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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, TEXAS 75222 Circular No. 67-52 M arch 8, 1967 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in th e Eleventh Federal Reserve District: Your attention is invited to the f o llo w in g sta te m e n t giving details of tw o issues of Treasury bills: T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills maturing M arch 16, 1967, in the am ount of $2,303,920,000, as follows: 91-DAY B ILLS (to m aturity date) to be issued M arch 16, 1967, in the am ount of $1,300,000,000, or th e re abouts, representing an additional am ount of bills dated D ecem ber 15, 1966, and to m ature Jun e 15, 1967, originally issued in the am ount of $1,000,868,000, 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 M arch 16, 1967, and to m ature S eptem ber 14, 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 atu rity value). T enders will be received a t F ederal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern S tandard Tim e, Monday, M arch 13, 1967. T enders will not be received at the T reasury D epartm ent, Washington. E ach ten d er 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 th e basis of 100, w ith not more than 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 the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided the names of th e customers are set fo rth in such tenders. Others tha n banking institutions will not be perm itted to subm it tenders except for their own account. T enders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized dealers in investm ent securities. Tenders 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 the tenders are accompanied 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 at the Federal Reserve Banks and Branches, following which public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Those subm itting tenders will be advised of th e acceptance or rejection thereof. T he Secretary of the T reasury expressly reserves the 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 three decimals) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with th e bids m ust be made or com pleted a t the Federal Reserve B ank on M arch 16, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M arch 16, 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 atur ing bills accepted in exchange and the issue price of th e new bills. T he income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of th e bills, does no t have any exemption, as such, and loss from th e sale or other disposition of T reasury bills does not have any special treatm ent, as such, under th e Internal R evenue Code of 1954. T he 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 imposed on the principal or interest thereof by any State, or any of th e possessions of the U nited States, or by any local taxing authority. F o r purposes of taxation the am ount of discount a t 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 the am ount of discount a t which bills issued hereunder are sold is not con sidered 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 the difference between th e price paid for such bills, w hether on original issue or on subsequent purchase, and the am ount actually received eith er upon sale or redem ption a t m aturity during the taxable year for which th e retu rn is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (cu rren t revision) and this notice, prescribe the term s of the T reasury bills and govern th e conditions of th eir issue. Copies of th e circular may be obtained from any F ederal Reserve B ank or Branch. In accord 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 ank an d its branches at El Paso, Houston a n d San Antonio, up to twelve-thirty p.m., Centra! Standard Time, M on d ay , March 13, 196 7. le n d e r s m a y not b e entered by tele p h o n e . Yours very truly, W atrcus H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approxim ate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue Ju n e 8, 1967 D ue Septem ber 7, 1967 $2,087,712,000 .T o tal Applied For.______________________________ $1,801,181,000 $1,300,036,000________________________________ .T otal Accepted________________________________ $1,000,281,000 P rice Yield Price Yield 98.915 4.292% _________________________ -High______________________97.830___________ 4.292% 98.892 4.383% _________________________ X ow ______________________ 97.792___________ 4.367% 98.902 4.344% ( 1 ) ------------------------------ Average------------------------------- 97.806____________ 4.340% (1 ) ( 1 ) T hese rates are on a b an k discount basis. T h e e q u iv alent coupon issue yields a re 4 .4 7 % for th e 91-day bills, a n d 4 .5 1 % for th e 182-day bills. (S ee 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 December 15,1966 Maturing June 15,1967 T o: Federal Reserve Bank, Station K, Dallas, Texas or — The ________________________ Branch 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. 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. Prices should be ex pressed on the basis of 100, with not more than () n COMPETITIVE TENDERS $ $ three d ecim al p la ces, e. g., 99.925. Fractions $ @ $ .... must not be used. 0 ^ = TENDERS MAY NOT BE EN TER ED 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 @ $ @ $ @ $ METHOD OF PAYMENT 1,000 $. 5,000 $. 10,000 $. □ □ 50,000 s. __________ @ $ - -@ $ 100,000 $. ? 500,000 $. __________ @ $1:,000,000 $. □ □ By maturing bills held by____________________ ______ Payment to be made by___________ Charge our reserve account on payment date D raft enclosed ( E f f e c t u a l d e liv 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 on p a y m e n t date) Delivery Instructions: □ □ Pledge to secure Treasury Tax and Loan Account (S u b scrib er’s fu ll n a m e o r c o rp o ra te title ) Hold in Custody Account—Member banks for own account only □ (A ddress) By. (A u thorized official s ig n a tu re a n d title ) Ship to_________________________ (F o r th e a cco u nt of, i f te n d e r is f o r a n o th e r s u bscriber) (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 (m aturity 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 h e 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 in vest 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 i s material, the tender may be disregarded. (See reverse for announcement)