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F e d er a l R e se rve Ba n k o f D a lla s 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. 67-182 Septem ber 20, 1967 NEW OFFERING TREASURY BILLS To AH Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the follo w in g sta te m e n t giving d etails of tw o issu e s o f 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 Septem ber 28, 1967, in th e am ount of $2,300,608,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued Septem ber 28, 1967, in the am ount of $1,400,000,000, or there abouts, representing an additional am ount of bills dated Ju n e 29, 1967, and to m ature D ecem ber 28, 1967, originally issued in the am ount of $1,000,439,000, 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 28, 1867, and to m ature M arch 28, 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. 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 v alu e). 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, Monday, S eptem ber 25, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. E ach tender must 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 an 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 F ederal R eserve Banks or Branches on application therefor. B anking institutions generally may subm it tenders for account of customers provided th e 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. 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. T enders 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 th e closing hour, tenders will be opened a t th e Federal Reserve Banks and Branches, following which public announcem ent will be m ade by the 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 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 th e respective issues. S ettlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal R eserve B ank on Septem ber 28, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Septem ber 28, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between th e p ar value of m atur ing bills accepted in exchange and the issue price of th e new bills. T h e 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 exemption, as such, and loss from th e 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 F ederal or State, b ut are exem pt from ail 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 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 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 th e 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 th e retu rn 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 th e T reasury bills and govern the conditions of their issue. Copies of th e circular may be obtained from any Federal Reserve B ank or Branch. In a ccord a n ce 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 a n k a n d its branches at Ei Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d ay, S ep tem b er 25, 1967. Tenders may 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 Y ield of A ccepted T enders 91-Day Bills 182-Day Bills D ue D ecem ber 21, 1967 D ue M arch 21, 1968 $2,004,261,000______________________________ .T otal Applied F or.______________________________ $1,810,078,000 $1,400,007,000________________________________-Total Accepted_________________________________$1,000,014,000 Price Yield Price Yield 98.875____________.4.451% _________________________ H igh______________________97.490___________4.965% 98.856____________ 4.526% __________________________Low______________________ 97.462___________5.020% 98.865____________ 4.490% ( 1 ) ____________________ Average____________________ 97.473___________4.998% (1 ) ( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4 .62% for the 91-day bills, and 5 .21% for the 182-day bills. ( See reverse side for tender form) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FO R ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated June 29, 1967 M aturing December 28, 1967 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________________ Branch E l Paso 79999 H ouston 77001 San Antonio 78206 (D ate) P u rsu an t to the provisions of T reasury D epartm ent Circular No. 418 (cu rren t revision) and th e provisions of th e public announcement issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in th e am o u n t shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by the method and a t the ra te indicated. N ONCOMPETITIVE TENDER $ NOT TO EXCEED $200,000 100 Noncompetitive tenders for $200,000or less from any one bidder, without stated p ric e , will be accepted in full a t t h e a v e r a g e ted price (in three decimals) of accepted com petitive bills. Prices should be ex pressed on the basis of S; $ _____ _ @ .. $ COMPETITIVE TENDERS <!$------------------------@------------$____________________ $ . @ . $ .. .... . I thJe^decTrnaT^la^eT e. g., 99.925. Fractions* m ust not be used. 0 ^ TEND ERS MAY NOT BE E N T E R E D BY TELEPH O N E. TEND ERS BY W IR E , I F RECEIVED B EFO RE T H E CLOSING HOUR, ARE ACCEPTABLE. D enominations D esired Number of Piece 3 P aym ent fo r this issue of bills cannot b e m a d e by credit to T reasury T ax and Loan Account. Maturity Value (5) $ <> $ 3 5,000 $ (5) $ M ETHOD O F PA YM ENT 1,000 $ 10,000 $ - □ □ 50,000 $ (5) $ (a) $ 100,000 $ □ . (5) $ 500,000 $ . (a) $l;,000,000 $ - □ 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 will permit present ment in order to obtain irrevocably collected funds on paym ent date) Delivery Instructions: □ Hold in Custody Account—Member banks for own account only ___ □ By- □ Pledge to secure Treasury Tax and Loan Account Ship to_____________ ____________ (Subscriber’s full name or corporate title) ----- (Address) (Authorized official signature and title) ___ (F or the account of, if tender is fo r another subscriber) (Address) IM P O R T A N T 1. No tender fo r less th a n $1,000 will be considered and each tender m u st be fo r an am ount in m ultiples o f $1,000 (m atu rity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as F iscal A gent of th e United States, w ith notation on th e 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 th e closing tim e specified in the public announcement, com m unications relating to other m atters should no t be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank or appropriate branch. 3. A ny qualified or conditional tender w ill be rejected. 4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to m ake th e 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. I f the tender is m ade by a p artn ersh ip it should be signed by a m em ber of the firm, w ho should sign in the form “......................................................., a copartnership, by.................................................................................. a member of th e firm”. 5. Tenders from those other th an incorporated banks and tr u s t companies 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 v alu e) of the T reasury bills applied for, or unless the tenders a re accompanied by an express g u ara n ty of full paym ent by a n incorporated bank or tr u s t company. 6. If the language of this form is changed in any respect, which, in the opinion of the S ecretary of th e T re a su ry i s m aterial, the tender m ay be disregarded. (See reverse for announcement)