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FED ER AL 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. 67-169 August 28, 1967 NEW OFFERING — TREASURY BILLS To AH Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the fo llow in g sta tem en t giving details of 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,COO, or thereabouts, for cash and in exchange for T reasury bills m aturing Septem ber 7, 1967, in th e am ount of $2,300,509,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued Septem ber 7, 1967, in the am ount of $1,400,000,000, or there abouts, representing an additional am ount of bills dated Ju n e 8, 1967, and to m ature Decem ber 7, 1967, originally issued in th e am ount of $1,000,625,000, the additional and original bills to be freely interchangeable. PLEASE OBSERVE CLOSING DATE F R I D A Y , SEPTEMBER I, 79 6 7 182-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated Septem ber 7, 1967, and to m ature M arch 7, 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 a t m aturity th eir 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 value). Tenders will be received a t Federal R eserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Friday, S eptem ber 1, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. Each te n der 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 th e basis of 100, with 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 made on th e printed forms and forwarded in th e special envelopes which will be supplied by Federal Reserve Banks or B randies on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of th e customers are set forth in such tenders. O thers 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 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 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 company. Im m ediately after the closing hour, tenders will be opened at 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 h e 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 a t th e average price (in three decim als) 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 com pleted a t th e F ederal R eserve B ank on Septem ber 7, 1967, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing Septem ber 7, 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 atu r 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 the sale or other disposition of th e 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 In tern al R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether F ederal or State, b ut are exem pt from all taxation now or hereafter imposed on th e 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 th e am ount of discount a t which T reasury bills are originally sold by the United States is considered to be interest. U nder Sections 454 (b ) and 1221 (5 ) of the In ternal 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 th e am ount actually received either upon sale or redem ption a t m aturity during th e taxable year for which the retu rn is made, as ordinary gain or loss. T reasury D ep artm 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 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, tenders wiil b e received at this b an 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, Friday, Septem b er 1, 1967. Tenders m ay not b e entered by tele p h o n e . Yours very truly, Watrous H. Irons President Figures concerning offering of 9 1 -Day Treasury Bills maturing November 30, 1967, and 182-Day Treasury Bills maturing February 29, 1968, not available when this circular was printed. ( S e e rev erse for ten d e r fo r m ) 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 June 8, 1967 M aturing December 7, 1967 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 o r-— The Branch El Paso 79999 Houston 77001 San Antonio 78206 (D ate) P u rsu an t to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of the public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasu ry bills in the amount shown below, and agrees to pay for th e am ount allotted, on or before the issue date, by th e m ethod and at the rate indicated. PLEASE OBSERVE CLOSING DATE — FRIDAY, SEPTEMBER 1, 1967 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. A _ Prices should be ex----------------------------- (O P--------------- $------—---------------------------- pressed on the basis of (a) $ 100, with not more than COMPETITIVE TENDERS <$_ ^ ^ three decim al p la c e s, ----------------------------- @ __________ $___________________________e. g., 99.925. Fractions \ must not be used. E X T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces P aym ent fo r this issue of bills cannot be made by credit to T reasury T ax and Loan Account. M aturity Value @ $ (a) $ METHOD OF PAYM ENT 1,000 ? 5,000 $ □ 10,000 $ .(a) $ 50,000 $ (a) $ 100,000 $ @ $ 500,000 $ . _.(a) $ □ □ □ 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 l o s e d draft shall be on latest day which will perm it p r e s e n t m ent in order to obtain irrevocably collected fu n d s on paym ent date) @ $1,000,000 $ - - Delivery Instructio ns: □ □ Pledge to secure Treasury Tax and Loan Account (Subscriber’s full name or corporate title) Hold in Custody Account—Member banks for own account only □ ( A ddress) By. (Authorized official signature and title) Ship to_________________________ (F or the account of, if tender is fo r another subscriber) (Address) IMPORTANT 1. No tender fo r less than $1,000 will be considered and each tender m ust be fo r an am ount in multiples of $1,000 (maturity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or app ropriate branch as F iscal Agent of the United States, w ith notation on the envelope reading “T E N D E R 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 announcement, communications relating to other m a tte rs should n ot be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank or app ropriate branch. 3. Any qualified or conditional tender will be rejected. 4. If a corporation makes the tender, th e 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 th e corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a p artn ersh ip it should be signed by a member of the firm, who should sign in the form “......................................................., a copartnership, by................................................................................... a member of the firm”. 5. Tenders from those other th a n incorporated banks and tru s t companies or responsible and recognized dealers in in v est m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity valu e) of th e T reasu ry bills applied for, or unless th e tenders are accompanied by an express g u ara n ty of full payment b y an incorporated bank or tru s t company. 6. If the language of this form is changed in any respect, which, in th e opinion of the Secretary of the Treasury is m aterial, the tender m ay be disregarded. (See reverse for announcem ent)