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federal reserve Bank of Dallas FISCAL AGENT OF THE UNITED STATES DALLAS, TEXAS 75222 Circular No. 67-94 M ay 10, 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 fo llow in g statem en 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 Treasury 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 18, 1967, in the am ount of $2,302,320,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued M ay 18, 1967, in th e am ount of $1,300,000,000, or there abouts, representing an additional am ount of bills dated February 16, 1967, and to m ature August 17, 1967, originally issued in the am ount of $1,001,414,000, 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 18, 1967, and to m ature N ovem ber 16, 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 atu rity v alu e). Tenders 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 15, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. Each tender must 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. It is urged th a t tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by F ederal R eserve Banks or Branches on application therefor. Banking 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 the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or tru3t company. Im m ediately after th e closing hour, tenders will be opened a t th e Federal R eserve 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 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 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 Bank on M ay 18, 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 18, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m atur ing bills accepted in exchange and the issue price of the new bills. T h e income derived from T reasury bills, whether interest or gain from th e sale or other disposition of th e 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 the Internal Revenue Code of 1954. The 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 United 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 at 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 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, whether 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 return 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 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 an n o u n c em en t, tenders will b e 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 Daylight Saving Time, M on d a y, M a y 15, 1967. Tenders Nay not b e entered b y t e le p h o n e . Yours very truly, W atrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and A pproxim ate Y ield of Accepted Tenders 91-Day Bills D ue August 10, 1967 $2,224,344,000________________ $1,300,764,000________________ P rice Yield 99.079___________ 3.644% ____ 99.069___________ 3 .683% ____ 99.072___________ 3.671% (1 ) . -T otal Applied For_ T otal A ccepted— —High— Low__ .Average.. 182-Day Bills D ue N ovem ber 9, 1967 -------------------------$1,786,946,000 -------------------------$1,000,098,000 Price Y ield -98.069____________ 3.820% -98.056____________3.845% -98.063____________ 3.831% (1 ) ( 1 ) These ra te s are on a b a n k discount basis. T h e equivalent coupon issue yields are 3 .7 7 % for th e 91-day bills, a n d 3 .9 7 % 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 DAYS TO MATURITY Bated February 16,1967 M aturing August 17, 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 th e 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 $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 e x pressed on the basis of 100, with not more than (a) COMPETITIVE TENDERS ; $ three decim al p la c e s > fa) e. g., 99.925. Fractions $ . . must not be nsed. ^ 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 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) $ <® ? < > $ 8 METHOD OF PAYMENT 1,000 $ 5,000 ? 10,000 $ 50,000 ? ( ) $ 3 _ .(a) $ 100,000 $ ( ) $ 500,000 $ 5 □ By m aturing bills - □ held by____________________ Paym ent to be made by. □ Charge our reserve account on paym ent date [U 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 s h a l l be o n l a t e s t day w hich will p e rm it p r e s e n t m e n t i n o r d e r to o b ta in irrevocably collected f u n d s o n p a y m e n t date) @ $l;,000,000 $ Delivery In structions: □ □ Pledge to secure Treasury Tax and Loan Account (S ub scrib er’s fu ll n am e o r co rpo rate title) Hold in Custody Account—Member banks for own account only □ (A ddress) By. (A u tho rized official s ig n a tu re an d title ) Ship to--------------------------------------- (F o r the a cco un t of, if te n d e r is fo r a n o th e r sub scrib 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 e a ch te n d e r m u s t be f o r a n am o u n t in m u ltip les o f $1,000 ( m a t u r i t y v a lu e). 2. T e n d e rs should be fo rw a rd e d in an envelope c le a rly ad d ressed to th is h a n k o r a p p ro p ria te b ra n c h as F isc a 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 rea d in g “ T E N D E R FOR TREASURY B IL L S ” . Since envelopes re c e iv e d w ith th is legend will n ot be opened u n til a f t e r th e closing tim e specified in th e public an n o un cem en t, c o 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 velo 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 b ranch. 3. A ny qualified o r conditional te n d e r will be reje cted . 4. I f a co rp o ra tio n m a k es th e te n d e r, th e fo rm should be signed b y an officer of th e c o rp o ratio n a u th o rized to make the te n d e r and th e sig n in g of th e fo rm by an officer of th e co rp o ratio n will be c o n stru e d as a re p re se n ta tio n by him t h a t he h a s been so au th o rized . I f th e te n d e r is m a d e by a p a rtn e rs h ip it should be sig n e d by a m e m ber o f th e firm , w h o should sig n in th e fo rm “.............................................................., a c o p a rtn e rsh ip , by...........................................- ....... f 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 resp o n sib le and reco g nized d e a le rs in i n v e s t m e n t se c u ritie s will be d isre g a rd e d , un less accom panied by a d ep o sit of 2 p e rc en t of th e to ta l am o u n t (m a tu r ity v a lu e ) o f th e T re a s u ry bills applied for, o r u n le ss 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 te d b ank o r tr u s t com pany. 6. I f th e la n g u a g e of th is fo rm is ch an g ed in a n y respect, w hich, in th e opinion o f the S e c re ta ry o f the Treasury is m a te ria l, th e te n d e r m a y be d isre g a rd e d . (See reverse for announcement)