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Federal 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. 67-71 A pril 5, 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 follow in g state 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 m aturing April 13, 1967, in the am ount of $2,302,903,000, as follows: 91-DAY B IL L S (to m aturity d ate) to be issued April 13, 1967, in the am ount of $1,300,000,000, or there abouts, representing an additional am ount of bills dated Janu ary 12, 1967, and to m ature Ju ly 13, 1967, originally issued in the am ount of $1,000,205,000, the additional and original bills to be freely interchangeable. 183-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated April 13, 1967, and to m ature October 13, 1967. T he bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face am ount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity value). Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard Tim e, Monday, April 10, 1967. Tenders will not be received a t the T reasury D epartm ent, Washington. E ach tender must be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust beexpressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged th a t tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by F ederal Reserve Banks or Branches on application therefor. Banking institutions generally may 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. Tenders 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 must be accompanied by paym ent of 2 percent of the face am ount of Treasury 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 a t 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 the 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 at the average price (in three decimals) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted at the Federal R eserve B ank on April 13, 1967, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing April 13, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between th e par value of m atur ing bills accepted in exchange and the issue price of the new bills. T he income derived from T reasury bills, w hether interest or gain from the sale or other disposition of the 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 the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount at which T reasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454 (b ) and 1221 (5 ) of the 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 the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m aturity during th e taxable year for which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal R eserve B ank or Branch. In accordance with the a b o v e an n o u n c em en t, tenders will be received at this b ank a n d its branches at El Paso, Houston a n d San Antonio, up io twelve-thirty p.m., Centra! Standard Time, M on d ay , April 10, 1967. Tenders may not b e entered by t ele p h o n e . Yours very truly, Watrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, R ange and Approximate Yield of Accepted Tenders 91-Day Bills 182-Day Bills D ue Ju ly 6, 1967 D ue October 5, 1967 $2,252,543,000 T otal Applied F o r----------------------------------------------- $1,863,923,000 $1,300,185,000— ------------------------------------------ T otal A ccepted---------------------------..$1,000,738,000 Price Yield Price Yield 99.002____________3.948% --------------------------High____ — 97.988______ 3.980% 98.990 3.996% __________ Low______________________97.967_______ „___ 4.021 % 98.995 3.976% ( 1 ) ------------------------------- Average____________________ 97.979__________ ...3.998% (1 ) ( 1 ) These ra te s are on a b a n k discount basis. T h e eq uiv alent coupon issue yields are 4 .0 8 % for th e 91-d ay bills a n d 4 1 5 % for the 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 TREASURY BILLS 183 DAYS TO MATURITY Dated April 13, 1967 Maturing October 13, 1967 To: 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 th e 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 e x pressed on the basis of (a) $ COMPETITIVE TENDERS $ ------------------------@------------$------------------------------ th ro v ed L T p ia ’? !? $ @ - .$ ..___ _____ _ e. g., 99.925. Fractions must not be used. 2 ^ TENDERS MAY NOT BE EN TER ED 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 (a) $ (a) $ 1,000 $ 5,000 ? □ (a) $ (a) $ 10,000 $ 50,000 $ □ $ 100,000 $ (a) $ 500,000 $ (a) $1 ,000,000 $ □ Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and L oan □ □ 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 st day which will p e rm it p r e s e n t m e n t in ord er to obtain irrevocably collected fu n d s on p a y m e n t date) ____ (S u b scrib er's fu ll n a m e o r c o rp o ra te title) ------ (A ddress) ___________________________________ A cC O U nt Ship to _ ------------------------------------- By maturing bills held by_________________________ Payment to be made by_ (A u thorized official s ig n a tu re and title) ------ (F o r th e a cco u n t of, if ten d er is fo 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 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 in v est ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity valu e) 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)