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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. 67-31 February 6, 1967 NEW OFFERING — TREASURY BILLS To AH Banking Institutions a n d Others Concerned in th e Eleventh Federal Reserve District: Your attention is invited to the f o llo w in g state m e n t giving details of tw o issu es of Treasury bills: T h e T reasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing February 16, 1967, in th e am ount of $2,301,889,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued February 16, 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 17, 1966, and to m ature M ay 18, 1967, originally issued in the am ount of $1,000,017,000, th e additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,000,000,000, or thereabouts, to be d ated F ebruary 16, 1967, and to m ature A ugust 17, 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 e ir 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 F ederal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern S tandard Tim e, Friday, February 10, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. E ach ten d er 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 tha n three decimals, e.g., 99.925. Fractions may not be used. It 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 m ay subm it tenders for account of customers provided the names of the 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 the 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 B anks and Branches, following which public announcem ent will be m ade by the T reasury D epartm ent of th e am ount and price range of accepted bids. Those subm itting tenders will be advised of the 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 the respective issues. S ettlem ent for accepted tenders in accordance with th e bids m ust be made or com pleted at th e Federal R eserve B ank on February 16, 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 16, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents v/ill be m ade for differences between the par 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 th e 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 Revenue Code of 1954. T h e 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 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 R evenue Code of 1954 the am ount of discount a t 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 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 at 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 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 R eserve B ank or Branch. In accord ance with th e a b o v e a n n o u n c em en t, fenders will b e received a t this b an k an d its branches at El Paso, Houston a n d San A ntonio, up to twelve-thirty p.m., Central Standard Time, Friday, February 10, 1967. Tenders m ay not b e entered by te le p h o n e . Yours very truly, W atrous H. Irons President Figures concerning offering of 9 1 -Day Treasury Bills maturing May 11, 1967, and 182-Day Treasury Bills maturing August 10, 1967, not available when this circular was printed. (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 M aturing May 18, 1967 Dated November 17, 1966 T o: 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 PLEASE OBSERVE CLOSING DATE — FRIDAY, FEBRUARY 10, 1967 NONCOMPETITIVE TENDER $_ Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average ■p i price (in three decimals) of accepted competitive bids. Prices should be ex$ ------------------------------------- pressed on the basis of e 100, with not more than .<§>. COMPETITIVE TENDERS < $. ^-------------------------------------three decim al p la c e s, $ ________________________ e. g., 99.925. Fractions must not be used. TENDERS MAY NOT BE EN TERED 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 er of Piece3 M a tu rity V alue METHOD OF PAYMENT 1,000 $5,000 $- □ 10,000 $. 50,000 $- □ (a) $ 100,000 $- □ (a) $ 500,000 $- □ .(5) $ .(a) $ .< $ ® .(a) $ By m aturing bills 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 a ll 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 o rd e r to o b ta in irrevocably collected fu n d s o n p a y m e n t date) (5) $1 ,000,000 $Delivery Instructions: (S u b scriber’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 □ Pledge to secure Treasury Tax and Loan Account □ (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 te n d e r is f o 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 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 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 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 hanks and trust companies or responsible and recognized dealers in in vest 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 is material, the tender may be disregarded. (See reverse for announcement)