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federal R eser v e 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. 67-157 August 9, 1967 NEW OFFERING — TREASURY BILLS All Banking Institutions a n d Others Concerned in the Eleventh Federal R eserve District: Your attention is invited to the follo w in g state m e n t giving details o f tw o issu e s 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 th e aggregate am ount of $2,400,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing August 17, 1967, in the am ount of $2,301,979,000, as follows: 91-DAY B ILLS (to m aturity date) to be issued August 17, 1967, in the am ount of $1,400,000,000, or there abouts, representing an additional am ount of bills dated M ay 18, 1967, and to m ature N ovem ber 16, 1967, originally issued in the am ount of $1,000,647,000, the additional and original bills to be freely interchangeable. 182-DAY B ILLS for $1,000,000,000, or thereabouts, to be dated August 17, 1967, and to m ature F ebruary 15, 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 value). Tenders will be received at Federal Reserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Monday, August 14, 1967. Tenders will not be received a t the Treasury D epartm ent, Washington. Each tender must 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 may not be used. I t is urged th a t tenders be made on the printed forms and forwarded in the 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 the nam es 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 eir 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 must 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 b© opened at the F ederal Reserve Banks and Branches, following which public announcem ent will be made by the Treasury 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. S ettlem ent for accepted tenders in accordance with the bids m ust be m ade or completed a t the Federal Reserve B ank on August 17, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing August 17, 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 atur ing bills accepted in exchange and the issue price of the 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 the sale or other disposition of Treasury bills does not 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, w hether Federal or State, bu 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. For purposes of taxation the am ount of discount at which T reasury bills are originally sold by the 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 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 return 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. Treasury D epartm ent Circular No. 418 (cu rrent revision) and this notice, prescribe th e term s of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any F ederal Reserve B ank or Branch. In accord ance with the a b o v e an nou n c em en t, tenders will b e received at this bank an d its branch es at El Paso, ^ u ston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M on d ay, A ugu st 14, 1967. Tenders '**y 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, R ange and Approxim ate Yield of A ccepted Tenders 91-Day Bills 182-Day Bills Due N ovem ber 9, 1967 D ue F ebruary 8, 1968 $2,422,189,000 .Total Applied F o r_______________________________ $1,980,155,000 $ 1,400,141,000________________________________ T otal Accepted________________________________ $ 1,000,037,000 Price Yield Price Y ield 98.956 4.130% _________________________ H igh______________________ 97.610__________ .4.727% 98.934 4.217% _________________________ X ow ______________________ 97.578__________ .4.791% 98.945 4.174% ( 1 ) ____________________ Average_____________________97.595__________ .4.757% (1) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4 .29% for the 91-day bills, and 4 .96% 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 A ugust 17, 1967 M aturing February 15, 1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The----------------------------------------------------- Branch ________ E l P aso 79999 H ouston 77001 San Antonio 78206 (Date) P u rsu an t to the provisions of T reasu ry D epartm ent C ircular No. 418 (cu rre n t revision) and th e provisions o f 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 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 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 decimals) of accepted com petitive bids. Prices should be ex j* pressed on the b a s is of 100, with not m ore th a n COMPETITIVE TENDERS < $ (a) $ th r e e d e c im a l p la c e s ► t - \ @ e. g ., 9 9 .9 2 5 . F r a c t i o n s *- m u st not be used. & W 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 IRE, I F RECEIV ED BEFO RE T t t v r .T D S T N G HOUR, ARE ACCEPTABLE. X±±±J CLOSING TTOTTR- A R E A O O F .P T A R T .F Denominations D esired Number of Piece* P aym ent fo r this issue of bills cannot be made by credit to T reasury Tax and Loan Account! M aturity V alue $ 1,000 $ $ METHOD OF PAYM ENT 5,000 $____________ ___ @ 10,000 $____________ @ □ By m aturing bills held by _________________ Paym ent to be made by_______ 50,000 $____________ □ @ $ 100,000 $__________ □ _ $ 500,000 $_ ________ $ 1,000,000 $ _______ Charge our reserve account on paym ent date D raft enclosed ( E f f e c t u a l d e liv e r y o f e n c l 08ed □ draft shall be on latest day which w ill permit P r e se n t m ent in order to obtain irrevocably collected f u n d paym ent date) 09 OB Delivery Instructions: □ □ Pledge to secure Treasury Tax and Loan Account (Subscriber’s fu ll nam e or corporate title) Hold in Custody Account—Member banks for own account only □ S h ip to — ------ (Address) By(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 w ill be considered and each tender m ust be fo r an am ount in m ultiples of $1,000 ( m a tu rity value). 2. Tenders should be forw arded in a n envelope clearly addressed to this bank or appropriate branch as Fiscal A gent o f the 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 m unications relating to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is b a n k or appropriate branch. 3. Any qualified or conditional tender will be rejected. 4. I f a corporation m akes the tender, th e form should be signed by an officer of th e corporation authorized to m ak e the tender and the signing of the form by an officer of the corporation will be construed as a representation by him t h a t he has been so authorized. I f the tender is m ade by a p artnership it should be signed by a mem ber of th e firm, should sign in the form “........................ :......... , a copartnership, by............................................................................... a member of the firm”. 1 5. Tenders from those other than incorporated banks and tru s t companies or responsible and recognized dealers in in v e s t m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity v a lu e ) of the T reasury bills applied for, or unless tire tenders are accompanied by an express g u a ra n ty of full paym ent b y J incorporated bank or tru s t company. 6. I f the language of this form is changed in any respect, which, in th e opinion of th e S ecretary of th e T re a s u ry i* m aterial, the tender m ay be disregarded. (See reverse for announcem ent)
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