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F ederal R eserve 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. 67-161 August 23, 1967 NEW OFFERING — TREASURY BILLS io All Banking Institutions a n d Others Concerned in the eleventh Federal Reserve District: Your attention is invited to the fo llow in g statem ent giv ing d etails of two 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 $2,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing August 31, 1967, in the am ount of $3,805,643,000, as follows: 91-DAY B ILLS (to m aturity date) to be issued August 31, 1967, in the am ount of $1,400,000,000, or th ere abouts, representing an additional am ount of bills dated N ovember 30, 1966, and to m ature Novem ber 30, 1967, originally issued in the am ount of $900,493,000, (additional am ounts of $499,956,000 and $1,000,993,000 were issued F ebruary 28, 1967, and Ju n e 1, 1967, respectively), the additional and original bills to be freely interchangeable. 182-DAY B ILLS (to m aturity d ate) to be issued August 31, 1957, in the am ount of $1,000,000,000, or there abouts, representing an additional am ount of bills dated February 28, 1967, and to m ature F ebruary 29, 1968, originally issued in the am ount of $901,029,000 (an additional $500,040,000 was issued M ay 31, 1967), the additional and original bills to be freely interchangeable. 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 w ithout interest. They 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). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Monday, August 28, 1967. T enders 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 must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractious 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 Federal 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. 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 must be accompanied by paym ent of 2 percent of the 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 trust company. Im m ediately after the closing hour, tenders will be opened at th e F ederal 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, noncompetitive tenders for each issue for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or completed a t the Federal Reserve B ank on August 31, 1967, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing August 31, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m atur ing bills accepted in exchange and the issue price of the new bills. T he income derived from Treasury bills, whether 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 Treasury 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 Treasury bills are originally sold by the United 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 at which bills issued hereunder are sold is not con sidered to accrue until such bills are sold, redeemed 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 at m aturity during the 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 th e term s of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve B ank or Branch. In accordance with the a b o v e a n n o u n c em en t, tenders will be received at this b ank a n d its branches at ES Paso, Houston an d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d a y, A ugust 28, 1967. Tenders may not be entered by tele 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 Tenders 92-Day Bills D ue N ovember 24, 1967 $2,231,100,000______ $1,400,149,000_____________ Price Yield 98.905___________ 4,285%..... 98.884___________ 4.370% ___ 98.892___________ 4.336% (1).. Total Applied F or_ T otal A ccepted___ .High. Low__ Average. 183-Day Bills D ue F ebruary 23, 1968 : $2,022,231,000 ------------------------------------- $1,000,676,000 Price Yield ..97.524.. .4.871% .97.489.. .4.940% -97.498. .4.922% (1) ( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4 .46% for the 92-day bills, and 5 .13% for the 183-day bills. ( S ethe e reverse ten d e r Bank fo r m ) of Dallas' Historical Library (FedHistory@dal.frb.org) This publication was digitized and made available by FederalforReserve TENDER FOR ADDITION TO TREASURY BILLS 182 DAYS TO MATURITY Dated February 28,1967 M aturing February 29, 1968 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The _____________________________ Branch E l Paso 79999 Houston 77001 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 $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t the averag e price (in three decimals) of accepted com petitive bids. /A _ Prices should be ex pressed on the basis of (cb COMPETITIVE TENDERS <$. @------------$-----------------------------$ •$ $ ............ e. g., 99.925. Fractions must not be used. ■ ........ $ H P TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. Denominations D esired Number of Pieces Maturity Value METHOD OF PAYMENT (a) $ (a) $ 1,000 $ 5,000 $ □ .(d) $ 10,000 $ 50,000 ? □ (a) $ 100,000 $ □ @ $ 500,000 $ □ (5) $ By m aturing bills held by___________________________ Paym ent to be made by___________ Charge our reserve account on paym ent date D raft enclosed ( E f f e c t u a l d e liv e r y o f e n c lo s e d draft shall be on latest day which will permit p resent ment in order to obtain irrevocably collected funds on paym ent date) @ $1.,000,000 $ Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ (Subscriber’s full name or corporate title) (Address) By_ (Authorized official signature and title) Ship to_________________________ (F or the account of, if tender is for another subscriber) (Address) 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, who should sign in the form “............................... ,acopartnership, 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 he 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 i s material, the tender may be disregarded. (See reverse fo r announcement)
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