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FE D E R A L R ESERVE 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. 67-205 October 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 follow in g sta te m e n t 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 the 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 a tu rity d ate) 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 u ary 18, 1968, origi nally issued in th e am ount of $1,000,696,000, 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 October 19, 1967, and to m ature A pril 18, 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 atu rity 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). Tenders will be received a t F ederal R eserve B anks and B ranches 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 th e price offered m ust be expressed on th e basis of 100, with not more th a n three decimals, e.g., 99.925. F ractions m ay not be used. I t is urged th a t tenders be m ade on th e p rinted forms and forwarded in th e special envelopes which will be supplied by F ederal R eserve B anks or B ranches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided th e nam es of the customers are set forth in such tenders. O thers th a n 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 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 B anks and Branches, following which public announcem ent will be m ade by th e T reasury D ep artm 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 th e 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 decim als) of accepted com petitive bids for th e respective issues. Settlem ent for accepted tenders in accordance w ith 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 T reasury 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 a tu r ing bills accepted in exchange and the issue price of th e new bills. T he income derived from T reasury bills, w hether 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 T reasury 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 Fed eral or State, b u t are exem pt from all taxation now or hereafter im posed on th e principal or interest thereof by any State, or any of th e possessions of the U nited States, or by any local taxing authority. F o r 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 Revenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is no t con sidered to accrue un til such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, th e owner of T reasury bills (other than life insurance com panies) issued hereunder need include in his income tax retu rn only the difference between th e price paid for such bills, w hether on original issue or on subsequent purchase, an d 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 the term s of th e T reasury bills and govern the conditions of their issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank or Branch. In accord ance with the a b o v e an n o u n c em en t, tenders will b e received at this bank a n d its branches at El Faso, Houston a n d San A ntonio up to twelve-thirty p.m., Central Daylight Saving Time, M on d ay , October 16, 1967 . Tenders may not b e entered by t ele p h o n e . Yours very truly, Watrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approxim ate Yield of A ccepted 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 Applied F o r.______________________________ $1,891,808,000 $1,500,646,000________________________________ T otal A ccepted________________________________ $1,000,546,000 Price Y ield Price Y ield 98.870 4.520% __________________________H igh______________________ 97.491___________.4.990% 98.852 .4.592% _________________________ L o w ______________________ 97.467___________ 5.038% 98.859 .4.564% ( 1 ) ____________________ A v erage____________________ 97.475____________ 5.022% (1 ) ( 1 ) T hese rates are on bank discount basis. T he equivalent coupon issue yields are 4.69% 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 TREASURY BILLS 182 DAYS TO MATURITY D a te d O ctober 1 9 ,1 96 7 M a tu rin g A p ril 1 8 ,1 9 6 8 T o : Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________________ Branch E l P aso 79999 Houston 77001 S an Antonio 78206 (D ate) P u rsu an t to th e provisions of T reasury D epartm ent Circular No. 418 (current revision) and th e provisions of th e public announcement issued by the T reasu ry D epartm ent, th e undersigned offers to purchase T reasury bills in th e am ount shown below, and agrees to pay fo r th e am ount allotted, on or before the issue date, by the m ethod and a t the r a te indicated. N O N C O M P E T IT IV E T E N D E R $_______________________________ _NOT 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 th e av erag e price (in three decimals) of accepted com petitive bids. 7* O c Prices should be ex-------------- v -------— pressed on th e basis of C O M P E T IT IV E T E N D E R S h -------------------------- @ ------------- $-------------------------------- tT r e ^ a T ^ 1$------------------------------@ ---------------$________________________ e. g., 99.925. F ractio n s V m ust not be used. 0 ^ = TEN D ERS MAY NOT BE E N TE 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. Denominations Desired Number of Pieces P aym ent fo r this issue of bills cannot be m ade bY credit to T reasury Tax and Loan Account. M aturity Value (a) $ (a) $ 5,000 (5) $ METHOD O F PAYM ENT 1,000 10,000 □ □ (a) $ 50,000 $. (a) $ 100,000 $- □ .(a) $ 500,000 $■(d) $1 ,000,000 $: Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ □ □ 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 perm it present ment in order to obtain irrevocably collected funds on paym ent date) ___ (Subscriber’s full name or corporate title) ----- Pledge to secure Treasury Tax and Loan Account Ship to------------------------------------------------------------ (Address) (Authorized official signature and title) (F or the account of, if tender is for another subscriber) (Address) IM PORTANT 1. No tender fo r 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 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 th e U nited States, w ith notation on th e envelope reading “T E N D E R FOR TREA SU RY B ILLS”. Since envelopes received w ith this legend will not be opened until a f te r the closing tim e specified in th e public announcement, com munications relatin g to other m a tte rs should n ot be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank or appro priate branch. 3. Any qualified or conditional tend er will be rejected. 4. If a corporation makes the tender, th e form should be signed by an officer of th e corporation authorized to m ake th e tender and the signing of the form by an officer of th e 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 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 m em ber 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 th e to ta l am ount (m atu rity v alu e) of the T reasury bills applied for, or unless th e tenders a re accompanied by an express g u ara n ty of full paym ent b y a n 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 th e T re a su ry is m aterial, th e tender m ay be disregarded. (See reverse for announcement)