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 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. 67-145 Ju ly 26, 1967 NEW OFFERING — TREASURY BILLS To A1S 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 d etails of t w o issu e s o f Treasury bills: T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $2,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing August 3, 1967, in the am ount of $2,303,052,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued August 3, 1967, in the am ount of $1,400,000,000, or there abouts, representing an additional am ount of bills dated M ay 4, 1967, and to m ature N ovember 2, 1967, originally issued in the am ount of $1,000,332,000, 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 August 3, 1967, and to m ature February 1, 1968. T he 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 aturity value). Tenders will be received a t Federal R eserve Banks and Branches u p to the closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Monday, Ju ly 31, 1967. T enders will no t be received a t the T reasury D epartm ent, Washington. Each 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, w ith not 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 the printed forms and forwarded in th e special envelopes which will be supplied by F ederal Reserve 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 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 the face am ount of T reasury 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 th e closing hour, tenders will be opened a t the F ederal R eserve Banks and Branches, following which public announcem ent will be m ade by th e T reasury 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 h e Secretary of th e 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 the average price (in three decimals) of accepted com petitive bids for th e respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t the F ederal R eserve B ank on August 3, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing August 3, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atu r ing bills accepted in exchange and the issue price of th e new bills. T h e 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 R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal 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 th e possessions of th e 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 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 th an life insurance com panies) issued hereunder need include in his income tax retu rn only the difference between th e 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 i3 made, as ordinary gain or loss. Treasury D ep artm en t Circular No. 418 (current revision) and this notice, prescribe the term s of tire T reasury bills and govern th e conditions of th eir issue. Copies of th e circular may be obtained from any Federal Reserve B ank or Branch. In accordance with fhe a b o v e an n o u n c em en t, lenders will b e received at this b a n k a n d its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m ., Centra! Daylight Saving Time, M o n d a y , July 31, 1967 . Tenders may not b e entered by te le p h o n e . Yours very truly, Watrous H. Irons ____________ President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approxim ate Y ield of Accepted Tenders 91-Day Bills 182-Day Bills D ue October 26, 1967 D ue Janu ary 25, 1968 $2,365,609,000---------------------------------------------- .T otal A pplied F o r_______________________________ $2 029 434 000 $1,400,228,000------------------------------------------------ .T otal-Accepted--------------------------------------------------$ l ’,000’,092’000 Price Yield Price Yield 98.916------------------ 4.288% -------------------------------------- H igh--------------------------------- 97.470______ 5 004% 98.874------------------ 4.455% -------------------------------------- .Low______________________ 97.428_______ «4na7% 98.882-------------------4.423% ( 1 ) ------------------------------ Average_____________________97.450___________ 5.044% (1) CO These rates are on a hank discount basis. The equivalent coupon issue yields are 4 .55% for the 91-day bills, and 5 26% for the 182-dav Dills. * /u (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 FOE ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated May 4, 1967 M aturing November 2,1967 To: Federal Reserve B&iik, S to/tion K, DrIIss^ j.cx3.s 75a22 or — The_____________ B r a n c h __________________________________________________ E l Paso 79999 H ouston 77001 San Antonio 78208 (Date) P u rsu an t to the previsions of T reasu ry D epartm ent Circular No. 418 (cu rren t revision) and th e provisions of the public announcem ent issued by the T reasu ry D epartm ent, th e undersigned offers to purchase T reasury bills in th e am ount shown below, and agrees to p ay fo r the am ount allotted, on or before the issue date, by the method and a t th e r a te indicated. NONCOMPETITIVE TENDER $_____________________________NOT TO EXCEED $200,000 N oncompetitive tenders for $290,000 or les3 from any one bidder, w ithout stated price, will be accepted in full a t the average price (in three decimals) of accepted com petitive bids. / _ p Prices should be exI*?------------------------------ @ --------------«i>------------------------------------- pressed on th e basis of COMPETITIVE TENDERS h ------------------------@----------- $-----------------------------'$ ____________________@ _________ $________________________ e. g., 99.925. F ractions s. m ust not be used. 0 ^ = TEN D ERS MAY NOT BE EN TE R E D BY TELEPH O N E. TEN D ERS BY \7 IR E , IF RECEIVED BEFO RE TH E CLOSING HOUR, ARE ACCEPTABLE. Denom inations D esired N um ber of Pieces P aym ent fo r this issue of bills cannot be made by credit to T reasu ry T ax and Loan Account. M aturity Value ffl $ @$ 1,000 $______________ .5,000 $______________ MBTH0D 0 P □ .<§> $ 10,000 $ .<§> $ 50,000 $______________ (a) £ 100,000 $ ' ” ; 4 . --------- ‘i1 500,000 v (P \ ----------------[Q) ‘PT AAA AAA q □ j-—j □ Pledge to secure Treasury Tax and Loan AcCOimt ,H Ship to By m aturing bills held by. Paym ent to be made by. ______ ________________ Charge our reserve account on payment date enclosed (E f f e c t u a l d e liv e r y o f e n c lo s e d <t «p------------------------------------------------------------------ Delivery Instructions:_________________________ __ □ Hold in Custody Account—Member banks for own account only ---- paym ent draft shall be on latest day which w ill perm it presentm ent in order to obtain irrevocably paym ent date) (Subscriber’s fu ll r.ame or corporate title) (Address) xiy___________________________________ (Authorized official signature and title) __ (For the account of, if tender is for another subscriber) (Address) IM PORTANT 1. No tender fo r less than $1,000 will be considered and each tender m ust be fo r an am ount in m ultiples of $1,000 (m atu rity value). 2. T enders should be forw arded in a n envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of th e U nited S tates, w ith notation on the envelope reading “TEN D ER FOR TREA SU RY BILLS’'. Since envelopes received with th is legend will not be opened until a fte r the closing tim e specified in th e public announcem ent, com munications relating to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank or app ro p riate branch. 3. Any qualified or conditional tender will be rejected, 4. If a corporation m akes the tender, th e form should be signed by an officer of the corporation authorized to _m ake the tender and th e signing of th e form by an officer of the corporation will be construed as a represen tation by him th a t he has been so authorized. If the tender is m ade by a p artn e rsh ip it should be signed by a member of th e firm, who should sign in the form “ , a copartnership, by............................................... s a member of th e firm”. 5. Tenders from those other th a n incorporated banks and tru s t com panies or responsible^ and recognized dealers in in v e st m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to ta l am ount (m atu rity value) of the T reasury bills applied for, or unless th e tenders are accompanied by an express g u ara n ty of full paym ent by an incorporated bank or tr u s t company. 8. I f the language of this form is changed in any respect, which, in the opinion of th e S ecretary of th e T reasu ry ia m aterial, th e tender may be disregarded, (See reverse for announcem ent)
@FedFRASER