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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. 67-67 M arch 29, 1967 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in t h e Eleventh Federal Reserve District: Your attention is invited to the fo llo w in g sta te m e n t giving details of tw o issues o f Treasury bills: T he 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 April 6, 1967, in the am ount of $2,300,427,000, as follows: 91-DAY B IL L S (to m aturity d ate ) to be issued April 6, 1967, in th e am ount of $1,300,000,000, or the re abouts, representing an additional am ount of bills dated Jan uary 5, 1967, and to m ature Ju ly 6, 1967, originally issued in the am ount of $1,001,157,000, 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 April 6, 1967, and to m ature October 5, 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 a t m aturity th e ir 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 F ederal Reserve Banks and Branches u p to th e closing hour, one-thirty p.m., E astern S tandard Tim e, Monday, April 3, 1967. T enders will not be received a t the T reasury D epartm ent, Washington. 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 th e basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions m ay 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. B anking 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 th an 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. 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 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 b e opened a t th e F ederal R eserve B anks and Branches, following which public announcem ent will be made by th e T reasury D epartm ent 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. 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 three decimals) of accepted com petitive bids for th e respective issues. S ettlem ent for accepted tenders in accordance with the bids m ust be made or com pleted a t th e F ederal R eserve B ank on April 6, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing April 6, 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 atur 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 not have any special treatm ent, as such, under th e Internal R evenue 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 imposed on th e 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 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 Revenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is not 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 retu rn only the difference between 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 the retu rn is made, as ordinary gain or loss. T reasury D ep artm en t Circular No. 418 (current revision) and this notice, prescribe th e term s of th e T reasury bills and govern th e conditions of th e ir issue. Copies of th e circular m ay be obtained from any F ederal Reserve B ank or Branch. In accord ance with th e a b o v e an n o u n c em en t, tenders will b e received at this b a n k an d its branches at El Paso, Houston a n d San Antonio, up to twelve-thirty p.m ., Central Standard Time, M on d ay , April 3, 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 Approxim ate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue Ju n e 29, 1967 D ue Septem ber 28, 1967 $2,525,656,000 T o tal A pplied For.______________________________ $1,795,910,000 $1,300,454,000________________________________ .T otal A ccepted________________________________ $1,000,122,000 Price Y ield Price Yield 98.955 4.134% _________________________ -High______________________97.957___________ 4.041% 98.947 4.166% __________________________ Low______________________ 97.930___________ 4.095% 98.951 4.150% ( 1 ) _____________________Average------------------------------- 97.941___________ 4.073% (1 ) ( 1 ) T hese ra te s a re on a b an k discount basis. T h e equivalent coupon issue yields a re 4 .2 6 % for th e 91-day bills, a n d 4 .2 3 % 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 April 6,1967 Maturing October 5, 1967 To: 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. NONCOMPETITIVE TENDER $ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. . Prices should be expressed on the basis of 8 @ -----------------$----------- ------------------------- COMPETITIVE TENDERS < $_______________ @_________$_____________________ thSe^dedmM I $ ___________________ @ __________$ _______ :__________________ 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 u m b er o f 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) $ 1,000 $ 5,000 ? ___________ METHOD OF PAYMENT □ 10,000 $ 50,000 $ By maturing bills held by_____________________ Payment to be made by_ □ @ § (5) ? 100,000 $ (a) $ 500,000 $ ... (a) $1.,000,000 $ □ | I . 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 s h a ll be on la te s t day w hich w ill 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 date) Delivery Instructions: □ □ Pledge to secure Treasury Tax and (S u b scriber’s fu ll n a m e o r c o rp o ra te title ) Hold in Custody Account—Member banks for own account only (A ddress) _____________________________ _____ L o a il AcCOUnt □ S h ip t o _______________________________ ( A uthorized official s ig n a tu re a n d title ) _____ (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 Agent of the United States, with notation on the envelope reading “TENDER FOR TREASURY BILLS”. Since envelopes received with this legend will not he 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 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)