on the basis of 100, with not more tha n 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 may subm it tenders for account of customers provided the nam es of th e customers are set forth in such tenders. O thers than 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 at the Federal Reserve B anks and Branches, following which public announcem ent will be m ade by th e T reasury D ep artm en t 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. 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. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t th e Federal R eserve B ank on F ebruary 9, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing F ebruary 9, 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 atur 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 th e bills, does not have any exem ption, 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 Internal R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether F ederal 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 th e 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 th e 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 at which bills issued hereunder are sold is not considered to accrue u n til 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, whether on original issue or on subsequent purchase, and th e am ount actually received eith er upon sale or redem ption at m atu rity during the taxable year for which th e retu rn is made, as ordinary gain or loss. T reasury Department Circular No. 418 (curren t revision) and this notice, prescribe the 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 Federal Reserve B ank or Branch. In acc o rd a n c e with th e a b o v e a n n o u n c em en t, tenders will b e received at this b a n k a n d its branches at El Paso, Houston an d San A ntonio, up to twelve-thirty p.m ., Central S ta n d a rd Time, M o n d a y , February 6, 1967. Tenders m a y not be entered by telephone. Yours very truly, Watrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and A pproxim ate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue M ay 4, 1967 D ue August 3, 1967 $2,489,584,000_______________________________ T o tal Applied For_______________________________ $2,226,672,000 $1,301,207,000________________________ ....______T o tal A ccepted________________________________ $1,000,902,000 Price Y ield Price Yield 98.875 4.451%_____________ ...__________H igh ____________________ 97.762___________ 4.427% 98.864 4.494% __________________________ Low______________________ 97.743___________ 4.464% 98.866 4.486% ( 1 ) ------------------------------- Average____________________ 97.745___________ 4.460% (1 ) ( 1 ) These rates are on a bank discount basis. T h e eq u ivalent coupon issue yields a re 4 .6 0 % for th e 91-day bills, a n d 4 .6 3 % for the 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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated November 10? 1966 Maturing May 11,1967 T o: Federal Reserve Bank, Station or — The________________________ El Paso 79999 Dallas, Texas Houston 77001 75222 Branch 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 $200,000 or less from any one bidder, without stated price, will be accepted in full at the average epi price (in three decimals) of accepted competitive bids. Prices should he e x pressed on the basis of 100, with not more than (a) COMPETITIVE TENDERS I$ $ three decim al p la c e s, e. g., 99.925. Fractions $-......- .. @ $ must not be used. 0® ^ 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 u m b e r of Pieces M a tu rity V alue .(a) $ (a) $ $ METHOD OF PAYMENT 1,000 $. 5,000 $. 10,000 $- □ □ .< ? 50,000 * ® (a) $ 100,000 $.(a) $ 500,000 $. (a) $1 ,000,000 $- By maturing bills held by___________________________ Payment to be made by_________, _ _ □ Charge our reserve account on payment date | I 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 sh a ll be on la te s t d ay w hich w ill p e rm it p r e s e n t m e n t in o rd e r to o b ta in irrevocably collected fu n d s o n p a y m e n t d ate) Delivery Instructions: □ □ Pledge to secure Treasury Tax and Loan Account (S u b scrib er’s fu ll nam e o r c o rp o ra te title ) Hold in Custody Account—Member banks for own account only □ (A ddress) By. Ship to______________________ ___ (A u thorized official s ig n a tu re and title ) (F o r th e acc o 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 aturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of th e 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 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 h e has been so authorized. If the tender is made by a partnership it should be signed by a member of the finn, 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 e st ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity v a lu e) of the Treasuiy bills applied for, or unless the tenders are accompanied by an express guaranty of full payment b y 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 js material, the tender may be disregarded. (See reverse for announcement)