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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. 67-178 S eptem ber 13, 1967 NEW OFFERING —- TREASURY BILLS To AH Banking Institutions a n d Others Concerned in th e Eleventh Federal Reserve District: Your attention is invited to the fo llo w in g state m e n t giving d etails 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 $2,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Septem ber 21, 1967, in th e am ount of $2,300,149,000, as follows: 91-DAY B IL L S (to m aturity date) to ba issued Septem ber 21, 1967, in the am ount of $1,400,000,000, or th ere abouts, representing an additional am ount of bills dated Ju ne 22, 1967, and to m ature Decem ber 21, 1967, originally issued in the am ount of $1,000,050,000, 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 Septem ber 21, 1967, and to m ature M arch 21, 1968. 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 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 atu rity v alu e). T enders will be received a t F ederal R eserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern D aylight Saving Tim e, M onday, Septem ber 18, 1967. T enders will not be received at the T reasury D epartm ent, Washington. E ach te nd 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, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be made on the printed forms and forwarded in the special envelope* which will be supplied by F ederal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of th e customers are set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for their own account. T enders will be received without 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 accom panied 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 Federal Reserve B anks and Branches, following which p ublic announcem ent will be m ade 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 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 at the average price (in three decim als) of accepted com petitive bid9 for the respective issues. S ettlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted a t the Federal R eserve B ank on Septem ber 21, 1967, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Septem ber 21, 1967. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be mad© 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 h e income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of the bills, does not h ave 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, w hether F ederal or State, bu t are exem pt from all taxation now or hereafter imposed on th e 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 th e am ount of discount a t 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 th e 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 cap ital assets. Accordingly, the owner of T reasury bills (other th an 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 the am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the re tu rn is made, as ordinary gain or loss. T reasury D ep artm en t Circular No. 418 (cu rrent revision) and this notice, proscribe th e term s of th e T reasury bills and govern the conditions of their 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 an n o u n c em en t, tenders will b e received a t this b an k an d its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight S aving Time, M on d ay, S ep tem b er 18, 1967. Tenders may not b e entered by t e 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 Y ield of Accepted Tenders 91-Day Bills 182-Day Bills D ue D ecem ber 14, 1967 D ue M arch 14, 1968 $2,161,633,000-----------------------------------------------T otal Applied F or_______________________________ $1,792,995,000 $ 1,400,021,000------------------------------------------------ ..Total_A ccepted_________________________________$ 1,000,073,000 Price Y ield P rice Yield 98.906 .4.328% -------------------------------------- .H igh_____________________ 97.510__________ 4.925% 98.891 4.387% --------------------------------------- Low.______________________97.490__________ .4.965% 98.898 4.360% ( 1 ) ------------------------------- Average-------------------------------97.497__________ 4.951% (1 ) ( 1 ) These rates are on a bank discount basis. T he equivalent coupon issue yields are 4 .48% for the 91-day bills, and 5.16% 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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated June 22, 1967 Maturing’ December 21,1967 T o : Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________________ Branch E l P a s o 79999 H o u s to n 77001 S a n A n to n io 78206 (D ate) P u rsu an t to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and the provisions of th e public announcement issued by th e T reasu ry D epartm ent, the undersigned offers to purchase T reasu ry bills in the amount shown below, and agrees to pay for th e am ount allotted, on or before the issue date, by the method and a t the ra te indicated. NONCOMPETITIVE TENDER $_____________________________ NOT TO EXCEED $200,000 >0( or less from any one bidder, w ithout stated price, will be accepted in full a t the av e rag e Noncompetitive tenders for $200,000 tei com petitive bids. price (in three decimals) of accepted Prices should be ex pressed on the basis of $ ..... @ COMPETITIVE TENDERS j<' $_______________ @________$_________________ $ $ @ $ -... \ J,00- wit,h n.ot ™or? than th r e e d ec im a l p la c e s , e. g., 99.925. F ractio n s m ust not be used. TEND ERS MAY NOT BE E N TE R E D BY TELEPH O N E. TEND ERS BY W IRE, IF RECEIV ED B EFO RE T H E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces P aym ent fo r this issue of bills cannot be m ade by credit to T reasury T ax and Loan Account. Maturity Value -<® $ (5) $ .<® $ .<© $ METHOD OF PAYM ENT 1,000 □ 5,000 $. 10,000 □ 50,000 s. □ .<® $ 100,000 $. .<© $ 500,000 $. (a) $1.,000,000 $- □ □ 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 perm it present m ent in order to obtain irrevocably collected funds on paym ent date) Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ By m aturing bills held by____________________ Paym ent to be made by_ (Subscriber’s fu ll nam e or corporate title) (Address) Pledge to secure Treasury Tax and Loan Account Ship to------------------------------------------------------ (Authorized official signature and title) ___ (F o r the account of, if tender is fo r another subscriber) (Address) IM PORTANT 1. No tender fo r less th an $1,000 will be considered and each tender m ust be fo r an am ount in m ultiples of $1,000 (m atu rity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or approp riate branch as F iscal A gent of th e U nited States, w ith notation on the envelope reading “T E N D E R FOR TREASURY BILLS”. Since envelopes received w ith this legend will not be opened until a fte r the closing tim e specified in the public announcement, com munications relating to other m a tte rs should no t be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this b ank or appropriate branch. 3. A ny qualified or conditional ten der will be rejected. 4. If a corporation m akes the tender, th e form should be signed by an officer of the corporation authorized to m ake th e tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t he has been so authorized. If the tender is m ade by a p artn ersh ip it should be signed by a m em ber of th e firm, who should sign in th e form “ ......................................................., a copartnership, by...................................................................................f a m em ber of the firm ”. 5. Tenders from those other th an incorporated banks and tr u s t companies or responsible and recognized dealers in in v e st m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to ta l am ount (m atu rity value) of the T reasu ry bills applied for, or unless th e tenders a re accompanied by an express g u ara n ty of full paym ent by a n incorporated bank or tru st company. 6. I f the language of this form is changed in an y respect, which, in the opinion of th e S ecretary of th e T re asu ry i s m aterial, the tender m ay be disregarded. (See reverse for announcem ent)
@FedFRASER