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FE D E R A L RESERVE B A N 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 Circular No. 67-204 O ctober 11, 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 fo llo w in g sta tem ent giving details of tw o issues 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 $2,500,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing October 19, 1967, in th e am ount of $2,401,606,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued O ctober 19, 1967, in the am ount of $1,500,000,000, or there abouts, representing an additional am ount of bills dated Ju ly 20, 1967, and to m ature Jan uary 18, 1968, origi nally issued in the am ount of $1,000,696,000, 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 October 19, 1967, and to m ature A pril 18, 1968. T he 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 R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern D aylight Saving Tim e, M onday, O ctober 16, 1967. T enders will not be received a t th e T reasury D epartm ent, W ashington. E ach te n d er m ust be for an even m ultiple of $1,000, and in th e 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., 99.92,5. Fractions m ay not be used. If 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 F ederal R eserve Banks or B ranches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided the nam es of the customers are set forth in such tenders. O thers 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 th e face am ount of T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by a n incorporated bank or tru s t company. Im m ediately after th e closing hour, tenders will be opened a t the Federal R eserve B anks and Branches, following which public announcem ent will be made by th e T reasury D epartm ent of tire 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 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 be accepted in full a t th e 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 m ade or com pleted a t the Federal R eserve B ank on October 19, 1967, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing October 19, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atu r 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 the bills, does n ot have any exemption, as such, and loss from the sale or other disposition of T reasury bills does no t have any special treatm ent, as such, under th e Internal R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether 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. F or purposes of taxation the am ount of discount a t which T reasury bills are originally sold by tire 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 cap ital 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 atu rity during th e taxable year for which the re tu rn is made, as ordinary gain or loss. T reasury D epartm en t Circular No. 418 (cu rren t revision) and this notice, prescribe th e term s of th e T reasury bills and govern th e conditions of th eir issue. Copies of th e circular m ay be obtained from any Federal Reserve B ank or Branch. In accord ance with the a b o v e a n n o u n c e m e n t fenders v/ili b e received at this b a n k a n d its b r a n d ie s at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Centra! Daylight Saving Time, M on d a y, October 16, 1967. Tenders may not b e entered by 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 Yield of Accepted T enders 90-Day Bills 181-Day Bills D ue Jan u ary 11, 1968 D ue April 11, 1968 $2,182,432,000--------------------------------------------- .T otal A pplied F o r______________________________ $1,891,808,000 $1,500,646,000________________________________ .T otal A ccepted________________________________ $1,000,546,000 Price Yield Price Yield 98.870 .4.520% _________________________ H igh______________________ 97.491___________.4.990% 98.852 4.592% _________________________ X ow ______________________ 97.467___________ 5.038% 98.859 4.564% ( 1 ) -------------------------------Average____________________ 97.475___________ 5.022% (1 ) ( 1 ) T hese rates are on bank discount basis. T he equivalent coupon issue yields are 4 .6 9 % for the 90-day bills, and 5.24% for the 181-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 91 DAYS TO MATURITY Dated July 20,1967 M aturing January 18,1968 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________________ Branch E l Paso 7 9 9 9 9 H ouston 7 7 0 0 1 San A ntonio 7 8 2 0 6 (Date) P u rsu an t to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and th e provisions of th e public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in th e amount shown below, and agrees to pay fo r th e am ount allotted, on or before th e issue date, by th e m ethod an d ”a t th e r a te indicated. N ONCOMPETITIVE TENDER $_____________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, w ithout sta te d price, will be accepted in full at th e av erag e price (in three decimals) of accepted com petitive bids. /O c Prices should be exv------------------------------(S'------------- v—----------------------------------- pressed on th e basis of < K frf\ « 100, w ith not m ore th a n COMPETITIVE TENDERS <$_______________ @_______ $______________________ th Je^ d eclm M ^ces1 1 ------------------------@ ---------------$________________________ e. g., 99.925. F ractions’ m ust not be used. TEN D ERS MAY NOT BE E N TE R E D BY TELEPH O N E. TEND ERS BY W IR E , IF RECEIVED B EFO RE T H E CLOSING HOUR, ARE ACCEPTABLE. Denominations D esired Number of Pieces P aym ent fo r this issue of bills cannot be m ade b y credit to T reasury T ax and Loan Account. Maturity Value (a) $ (a) $ (a) $ METHOD O F PAYM ENT 1,000 $ 5,000 $ 10,000 ? 50,000 $ □ □ (a) $ (a) $ 100,000 $ □ & $ 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 en closed draft shall be on latest day which w ill perm it present ment in order to obtain irrevocably collected funds on paym ent date) (a) ?1:,000,000 $ Delivery Instructions: □ Hold in Custody Account—Member banks for own account only ___ □ gy □ 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 for another subscriber) (Address) IM P O R T A N T 1. No tender for less than $1,000 will be considered and each ten der m ust be fo r 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 g e n t 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 w ith this legend will not be opened until a f te 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 t h i s b a n k or appro priate branch. 3. A ny qualified or conditional tender will be rejected. 4. I f a corporation makes th e tender, the form should be signed by an officer of th e corporation authorized to m ake t h e tender and the signing of th e form by an officer of the corporation will be construed as a representation by him t h a t he has been so authorized. I f th e tend er is m ade by a partn ersh ip it should be signed by a m em ber of th e firm, w h o should sign in th e form “......................................................., a copartnership, by...................................................................................} a m em ber 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 i n v e s t 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 reasu ry bills applied for, or unless th e tenders are accompanied by an express g u ara n ty of full paym ent by a n incorporated bank or tru s t company. 6. I f 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, th e tender m ay be disregarded. (See reverse for announcement)