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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. 67-126 Jun e 28, 1967 NEW OFFERING — TREASURY BILLS To Ail Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the follo w in g sta te m e n t giving details o f tw o issu e s 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 ly 6, 1967, in the am ount of $2,302,197,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued Ju ly 6, 1967, in th e am ount of $1,300,000,000, or there abouts, representing an additional am ount of bills dated April 6, 1967, and to m ature October 5, 1967, originally issued in the am ount of $1,000,743,000, 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 ly 6, 1967, and to m ature Janu ary 4, 1968. 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 eir 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 alu e). T enders will be received at F ederal R eserve B anks and Branches up to the closing hour, one-thirty p.m., E astern D ay lig h t Saving Tim e, M onday, Ju ly 3, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. Each 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 ot more th an 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 th e special envelopes which will be supplied by F ederal Reserve B anks or Branches on application therefor. Banking institutions generally may subm it tenders for account of customers provided th e names of th e customers are set forth in such tenders. Others th an banking institutions will not be perm itted to subm it tenders except for th e ir 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 reasu ry bills applied for, unless the tenders are accompanied 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 a t th e Federal Reserve Banks and Branches, following which public announcem ent will be made by the 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 he Secretary of th e T reasury expressly reserves the rig h t 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 the average price (in three decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal R eserve B ank on Ju ly 6, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Ju ly 6, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the 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, 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 th e sale or other disposition of T reasury bills does no t 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 ed eral or State, b u t 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. F or purposes of taxation th e 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 the Internal R evenue 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 cap ital assets. Accordingly, the owner of T reasury bills (other than life insurance com panies) issued hereunder need include in his income tax retu rn only th e difference between the 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. Treasury D epartm en t Circular No. 418 (cu rren t revision) and this notice, prescribe th e term s of th e T reasury bills and govern the conditions of th e ir issue. Copies of th e circular may be obtained from any Federal R eserve B ank or Branch. In acc ord an c e with fhe 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 a n d its branches at El Paso, Huston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M on d ay , July 3, 1967. Tenders 'hay not b e entered by t e le p h o n e . Yours very truly, Watrous 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 D ue Septem ber 28, 1967 $1,912,601,000________________ $1,300,321,000Price Yield 99.140_____ -_3.402%____ 99.100_____ -3 .5 6 0 % ____ 99.125_____ -3.462% (1 ). ..T otal Applied F or T otal A ccepted----------_______ High__________ -Low.. -A verage- 182-Day Bills D ue D ecem ber 28, 1967 ---------- $1,622,349,000 -----------$1,000,099,000 Price Y ield .98.038______ -------------- 3.881% .97.982______ -3.992% .98.003------------------ 3.950% (1 ) ( 1 ) These rates are on a b a n k discount basis. T h e equivalent coupon issue yields are 3 .5 5 % for th e 91-day bills th e 182-day bills. and 4 1 0 % for (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 Dated April 6,1967 Maturing October 5,1967 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The___________________________ B r a n c h ______________________________________________ El Paso 79999 Houston 77001 San Antonio 78206 (Date) 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, an d 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 N oncom petitive tenders for $200,000 or less from any one bidder, w ith o u t stated price, will be accepted in full a t th e average price (in three decimals) of accepted competitive bids. / „ Prices should be ex5$ ------------------------------- @ ---------------- $-------------------------------------pressed on the basis of COMPETITIVE TENDERS ----------------------@------------ $----------------------------|$____________________ @ __________ $_________________________ e. g., 99.925. Fractions \ must not be used. TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Number of Pieces M a tu rity V alue .- @ $ (a) $ — ... . @ $ -@ $ METHOD OF PAYMENT 1,000 $. □ 5,000 $. 10.000 $. □ 50,000 $. - - @ % 100,000 $. ______ @ $ 500,000 $. @ $1,000,000 $. By maturing bills held by____________________ Payment to be made by_ □ Charge our reserve account on payment date I j 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 sh all be on la te st 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:_________________________ ____ (S ub scrib er’s fu ll nam e o r c o rp o ra te title ) □ □ Hold in Custody Account—Member banks for own account only Pledge to secure Treasury Tax and L oan □ ------ ________ A cC O U nt Ship to (A ddress) (A uthorized official s ig n a tu re an d title ) ___ (F o r th e acco u n t o f, if te n d e r is fo r a n o th e r sub scrib er) (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 v a lu e ). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of 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 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. (S ee reverse for announcement)
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