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F ederal Reserve bank of Dallas F IS C A L A G E N T O F T H E U N IT E D S T A T E S D ALLAS, T EX A S 75222 Circular No. 67-209 O ctober 18, 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 f o llo w in g sta te m e n t giving d etails of tw o is sues of Treasury bills: T h e Treasury D epartm ent, by this public notice, invites tenders for tw o series of T reasury b ills to th e aggregate am ount of $1,500,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing October 31, 1967, in the am ount of $1,405,740,000, as follow s: 274-D A Y B IL L S (to m aturity d ate) to be issued October 31, 1967, in the am ount of $500,000,000, or there abouts, representing an additional am ount of bills dated Ju ly 31, 1967, and to m ature Ju ly 31, 1968, origi n ally issued in the am ount of $1,000,551,000, the additional and original bills to be freely interchangeable. 366-D A Y B IL L S for $1,000,000,000, or thereabouts, to be dated October 31, 1967, and to m ature October 31, 1968. T h e bills of both series w ill be issued on a discount basis under com petitive and non com p etitive bidding as hereinafter provided, and at m aturity their face am ount w ill be payable w ithout interest. T h ey w ill 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 aturity v a lu e ). T enders w ill be received at F ederal R eserve B anks and Branches up to the closing hour, one-thirty p.m ., Eastern D a y ligh t Saving T im e, T uesday, October 24, 1967. T enders will not be received at the Treasury 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 th e price offered m ust be expressed on the basis of 100, w ith not m ore than three decim als, e.g., 99.925. Fractions m ay not be used. (N otw ithstanding the fact that the one-year bills w ill run for 366-days, the discount rate w ill be com puted on a bank discount basis of 360-days, as is currently the practice on all issues of Treasury b ills.) It is urged that tenders be m ade on the printed forms and forwarded in th e special envelopes which w ill be supplied by Federal R eserve Banks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of custom ers provided th e nam es of th e custom ers are set forth in such tenders. Others than banking institutions w ill not be perm itted to subm it tenders except for their own account. Tenders w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust com pany. Im m ediately after th e closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which public announcem ent w ill be m ade by th e Treasury D epartm ent of the am ount and price range of accepted bids. T hose subm itting tenders w ill be advised of th e acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole 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 w ill be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance w ith the bids m ust be m ade or com pleted at the Federal R eserve B ank on October 31, 1967, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing October 31, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een the par value of m aturing b ills accepted in exchange and the issue price of the new bills. T h e incom e derived from Treasury bills, whether interest or gain from the sale or other disposition of th e bills, does not have any exem ption, 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 R evenue Code of 1954. T h e b ills are subject to estate, inheritance, g ift or other excise taxes, whether Federal or State, but are exem pt from all taxation now or hereafter im posed on th e principal or interest thereof by any State, or any of the possessions of th e U n ited 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 the U n ited S tates is considered to be in te re st Under Sections 454 (b ) and 1221 ( 5 ) of th e Internal R evenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeem ed or otherw ise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e tax return only the difference betw een the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during th e taxable year for which th e return is m ade, as ordinary gain or loss. T reasury D epartm ent Circular N o. 418 (current revision) and this notice, prescribe th e term s of the Treasury bills and govern the conditions of their issue. C opies of the circular m ay be obtained from any Federal R eserve Bank or Branch. In a ccord a nce 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 ank a n d its branches a t E! Paso, Houston an d San Antonio, up to twelve-thirty p.m., Central Daylight Saving Time, Tuesday, October 2 4, 1967. Tenders m a y not b e entered by tele p h o n e . Yours very truly, Watrous H. Irons President (S e e 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 366 DAYS TO MATURITY Dated October 31, 1967 Maturing October 31,1968 T o : Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The___________________________________Branch E l P aso 79999 H ouston 77001 San Antonio 78206 (D ate) Pursuant to the provisions of Treasury D epartm ent Circular No. 418 (current revision) and the provisions of the public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount shown below, and agrees to p ay for the amount allotted, on or before the issue date, by the method and at the rate indicated. NONCOMPETITIVE TENDER $_______________________________ _NOT TO EXCEED $200,000 N oncom petitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in fu ll at the average price (in three decim als) of accepted com petitive bids. c Prices should be ex------------------------------- & ---------------$ — ----------------------------------pressed on the basis of COMPETITIVE TENDERS h ------------------------- @ ------------ $--------------------------------- tTre^dedm aT pC es” 1$_____________________@ _________ $ __________________________ e. g., 99.925. Fractions \ m ust not be used. jjggr’ T E N D E R S M AY NOT BE E N T E R E D BY TEL E PH O N E . T E N D E R S BY W IRE, IF RECEIVED BEFO RE THE CLOSING HOUR, A R E ACCEPTABLE. Denom inations Desired Number Pieces P aym ent for this issue of bills cannot be made by credit to Treasury T ax and Loan Account. of Maturity Value (5) $ METHOD OF PA Y M E N T 1,000 $ <> $ 5 5,000 $ (5) $ 10,000 ? (3) $ □ By maturing bills held by_______________________ 50,000 $ □ Payment to be made by_ (3) $ 100,000 $ □ (5) $ 500,000 $ | (3 $1 ,000,000 $ > Delivery Instructions: □ Hold in Custody Account— Member banks fo r own account only Charge our reserve account on payment date | D r a f t e i l d 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) ____ (Subscriber’s full name or corporate title) ------ □ Pledge to secure Treasury Tax and Loan Account □ (Address) gy ------ Ship to------------------------------------------- (Authorized official signature and title) (F or the account of, if tender is fo r another subscriber) (Address) IM PORTANT 1. N o tender fo r less than $1,000 w ill be considered and each tender m ust be for an amount in m ultiples of $1,000 (m aturity valu e). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as F iscal A g en t of the United States, w ith notation on the envelope reading “T E N D E R FOR T R E A S U R Y BILLS”. Since envelopes received w ith this legend w ill not be opened until after the closing tim e specified in the public announcement, communications relating to other m atters should not be enclosed. Envelopes for subm itting tenders m ay be obtained from this 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 make the tender and the sign in g of the form by an officer of the corporation w ill be construed as a representation by him that he has been so authorized. If the tender is made by a partnership it should be signed by a member o f the firm, who should sign in the form “.........................................................., a copartnership, by......................................................................................., a member of the firm”. 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest ment securities w ill be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express gu aranty of fu ll paym ent by an incorporated bank or trust company. 6. If the lan gu age of this form is changed in any respect, which, in the opinion of the Secretary o f the Treasury is material, the tender m ay be disregarded. (S ee reverse for announcement)