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FEDERAL RESERVE 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 D ALLAS, TEX AS 75222 C ircu la r No. 67-218 N o v e m b er 1, 1967 MEW 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 is sues of Treasury bills: T h e T re a s u ry D e p a rtm e n t, by th is p u b lic notice, invites ten d e rs for two series of T re a su ry bills to th e aggregate a m o u n t o f $2,500,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g N o v e m b er 9, 1967, in th e a m o u n t of $2,400,354,000, as follow s: 91-D A Y B IL L S (to m a tu rity d a te ) to be issued N ovem ber 9, 1967, in th e a m o u n t of $1,500,000,000, or th e re abouts, re p re se n tin g a n a d d itio n al a m o u n t of bills dated A ugust 10, 1967, a n d to m a tu re F e b ru a ry 8, 1958, origi n a lly issued in th e a m o u n t of $1,000,492,000, th e add itio n al a n d original bills to b e freely interchangeable. 182-D A Y B I L L S fo r $1,000,000,000, or th ere ab o u ts, to be d a te d N o v e m b er 9, 1967, a n d to m a tu re M a y 9, 1968. T h e bills of b o th series w ill b e issued on a discount basis u n d e r co m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r p ro v id ed , a n d a t m a tu rity th e ir face a m o u n t will be p a y a b le w ith o u t interest. T h e y will be issued in b e a re r form only, a n d in d en o m in a tio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu rity v a lu e ). T e n d e rs w ill b e received a t F e d e ra l R e se rv e B a n k s a n d B ran ch es u p to th e closing hour, o n e -th irty p.m ., E a s te rn S ta n d a rd T im e , M onday, N o v e m b er 6, 1957. T e n d e rs will not be received a t th e T re a su ry D e p a rtm e n t, W ashington. E a c h te n d e r m u st b e for a n e ven m u ltip le of $1,000, a n d in th e case of c o m p e titiv e tenders th e p rice offered m u st be expressed on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t be used. I t is u rg e d t h a t ten d e rs be m ad e on th e p r in te d form s a n d fo rw arded in th e special envelopes which w ill b e su p p lied b y F e d e ra l R e se rv e B an k s or Branches on a p p lic a tio n therefor. B a n k in g in stitu tio n s generally m a y su b m it te n d e rs fo r a cc o u n t of custom ers p ro v id ed th e n a m e s of th e custom ers a re se t fo rth in such tenders. O th ers th a n ba n k in g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs ex cep t fo r th e ir own account. T e n d e rs will be receiv ed w ith o u t d ep o sit fro m in co rp o ra ted ba n k s a n d tr u s t com panies a n d from responsible a n d recognized d e ale rs in in v e s tm e n t securities. T e n d e rs fro m o th ers m u st be acco m p an ied by p a y m e n t of 2 p e rc e n t of th e face a m o u n t of T re a s u ry bills a p p lie d for, unless th e te n d e rs a re a cc o m p an ied b y a n express g u a ran ty of p a y m e n t b y a n in co rp o ra ted b a n k o r t r u s t com pany. Im m e d ia te ly a fte r th e closing hour, te n d e rs will be opened a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich p u b lic a n n o u n ce m en t will be m ad e b y th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d p rice ran g e of a cc ep te d bids. T h o se su b m ittin g te n d e rs will be advised of th e a c c ep ta n ce or re je ctio n thereof. T h e S e c retary of th e T re a s u ry expressly reserves th e rig h t to a c c e p t or re je c t a n y or a ll ten d ers, in w hole or in p a rt, a n d his actio n in a n y such re sp e ct shall be final. S u b je ct to th e s e reservations, no n c o m p e titiv e te n d e rs for each issue for $200,000 or less w ith o u t sta te d p rice from a n y one b id d e r w ill be a c c e p te d in fu ll a t th e a verage p rice (in th re e d ecim als) of a cc ep te d c o m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for a c c e p te d te n d e rs in accordance w ith th e b id s m u s t b e m ad e or co m p le te d a t th e F e d e ra l R e se rv e B a n k on N o v e m b er 9, 1967, in c ash o r o th er im m e d ia te ly a v ailab le funds or in a lik e face am o u n t of T re a su ry bills m a tu rin g N o v e m b er 9, 1967. C ash a n d exchange te n d e rs will receive equal tre a tm e n t. C ash a d ju stm e n ts will be m a d e for differences b etw een th e p a r value of m a tu r in g bills a c c e p te d in exchange a n d th e issue price of th e new bills. T h e incom e d eriv ed from T re a su ry bills, w h e th er in te re st o r gain fro m the sale or o th e r disposition of th e bills, does n o t h a v e a n y exem ption, as such, a n d loss from th e sale o r o th e r disposition of T re a su ry bills does n o t h a v e a n y special tre a tm e n t, a s such, u n d e r th e In te r n a l R e v en u e Code of 1954. T h e bills a re su b je ct to estate, inheritan c e, gift or o th e r excise taxes, w h e th er F e d e ra l or S tate, b u t a re ex em p t fro m all ta x a tio n now o r h e re a fte r im posed on th e p rin cip a l or in te re st th ere o f by a n y S ta te , or a n y of th e possessions of th e U n ite d S tates, o r b y a n y local tax in g au th o rity . F o r purposes of ta x a tio n th e a m o u n t of discount a t w hich T re a su ry bills a re originally sold b y th e U n ite d S ta te s is considered to be interest. U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e C ode of 1954 th e a m o u n t o f disco u n t a t which bills issued h e re u n d e r a re sold is n o t con sid e red to a ccrue u n til such bills a re sold, re d e e m e d o r otherw ise disposed of, a n d such bills a re excluded from con sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insurance c o m p a n ies) issued h e reu n d e r n eed include in his incom e ta x r e tu rn only th e difference be tw ee n th e price p a id for such bills, w h e th er on original issue or on su b seq u e n t p u rch ase, a n d th e a m o u n t actu a lly received e ith e r u p o n sale or re d e m p tio n a t m a tu r ity d u rin g th e tax a b le y ear for w hich th e r e tu r n is m ade, as o rd in a ry gain or loss. T re a su ry D e p a rtm e n t C ircu la r No. 418 (c u rre n t rev isio n ) a n d th is notice, p rescribe th e te rm s of th e T re a su ry bills a n d govern th e conditions of th e ir issue. C opies of th e c irc u lar m a y be o b ta in e d from a n y F e d e ra l R e se rv e B a n k or B ranch. In a cco rd ance 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 Paso, Houston and S an A n to n io u p to tw e l v e - th ir ty p.m., Central S t a n d a r d Time, M o n d a y , N o v em b e r 6, 1967. Tenders m ay not b e entered b y t e le p h o n e . Yours very truly, Watrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS A m ount, R a n g e a n d A p p ro x im ate Y ie ld of A ccepted T e n d e rs 91 -D ay Bills 182-D ay B ills D u e F e b ru a ry 1, 1968 D u e M a y 2, 1968 $2,285,239,000________________________________ .Total Applied For_________________________________$1,911,604,000 $1,500,564,000___________________________________T o ta l A c c ep ted ___________________________________$1,000,004,000 P ric e Y ield P ric e Y ield 98.860_____________4 .5 1 0 % ___________________________ High _______________________ 97.453____________ 5.038% 98.848____________ .4 .5 5 7 % ____________________________L ow ________________________ 97.442____________ 5.060% 98.852____________ .4.542% ( 1 ) ______________________ Average----------------------------------97.450____________ 5.044% ( 1 ) ( 1 ) T h e s e rates are on bank d iscou nt basis. T h e eq u iv a le n t cou p on issue y ie ld s are 4 .6 7 % for th e 9 1 -d a y b ills, and 5 .2 6 % for the 1 8 2 -d a y b ills. (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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated A ugust 10, 1967 Maturing February 8, 1968 _ T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The B r a n c h _______________________________________________ El Paso 79999 Houston 77001 San Antonio 78206 (D ate) Pursuant to the provisions of Treasury Department 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 pay for the amount allotted, on or before the issue date, by the method and at the rate indicated. N ON COMPETITIV E T E N D ER $______________________________ NOT TO EX CEED $200,000 Noncompetitive tenders for $200,090 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. Prices should be ex pressed on the basis of $ .... (a) COMPETITIVE TENDERS '$$---------------------@_______ $__________________ $— -$ @ tTefdecTma^^laces" e. g., 99.925. Fractions must not be used. ......- ............ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N um ber Pieces of Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M atu rity V alue (5) $ (5) $ METHOD OF PAYMENT 1,000 $ 5,000 □ _ (5) $ (5) $ 10,000 $ 50,000 $ $ 100,000 $ (5) $ 500,000 § □ □ □ By maturing bills held by__________ Payment to be made by_ Charge our reserve account on payment date Draft 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 d r a f t shall be on la te st day which will p e rm it p re s e n t m e n t in ord er to o b tain irrevocably collected fu n d s on p a y m e n t d ate) (5) $1 ,000,000 ? Delivery In stru ctio n s: ____ □ Hold in Custody Account—Member banks fo r own account only-------------------------- ------ □ Pledge to secure T reasury Tax and L oan □ (A d d ress) g y _____________________________________ A cC O U nt Ship to___________________________ (S u b sc rib e r’s fu ll nam e o r c o rp o ra te title) (A u th orized official s ig n a tu re a n d title ) ____ (F o r the a cc o u n t of, if te n d e r is fo r a n o th e r subscrib er) ( A d d re ss) IMPORTANT 1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the United States, with notation on the envelope reading “TENDER FOR TREASURY BILLS”. Since envelopes received with this legend will not be opened until after the closing time specified in the public announcement, communications relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank or appropriate branch. 3. Any qualified or conditional tender will 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 signing of the form by an officer of the corporation will 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 of 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 will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value) of the Treasury hills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an incorporated bank or trust company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is material, the tender may be disregarded. (See reverse for announcement)
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