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F ederal Reserve Bank of Dallas FISCAL AGENT OF THE UNITED STATES DALLAS, TEXAS 75222 Circular No. 67-53 M arch 8, 1967 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in t h e Eleventh Federal Reserve District: Your attention is invited to the fo llow in g state m e n t giving details of tw o issues of Treasury bills: T h e T reasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M arch 16, 1967, in th e am ount of $2,303,920,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued M arch 16, 1967, in the am ount of $1,300,000,000, or th ere abouts, representing an additional am ount of bills dated Decem ber 15, 1966, and to m ature Ju n 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 Septem 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 v alue). T enders will be received a t Federal R eserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern S tandard Tim e, M onday, M arch 13, 1967. Tenders will not be received a t the T reasury D epartm ent, Washington. E ach tender m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on th e basis of 100, with not more th an three decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be made on th e printed forms and forwarded in th e 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 the customers are set forth in such tenders. Others than 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 the face am ount of T reasury bills applied for, unless th e 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 a t the Federal Reserve Banks and Branches, following which public announcem ent will be m ade by the T reasury D epartm ent of th e 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 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 the average price (in th ree decimals) of accepted com petitive bids for th e respective issues. Settlem ent for accepted tenders in accordance w ith th e bids m ust be made or com pleted a t th e F ederal R eserve Bank on M arch 16, 1967, in cash or other im m ediately available funds or in a like face am ount of Treasury 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 a tur ing bills accepted in exchange and th e issue price of th e new bills. T h e income derived from T reasury bills, w hether interest or gain from the sale or other disposition of th e bills, does not have any exemption, as such, and loss from the 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 Federal 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 or 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 Revenue 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 return only the 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 eith er upon sale or redem ption a t m aturity during th e taxable year for which the retu rn is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of th e Treasury 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 th e a b o v e an n ou n c em en t, tenders will b e received at this b an k a n d its branches at El Paso, Houston a n d San Antonio, up to twelve-thirty p.m ., Central Standard Time, M on d ay , March 13, 1967. Tenders m ay not b e entered b y te le p h o n e . Yours very truly, Watrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and A pproxim ate Yield of Accepted Tenders 91-Day Bills 182-Day Bills Due Jun 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 Price Yield Price Yield 98.915___________ 4.292% __________________________ H igh______________________ 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 ) These ra te s are on a bank discount basis. T h e eq uivalent coupon issue yields are 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 TREASURY BILLS 182 DAYS TO MATURITY Dated March 16,1967 Maturing September 14,1967 To: Federal Reserve Bank, StationK, 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 beiow, 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. (n ^ Prices should be ex pressed on the basis of 100, with not more than 5 (a) COMPETITIVE TENDERS < $. $ three d ecim al p la ce s, 5 (a) e. g., 99.925. Fractions $ must not be used. ¥ TENDERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N um b er of Pieces (a) $ (d) $ _ 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 $ □ (a) ? _(S) $ 50,000 $ < $ 100,000 $ a> (5) $ 500,000 $ (a) *1 ,000,000 $ □ 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 l o s e d d r a f t sh all be on la te s t day w hich w ill p e rm it p r e s e n t m e n t in o rd e r to o b ta in irrevocably collected f u n d s o n p a y m e n t date) Delivery Instructions: □ □ Pledge to secure Treasury Tax and Loan Account (S u b scriber’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 uthorized official s ig n a tu re a n d title ) Ship to_________________________ (F o r th e acco un t of, if te n d e r is f o r a n o th e r su 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 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. 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 th e 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, w ho 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 hank 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)