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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. 67-109 M ay 31, 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 sta te m e n t giving details of tw o issu e s of 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 Ju n e 8, 1967, in the am ount of $2,300,692,000, as follows: 91-DAY B ILLS (to m aturity d ate) to be issued June 8, 1967, in th e am ount of $1,300,000,000, or th ere abouts, representing an additional am ount of bills dated M arch 9, 1967, and to m ature Septem ber 7, 1967, originally issued in the am ount of $1,000,488,000, the addi tional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated Ju n e 8, 1967, and to m ature D ecem ber 7, 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 a tu rity th eir 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 v alu e). T enders will be received a t Federal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern D aylight Saving Tim e, M onday, Ju n e 5, 1967. T enders will not be received at the T reasury D epartm ent, W ashington. E ach te n d er 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, w ith n o t more th a n three decimals, e.g., 99.925. Fractions may not be used. I t is urged th a t tenders be made on th e prin ted forms and forwarded in th e special envelopes which will be supplied by Federal R eserve Banks or Branches on application therefor. Banking institutions generally may subm it tenders for account of customers provided the names of th e customers are set forth in such tenders. Others th an banking institutions will not be perm itted to subm it tenders except for th eir own account. T end ers 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 reasu ry 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 th e closing hour, tenders will be opened a t the F ederal Reserve Banks and Branches, following which public announcem ent will be m ade by th e 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 h e Secretary of th e T reasury expressly reserves th e rig h t 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 three decim als) of accepted com petitive bids for the respective issues. S ettlem ent for accepted tenders in accordance with the bids m ust be made or com pleted a t the F ederal R eserve B ank on Jun e 8, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Ju n e 8, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e par value of m atur 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 the sale or other disposition of the bills, does not have any exemption, as such, and loss from th e sale or other disposition of T reasu iy bills does not have any special treatm ent, as such, under the Internal 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 imposed on the principal or interest thereof by any State, or any of the possessions of th e U nited States, or by any local taxing authority. For purposes of taxation th e am ount of discount a t w hich 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 th an 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 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 retu rn is made, as ordinary gain or loss. Treasury D ep artm en t Circular No. 418 (current revision) and this notice, prescribe th e 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 Federal Reserve B ank or Branch. In a cc ord an c e with the a b o v e a n n o u n c em en t, fenders will b e received at this b a n k e n d its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving l i m e , M on d ay , June 5, 1 967. 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 Approxim ate Yield of Accepted T enders 91-Day Bills 182-Day Bills D ue A ugust 31, 1967 Due N ovem ber 30, 1967 $2,405,209,000 .Total Applied F o r_______________________________ $1,972,994,000 $ 1,300,637,000________________________________ T o tal_Accepted_________________________________ $1,000,993,000 Price Yield Price Yield 99.133 3.430% _________________________ H igh______________________ 98.124___________ 3.711% 99.118 3.489% _________________________ Low______________________ 98.105___________ 3.748% 99.121 3.477% ( 1 ) ____________________ Average_____________________98.113___________ 3.733% (1 ) ( 1 ) These rates a re on a bank discount basis. T h e eq u ivalent coupon issue yields are 3 .5 7 % for th e 91-day bills, a n d 3 .8 7 % for th e 182-day bills. (See reverse 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 BAYS TO MATURITY ‘Dated March 9, 1967 Maturing September 7, 1967 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— The B r a n c h El Paso 79999 Houston 77001 __ San Antonio 78206 (Date) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions o f th e public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount 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 >00 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average ept price (in three decimals) of accepted competitive bids. Prices should be e x pressed on the basis . . . of 6 COMPETITIVE TENDERS h \ @-------------$--------------------------------------------------------- @ ---------------- $---------------------------------------- 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 Number 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 $. □ By maturing bills held by. _______________ _ Payment to be made by_ □ 50,000 $. @ $ 100,000 $. ______ @ $ 500,000 $. _____ $ □ □ 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 _ a $1,000,000 t <> Delivery Instructions: □ □ ___ (S u b sc rib e r’s fu ll n a m e o r co rp o rate title ) Hold in Custody Account—-Member banks for own account only ----- Pledge to secure Treasury Tax and g y___________________________________ D oan □ d r a f t sh a ll 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 fu n d s on p a y m e n t date) A cC O U nt Ship to_________________________ (A ddress) (A u tho rized official s ig n a tu re a n d title ) ___ (F o r th e a cc o u n t of, if te n d e r is fo r a n o th e r su bscrib 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 (m aturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent o f the United States, with notation on tlie 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 th at 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”. ' 1 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 b y 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)