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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. 67-91 M ay 3, 1967 NEW OFFERING —- TREASURY BILLS To All Banking Institutions a n d Others Concerned i the Eleventh n Your attention Federal Reserve District: is invited to the follow in g sta te m e n t giving details o f tw o issues 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 M ay 11, 1967, in the am ount of $2,300,030,000 as follows: 91-DAY B ILLS (to m aturity d ate) to be issued M ay 11, 1967, in th e am ount of $1,300,000,000, or th ere abouts, representing an additional am ount of bills dated February 9, 1967, and to m ature August 10, 1967, originally issued in the am ount of $1,000,116,000, 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 ay 11, 1967, and to m ature N ovem ber 9, 1967. T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding a3 hereinafter provided, and a t m aturity their 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 v alue). T enders will be received a t F ederal R eserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern D aylight Saving Tim e, M onday, M ay 8, 1967. T enders will not be received a t th e T reasury D epartm ent, Washington. E ach te n d er m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders th e price offered m ust be expressed on th e basis of 100, w ith n o t m ore than 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 rinted forms and forwarded in the special envelopes which will be supplied by F ederal R eserve B anks or B ranches on application therefor. Banking institutions generally m ay subm it tenders for account of custom ers provided th e names of th e customers are set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for th eir 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 th e face am ount of T reasu ry 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 F ederal Reserve B anks and Branches, following which public announcem ent will be m ade 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 the T reasury expressly reserves th e 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 decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for accepted tenders in accordance w ith th e bids m ust be m ade or com pleted a t the Federal Reserve B ank on M ay 11, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M ay 11, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p a r 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 exem ption, 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 In ternal R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxe3, whether F ederal 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 th e U nited States, or by any local taxing authority. F o r 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 n ot con sidered to accrue u n til 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 between th e price paid for such bills, w hether on original issue or on subsequent purchase, and th e am ount actually received eith er upon sale or redem ption a t m aturity during th e taxable year for which th e re tu rn is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (curren t 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 the circular m ay be obtained from any Federal R eserve B ank or Branch. i acc o rd an c e with th e a b o v e an n o u n c em en t, tenders will b e received at this bank an d its branches at El Paso, n Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d a y , M a y 8, 1 967 . Tenders Way not b e entered b y 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 A pproxim ate Y ield of A ccepted Tenders 91-Day Bills 182-Day Bills D ue A ugust 3, 1967 D ue N ovem ber 2, 1967 $2,102,943,000 .T otal A pplied For.---------------------------------------------- $1,812,100,000 $1,300,686,000________________________________ T o tal Accepted--------------------------------------------------$1,000,102,000 Price Y ield Price Y ield 99.060 3.719% _________________________ -High------------------------------- 98.038____________ 3.881% 99.043 3.786% __________________________ Low-------------------------------- 98.016____________ 3.924% 99.047 3.770% ( 1 ) ____________________ Average------------------------------98.025____________ 3.907% (1 ) ( 1 ) T hese rates are on a b a n k discount basis. T h e e q uiv alen t coupon issue yields are 3 .8 7 % for th e 91-day bills, a n d 4 .0 5 % for th e 182-day bills. (See reverse 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 BAYS TO MATURITY Dated February 9, 1967 Maturing August 10, 1967 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 (D ata) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions o f the public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount 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 $209,000 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 pressed on the b asis of 100, with not more th an COMPETITIVE TENDERS th ree d ecim al p la c e s, e. g., 99.925. F ractions 9 9 must not be used. $ 0 @ $ TENDERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b er of Pieees Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M a tu rity V alue 0 $ 0 $ .0 $ .0 9 METHOD OF PAYMENT 1,000 9 5,000 $ 10,000 $ 50,000 $ .0 $ 100,000 ? . 0 $ 500,000 9 ■@ $1:,000,000 $ □ □ □ - held by_ Payment to be made by date □ 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 rd e r to o b ta 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 u bscriber’s fu ll n a m e o r corpo rate title ) Hold in Custody Account—Member banks for own account only □ (A ddress) B y(A u th orized official s ig n a tu re a n d title ) (F o r th e a cc o u n t of, if te n d e r is f o r a n o th e r sub scriber) (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 o f 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 an officer of the corporation authorized to m ake the tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t 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 invest ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity v a lu e \ of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment b y 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 ^ material, the tender may be disregarded. (See reverse for announcement)