The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal R eserve 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. 67-146 Ju ly 26, 1967 NEW OFFERING — TREASURY BILLS To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the follo w in g state m e n t giving d etails 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 T reasury bills to th e 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 d ate) 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 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 aturity 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, Ju ly 31, 1967. T enders will not 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 th e case of com petitive tenders the price offered m ust be expressed on th e basis of 100, w ith not more th a n 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 printed forms and forwarded in th e special envelopes which will be supplied by F ederal R eserve Banks or Branches on application therefor. Banking institutions generally may subm it tenders for account of customers provided the nam es of the customers are set forth in such tenders. Others th a n 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 th e face am ount of T reasury bills applied for, unless th e 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 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 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 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 Reserve 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 th e par value of m atur ing bills accepted in exchange and th e issue price of th e new bills. T he income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of the bills, does not have any exemption, 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 Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether 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 the possessions of th e U nited States, or by any local taxing authority. F or purposes of taxation the 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 th e 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 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 is made, as ordinary gain or loss. T reasury D epartm en t Circular No. 418 (current revision) and this notice, prescribe th e term s of th e T reasury bills and govern the conditions of their issue. Copies of th e circular may be obtained from any Federal R eserve B ank or Branch. In a ccord ance with the a b o v e an n o u n c em en t, tenders will b e received a t 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., Central Daylight Saving Time, M on d ay, July 3 1, 1967 . Tenders may not b e entered by tele 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 Yield of Accepted Tenders 91-Day Bills D ue October 26, 1967 $2,365,609,000 $1,400,228,000 Price Yield 98.916___________ 4.288% 98.874___________ 4.455% ____ 98.882___________ 4.423% (1 ) 182-Day Bills Due Jan uary 25, 1968 T o tal Applied F o r----------------------------------------------- $2,029,434,000 .Total Accepted___________________________ .$1,000,092,000 Price Yield -High. -97.470._-. 5.004% — Low__ .97.428— 5.087% .Average. -97.450— 5.044% (1 ) ( 1 ) These rates are on a bank discount basis. T he equivalent coupon issue yields are 4 .55% for the 91-day bills, and 5 .26% for the 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 TREASURY BILLS 182 DAYS TO MATURITY Dated August 3, 1967 M aturing February 1, 1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The___________________________ B r a n c h ______________________________________________ El Paso 79999 H ouston 77001 San Antonio 78206 (Dat*) P u rsu a n t to the provisions of T reasury D epartm ent C ircular No. 418 (cu rren t revision) and the provisions of the public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am ount shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by the method and a t th e ra te indicated. NON COMPETITIVE TENDER $ _NQT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t th e average price (in three decim als) of accepted com petitive bids. P rices should be ex pressed on th e basis of 100, w ith n ot m ore th a n ? $ th r e e d e c im a l p la c e s, e. g., 99.925. F ractions $ m ust not be used. 2 5 ^ T E N D E R S MAY NOT BE E N T E R E D BY T E L E P H O N E . TEN D ERS BY W IR E , IF RECEIVED B EFO RE TH E CLOSING HOUR, ARE ACCEPTABLE. Denominations D esired Number of Pieces P aym ent fo r this issue of bills cannot be made by credit to T reasury Tax and Loan Account. M aturity Value METHOD O F PAYM ENT $ 1,000 $ @ $ 6 ,0 0 0 $ □ @ $ 1 0 ,0 0 0 $ □ □ @ $ 6 0 ,0 0 0 $ @ $ 1 0 0 ,0 0 0 $ @ $ 6 0 0 ,0 0 0 $ ------ held by_ Paym ent to be made by E H date □ draft shall be on latest day which w ill perm it present m ent in order to obtain irrevocably collected funds on paym ent date) @ $1,000,000 ?. Delivery Instructions:_________________________ ____ □ □ Hold in Custody Account—Member banks for own account only ------ (Address) Pledge to secure Treasury Tax and Loan □ (Subscriber’s fu ll nam e or corporate title) A cC O U nt Ship to_______ __________________ (Authorized official signature and title) ____ (For the account of, if tender is for another subscriber) (Address) IM PO RTA N T 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 app ropriate 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 w ith this legend will not be opened until a fte r the closing tim e specified in th e public announcem ent, com munications relatin g 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 appropriate branch. 3. Any qualified or conditional ten der 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 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 th e tender is m ade by a p artnership it should be signed by a mem ber of th e firm, who should sign in the form “.................................................... — , a copartnership, by------------------- ...------------ ----, a member of th e firm”. 5. T enders from those other th a n incorporated banks and tru s t companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity value) of the T reasury bills applied for, o r unless the 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. 6. I f the language of th is form is changed in any respect, which, in the opinion of th e S ecretary of th e T reasu ry is m aterial, the tender m ay be disregarded. (See reverse fo r announcem ent)