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FEDERAL RESERVE BANK OF DALLAS F ISC A L A G E N T OF TH E UN ITED S T A T E S DALLAS, TEXAS 75222 Circular No. 67-151 August 2, 1967 NEW OFFERING — TREASURY BILLS All Banking Institutions a n d Others Concerned •n the Eleventh Federal Rese rve District: Your attention is invited to the fo llo w in g sta te m e n t giv ing d etails of t w o iss u 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 the aggregate am ount of $2,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing August 10, 1967, in the am ount of $2,301,130,000, as follows: 91-DAY B IL L S (to m a tu rity d ate) to be issued August 10, 1967, in the am ount of $1,400,000,000, or th ere abouts, representing an additional am ount of bills dated M ay 11, 1967, and to m ature November 9, 1967, originally issued in the am ount of $1,000,103,000, 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 10, 1967, and to m ature F ebruary 8, 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 atu rity valu e). T enders 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, M onday, August 7, 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 the case of com petitive tenders th e price offered m ust be expressed on the basis of 100, with 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. B anking 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 com panies 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 th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or tru st com pany. 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 made by the T reasury D epartm ent of tire 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 th e 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 decim als) cf accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t the Federal Reserve B ank on August 10, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing August 10, 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 the issue price of the new bills. T h e 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 exem ption, 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 the Internal R evenue 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 th e possessions of the U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount at 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 (S ) of the In tern al R evenue 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 th e difference between the price paid for such bills, w hether on original issue or on subsequent Purchase, and the am ount actually received eith er upon sale or redem ption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. T reasury D epartm ent C ircular No. 418 (cu rran t revision) and this notice, prescribe th e term s of the Treasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch. U in a c c o rd a n c e with the a b o v e a n n o u n c e m e n t, tenders will b e receiv ed a t this b an k an d its branch es at El Paso, ^ uston a n d Sam A ntonio up to twelve-thirty p.m., Central Daylight Savin g Time, M on d a y, August 7, 1967. Tenders V 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 Amount, R ange and A pproxim ate Yield of Accepted T enders 91-Day Bills 182-Day Bills D ue N ovem ber 2, 1967 D ue February 1, 1968 _ $2,018,871,000 $2,365,793,000_______________________________ .T otal A pplied F o r_________ $1,402,964,000________________________________ .T otal A ccepted_________________________________ $1,000,099,000 P rice Yield Price Yield 98.956 4 .130% __________________________H ig h _______________ 97.674____________ 4.601% 98.941____________ 4.189% ______________ Low _ 97.647 4.6u4% 98.943____________ 4.182 % ( 1 ) ___________________ .Average...” ___ ______________ 97.655___________ .4.638% (1 ) ( 1 ) T hese rates are on a bank discount basis. T he equivalent coupon issue yields are 4 .3 0 % for the 91-day bills, and 4.83% for the 1 8 2 -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 Dated May 11,1967 M aturing November 9, 1967 To: Federal Reserve Bank, Station K, Dallas, Texas or — The_______________________________ Branch El Paso 78999 Houston 77001 75222 __ _______________________________ San Antonio 7 8 2 0 6 (Date) 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 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 e x pressed on the basis of (a) $ COMPETITIVE TENDERS <$------------------------@________$___________________ $ - .........- - $ - - ............................................................. tSe^dlcTm al^la^es1 1 e. g., 99.925. Fractions must not be used. 031V TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces k < § > i i i i j ______ @ ---------- @ — M aturity Value @ - @ - 1,000 $ 5,000 $ 10,000 $ 50,000 $ $ 100,000 * 500,000 $i ,000,000 $ □ □ METHOD OF PAYMENT □ * □ $ By m aturing bills held by__________________________ Paym ent to be made by.. . □ $ Charge our reserve account on paym ent date | I D raft 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 - draft shall be on latest day which will permit presen t m ent in order to obtain irrevocably collected funds on p a y m e n t date) t Delivery Instructions: □ Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. ____ (Subscriber’s fu ll name or corporate title) Hold in Custody Account—Member banks for own account only ------ Pledge to secure Treasury Tax and Loan AcCOUnt g y________________________ ___________ Ship to--------------—---------------------- ------ (Address) (Authorized official signature and title) (For the account of, if tender is for another subscriber) (Address) 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 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of th e 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.......................................... * j 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 ail 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 \8 material, the tender may be disregarded. (See reverse fo r announcem ent)