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F ederal 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. 67-159 August 16, 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 f ollo w in g statem ent giv ing d etails of tw o is sues of 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 24, 1967, in the am ount of $2,300,088,000, as follows: 92-DAY B ILLS (to m aturity date) to be issued August 24, 1967, in the am ount of $1,400,000,000, or there abouts, representing an additional am ount of bills dated M ay 25, 1967, and to m ature N ovember 24, 1967, originally issued in the am ount of $1,000,329,000, the additional and original bills to be freely interchangeable. 183-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated August 24, 1967, and to m ature February 23, 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 w ithout interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). T enders will be received a t F ederal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Monday, August 21, 1967. T enders will not be received a t the T reasury 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 must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged th a t tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may 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. 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 Treasury 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 Federal Reserve B anks 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 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 decimals) of 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 24, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing August 24, 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 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, whether Federal or State, bu t are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United 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, 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 th e taxable year for which the return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe th e term s of the Treasury bills and govern th e conditions of their issue. Copies of the circular may be obtained from any Federal Reserve B ank or Branch. In accord ance with the a b o v e an n ou n c em en t, fenders will be received at this b a n k an d its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., C n r l Daylight Saving Time, M o n d ay , A ugust 21, 1967. Tenders eta may not b e entered by t ele p h o n e . Yours very truly, W efraus H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approxim ate Yield of Accepted Tenders 91-Day Bills 182-Day Bills Due N ovem ber 16, 1967 D ue February 15, 1968 $2,348,296,000 T otal A pplied F o r_______________________________ $1,979,738,000 $1,400,515,000------------------------------------------------- T otal A ccepted_________________________________ $1,000,361,000 Price Yield Price Yield 98.948 4.162% _________________________ H igh______________________ 97.588__________ .4.771% 98.934 .4.217% _________________________ X ow ______________________ 97.568__________ .4.811% 98.940 .4.193% ( 1 ) ____________________ Average_____________________ 97.578__________ 4.791% (1 ) ( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4.31% for the 91-day bills, and 4 .9 9 % 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 183 DAYS TO MATURITY Dated August 24, 1967 M aturing February 23, 1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The-----------------------------------------B r a n c h ___________________________________________ _ E l Paso 79999 H ouston 77001 S an Antonio 78206 (Data) P u rsu an t to the provisions of T reasu ry D epartm ent Circular No. 418 (cu rre n t revision) and the provisions of th e public announcement issued by th e 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 th e issue date, by the method and a t th e ra te indicated. NONCOMPETITIVE TENDER $_____________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full at the average price (in th ree decim als) of accepted com petitive bids. « Prices should be ex1$-----------------------— (a)-------------$-------------------------------- pressed on the basis of / $_______________ (ft-.. /^\ a? COMPETITIVE TENDERS <* i ________ $ J°0’ e d not a orf thnn , n.ot ™ p c e s . . ____ @________$___________________ 100.ewithec im mlorelath*n ' ^ ^ th r •V ; ... . _ . . . e. g., 99.925. F ractions $ .. _ . . m ust not be used. Is E i P 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, IF RECEIV ED BEFO RE T H E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Paym ent fo r this issue of bills cannot be m ade by credit to T reasury T ax and Loan Account. Tr i Number of Pieees Maturity Value @ $ (5) $ (5) $ METHOD O F PAYM ENT 1,000 $. 5,000 $. □ 10,000 $50,000 s. □ (3) $ (fib $ 100,000 *■ (3) $ 500,000 I _(§> n ,000,000 $- Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan □ By m aturing bills held by____________________ Paym ent to be made by_ □ 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 lo s e d □ draft shall be on latest day which w ill permit present ment in order to obtain irrevocably collected funds on paym ent date) ___ (Subscriber’s fu ll nam e or corporate title) ----(Address) g y ___________________________________ A cC O U nt (Authorized official signature and title) Ship to__----------- ------------------------ --------------------- (For the account of, if tender is for another subscriber) (Address) IM PORTANT 1. No tender fo r less th an $1,000 will be considered and each ten der 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 an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of the U nited States, w ith notation on the envelope reading "T E N 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 the public announcem ent, com m unications rela tin g to other m a tte rs should n o t be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank or approp 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 corpoi’ation 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 m ade by a p artnership it should be signed by a member of the firm, who should sign in the form “............................................................. a copartnership, by......................................... 1 a member of the 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 total am ount (m atu rity valu e) of the T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an incorporated bank or tru st company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury ia m aterial, the tender may be disregarded. (See reverse fo r announcem ent)