The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF DALLAS FIS C A L A G EN T O F T H E UN ITED ST A T E S DALLAS, TEXAS 75222 Circular No. 67-85 April 26, 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 the follow in g state m e n t giving details of two issues of Treasury bills: T h e Treasury 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 ay 4, 1967, in the am ount of $2,302,827,000, as follows: 91-DAY B ILLS (to m aturity date) to be issued May 4, 1967, in the am ount of $1,300,000,000, or there abouts, representing an additional am ount of bills dated February 2, 1967, and to m ature A ugust 3, 1967, originally issued in the am ount of $1,002,103,000, the additional and original bills to be freely interchangeable. 182-DAY B ILLS for $1,000,000,000, or thereabouts, to be dated M ay 4, 1967, and to m ature N ovem ber 2, 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 their face am ount will be payable without 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 value). T enders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Monday, M ay 1, 1967. Tenders will not be received a t the Treasury D epartm ent, W ashington. E ach tender 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 the 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 B anks or B ranches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided the names of th e 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 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 the closing hour, tenders will be opened at th e 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, noncom petitive 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 m ust be made or com pleted at the Federal Reserve B ank on M ay 4, 1967, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing M ay 4, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade 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 T reasury bills, w hether interest or gain from the sale or other disposition of th e 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, whether 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 U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount at which Treasury bills are originally sold by the U nited States is considered to be interest. Under 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 Treasury 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, 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 the taxable year for which the return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the T reasury bills and govern th e conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. In accordance with the a b o v e a n n o u n c em en t, tenders will b e received at this bank an d its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d ay, M a y 1, 1967. Tenders may not b e entered 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 182-Day Bills Due Ju ly 27, 1967 Due October 26, 1967 $2,363,733,000 T otal Applied F or-----------------------------------------------$1,865,889,000 $1,300,722,000________________________________ T otal-Accepted------------------------------------------------- $1,000,339,000 Pr ic e 99.067 99.058 99.061 Yield Pr ic e Yield 3.691% __________________________H igh______________________98.106___________ 3.746% 3.727% __________________________Low ______________________ 98.086___________ 3.786% 3.715% ( 1 ) _____________________Average-------------------------------98.093___________ 3.772% (1 ) ( 1 ) These rates are on a ban k discount basis. T h e eq uivalent coupon issue yields are 3 .8 1 % for the 91-day bills, a n d 3 .9 1 % 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 May 4,1967 Maturing November 2,1967 To: Federal Reserve Bank, Station K, Dallas, Texas or — T he______________________________ Branch E l P aso 79999 H o u sto n 77001 75222 S a n A n to nio 78206 (D ate) P u rs u a n t to th e p ro v ision s of T re a s u r y D e p a rtm e n t C irc u lar N o. 418 (c u r re n t rev isio n ) an d th e p ro v isio n s o f th e public announcement issued by th e T re a s u ry D e p a rtm e n t, th e u n d ersig n ed offers to p u rch a se T re a s u ry bills in th e a m o u n t shown below, and a g re e s to p a y fo r th e a m o u n t a llo tted , on o r b efo re th e issu e d a te , by th e m eth od an d a t th e r a t e in d ic a te d . NONCOMPETITIVE TENDER $. _NOT TO EXCEED $200,000 N on co m p etitive te n d e rs fo r $200,000 o r le ss fro m any one bidder, w ith o u t s ta te d price, will be accepted in fu ll a t the average p rice (in th re e d ecim als) of accep ted co m p etitiv e bids. P ric e s should be ex------------------------------- (a )---------------- $ ------ -------------------------------- p ressed on th e b a s is of « (n) © 100, w ith no t m ore th a n COMPETITIVE TENDERS «p v. $ t h r e e d e c im a l p la c e s , ------------------------- @ ___________ $________________________e. g., 99.925. Fractions m u s t n o t be used. V S T T E N D E R S M A Y N O T B E E N T E R E D B Y T E L E P H O N E . T E N D E R S BY W IR E , I F R E C E IV E D B E F O R E T H E C LO SIN G H O U R , A R E A C C E P T A B L E . Denominations Desired N u m ber of Pieces P a y m e n t f o r th is issu e o f bills can n o t be m a d e by c re d it to T re a s u ry T a x an d L oan A ccou n t. M a tu rity V alue .(5) $ -< $ ® M ETHOD O F PA Y M EN T 1,000 $___________ □ 5,000 $____________ .<® $ 10,000 $______________ .(5) $ 50,000 $____________ (a) $ 100,000 $___________ □ (a) $ 500,000 $____________ (a) $ 1,000,000 $______________ $!,< By maturing bills held by Payment to be made by □ □ _ _ Charge our reserve account on payment 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 all 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 rder to o bta in irrevocably collected fu n d s on p a y m e n t date) Delivery Instructions: □ □ Pledge to secure Treasury Tax and Loan Account Ship to_________________________ (S ub scriber’s fu ll n am e o r corp orate title) Hold in Custody Account—Member banks for own account only □ (A ddress) By. (A u th orized official s ig n a tu re and title) (F o r th e acc o u n t of, if te n d e r is fo r a n o th e r su bscrib er) (A ddress) IMPORTANT 1. N o te n d e r fo r less th a n $1,000 w ill be considered an d eac h te n d e r m u s t be f o r a n a m o u n t in m u ltip le s o f $1,000 ( m a tu r it y v a lu e ). 2. T en d ers should be fo rw ard e d in an envelope c le a rly ad d ressed to th is b an k o r a p p ro p ria te b ra n c h as F isca l A g e n t o f th e U n ite d S ta te s, w ith n o ta tio n on th e envelope re ad in g “ T E N D E R F O R T R E A S U R Y B IL L S ” . Since envelopes rec e iv e d w ith th is legend will no t be opened u n til a f t e r th e closing tim e specified in th e public a nn o u ncem en t, co m m u n ic a tio n s re la tin g to o th e r m a tte rs should n o t be enclosed. E n v elo pes f o r su b m ittin g te n d e rs m ay be o b tain ed fro m th is b a n k o r a p p ro p ria te bran ch . 3. A ny qualified o r conditional te n d e r w ill be re jected . 4. I f a c o rp o ratio n m ak es th e te n d e r, th e fo rm should be sig n ed b y a n officer o f th e c o rp o ra tio n a u th o rize d to m a k e th e te n d e r an d th e sig n in g of th e form by an officer of th e c o rp o ratio n will be co n stru e d as a re p re se n ta tio n by him t h a t h e h a s been so au th o rized . I f th e te n d e r is m ad e by a p a rtn e rs h ip it should be sig n ed by a m e m b er o f th e firm , w h o should sign in th e fo rm “.............................................................., a c o p a rtn e rsh ip , by ....................................................................................... a m em b er of th e firm ” . 5. T e n d e rs fro m th o se o th e r th a n in c o rp o ra te d b an k s and tr u s t com panies o r re sp o n sib le and reco gn ized d e alers in in v e s t m e n t se c u ritie s w ill be d isreg a rd e d , u n less accom panied by a d e p o sit of 2 p e rce n t of th e to ta l a m o u n t (m a tu r ity v a lu e ) of th e T re a s u ry bills applied for, o r u n less th e te n d e rs a r e accom panied by a n e x p re s s g u a ra n ty of fu ll p a y m e n t b y a n in c o rp o ra ted b an k o r tr u s t com pany. 6. Tf th e la n g u a g e of th is fo rm is ch an g ed in a n y re sp e ct, w hich, in th e opinion of th e S e c re ta ry of th e T r e a s u r y i a m a te ria l, th e te n d e r m ay be d isreg ard ed . (See reverse for announcement)