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F ederal reserve Bank of Dallas F IS C A L A G E N T O F T H E UN ITED ST A T E S D ALLAS. TEXA S 75222 Circular No. 67-115 Ju n e 14, 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 sta te m e n t giving details o f tw o issues of 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 Ju n e 22, 1967, in the am ount of $7,820,560,000 (includes $5,514 million of tax series bills redeem able either June 15, in paym ent of taxes, or Ju ne 2 2), as follows: 91-DAY B ILLS (to m aturity date) to be issued June 22, 1967, in th e am ount of $1,300,000,000, or there abouts, representing an additional am ount of bills dated M arch 23, 1967, and to m ature Septem ber 21, 1967, originally issued in the am ount of $1,000,191,000, 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 Ju n e 22, 1967, and to m ature D ecem ber 21, 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 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 value). T enders will be received at Federal Reserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Monday, Ju n e 19, 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 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. I t is urged th a t tenders be made on th e printed forms and forwarded in the special envelopes which will be supplied by F ederal R eserve Banks or B ranches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided th e nam es 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 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. 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 the F ederal 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 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 at the average price (in three decimals) of accepted com petitive bids for the respective issues. S ettlem ent for accepted tenders in accordance with th e bids m ust be m ade or completed a t the Federal R eserve B ank on June 22, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Ju ne 22, 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 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 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 F ederal or State, b ut 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 a t which Treasury bills are originally sold by the U nited 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, redeem ed 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, 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 th e taxable year for which th e return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s of the Treasury bills and govern the conditions of their issue. Copies of th e circular may be obtained from any Federal Reserve B ank or Branch. In accord ance with the a b o v e a n n o u n c em en t, fenders wiS! be received a f this b a n k a n d its branches at El Paso, Houston an d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d a y , June 19, 1967. Tenders ihay not b e entered by tele p h o n e . Yours very truly, W atrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS A mount, R ange and Approxim ate Y ield of A ccepted T enders 91-Day Bills 182-Day Bills Due Septem ber 14, 1967 D ue D ecem ber 14, 1967 $2,107,047,000 T otal Applied F or_______________ -_______________ $1,978,618,000 $ 1,300,002,000------------------------------------------------- T otal A ccepted_________________________________$ 1,000,018,000 Price Yield Price Y ield 99.123____________3.469% --------------------------------- H igh_________________________98.089____________ 3.780% 99.105 3 . 5 4 1 % ---------------------------- L o w ---------------------98.074_____________ 3 .8 10 % 99.114------------------ 3.505% ( 1 ) ------------------------- Average----------------------------------- 98.081____________ 3.796% (1 ) ( 1 ) These ra te s a re on a b an k discount basis. T h e equ iv alen t coupon issue yields are 3 .6 0 % for th e 91-day bills a n d 3 9 3 % for th e 182-day bills. ’ ' /0 (S ee 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 FO R TREASURY BILLS 182 DAYS TO MATURITY Dated June 22, 1967 Maturing December 21, 1967 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The----------------------------------------------------- Branch_______ ____________________________________ El Paso 79999 Houston 77001 San Antonio 78206 (D at«) 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 ex---------------------------- @ -------------- $----------------------------------— pressed on the basis of C O M P E T IT IV E T E N D E R S / $ ___________________ @_________ $ _______________________ wit,hn.otmoreth — — --------- ----- — ---------------------------------------------------------------- ^ — th ree d ecim al p la c e s f$ : @ _________ $ ___________________________ e. g., 99.925. Fractions V must not be used. ESP TENDERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH F CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N um ber of P ieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account M a tu rity V a lu e (3) $ 1,000 (3) $ 5,000 (a) $ 10,000 (5) $ 50,000 (a) $ 100,000 (5) $ 500,000 @ $1:,000,000 s. $$ $. s. METHOD OF PAYMENT □ □ By m aturing bills held by________________________ Paym ent to be made by_ □ Charge our reserve account on paym ent date | ! D raft 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 l l be o n l a t e s t d a y w h ic h w i l l p e r m i t p r e s e n t m e n t in o r d e r t o o b t a i n i r r e v o c a b l y c o l l e c t e d f u n d s o n p a y m e n t date) Delivery Instructions: ( S u b s c r i b e r ’s f u l l n a m e o r c o r p o r a t e t i t l e ) □ Hold in Custody Account-—Member banks for own account only □ Pledge to secure Treasury Tax and__________g y_________________________________ L o a n □ (A d d r e ss) A cC O U nt Ship to_________________________ ( A u t h o r i z e d o ffic ia l s i g n a t u r e a n d t i t l e ) ___ ( F o r t h e a c c o u n t o f , i f t e n d e r is f o r a n o t h e r s u b s c r ib e r ) (A d d r e ss) 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 “ T E N D E R F O R T R E A S U R Y B IL L S ”. 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 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 “..................................................... ,acopartnership,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 va lu e) 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)