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FED ER A L RESERVE BAN K 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 C ircular No. 67-200 O ctober 4, 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 te m e n t giving details o f tw o issues o f Treasury bills: T h e 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 O ctober 13, 1967, in the am ount of $2,400,976,000, as follows: 90-DAY B IL L S (to m aturity d ate) to be issued O ctober 13, 1967, in the am ount of $1,400,000,000, or th ere abouts, representing an additional am ount of bills dated Ju ly 13, 1967, and to m ature Jan u ary 11, 1968, origi nally issued in the am ount of $1,000,444,000, the additional and original bills to be freely interchangeable. 181-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated October 13, 1967, and to m ature April 11, 1968. I 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). T enders will be received a t F ederal R eserve B anks and Branches up to the closing hour, one-thirty p.m., E astern D ay ligh t Saving Tim e, Monday, O ctober 9, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. Each te n d e r m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders th e price offered m ust be expressed on th e basis of 100, w ith n ot m ore 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 th e printed forms and forwarded in th e special envelopes which will be supplied by Federal R eserve B anks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided th e 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 end ers 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 reasu ry bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or tru s t company. Im m ediately after th e closing hour, tenders will be opened a t the F ederal Reserve Banks and Branches, following which pu b lic announcem ent will be m ade by th e T reasury D ep artm 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 rig h t 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 he accepted in full a t the average price (in three decim als) of accepted com petitive bids for th e 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 13, 1957, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing October 13, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p a r value of m atu r ing bills accepted in exchange and th e issue price of th e new bills. T h e income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of the bills, does not have an y exem ption, as such, and loss from the sale or other disposition of T reasury bills does not have any special treatm ent, as such, under the Internal R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether F ed eral 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 the 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 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 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 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 en t Circular No. 418 (cu rrent 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 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 El Faso, Houston a n d San A ntonio up to tw elve-thirty p.m., Centra! Daylight Saving Time, M o n d a y , October 9, 1967. Tenders may not b e entered b y tele 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 Accepted T enders 91-Day Bills D ue Jan u ary 4, 1968 $2,064,468,000_ $ 1,400,424,000P rice Y ield 98.868___________ -4.478%. 98.852____________ 4.542% . 98.859____________4.514% (1 ) .T otal Applied For. -Total Accepted. -High. Low. _____ Average______ 182-Day Bills D ue April 4, 1968 .$1,907,005,000 . $ 1, 000 , 100,000 Price Y ield 97.440____________ 5.064% 97.418____________ 5.107% 97.427 5.089% (1 ) ( 1 ) T hese rates are on bank discount basis. The equivalent coupon issue yields are 4.64% for the 91-day bills, and 5.31% 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 FOR ADDITION TO TREASURY BILLS 90 DAYS TO MATURITY Dated July 13, 1967 M aturing January 11, 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 ursuant 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 reasury bills in the 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 $_____________________________ N O T TO E X C E E D $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t the average Dei price (in three decimals) of accepted com petitive bids. Prices should be ex-------------------------@ -------------- $_------------------------------------ pressed on the basis of COMPETITIVE TENDERS f $------------------------@------------$------------------------------^ ' ^ 7 ^ I $___________________ @ _________ $________________________ e. g., 99.925. Fractions \ m ust not be used. TENDERS MAY NOT BE EN TE R E D BY TELEPH O N E. TEND ERS BY W IRE, IF RECEIVED BEFO RE TH E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces Paym ent fo r this issue of bills cannot be made by credit to T reasu ry T ax and Loan Account. Maturity Value <> $ a (5) ? 1,000 $ 5,000 $ METHOD O F PAYM ENT - □ (a) $ 10,000 $ (5) $ 50,000 $ @ $ 100,000 $ _ . _ (a) $ 500,000 $ □ □ Delivery Instructions: ___ □ Hold in Custody Account—Member banks for own account only------------------------------- □ Pledge to secure Treasury Tax and Loan Account Charge our reserve account on paym ent date [~ | D r a f t e n c l o s e d ( 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 permit present m ent in order to obtain irrevocably collected funds on paym ent date) <> $1,000,000 $ S □ By m aturing bills held by____________________ Paym ent to be made by. (Subscriber’s full name or corporate title) (Address) g y ___________________________________ (Authorized official signature and title) Ship to--------------------------------------- --------------------- (F or the account of, if tender is for 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 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 approp riate branch as F iscal A gent of th e U nited States, w ith notation on the envelope reading “TEN 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 announcement, com munications relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank or app ropriate 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. If th e tender is m ade by a p artn ership it should be signed by a member of the firm, who should sign in the form “......................................................., a copartnership, by...................................................................................f 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 value) of the T reasu ry bills applied for, or unless the tenders are 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 the T re asu ry i s m aterial, the tender m ay be disregarded. (See reverse fo r announcem ent)