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FEDERAL RESERVE BANK OF DALLAS FISC AL A G EN T OF THE UNITED STA TES DALLAS, TEX AS 75222 C ircular No. 67-222 N o v e m b er 8, 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 fo llo w in g statem ent giving details of tw o issues of Treasury bills: T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, invites ten d e rs for tw o series of T re a su ry bills to th e aggregate a m o u n t o f $2,500,000,000, or th ere ab o u ts, fo r cash a n d in exchange for T re a s u ry bills m a tu rin g N o v e m b er 16, 1967, in th e a m o u n t of $2,400,412,000, as follow s: 91-D A Y B IL L S (to m a tu rity d a te ) to be issued N o v e m b er 16, 1967, in th e a m o u n t o f $1,500,000,000, or th e re abouts, re p rese n tin g a n a d d itio n al a m o u n t of bills d a te d A u g u st 17, 1967, a n d to m a tu re F e b ru a ry 15, 1968, origi na lly issued in th e a m o u n t of $1,000,569,000, th e ad d itio n al a n d original bills to b e 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 16, 1967, a n d to m a tu re M a y 16, 1968. T h e bills of b o th series will be issued on a discount basis u n d e r co m p e titiv e a n d n o n c o m p e titiv e b idding as h e re in a fte r provided, a n d a t m a tu rity th e ir face a m o u n t will be p a y ab le w ith o u t interest. T h e y will be issued in b e a re r form only, a n d in d e n 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 r ity v a lu e ). T e n d e rs w ill b e received a t F e d e ra l R eserv e B an 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 13, 1967. T e n d e rs w ill n o t 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 ven m u ltip le of $1,000, a nd in th e case of co m p e titiv e ten d e rs th e p rice offered m u st be 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 rg e d t h a t te n d e rs be m a d e on th e p rin te d form s a n d fo rw ard ed in th e special envelopes w hich w ill b e su p p lied b y F e d e ra l R e se rv e B a n k s or B ra n ch e s on a p p lic a tio n therefor. B a n k in g in stitu tio n s generally m a y su b m it te n d e rs for a cc o u n t of custom ers p ro v id ed th e n a m e s of th e custom ers a re se t fo rth in such tenders. O th ers th a n ban 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 e xcept fo r th e ir own account. T e n d e rs will be received w ith o u t deposit fro m in co rp o ra ted ba n k s a n d tr u s t com panies a n d from responsible a n d recognized dealers in in v estm e n t securities. T e n d e rs from o th ers m u st be a ccom panied 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 su ry bills a p p lie d for, unless th e te n d e rs a re a cc 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 tr 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 pened a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich p u b lic a n n o u n ce m en t will be m ad e by th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d p rice range of acc ep te d bids. T hose su b m ittin g ten d e rs will be advised of th e a cc ep ta n ce or re jection th ereof. T h e S e c retary of th e T re a su ry expressly reserves th e rig h t to a cc ep t o r re je c t a n y or a ll ten d ers, in whole or in p a rt, an d his a ction 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 ten d e rs for each issue for $200,000 or less w ith o u t sta te d p rice from a n y one b id d er will be a cc ep te d in full a t th e average p rice (in th re e d ecim als) of accep ted c o m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for a cc ep te d ten d e rs in accordance w ith th e bids m u st be m ad e or com pleted a t th e F e d e ra l R eserv e B a n k on N o v e m b er 16, 1967, in cash or o th er im m e d ia tely a v ailab le funds or in a like face a m o u n t of T re a s u ry bills m atu rin g N o v e m b er 16, 1967. C ash a n d exchange ten d e rs will receive equal tre a tm e n t. C ash a d ju stm e n ts will be m ad e for differences b etw een th e p a r va lu e of m a tu r ing bills a cc ep te d in exchange a n d th e issue price of th e new bills. T h e incom e deriv ed from T re a su ry bills, w h e th er in te re st o r gain fro m th e sale o r o th e r disposition of th e bills, does n o t ha v e a n y exem ption, as such, a n d loss from 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, as such, u n d e r th e In te rn a l R e v en u e Code of 1954. T h e bills are su b je ct to estate, in heritance, g ift or o th er excise taxes, w h e th er F e d e ra l or S tate, b u t a re e x em p t from all tax a tio n now or h e rea fte r im posed on the prin cip a l or in te re st th ere o f by a n y S ta te , or a n y of th e possessions of th e U n ite d S tates, or by a n y local tax in g au 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 which T re a su ry bills a re originally sold by th e U n ite d S tates is considered to be 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 e n u e Code of 1954 th e a m o u n t of discount a t w hich bills issued h e re u n d e r a re sold is n o t con sid e red to accrue u n til such bills a re sold, re d ee m e d or otherw ise disposed of, an d such bills a re excluded from consideration as c ap ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insurance co m p an ies) issued h e reu n d e r n eed include in his incom e tax re tu rn only th e difference betw een th e price p a id for such bills, w h e th er on original issue or on su b seq u e n t purchase, an d th e a m o u n t a ctu a lly receiv ed e ith e r up o n sale or re d e m p tio n a t m a tu rity d u rin g th e tax a b le y e ar for w hich th e re tu r n is m ad e, as o rd in ary gain o r loss. T re a su ry D e p a rtm e n t C ircu la r No. 418 ( c u r re n t re v isio n ) a n d th is notice, p rescrib e th e term s of tire 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 tain e d from a n y F e d e ra l R eserv e B a n k or B ranch. In accord ance with the a b o v e a n n o u n c em en t, tenders will b e received at this b an k a n d its branch es at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, M o n d a y , N ov em b e r 13, 1967. Tenders m ay not b e entered b y 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 ield of A c c ep ted T e n d e rs 91-D ay B ills D u e F e b ru a ry 8, 1968 $2,381,279,000_________________ $1,501,143,000_________________ P ric e Y ield 98.827____________ 4 .6 4 0 % ____ 98.814____________ 4 .6 9 2 % _____ 98.819____________ 4 .6 7 2 % ( 1 ) . —T o ta l A p p lied For.. T o ta l A c c ep ted __ — H ig h — L ow __ .A verage. 182-D ay B ills D u e M a y 9, 1968 _________________ $1,756,372,000 ---------------------------$1,000,242,000 P ric e Y ield .97.406_____________5.131% -97.369_____________5.204% -97.381_____________5.180% ( 1 ) ( 1 ) T h e s e rates a re on bank d iscou nt basis. T h e e q u iv a le n t cou p on issue y ie ld s are 4 .8 1 % for th e 9 1 -d a y bills, and 5 .4 1 % 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 ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated August 17, 1967 Maturing February 15, 1968 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 (Date) 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 tenders for $200,000or less from any one bidder, without stated price, will be accepted in full a t the av e ra g e price (in three decimals) of accepted competitive bids. ( g, /C2\ o Prices should be ex ~ pressed on the basis o f 5.............. .............. @ <cb.__________$$ ________________________ COMPETITIVE TENDERS <[$___________________ ; .... ............- ____ $ .............. th ? e ^ d eel m a7°£l aclX* e. g., 99.925. Fractions must not be used. TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired N um ber Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. of M atu rity V alue (a) ? (5) $ (5) $ (a) $ 1,000 $ 5,000 $ METHOD OF PAYMENT □ .. 10,000 □ 50,000 $ (3> ? 100,000 $ (5) ? 500,000 $ □ □ By maturing bills held by____________ _______________ ___ Paym ent to be made by_ Charge our reserve account on paym ent date Draft enclosed <E f f e c t u a l d e liv e r y o f e n c l o s e d d r a f t nhall be on la te st day w hich will 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 c n p a y m e n t d ate) («) $1 ,000,000 % Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ (S u b sc rib e r’s fu ll n a m e o r c o rp o ra te title ) (A dd ress) By (A uth o rized official s ig n a tu re a n d title ) Ship to___________________________ (F o r th e acc o u n t of, if te n d e r ia f o r a n o th e r subscrib er) (A d d ress) IMPORTANT 1. No tender for less than $1,000 will be considered and each tender must be for a.n 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 bards 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 “......................................................., a copartnership, by................................................................................. a member of the firm”. 5. Tenders from those other than incorporated hanks and trust companies or responsible and recognized dealers in in v est ment securities will be 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 is material, the tender may be disregarded. (See reverse for announcement)
@FedFRASER