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F ederal 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 DALLAS, TEX AS 75222 C ircu la r No. 67-259 D e c e m b e r 22, 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 statem ent giving d etails of tw o is sues of Treasury bills: PLEASE OBSERVE CLOSING D ATE FRIDAY, DECEMBER 29, 79 67 T h e T re a su ry D e p a rtm e n t, b y th is public 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 s u ry bills m a tu rin g J a n u a ry 4, 1968, in th e a m o u n t of $2,400,723,000, as follow s: 91-D A Y B IL L S (to m a tu r ity d a te ) to b e issued J a n u a ry 4, 1968, 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 an ad d itio n al a m o u n t of bills d a te d O c to b er 5, 1967, a n d to m a tu re A pril 4, 1968, originally issued in th e a m o u n t of $1,000,305,000, th e a d d itio n al an d original bills to be freely interchangeable. 183-D A Y B IL L S for $1,000,000,000, or th ere ab o u ts, to b e d a te d J a n u a ry 4, 1968, a n d to m a tu re J u ly 5, 1968. T h e bills of b o th series will be issued on a discount basis u n d e r co m p e titiv e an 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 r ity th e ir face a m o u n t will be p a y ab le w ith o u t interest. T h e y will b e issued in b e are r form only, a n d in de n o m in a tio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 an d $1,000,000 (m a tu r ity v a lu e ). T e n d e rs w ill be received a t F e d e ra l R e se rv e B an k s a nd B ra n ch e s 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 , F rid a y , D e c em b er 29, 1967. T e n d e rs will n o t be received a t th e T re a su ry D e p a rtm e n t, W ashington. E ac h te n d e r m u st be for a n even m u ltip le of $1,000, a n d in th e case of c o m p e titiv e ten d e rs th e price 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 ay n o t be used. I t is urged th a t te n d e rs b e m ade on th e p rin te d form s a n d forw arded in th e special envelopes w hich 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 B ran ch es o n 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 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 th ers th a n b a n k in g in stitu tio n s will not 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 from incorporated ba n k s a n d tru s t com panies an d from responsible a n d recognized d e ale rs in in v estm e n t securities. T e n d e rs from oth ers m u st b e accom panied 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 ten d e rs a re a ccom panied b y an express g u a ran ty of p a y m e n t b y a n in co rporated 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, te n d e rs w ill b e o p e n ed a t th e F e d e ra l R eserve B a n k s a n d B ranches, follow ing w hich p u b lic an n o u n ce m en t will be m ad e by 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 range of accepted bids. T hose su b m ittin g ten d e rs will be advised of th e a cc ep ta n ce or reje 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 any o r all ten d ers, in w hole or in p a rt, an d his action in a n y such re sp e ct shall be final. S u b je c t 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 ny one b id d e r w ill be a cc ep te d in full a t th e average price (in th re e d ecim als) of a cc ep te d co m p e titiv e bids for th e respective issues. S e ttle m e n t for a c c e p te d ten d e rs in accordance w ith th e bids m u st be m ad e or c o m pleted a t th e F e d e ral R eserv e B a n k on J a n u a ry 4, 1968, in cash or o th er im m e d ia te ly a vailable funds or in a like face a m o u n t of T re a su ry bills m atu rin g J a n u a r y 4, 1968. C ash a n d exchange ten d e rs will receive equal tre a tm e n t. Cash a d ju stm e n ts will be m ad e for differences be tw ee n th e p a r va lu e of m a tu r in g bills acc ep te d in exchange a n d the 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 or gain from th e 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, an d loss from th e sale or o th er disposition of T re a su ry bills does not have a n y special tre a tm e n t, a s 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 are su b je ct to estate, inheritance, 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 e xem pt from all tax a tio n now or h e re a fte r im posed on th e prin cip a l or in te re st th ere o f b y 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 p urposes of tax a tio n th e a m o u n t of discount a t w hich T re a su ry bills are originally sold by 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 Code of 1954 th e a m o u n t of discount a t which bills issued h e re u n d e r are sold is n o t con sid e red to accrue u n til such bills a re 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 an 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 betw een 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 pu rch ase, a n d th e a m o u n t a ctu a lly received e ith e r u p o n sale o r re d e m p tio n a t m a tu rity d u ring th e taxable y e ar for w hich th e r e tu rn 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 re v isio n ) an d th is notice, pre sc rib e th e te rm s of th e T re a su ry b ills a n d govern th e conditions of th e ir issue. Copies of th e circu lar m a y be o b ta in e d from a ny F e d e ra l R eserv e B an k or 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 bank a n d its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, Friday, D ecem ber 29, 1967. Tenders m ay not b e entered by te le p h o n e . Yours very truly, Watrous H. Irons President Figures concerning offering of 9 1 -Day Treasury Bills maturing March 28, 1968, and 182-Day Treasury Bills maturing June 27, 1968, not available when this circular was printed. (S e e reverse for tender form ) i 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 Maturing April 4,1968 Dated October 5,1967 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________________Branch El Paso 79999 Houston 77091 (Date) San Antonio 78206 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. JMOT TO EX CEED $200,000 PLEASE OBSERVE CLOSING DATE — FRIDAY, DECEMBER 29, 1967 NONCOM PETITIVE T E N D ER $_ 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. / Prices should he ex pressed on the basis of 100, with not more than $ COM PETITIVE TEN D ER S $ three decim al places, 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. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Denominations Desired N um b er of Pieces M a tu rity V alue (5) ? 1,000 $ @ $ (fib $ 5,000 $ 10,000 $ (a) $ 50,000 $ METHOD OF PAYMENT □ □ ..(a) $ 100,000 $ @ $ 500,000 $ (fib $ 1 ,000,000 $ By m atu rin g bills held b y _______________________ _ P aym ent to be m ade by_____________ □ Charge our reserve account on payment date | | D r a f t e n c l o s e d ( E f f e c t u a l d e l i v e r y o f enclosed d r a f t shall be on la te st day w hich will p e rm it p re s e n t m e n t in o rd e r to o b tain irrevocably collected fu n d s on p a y m e n t date) Delivery In stru c tio n s : □ Hold in Custody Account— Member banks fo r own account only □ Pledge to secure T reasury T ax and Loan Account □ Ship to___________________________ (S u b scrib er’s fu ll nam e o r c o rp o ra te title) (A ddress) By_ (A uth o rized official s ig n a tu re a n d title) (F o r th e acco u n t of, if te n d e r is fo r a n o th e r subscrib 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