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FEDERAL RESERVE BANK OF DALLAS FISC AL A G EN T OF THE UNITED STA TES DALLAS, T EX AS 75222 C ircu la r No. 67-219 N o v e m b er 1, 1967 NEW OFFERING— TREASURY BSLLS To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the f o llo w in g sta tem ent giv ing details of tw o is sues of Treasury bills: T h e T re a su ry D e p a rtm e n t, b y th is public notice, invites te n d e rs for tw o series of T re a su ry bills to th e aggregate a m o u n t of $2,500,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g N o v e m b er 9, 1967, in th e a m o u n t of $2,400,354,000, as follows: 91-D A Y B IL L S (to m a tu rity d a te ) to be issued N ovem ber 9, 1967, in th e a m o u n t of $1,500,000,000, or th e re abouts, re p re se n tin g a n ad d itio n al a m o u n t of b ills dated A ugust 10, 1967, a n d to m a tu re F e b ru a ry 8, 1968, origi n a lly issued in th e a m o u n t of $1,000,492,000, th e a d d itio n al a n d original bills to be freely interchangeable. 182-D A Y B IL L S for $1,000,000,000, or th ere ab o u ts, to be d a te d N o v e m b er 9, 1967, a n d to m a tu re M a y 9, 1968. T h e b ills of b o th series w ill be issued on a disco u n t basis u n d e r co m p e titiv e a n d n o n co m p e titiv e b id d in g as h e re in a fte r p ro v id ed , a n d a t m a tu r ity th e ir face a m o u n t w ill b e p a y ab le w ith o u t in terest. T h e y w ill b e issued in b e a re r form only, a n d in d en o m in a tio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu rity v a lu e ). T e n d e rs w ill b e received a t F e d e ra l R e se rv e B a n k s a n d B ra n ch e s u p to th e closing hour, o n e -th irty p.m ., E a s te rn S ta n d a rd T im e , M onday, N o v e m b er 6, 1967. T e n d e rs will not be received a t th e T re a su ry D e p a rtm e n t, W ashington. E ac h te n d e r m u st be for a n e v en m u ltip le of $1,000, a n d in t h e case of c o m p e titiv e ten d e rs th e p rice offered m u s t b e expressed on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m a y n o t be used. I t is u rged t h a t te n d e rs be m ad e o n th e p r in te d form s a n d fo rw arded in th e special envelopes w hich w ill b e su p p lied by F e d e ra l R e se rv e B a n k s o r B ra n ch e s o n a p p lic a tio n th erefor. B a n k in g in stitu tio n s g enerally m a y su b m it te n d e rs for a cc o u n t o f custom ers p ro v id ed th e n a m e s of th e custom ers a re s e t fo rth in such tenders. O thers th a n b a n k in g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs ex ce p t for th e ir own account. T e n d e rs w ill be received w ith o u t d e p o sit fro m in co rp o ra ted b a n k s a n d t r u s t com panies a n d from responsible a n d recognized d e a le rs in in v e s tm e n t securities. T e n d e rs fro m o th ers m u s t be acco m p an ied by p a y m e n t of 2 p e rc e n t of th e face a m o u n t of T re a s u ry bills a p p lie d for, unless th e te n d e rs a re acc o m p an ied b y a n express g u a ran ty of p a y m e n t b y a n in co rp o ra ted b a n k or t r u s t com pany. Im m e d ia te ly a f te r th e closing hour, te n d e rs will b e o p e n ed a t th e F e d e ra l R eserve B a n k s a n d B ranches, follow ing w hich p u b lic a n n o u n c e m e n t w ill be m ad e by t h e T re a s u ry D e p a rtm e n t of th e a m o u n t a n d p ric e range of a cc ep te d bids. T h o se su b m ittin g te n d e rs w ill b e advised of th e a cc ep ta n ce or re je ctio n th ereo f. T h e S e c retary of th e T re a su ry expressly reserves th e rig h t to a c c e p t or re je c t a n y or a ll ten d ers, in w hole or in p a rt, a n d his actio n in a n y such re sp e ct shall be final. S u b je ct to th e s e reservations, n o n c o m p e titiv e te n d e rs for each issue for $200,000 or less w ith o u t sta te d price fro m a n y one b id d e r w ill be a c c e p te d in fu ll a t th e average p rice ( in th re e de cim als) of a cc ep te d c o m p e titiv e bids for th e re spective issues. S e ttle m e n t for a c c e p te d te n d e rs in accordance w ith th e bids m u st b e m a d e o r co m p le te d a t th e F e d e ra l R e se rv e B a n k on N o v e m b er 9, 1967, in cash or o th e r im m e d ia te ly a v ailab le funds or in a lik e face am o u n t of T re a su ry bills m atu rin g N o v e m b er 9, 1967. C ash a n d e xchange te n d e rs will receive equal tre a tm e n t. C ash a d ju stm e n ts w ill b e m ad e for differences be tw ee n th e p a r va lu e of m a tu r in g bills a c c e p te d in exchange a n d th e issue p rice of th e new bills. T h e incom e d e riv e d from T re a s u ry bills, w h e th e r in te re st o r gain fro m th e sale or o th e r disposition of th e bills, does n o t h a v e a n y exem ption, as such, a n d loss fro m th e sale or o th e r disposition of T re a su ry bills does n o t ha v e a n y special tre a tm e n t, a s such, u n d e r th e I n te rn a l R e v en u e C ode of 1954. T h e bills a re su b je c t to estate, in h eritan ce, g ift o r o th e r excise taxes, w h e th er F e d e ra l or S ta te , b u t a re ex em p t from a ll ta x a tio n now o r h e re a fte r im posed on th e p rin cip a l or in te re st th ere o f b y a n y S ta te , o r a n y of th e possessions of th e U n ite d S ta te s, or b y a n y local tax in g a u th o rity . F o r purposes of ta x a tio n th e a m o u n t of discount a t w hich T re a su ry b ills a re originally sold b y th e U n ite d S ta te s is considered to b e interest. U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e Code of 1954 th e a m o u n t of disco u n t a t which bills issued h e re u n d e r a re sold is n o t con sid e red to a ccrue u n til such bills a re sold, re d ee m e d or otherw ise disposed of, a n d such bills a re excluded from con sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insurance com panies) issued h e re u n d e r n e ed in clude in his incom e ta x re tu rn only th e difference be tw ee n th e price p a id for such bills, w h e th er on original issue or on su b seq u en t p u rch ase, a n d th e a m o u n t a ctu a lly receiv ed e ith e r u p o n sale or re d e m p tio n a t m a tu rity durin g th e ta x a b le y e ar for w hich th e r e tu r n is m ad e, as o rd in a ry gain or loss. T re a su ry D e p a rtm e n t C ircu la r No. 418 (c u rre n t revision) a n d th is notice, p rescribe th e te rm s of th e T re a su ry bills a n d govern th e conditions of th e ir issue. C opies of th e c irc u lar m a y be o b ta in e d from a n y F e d e ra l R e se rv e B a n k or B ranch. In accord ance wifh the a b o v e a n n o u n c em en t, tenders will b e received at this bank a n d its branches a t El Faso, Houston a nd San Antonio up to twelve-thirty p.m., Centra! Standard Time, M o n d ay , N o v em b e r 6, 1967. Tenders m ay not b e entered by te le p h o n e . Yours very truly, Watrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS A m ount, R a n g e a n d A p p ro x im ate Y ie ld of A ccepted T e n d e rs 9 1 -D a y B ills D u e F e b ru a ry 1, 1968 182-D ay Bills D u e M a y 2, 1968 $2,285,239,000____________________________ Total A pplied For_____________________________$1,911,604,000 $1,500,564,000______________________________ T o ta l A c c ep ted _______________________________$1,000,004,000 Price Y ield Price Y ield 98.860___________ .4.510%_______________________ High_____________________97.453___________ 5.038% 98.848___________ .4.557%________________________ L ow _____________________ 97.442___________ 5.060% 98.852___________ 4.542% ( 1 ) __________________ .Average ___________________ 97.450___________ 5.044% (1) ( 1 ) T h e s e ra tes are on b ank d iscount basis. T h e eq u iv a le n t coupon issue y ie ld s are 4 .6 7 % for t h e 9 1 -d a y b ills, an d 5 .2 6 % for th e 18 2 -d a y bills. (S e e 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 182 DAYS TO MATURITY Dated November 9, 1967 Maturing May 9, 1968 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or The__________________ _ B r a n c h ______________________________________________ ______ El 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 offersto 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 ex pressed on the basis of i-------------------------@________ (cb COMPETITIVE TENDERS $____________________ $ tSe^decTm aT^lac^ e. g., 99.925. Fractions ; .......... @ . .. $ . .. must not be used. K ir 3 TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N u m b er of P ieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M a tu rity V alue (a) $ (2) $ (a) $ METHOD OF PAYMENT 1,000 $5,000 $. □ 10,000 $50,000 $- □ (a) $ (5) ? 100,000 ?. (a) $ 500,000 $. □ □ By maturing bills held by__________ Payment to be made by_ Charge our reserve account on payment date Draft enclosed ( E f f e c t u a l d e n v e r y o f e n c lo s e d d r a f t shall be on la te st day which will p e rm it p re s e n t m en t in o rder to obtain irrevocably collected fu n d s o d p a y m e n t d ate) .(a) $1 ,000,000 $. Delivery Instructions: ____ (S u b sc rib e r’s fu ll nam e o r co rp o rate title) □ Hold in Custody Account— Member banks for own account only-------------------------- ------ □ Pledge to secure Treasury Tax and Loan Account g y _____________________________________ Ship to----------------------------------------- ------ □ (A d d ress) (A u th o rized official s ig n a tu re a n d title ) ( F o r the a cco u n t of, if te n d e r is fo r a n o th e r su b scriber) (A d d ress) 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 (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 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 officerof 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 “......................................................., 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 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 for announcement)
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