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F ederal reserve Bank of Dallas F ISC A L AG ENT OF THE UNITED STA TES DALLAS, TEX AS 75222 C ircu la r No. 67-243 D e c e m b e r 6, 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 ollow in g sta tem ent giving d etails of t w o is sues of Treasury bills: T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, invites ten d e rs for tw o series of T re a s u ry bills to th e aggregate a m o u n t of $2 500,000,000, or th ere ab o u ts, for cash a n d in exchange fo r T re a su ry bills m a tu rin g D e c e m b e r 14, 1967, in th e a m o u n t of $2,400,635,000, as follow s: 91-D A Y B IL L S (to m a tu rity d a te ) to be issued D e c em b er 14, 1967, in th e a m o u n t of $1,500,000,000, or th e re abouts, re p rese n tin g a n a d d itio n al a m o u n t of bills d a te d S e p te m b e r 14,1967, a n d to m a tu re M a rc h 14,1968, origi n a lly issued in th e a m o u n t of $1,000,527,000, th e a d d itio n al a n d original bills to be freely interchangeable. 182-D A Y B IL L S for $1,000,000,000, or th ere ab o u ts, to be d a te d D e c em b er 14, 1967, a n d to m a tu re J u n e 13, 1968. T h e bills o f b o t h series w ill be issued on a discount basis u n d e r c o 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 pro v id ed , a n d a t m a tu rity th e ir face a m o u n t w ill b e p a y ab le w ith o u t interest. T h e y w ill b e issued in b e a re r form only, a n d in d e n o m i n a t i o n s o f $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 an k s an 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, D e c em b er 11, 1967. T e n d e rs will n o t be received a t th e T re a s u ry D e p a rtm e n t, W ashington. E a c h te n d e r m u st be for a n e v en m u ltip le of $1,000, a n d in th e case of co m p e titiv e ten d e rs th e p rice offered m u s t b e expressed o n th e basis of 100, w ith n o t m ore th a n th ree decim als, e.g., 99.925. F ra c tio n s m a y n o t be used. I t is u rged t h a t te n d e rs be m ad e on th e p rin te d form s a n d forw arded in th e special envelopes w hich w ill be supplied by F e d e ra l R e se rv e B a n k s o r B ran ch es 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 for a ccount of custom ers p ro v id ed th e nam es of th e custom ers are se t fo rth in such tenders. O thers th a n b a n k in g in stitu tio n s will n o t be p e rm itte d to su b m it ten d e rs e xcept for th e ir own account. T e n d e rs will be received w ith o u t d ep o sit fro m in co rp o ra ted b a 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 from o th ers m u st be a ccom panied b y 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 ten d e rs a re acco m p an ied b y a n express g u a ran ty of p a y m e n t by a n in co rp o ra ted b a n k or tr u s t com pany. Im m e d ia te ly a fte r th e closing hour, ten d e rs w ill be o p e n ed a t th e F e d e ra l R e se rv e B a n k s an d B ranches, follow ing w hich p u b lic an n o u n ce m en t w ill be m ad e by th e T re a s u ry D e p a rtm e n t of th e a m o u n t a n d p rice range of acc ep te d bids. T h o se su b m ittin g te n d e rs will b e advised of th e a cc ep ta n ce o r re je ctio n thereof. T h e S e c retary of th e T re a su ry expressly reserves th e rig h t to acc ep t or re je c t a n y o r all tenders, in w hole or in p a rt, an d his actio n in a n y such re sp e ct shall be final. S u b je c t to th ese reservations, n o n c o m p e titiv e ten d e rs for each issue for $200,000 o r less w ith o u t sta te d p rice from a n y one b id d e r w ill b e a cc ep te d in full a t th e average p rice ( in th re e decim als) of a cc ep te d co m p etitiv e bids for th e re sp e ctiv e issues. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e bids 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 eserv e B a n k on D e c em b er 14, 1967, in cash*or o th er im m e d ia tely a v ailab le funds o r in a like face a m o u n t of T re a su ry bills m a tu rin g D e c e m b e r 14, 1697. 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 s tm e n ts will be m ad e for differences b etw een th e p a r value of m a tu r ing bills acc ep te d in exchange a n d th e issue p rice of th e new bills. T h e incom e deriv ed from T re a su ry bills, w h e th er in te re st or gain from th e sale or o th e r disposition of th e bills, does n o t ha v e a n y exem ption, as such, a n d loss fro m th e sale o r o th e r d isposition 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, as such, u n d e r th e In te rn a l R e v en u e C ode of 1954. T h e bills a re su b ject to estate, in h eritan ce, g ift or o th e r excise taxes, w h e th er F e d e ra l or S ta te , b u t are e x em p t from all ta x a tio n now or 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 tate, o r a n y of th e possessions of th e U n ite d S tates, or b y a n y local ta x 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 d iscount a t w hich T re a su ry bills a re originally sold b y th e U n ite d S tates 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 d iscount a t w hich bills issued h e re u n d e r a re sold is n o t con sidered to accrue u n til such bills are sold, re d ee m e d or otherw ise disposed of, a n d such bills a re excluded from consideration 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 co m p a n ies) issued h e re u n d e r need include in his incom e ta x re tu rn only th e difference b e tw ee n th e price p a id for such bills, w h e th e r on original issue or on su b seq u e n t purchase, 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 rity d u rin g th e tax a b le y e ar for w hich th e r e tu r n is m ade, as o rd in ary gain or loss. T re a su ry D e p a rtm e n t C ircular No. 418 ( c u rre n t rev isio n ) an d th is notice, pre sc rib e 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 tain e d from a n y F e d e ra l R e se rv e B a n k o r B ranch. In accordance 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 an k a n d its branches a t El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, M o n d ay , D ecem ber 11, 1967. Tenders m a y not be entered by 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 B ills 182-D ay B ills D u e M a rc h 7, 1968 D u e J u n e 6, 1968 $2,761,710,000 .T o tal A p p lied F o r--------------------------------------------------- $2,415,869,000 $1,500,128,000__________________________________ .T o tal-A c c ep ted ------------------------------------------------------$1,000,731,000 P ric e Y ie ld P ric e Y ield 98.746 .4 .9 6 1 % ___________________________ H ig h _______________________ 97.190_____________5.558% 98.736 5 .0 0 0 % ___________________________ l o w . ----------------------------------- 97.174------------------- 5.590% 98.739 4 .9 8 9 % ( 1 ) ______________ A verage______________ 97.179_____________ 5 .580% ( 1 ) ( 1 ) T h e s e rates a re on bank d iscou nt b asis. T h e eq u iv a le n t coupon issue y ie ld s are 5 .1 4 % for th e 9 1 -d a y b ills, and 5 .8 4 % for th e 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 TREASURY BILLS 182 DAYS TO MATURITY Dated December 14, 1967 Maturing June 13, 1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The ___________________________Branch 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. NONCOMPETITIVE TENDER $_ not TO EXCEED $200,000 Noncompetitive tenders for $200,000 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. ----------------------------- -@ - COMPETITIVE TENDERS < $ ■ (* -@ - ___________________ Prices should be expressed on the basis of 100, with not more than three d ecim al p laces, e. g., 99.925. Fractions must not be used. [ ^ T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b e r of Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M a tu rity V alue (5) $ (5) $ (a) $ METHOD OF PAYMENT 1,000 $. 5,000 $- □ 10,000 $50,000 $. □ .(«) $ (5) $ 100,000 $. (5) $ 500,000 $. □ □ By maturing bills held b y ____________________ __ 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 li v e r y o f enclosed (5) $1,000,000 $- d r a f t sh all be on la te s t day w hich w ill p e rm it p re s e n t m e n t in ord er to o b ta in irrevocably collected fu n d s o n p a y m e n t date) Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to (S u b scriber’s fu ll n am e o r co rp o rate title) (A ddress) Bya u t h o r i z e d official s ig n a tu re a n d title) _______________________ (F o r th e acc o u n t of, i f te n d e r is fo r a n o th e r sub scrib er) (A ddress) 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, b y ................................................................................ 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 bills 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)
@FedFRASER