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FEDERAL 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. 67-46 M arch 1, 1967 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in th e Eleventh Federal Reserve District: Your attention is invited to the fo llow in g sta te 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 M arch 9, 1967, in the am ount of $2,305,029,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued M arch 9, 1967, in the am ount of $1,300,000,000, or th ere abouts, representing an additional am ount of bills dated Decem ber 8, 1966, and to m ature Jun e 8, 1967, originally issued in the am ount of $1,000,599,000, 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 M arch 9, 1967, and to m ature Septem ber 7, 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 valu e). T enders will be received a t Federal R eserve Banks and Branches u p to the closing hour, one-thirty p.m., E astern S tandard Tim e, Monday, M arch 6, 1967. Tenders will not be received a t the T reasury D epartm ent, Washington. E ach ten der m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on th e basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. I t 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 Reserve Banks or Branches on application therefor. B anking institutions generally may subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others 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 securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied 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 Reserve Banks 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 the 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 th e respective issues. Settlem ent for accepted tenders in accordance w ith the bids m ust be made or completed at th e Federal R eserve B ank on M arch 9, 1967, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing M arch 9, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atur ing bills accepted in exchange and th e issue price of th e new bills. T he 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 the 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 he bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, b u t are exem pt from all taxation now or hereafter imposed 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. F or purposes of taxation the 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 Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is no t con sidered to accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other th an life insurance com panies) issued hereunder need include in his income tax return only the difference between the 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 the retu rn 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 Treasury bills and govern th e conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch. In acco rd a nce with th e a b o v e a n n o u n c em en t, tenders will be received at this b ank a n d its branches at El Paso, Houston an d San Antonio, up to twelve-thirty p.m., Central Standard Time, M o n d a y , March 6, 1967. 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 Amount, R ange and Approximate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue Jun e 1, 1967 D ue August 31, 1967 $2,711,130,000 T otal Applied F or.______________________________ $2,284,638,000 $1,304,520,000________________________________ T otal Accepted________________________________ $1,004,783,000 P rice Yield Price Yield 98.858____________4.518% __________________________H igh______________________ 97.715___________ 4.520% 98.85 2____________4.542% __________________________ X ow ______________________ 97.706___________ 4.538% 98.85 3____________4.538% ( 1 ) ____________________ Average_____________________97.708 4.534% (1 ) ( 1 ) These rates are on a b an k discount basis. T h e eq uiv alen t coupon issue yields are 4 .6 5 % for th e 91-day bills, a n d 4 .7 0 % 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 182 DAYS TO MATURITY Dated March 9,1967 Maturing September 7, 1967 To: Federal Reserve Bank, Station K, Dallas, Texas or — The— Branch El Paso 79999 Houston 77001 75222 ___________________________________ _ San Antonio 78206 (D ata) 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 befoi'e the issue date, by the method and at the rate indicated. NONCOMPETITIVE TENDER $_____________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. ^ 1$---------------------------- @ ----------------- $-----------------------------------C O M P E T IT IV E T E N D E R S / $ (a) $ .) T Y / $___________________@ ___________ $_______________________ \ Prices should be expressed on the basis of 100, with not more than three decim al p laces, e. g., 99.925. Fractions must not be used. TENDERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N um ber o f Pieces -< $ a> _<® $ _(5) $ 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 1,000 $. 5,000 $. 10,000 $50,000 $. □ □ _<® $ _(5) $ 100,000 $-<® $ 500,000 % . $1:000,000 $, _(a) □ □ By maturing bills held by____________________ Payment to be made by_ Charge our reserve account on payment date 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 all be on la te st day w hich w ill p e rm it p re s e n t m e n t in ord er to obtain irrevocably collected fu n d s on p a y m e n t date) Delivery Instructions: □ □ Pledge to secure Treasury Tax and (S u b scrib er’s fu ll n am e or co rp o rate title) Hold in Custody Account—Member banks for own account only (A ddress) ___________________________________ L o a n AcCOUnt □ Ship to_________________________ (A uthorized official s ig n a tu re and title ) ____ (F o r th e a cco u n t of, if te n d e r is fo r a n o th e r s u 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 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 anofficerof 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 banks 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)