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FE D E R A L R E SE R V E B A N K O F D A LLA S FISCAL. AGENT O F THE UNITED STATES C ircular No. 67-7 Dallas, Texas, January 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 fo llo w in g sta te m e n t giving d etails o f tw o issu es o f Treasury bills: T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to th e aggregate am ount of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Jan u ary 19, 1967, in the am ount of $2,303,293,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued January 19, 1967, in the am ount of $1,300,000,000, or th ere abouts, representing an additional am ount of bills dated October 20, 1966, and to m ature A pril 20, 1967, originally issued in the am ount of $1,000,709,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated Jan u ary 19, 1967, and to m ature Ju ly 20, 1967. 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 aturity 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 aturity value). T enders will be received a t Federal R eserve B anks and B ranches up to the closing hour, one-thirty p.m., E astern S tandard Tim e, M onday, Jan uary 16, 1967. Tenders will not be received a t the T reasury D epartm ent, W ashington. E ach tender 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 the basis of 100, w ith n o t more th an three decimals, e.g., 99.925. Fractions may not be used. I t is urged th a t tenders be m ade on th e printed forms and forwarded in th e special envelopes which will be supplied by Federal R eserve B anks or B ranches on application therefor. B anking institutions generally may subm it tenders for account of customers provided the nam es of th e customers are set forth in such tenders. O thers th an banking institutions will not be perm itted to subm it tenders except for th e ir own account. Tenders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized dealers in investm ent securites. T enders from others m ust be accompanied 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 the closing hour, tenders will be opened a t the F ederal Reserve B anks and Branches, following which public announcem ent will be m ade by th e T reasury D ep artm en t of the 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 right 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 th ree decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for accepted tenders in accordance w ith the bids m ust be made or com pleted a t the Federal R eserve Bank on Janu ary 19, 1967, in cash or other im m ediately available funds or in a like face amount of T reasury bills m aturing Jan uary 19, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m atu r ing bills accepted in exchange and the issue price of th e new bills. T h e income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of th e bills, does not have any exemption, as such, and loss from th e sale or other disposition of T reasury bills does not have any special treatm en t, as such, under th e In ternal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether F ederal or State, b u t are exem pt from all taxation now or hereafter im posed on the principal or interest thereof by any State, or any of th e possessions of th e U nited States, or by any local taxing authority. F o r purposes of taxation th e am ount of discount at 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 R evenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other than life insurance com panies) issued hereunder need include in his income tax retu rn only th e difference between th e price paid for such bills, w hether on original issue or on subsequent purchase, and th e am ount actually received either upon sale or redem ption a t m aturity during th e taxable year for which th e return is made, as ordinary gain or loss. T reasury D ep artm en t Circular No. 418 (current revision) and this notice, prescribe th e term s of th e T reasury bills and govern th e conditions of th eir issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank or Branch. In a ccord an ce with the a b o v e a n n o u n c em en t, tenders will b e received a t this b a n k a n d its branches a t El Paso, Houston a n d San A ntonio, up to twelve-thirty p.m., Centra! Standard Time, M o n d a y , January 16, 1967. Tenders m ay not b e entered by te le p h o n e . Yours very truly, W atrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and A pproxim ate Y ield of Accepted Tenders 91-Day Bills D ue A pril 13, 1967 $1,964,659,000__________________________ $1,300,659,000__________________________ Price Yield 98.794-4.771%. -4.850% _______ 98.774_. -4.818% ( 1 ) ___ 98.782- .T otal Applied For.. -.-T otal Accepted. ..High-. Low_ .Average___ 182-Day Bills D ue Ju ly 13, 1967 ____________ $1,991,022,000 ____________ $1,000,141,000 Price Y ield 97.534____________4.878% 97.523____________4.900% 97.528____________4.890% (1 ) ( 1 ) T h e se rates are on a b a n k discount basis. T h e equ iv alent coupon issue yields a re 4 .9 5 % for the 91-day bills, a nd 5 .0 8 % for th e 182-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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Bated October 20,1966 Maturing April 20, 1967 To: Federal Reserve Bank, Station K, Balias, Texas or — The_______________________________ JBranch El Paso 79999 Houston 77001 75222 _______ 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 O N C O M P E T IT IV E T E N D E R $______________________________ 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. / _ „ Prices should be ex pressed on the basis of 1*5-----------------------------@ -------------- $ _________________________ COMPETITIVE TENDERS <f$ @---------- $------------------------------- s $ ___________________@ _________ $ _________________________ 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 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 METHOD OF PAYMENT 1,000 * 5,000 ?. 10,000 $. $ 50,000 ?. < $ 100,000 $. s> $ 500,000 ?. (S $1 ,000,000 •$ > - <> $ 5 (5) $ .<> ? a Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ □ □ □ □ 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 l i v e r y o f e n c l o s e d d r a f t sh a ll 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 o rd e r to o b ta in irrevocably collected fu n d s o n p a y m e n t d ate) ( S u b scrib er’s fu ll n a m e o r c o rp o ra te t i t l e ) (A d d ress) By (A uth o rized official s ig n a tu re a n d title) Ship to_________________________ (F o r th e a cc o u n t of, if te n d e r is f o r a n o th e r sub scrib er) (A d d ress) 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 A gent of th e 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. 8. Any qualified or conditional tender will be rejected. 4. If a corporation makes the tender, the form should be signed byan officer of the corporation authorized to make th 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 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, winch, in the opinion of the Secretary of the Treasury ia material, the tender may be disregarded. (See reverse for announcement)