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. 67-152 August 2, 1967 NEW OFFERING — TREASURY BILLS o All 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 details o f t w o is sues of Treasury bills: T h e 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 Treasury bills m aturing August 10, 1967, in th e am ount of $2,301,130,000, as follows: 91-DAY B ILLS (to m aturity date) to be issued August 10, 1967, in the am ount of $1,400,000,000, or there 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 h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face am ount will be payable without 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 valu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Daylight Saving Tim e, Monday, August 7, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. 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, with not more than three decimals, e.g., 99.925. Fractions m ay 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 Federal R eserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the nam es 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. Tenders 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 m ust be accompanied by paym ent of 2 percent of th e 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 at the Federal Reserve Banks and Branches, following which public announcem ent will be made by the 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 he Secretary of the 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 decimals) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or completed a t the F ederal 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 th e p a r value of m atur ing bills accepted in exchange and the issue price of th e new bills. T h e income derived from Treasury 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 R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but 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 at which Treasury 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 at 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 the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either 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 Circular No. 418 (cu rrent revision) and this notice, prescribe th e term s of the T reasury bills and govern th e conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve 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 will b e received at this b a n k a n d its branch es at El Paso, H u s t o n an d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d a y , August 7, 196 7. Tenders H'ciy 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 Approxim ate Yield of Accepted Tenders 91-Day Bills 182-Day Bills Due Novem ber 2, 1967 D ue F ebruary 1, 1968 $2,365,793,000______________________________ .Total Applied For_______________________________ $2,018,871,000 $ 1 ,4 0 2 ,9 6 4 ,0 0 0 ____________________________________ .T otal A ccepted_________________________________$ 1 ,00 0,099 ,0 00 Price Yield P rice Yield 98.956____________ 4.130% _________________________ H igh______________________ 97.674___________ 4.601% 97.647___________ 4.654% 98.941___________ .4.189% _________________________ L o w __________________ 98.943___________ .4.182% ( 1 ) ____________________.Average____________________ 97.655___________ 4.638% (1) ( 1 ) These rates are on a bank discount basis. T he equivalent coupon issue yields are 4 .30% for the 91-day bills, and 4 .8 3% 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 10, 1967 M aturing February 8,1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The___________________________________Branch El Paso 79999 Houston 77001 San Antonio 78206 (Date) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the public announcement issued by the Treasury Department, the undersigned offers to purchase Treasurv the shown below, and agrees to pay for the amount allotted, on or before the issue date,^by the^ m l t h o f S t th l S t o f a S S g ? ^ ^ ^ . 0 M P E T 1T i y.jE....Tj:< P ™ ^ S------------ ------------------------------------N O T TO E X C E E D $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the aver.*,,, price (in three decimals) of accepted competitive bids. 1 me average q Prices should be ; ^ ^ --------------------pressed on the basis C O M P E T IT IV E T E N D E R S < $_________________ @ $_________ 100, with not more t L . — — — — — — i - three decimal places -------------------- ----- @ 1 _ e. g„ 99.925. Fraction) must not be used. USsr” TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE IF R Ff’FTW’n n r u n c n rr, CLOSING HOUR, ARE ACCEPTABLE. L* RECEIVED BEFORE THE Pieces _______ @ $ @ $ @ $ ^ @ $ @ Maturity Value 1,000 $________________________________ 5,000_$___________________________ □ 10,000 $______________ o □ 50,000 $________________________________________ Delivery Instructions: _ _ B y m a tu r in g bills beld b y ----------------P a y m e n t to be m ad e by $ 100,000 -$----------------------------------------- □ @ $ 500,000 $_______________ _ _______ (§) Jpl,000,000 $ □ Payment for this issue of bills cannot be made y cre(kt to Treasury Tax and Loan Account. METHODOFPAYMEN —. C h a rg e o u r re s e rv e ac co u _?a t f t □ D r a ® enclosed (Effectual delivery of encloH j draft shall be on latest day which will permitfundn ment m order to obtain irrevocably collected preso payment date) ^ on ________________________________ _____ (Subscriber’s fu ll name or corporate title) Hold in Custody Accounl^-Member banks fo r own account only------------------------(Address)--------------Pledge to secure Treasury Tax and By J L vw / __________________________ □ L oan A cC O U nt n Ship to__________________________ (Authorized official signature and title) _______ — the account of, if ------------------------------— — tender is for another subscriber) (For (Address) IMPORTANT 1 o 3. 4 5 6. No tender for less than $1,000 w ill be considered and each tender must be for an amount in multiples of $1,000 (m aturity value). t ^ cshonld 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 “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. Any qualified or conditional tender will be rejected. 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 bv 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, Wh0 should sign in the form u » copartnership,by.................................................. ............ .................... . a a member of the firm”. 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. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury & material, the tender may be disregarded. (See reverse fo r announcem ent)