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F ederal Reserve B ank 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. 67-179 Septem ber 13, 1967 NEW OFFERING — TREASURY SILLS To All Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the fo llo w in g sta te m e n t giving d etails of t w o issu es 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 the am ount of $2,300,149,000, as follows: 91-DAY B IL L S (to m aturity date) to be issued Septem ber 21, 1967, in the am ount of $1,400,000,000, or there abouts, representing an additional am ount of bills dated Ju n e 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 he 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. 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 value). Tenders will be received a t Federal Reserve Banks and Branches u p to the closing hour, one-thirty p.m., E astern D aylight Saving Tim e, Monday, Septem ber 18, 1967. T enders will not be received a t th e Treasury 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 th e 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 th e 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 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 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 th e closing hour, tenders will be opened a t th e 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 th e acceptance or rejection thereof. T h e Secretary of th e 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 decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t the Federal Reserve 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 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 he income derived from T reasury bills, whether interest or gain from th e 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 h e bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but 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 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 th e am ount of discount at 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 retu rn only the difference between the 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 th e taxable year for which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (cu rren t revision) and this notice, prescribe th e term s of the T reasury bills and govern, the conditions of their issue. Copies of th e circular may be obtained from any F ederal R eserve B ank or Branch. In acc o rd a n c e with the a b o y e an n o u n c em en t, fenders will b e received at this b a n k a n d its branches at El Paso, Houston an d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M on d a y, S eptem ber 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 Approxim 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 o r_______________________________ $1,792,995,000 $1,400,021,000------------------------------------------------- T otal A ccepted_________________________________$1,000,073,000 Price Y ield Price Yield 98.906 .4.328% -------------------------------------- H igh______________________97.510___________ 4.925% 98.891 4.387% _________________________ l o w _______ 97.490___________ 4.965% 98.898 4.360% ( 1 ) ------------------------------ A verage____________________ 97.497___________ 4.951% (1 ) ( 1 ) These rates are on a bank discount basis. The 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) TENDERS FOR TREASURY BILLS 182 DAYS TO MATURITY M aturing March 21,1968 Dated September 21,1967 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_______________________________ Branch E l Paso 79999 H ouston 77001 (D ate) San Antonio 78206 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 E X C E E D $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full a t the average price (in three decimals) of accepted competitive bids. / _ ^ Prices should be ex1$---------------------------- @ ---------------- $---------------------------------------- pressed on the basis of (a) COMPETITIVE TENDERS <$----------------------- @-------------$ $----------------------------$ $ - @ - ..... $ - .................. - ................- ................................ e. g., 99.925. Fractions must not be used. 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. D enominations D esired Number of Pieces M aturity Value (fib $ (a) $ 5,000 $- <a $ 10,000 $ . (a) $ METHOD OF PAYMENT 1,000 $ 50,000 $ □ - □ □ @ $ 100,000 $ _ (fib $ 500,000 $ □ 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 se d draft shall be on latest day which will permit present m ent in order to obtain irrevocably collected funds on paym ent date) (a) $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_ Ship to--------------------------------------- (Authorized official signature and title) (F or the account of, if tender is for another subscriber) (Address) IM PORTANT 1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity 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 specifi_ed_ 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, who should sign in the form “................................ ,acopartnership,by......... , a member of the firm”. 5. Tenders from those other than incorporated hanks 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 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 fo r announcem ent)