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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. 67-56 M arch 15, 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 follow in g statem en t giving d etails of tw o issues of Treasury bills: T he 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 M arch 23, 1967, in the am ount of $2,305,959,000, as follows: 91-DAY B ILLS (to m aturity date) to be issued March 23, 1967, in the am ount of $1,300,000,000, or th e re abouts, representing an additional am ount of bills dated Decem ber 22, 1966, and to m ature Jun e 22, 1967, originally issued in the am ount of $1,006,055,000, 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 23, 1967, and to m ature Septem ber 21, 1967. T he 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 their 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 aturity valu e). T enders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern S tandard Tim e, Monday, M arch 20, 1967. Tenders will not be received a t the T reasury D epartm ent, Washington. E ach ten der must be for an even multiple of $1,000, and in the case of com petitive tenders the price offered must be expressed on th e basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged th a t tenders be made on the printed forms and forwarded in the 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 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 without deposit from incorporated banks and tru st companies and from responsible and recognized dealers in investm ent securities. Tenders from others must 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 the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcem ent will be made by the Treasury D epartm ent of the 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 Treasury 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, noncompetitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve B ank on M arch 23, 1967, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing M arch 23, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between th e par value of m atur ing bills accepted in exchange and the issue price of the new bills. T he income derived from Treasury 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 Treasury bills does not have any special treatm ent, as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. U nder Sections 454 (b ) and 1221 (5 ) of the Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not con sidered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the retu rn is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any F ederal R eserve Bank or Branch. In accord ance with the 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 a n d San Antonio, up to twelve-thirty p.m., Central Standard Time, M o n d a y , March 20 , 1 9 67 . Tenders m a y not be en ter ed by tele p h o n e . Yours very truly, Watrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approxim ate Yield of Accepted Tenders 91-Day Bills D ue Ju ne 15, 1967 $2,452,317,000_______________________________ T otal Applied F or._____ $1,301,511,000________________________________ T otal Accepted_______ Price Yield 98.920 1 4.273% _________________________ H igh_____________ 98.908____________ 4.320% _________________________ Low_____________ 98.911____________4.308% (1 ). ------------------------- Average.. 182-Day Bills D ue Septem ber 14, 1967 ------------------------------ $2,670,561,000 ------------------------------ $1,001,407,000 Price Yield - 9 7 .8 5 6 ____________4.241% —.97.841____________4.271% — 97.844------------------ 4.265% (1 ) ( 1 ) These rates are on a b a n k discount basis. T h e eq uivalent coupon issue yields a re 4 .4 3 % for th e 91-day bills, and 4 .4 3 % 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 TREASURY BILLS 182 DAYS TO MATURITY Dated March 23, 1967 Maturing September 21, 1967 To: Federal Reserve Bank, Station K, Dallas, Texas or — The_______________________________ Bran ch 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. 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. (m _ Prices should be e x pressed on the basis of 100, with not more than (a) $ COMPETITIVE TENDERS $ three decim al p laces, $ @ e. g., 99.925. Fractions $ .......- .......... must not be used. fiSF TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b er of Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M a tu rity V alue <> ? a (a) $ (a) $ (5) $ METHOD OF PAYMENT 1,000 $ 5,000 ? □ 10,000 $ 50,000 $ □ (a) $ 100,000 $ (S) $ 500,000 $ (a) $1,000,000 $ □ □ 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 l i v e r y o f e n c l o s e d d r a f t shall be on la te st day which will p e rm it p re 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 scriber’s fu ll nam e o r c o rp o rate title) Hold in Custody Account—Member banks for own account only □ (A ddress) By(A uthorized official s ig n a tu re and title) Ship to_________________________ (F o r th e acco un 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 he 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 “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 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 i s material, the tender may be disregarded. (See reverse for announcement)