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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 C ircular No. 67-34 February 15, 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 th e fo llo w in g sta te m e n t giving d etails of tw o issu e s 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 F ebruary 23, 1967, in th e am ount of $2,303,191,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued February 23, 1967, in th e am ount of $1,300,000,000, or th ere abouts, representing an additional am ount of bills dated N ovem ber 25, 1966, and to m ature M ay 25, 1967, originally issued in the am ount of $999,619,000, 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 23, 1967, and to m ature A ugust 24, 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 atu rity th eir face am ount will be payable w ithout 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 ed eral R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern S tandard Tim e, M onday, F ebruary 20, 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 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 m ade on th e p rin ted forms and forwarded in th e special envelopes which will be supplied by F ederal R eserve Banks or B ranches on application therefor. B a n k in g institutions generally may subm it tenders for account of customers provided th e nam es of th e custom ers 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 b e opened a t the F ederal R eserve B anks and Branches, following which public announcem ent will be m ade by th e T reasury D ep artm en t 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 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 th ree decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for accepted tenders in accordance with th e bids m ust be m ade or com pleted at th e F ederal Reserve B ank on February 23, 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 23, 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 a tu r ing bills accepted in exchange and th e 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 n o t have any special treatm ent, as such, under th e In ternal 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 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 w hich 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 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, th e owner of T reasury bills (other 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 aturity 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 Circular No. 418 (cu rrent revision) and this notice, prescribe th e term s of th e T reasury bills and govern th e conditions of their issue. Copies of th e circular may be obtained from any Federal R eserve B ank or Branch. In a cc o rd a n c e with t h e a b o v e a n n o u n c em en t, tenders will b e received a t 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 a y , February 2 0 , 196 7. Tenders m ay not b e en tered by t e le p h o n e . Yours very truly, Watrous H. irons President LAST PREVIOUS OFFERING OF TREASURY BILLS A mount, R ange and Approxim ate Yield of Accepted T enders 91-Day Bills D ue M ay 18, 1967 $2,444,585,000_____________ $1,301,352,000_____________ P rice Yield 98.857_______ _4.522%_ 98.840______ -4.589%98.843______ -4.577% (1 ). .T otal A pplied For. T otal Accepted_ — H igh— Low__ ..Average.. 182-Day Bills D ue August 17, 1967 _______________ $2,161,053,000 ________________$1,000,249,000 P rice Yield .97.694___________ 4.561% .97.678-----------------4.593% .97.684-----------------4.581% (1) ( 1 ) These ra te s a re on a b an k discount basis. T h e equivalent coupon issue yields are 4 .7 0 % for th e 91-day bills, a n d 4 .7 5 % for th e 182-day bills. (S ee 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 25, 1966 M aturing May 25, 1967 To: Federal Reserve Bank, Station K, Dallas, Texas or — The_______________________________ Branch El Paso 79899 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 $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. Prices should be e x i$ (a) $ pressed on the basis of 100, with not more than (a) COMPETITIVE TENDERS / $ $ three decim al p la c e s, e. g., 99.925. Fractions h @ $. . must not be used. SW * TENDERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b e r of Piece3 Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M a tu rity V alue METHOD OF PAYMENT .(5) $ .(a) $ 1,000 $5,000 $- □ .(a) $ 10,000 $■ 50,000 $- □ (a) $ 100,000 $.(a) $ 500,000 $- □ (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 of enclosed □ d r a f t sh all be on la te s t 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 on p a y m e n t date) , .(a) $1:000,000 $Delivery In structions: □ Hold in Custody Account—Member banks for own account only □ □ Pledge to secure Treasury Tax and Loan Account (S ub scrib er’s fu ll n a m e o r c o rp o rate title ) (A ddress) By(A u thorized official s ig n a tu re a n d title ) Ship to_________________________ (F o r th e a cco u nt of, i f te n d e r is f o 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 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 he 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, w ho 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 i s material, the tender may be disregarded. (See reverse for announcement)