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F ederal r eser ve Ban k o f D allas 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. 67-170 August 28, 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 follo w in g sta tem en t giving details of tw o issues of Treasury bills: PLEASE OBSERVE CLOSING DATE FRID AY, SEPTEMBER 1, 19 6 7 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 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 date) 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 D ecem ber 7, 1967, originally issued in th e am ount of $1,000,625,000, 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 Septem ber 7, 1967, and to m ature M arch 7, 1968. T he bills of b oth series will be issued on a discount basis under com petitive and noncom petitive bidding a3 hereinafter provided, and at m aturity th eir face am ount will be payable w ithout interest. They 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 v alu e). Tenders will be received a t F ederal 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. Tenders will not be received a t the T reasury D epartm ent, Washington. Each te nd er m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders th e price offered must be expressed on th e basis of 100, w ith not more th a n three decimals, e.g., 99.925. Fractions may not be used. It is urged th a t tenders be made on th e printed forms and forwarded in the special envelopes which will be supplied by Federal R eserve Banks or Branches on application therefor. B anking 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. 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 the 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 the 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 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. S ubject 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 th e respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted a t the F ederal Reserve 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 the issue price of th e new bills. T he income derived from T reasury bills, whether interest or gain from the sale or other disposition of th e bills, does not have any exem ption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatm ent, as such, under th e Internal R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, b u t are exem pt from all taxation now or hereafter imposed on th e principal or interest thereof by any State, or any of th e possessions of th e U nited States, or by any local taxing authority. F or purposes of taxation th e am ount of discount a t 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 (5 ) of the Internal Revenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is not con sidered to accrue u n til 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 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 rren t revision) and this notice, prescribe the term s of th e T reasury bills and govern the conditions of their issue. Copies of th e circular may be obtained from any Federal R eserve Bank or Branch. In a cco rd a nce with the a b o v e a n n o u n c em en t, tenders will b e received at this b ank an d its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Friday, S eptem ber 1, 1967. Tenders m a y not b e entered by tele p h o n e . Yours very truly, Wafrous 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. (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) TENDERS FOR TREASURY BILLS 182 DAYS TO MATURITY Dated September 7, 1967 Maturing March 7, 1968 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — 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 reasu ry D epartm ent, the undersigned offers to purchase T reasury bills in th e am ount shown below, and agrees to pay for th e am ount allotted, on or before the issue date, by the method and a t the ra te indicated. CLOSING DATE — FRIDAY, SEPTEMBER 1, 1967 NONCOMPETITIVE TENDER 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 three decimals) of accepted com petitive bids. ( a. ^ m Prices should be ex pressed on th e basis of $ . _____ @ ... $ COMPETITIVE TENDERS < $_______________ @________$______________________tU -er^^cim S ^L ^eT e. g., 99.925. F ractions $ @ $ ................. m ust not be used. TEN D ERS MAY NOT BE EN TE R E D BY TELEPH O N E. TENDERS BY W IRE, I F RECEIVED BEFO RE TH E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces OBSERVE P aym ent fo r this issue of bills cannot be made by credit to T reasury T ax and Loan Account. Maturity Value (a) $ (a) $ (a) $ (a) $ METHOD O F PAYM ENT 1,000 5,000 □ 10,000 □ By m aturing bills _ held by_________________ _ ______ Paym ent to be made by___________ 50,000 □ (a) $ 100,000 (a) $ 500,000 □ 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 lo se d draft shall be on latest day which will perm it present ment in order to obtain irrevocably collected funds on paym ent date) , (a) $1:000,000 Delivery Instructions: □ PLEASE .NOT TO EXCEED $200,000 □ □ Hold in Custody Account—Member banks for own account only Pledge to secure Treasury Tax and Loan Account (Subscriber’s full name or corporate title) (Address) By_ (Authorized official signature and title) Ship to_________________________ (F or the account of, if tender is for another subscriber) (Address) IM PORTANT 1. No tender for less than $1,000 will be considered and each tender m ust be for an am ount in multiples of $1,000 (m atu 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 United States, with notation on th e envelope reading “TEN D ER FOR TREASURY BILLS”. Since envelopes received w ith this legend will not be opened until a fte r the closing tim e specified^ in the public announcement, communications relating to other m atters should not be enclosed. Envelopes for subm itting tenders m ay be obtained from this bank or appropriate branch. 3. A ny qualified or conditional tender will he rejected. 4. If a corporation makes the tender, the form should be signed by an officer of th e corporation authorized to m ake the tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t he has been so authorized. If th e ten der is m ade by a p artnership it should be signed by a m em ber of the firm, who should sign in the form “...................................... ,a copartnership, by........................................................................f a member of th e firm”. 5. Tenders from those other than incorporated banks and tr u s t companies or responsible and recognized dealers jn in v e st ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity value) 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 s t company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the T re a su ry is m aterial, the tender m ay be disregarded. (See reverse for announcem ent)