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F ederal R eserve 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. 67-195 S eptem ber 27, 1967 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the follo w in g statem en t giving details of tw o issues of Treasury bills: 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 October 5, 1967, in the am ount of $2,302,245,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued October 5, 1967, in the am ount of $1,400,000,000, or there abouts, representing an additional am ount of bills dated Ju ly 6, 1967, and to m ature Jan uary 4, 1968, origi nally issued in th e am ount of $1,000,092,000, th e additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated O ctober 5, 1967, and to m ature April 4, 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 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 value). T enders will be received a t Federal Reserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Monday, October 2, 1967. T enders will not be received a t th e T reasury D epartm ent, W ashington. E ach tender m ust 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 th e basis of 100, with not more th an three decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be m ade on the printed forms and forwarded in th e special envelopes which will be supplied by Federal R eserve Banks or Branches on application therefor. Banking institutions generally may subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others th an 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 accom panied 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 th e closing hour, tenders will be opened a t the Federal R eserve 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 the 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. 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 the average price (in th ree decimals) of accepted com petitive bids for the respective issues. S ettlem ent for accepted tenders in accordance with th e bids m ust be m ade or com pleted a t the Federal Reserve B ank on October 5, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing O ctober 5, 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 th e new bills. T h e income derived from T reasury bills, whether interest or gain from the 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 th e Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether F ederal or State, b u 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 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 th e Internal R evenue Code of 1954 the 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 th an 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 the retu rn is made, as ordinary gain or loss. Treasury D epartm en t Circular No. 418 (curren t revision) and this notice, prescribe the term s of the T reasury bills and govern th e conditions of their issue. Copies of th e circular m ay be obtained from any F ederal Reserve B ank or Branch. In accordance v/ith the a b o v e an 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 El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M on d ay , October 2, 1967. Tenders may not b e entered b y tele p h on e . Yours very truly, Watrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approxim ate Y ield of Accepted T enders 91-Day Bills 182-Day Bills D ue D ecem ber 28, 1967 D ue M arch 28, 1968 $2,821,405,000---------------------------------------------- T otal Applied F o r______________________________ $1,844,710,000 $ 1,400,102,000------------------------------------------------ -Total A ccepted_________________________________ $1,000,261,000 Price Yield Price Yield 98.834 .4.613% -------------------------------------- H igh______________________ 97.406___________ 5.131% 98.827 .4.640% __________________________Low______________________ 97.394___________ 5.155% 98.830 -4.629% ( 1 ) ____________________ Average____________________ 97.400___________ 5.143% (1 ) ( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4.76% for the 91-day bills, and 5.37% for the 182-day bills. ( S e e rev er se sid e fo r ten d er 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 TREASURY BILLS 182 DAYS TO MATURITY Dated October 5, 1967 M aturing April 4, 1968 To: 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 th e public announcement issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in th e am ount 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. 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 a t t h e a v e r a g e price (in three decimals) of accepted com petitive bids. Prices should be exI v ----------------------------- (T -------------- $------------------------------------- pressed on the basis of C O M P E T IT IV E T E N D E R S ( $ --------------------------@ -------------$--------------------------------- tT e fd e c T m a 'T ^ la S i $_----------------------------@ ______ \ $ ____________________ e. g., 99.925. F raction s m ust not be used. TEND ERS M A Y NOT BE E N TE R E D BY TELEPH O N E. TEND ERS BY W IRE, IF RECEIVED BEFO RE T H E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired P aym ent fo r this issue of bills cannot be m ade by credit to T reasury Tax and Loan Account. Number of Pieces Maturity V alue <> $ a <a $ 5,000 (5) $ 10,000 (5) $ METHOD O F PAYM ENT 1,000 50,000 □ □ □ O $ 100,000 (5) $ 500,000 □ 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 m ent in order to obtain irrevocably collected funds on paym ent date) <® $1 ,000,000 Delivery Instructions: □ Hold in Custody Account—Member banks for own account only ------ □ Pledge to secure Treasury Tax and Loan Account g y___________________________________ 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 for less th an $1,000 will be considered and each tender m ust be fo r an am ount in multiples 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 t h 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 with this legend will not be opened until a fte r the closing tim e specified in the public announcem ent, com m unications relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay b e obtained from this b a n k or appro priate branch. 3. A ny qualified or conditional tender will be rejected. 4. If a corporation makes the tender, the form should be signed by an officer of th e corporation authorized t o m a k e t h e tender and th e signing of the form by an officer of the corporation will be construed as a representation by him t h a t h e has been so authorized. If the ten der is m ade by a p artnership it should be signed by a m em ber of the firm, w h o should sign in the form “......................................................., a copartnership, by.................................................................................... a member of the firm”. 5. Tenders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers in 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 v alu e) of the T reasury bills applied for, or unless th e tenders are accompanied by an express g u ara n ty of full paym ent b y a n 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 th e T re a su ry is m aterial, the tender m ay be disregarded. (See reverse for announcement)