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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, T EX AS 75222 C ircular No. 67-234 N o v e m b er 22, 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 follo w in g sta tem ent giving details of tw o issues o f Treasury bills: T h e T re a su ry D e p a rtm e n t, by th is p u b lic notice, invites te n d e rs for two 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, fo r cash a n d in exchange for T re a su ry bills m atu rin g N o v e m b er 30, 1967, in th e a m o u n t of $3,801,885,000, as follows: 91-D A Y B IL L S (to m a tu rity d a te ) to b e issued N ovem ber 30, 1967, in th e a m o u n t of $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 F e b ru a ry 28, 1967, a n d to m a tu re F e b ru a ry 29, 1968, originally issued in the a m o u n t of $901,029,000 (a d d itio n al a m o u n ts of $500,040,000 a n d $1,001,441,000 w ere issued M a y 31, 1967, a n d A ugust 31, 1967, re sp e c tiv e ly ), th e a d d itio n al a n d original bills to be freely interchangeable. 183-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 30, 1967, in th e a m o u n t of $1,000,000,000, or th e re abouts, re p rese n tin g an ad d itio n al a m o u n t of bills d a te d M a y 31, 1967, a n d to m a tu re M a y 31, 1968, origi n a lly issued in th e a m o u n t of $900,146,000 (a n a d d itio n a l $500,686,000 was issued A u g u st 31, 196 7 ), th e a d d itio n al a n d original bills to be freely interchangeable. T h e bills of both 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 id d in g as h e re in a fte r pro v id ed , a nd a t m a tu rity th eir face a m o u n t will be p a y ab le w ithout interest. T h e y will be issued in b e are r form only, a n d in de 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 ac u rity v a lu e ). T e n d e rs will be received a t F e d e ral R eserve B an k s and B ranches 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 27, 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 a c h ten d e r m u st be for an even m u ltip le of $1,000, an d in the case of co m p e titiv e ten d e rs th e price offered m u st be expressed on th e basis of 100, w ith not m ore th a n th ree decim als, e.g., 99.925. F ra c tio n s m ay not be used. I t is urged th a t ten d e rs be m ade on the p rin te d form s a n d fo rw arded in th e special envelopes w hich will be su p p lied by F e d e ra l R eserve B anks or B ranches on a p p lic atio n therefor. B an k in g in stitu tio n s generally m ay su b m it ten d e rs for account of custom ers pro v id ed th e nam es of th e custom ers are se t fo rth in such tenders. O thers th an banking in stitu tio n s will not be p e rm itte d to su b m it ten d e rs except for th eir own account. T e n d e rs will be received w ithout deposit from inco rp o rated banks a n d tru s t com panies an d from responsible a n d recognized dealers in in v estm e n t securities. T e n d e rs from others 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 ten d e rs a re acco m p an ied by a n express gu aran ty of p a y m e n t by a n in co rp o ra ted bank or tru 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 opened a t th e F e d e ra l R eserve B an k s an d B ranches, follow ing w hich p u b lic an n o u n ce m en t will be m ade by the T rea su ry D e p a rtm e n t of th e a m o u n t a n d price range of accepted bids. T hose su b m ittin g ten d e rs will be advised of the a ccep tan ce or rejectio n thereof. T h e S e cretary of th e T re a su ry expressly reserves th e rig h t to accept or re je ct any or all tenders, in whole or in p art, an d his a ction in a ny such resp ect shall be final. S u b je ct to th ese reservations, n o n co m p etitiv e ten d e rs for each issue for $200,000 or less w ith o u t sta te d price from an y one bid d er will be a cc ep te d in full a t the average price (in th re e decim als) of acc 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 be m ad e o r com pleted 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 30, 1967, in cash or o th e r 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 su ry bills m a tu rin g N o v e m b er 30, 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 a d e for differences betw een th e p a r value of m a tu r ing bills a cc ep te d in exchange an d th e issue price of th e new bills. T h e incom e derived from T rea su ry bills, w h e th er in te re st or gain from 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 nd loss from the sale or o th e r disposition of T re a su ry bills does n o t h a v e a ny special tre a tm e n t, as such, under the In te rn a l R evenue Code of 1954. T h e bills are su b je ct to estate, in heritance, g ift or o th e r excise taxes, w h e th er F e d e ra l or State, b u t a re ex em p t from all tax a tio n now or h e rea fte r im posed on th e prin cip al or in te re st th ereo f by a n y S tate, or an y of th e possessions of th e U n ite d S tates, or by an y local tax in g au th o rity . F o r purposes of tax a tio n th e a m o u n t of discount a t w hich T re a su ry bills are 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 the In te rn a l R e v en u e Code of 1954 th e a m o u n t of discount a t which bills issued h e reu n d e r a re sold is not con sidered to accrue u n til such bills a re sold, red eem ed or otherw ise disposed of, an d such bills a re excluded from consideration 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 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 the 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 purch ase, a n d th e a m o u n t a ctu ally received e ith e r up o n sale or re d e m p tio n a t m a tu rity durin g th e tax a b le y e ar fo r which th e r e tu rn is m ade, as ord in ary gain o r loss. T re a su ry D e p a rtm e n t C ircular No. 418 (c u rre n t rev isio n ) a n d th is notice, p rescribe th e term s of th e T re a su ry bills a n d govern th e conditions of th eir issue. C opies of th e c ircular m ay be o b tain e d from an y F e d e ra l R eserv e B a n k or B ranch. 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 an k a n d its branches at El Faso, Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, M o n d a y , N o v em b e r 27, 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 ield of A ccepted T e n d e rs 91-D ay B ills 181-D ay B ills D u e F e b ru a ry 23, 1968 D u e M a y 23, 1968 $3,037,913,000________________________________ T o ta l A pplied F o r________________________________ $2,289,430,000 $1,500,395,000___________________________________T o ta l A c c ep ted ___________________________________$1,000,010,000 P ric e Y ield P ric e Y ield 98.751 4 .9 4 1 % ___________________________.H ig h _______________________ 97.255____________ 5 .460% 98.735 5 . 0 0 4 % ___________________________ L o w ________________________97.204____________ 5.561% 98.739 .4.989% ( 1 ) _____________________ A verage______________________ 97.226_____________5.517% ( 1 ) ( 1 ) T h ese rates are on bank d iscount basis. T h e eq u iv a le n t coupon issue y ie ld s are 5 .1 4 % for th e 9 1 -d a y b ills, and 5 .7 7 % for th e 1 8 1 -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 183 DAYS TO MATURITY Dated May 31, 1967 Maturing May 3 1 ,1 9 6 8 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________________Branch El Paso 79999 Houston 77001 San Antonio 78206 (D a te ) 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 am ount shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated. N ON COM PETITIVE T E N D E R $______________________________ NOT TO EX CEED $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. (A _ . Prices should be ex 9 5----------------------------- (Cp-------------- —-----------------------------------pressed on the basis of COMPETITIVE TEN D ER S @ h i $----------------------------- \ $----------- @ _________ $________________________ 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 u m b e r of Pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account. M a tu rity V alue .& ? (a) $ 1,000 * 5,000 s. _____________ METHOD OF PAYMENT □ 10,000 * 50,000 $ □ (3> $ 100,000 $. (5) ? 500,000 t □ (a) $ @ $ □ By maturing bills h e ld by__________________________ ___ Payment 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 . a d d r a f t shall be on la te st day which 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 funds on p a y m e n t d ate) $1 ,000,000 $Delivery Instructions: □ □ Pledge to secure Treasury Tax and Loan Account (S u b sc rib e r’s fu ll nam e o r c o rp o ra te title) Hold in Custody Account—Member banks for own account only □ (A ddress) By (A u th o rized official s ig n a tu re and title) Ship to___________________________ ( F o r th e acco u n t of, if te n d e r is f o r a n o th e r su bscriber) (A dd ress) IMPORTANT l. 2. 3. 4. 5. 6. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 ( m a tu rity value). 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. Any qualified or conditional tender will be rejected. If a corporation makes the tender, the form should besigned by an officer of the corporation authorized tomake 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”.................................................................................................................................................................................... .......... Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in v e s t 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 g i incorporated bank or trust company. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury jo material, the tender may be disregarded. (See reverse for announcement)
@FedFRASER