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F ederal Reserve Bank of Dallas FISC AL AG ENT OF THE UNITED STA TES DALLAS, TEXAS 75222 C ircular No. 67-239 N o v e m b er 29, 1967 NEW OFFERING — TREASURY BILLS To All Bonking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to fhe fo llo w in g state m e n t giving d etails 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, in vites 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 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 atu rin g D e c em b er 7, 1967, in th e a m o u n t of $2,401,536,000, as follows: 91-D A Y B IL L S (to m a tu rity d a te ) to b e issued D e c e m b e r 7, 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 an a d d itio n al a m o u n t of bills d a te d S e p te m b e r 7, 1967, a n d to m a tu re M a rc h 7, 1968, origi n a lly issued in th e a m o u n t of $1,001,208,000, 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 b e d a te d D e c em b er 7, 1967, a n d to m a tu re J u n e 6, 1968. T h e bills of b o th series w ill b e issued on a discou nt basis u n d e r c o 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 p rovided, a n d a t m a tu r ity th e ir face a m o u n t will be p a y a b le w ith o u t interest. T h e y v/ill be issued in b e a re r form only, a n d in den o m in atio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 an 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 eserv e B a n k s a n d B ran ch es 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, D e c em b er 4, 1967. T e n d e rs w ill n o t b e received a t th e T re a su ry D e p a rtm e n t, W ashington. E a c h te n d e r m u st b e for a n e ven m u ltip le of $1,000, a n d in th e case of c o 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 ree 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 th a t ten d e rs be m ad e on th e p rin te d form s a n d forw arded in th e special envelopes w hich w ill be su p p lied b y F e d e ra l R e se rv e B a n k s or B ranches on a p p lic atio n therefor. B a n k in g in stitu tio n s generally m ay su b m it te n d e rs for a ccount of custom ers p ro v id ed th e n a m e s of th e custom ers are set fo rth in such tenders. O thers th a n ba n k in g in stitu tio n s will n o t be p e rm itte d to su b m it ten d e rs e xcept for th e ir ow n account. T e n d e rs will be received w ith o u t deposit from in co rp o ra ted ba n k s an 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 oth ers m u st be accom panied b y 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 a ccom panied b y a n express gu 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 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 w ill b e o p e n ed a t th e F e d e ra l R eserv e B an k s a n d B ranches, follow ing w hich public an n o u n ce m en t w ill 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 accep ta n ce or re je ctio n thereof. 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 or re je c t a n y or all ten d ers, in w hole or in p a r t, a n d his a ction in a n y such re sp e ct shall be final. S u b je c t to these 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 p rice from a n y one b id d e r will be accep ted in full a t th e a verage price (in th re e decim als) of a cc ep te d c o m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for accep ted ten d e rs in accordance w ith th e bids m u st be m ad e or c o m pleted a t th e F e d e ra l R e se rv e B a n k on D e c em b er 7, 1967, in cash or o th er im m e d ia tely available funds or in a like face a m o u n t of T re a su ry bills m a tu rin g D e c e m b e r 7, 1967. C ash an d exchange ten d e rs w ill receive equal tre a tm e n t. C ash a d ju s tm e n ts will be m ad e for differences b etw een th e p a r value of m a tu r ing bills acc ep te d in exchange an 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 or gain from th e sale or o th e r disposition o f th e bills, does n o t ha v e an y exem ption, as such, a nd loss from th e sale or o th er disposition of T re a su ry bills does n o t have 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 a re subject to estate, inheritance, gift 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 ta x a tio n now or 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 tate, 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 p urposes 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 ta te s 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 en u e C ode of 1954 th e a m o u n t o f discount a t which bills issued h e re u n d e r are sold is n o t con sidered 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 fro m 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 a n ies) issued h e reu n d e r n eed include in his incom e ta x 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, a n d th e a m o u n t actu a lly received e ith e r u p o n sale or re d em 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 rn is m ade, as o rd in a ry gain or loss. T re a su ry D e p a rtm e n t C ircular No. 418 (c u rre n t re v isio n ) a n d th is notice, p rescrib e th e term s o f 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 ircular m a y be o b tain 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 accordance with the a b o v e a n n o u n c em en t, tenders will be received at this bank a n d its branches a t El Paso, Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, M on d ay, D ecem ber 4, 196 7. Tenders m ay not be en tered b y te le p h o n e . Yours very truly, Watrous H. Irons President LAST PREVIOUS OFFERING OF TREASURY BILLS Am ount, Range and Approxim ate Y ield of Accepted Tenders 91-D ay Bills 183-Day B ills D u e February 29, 1968 D u e M ay 31, 1968 $2,703,895,000 .Total A pplied For_________________________________ $2,145,009,000 $1,500,590,000__________________________________ .Total_A ccepted___________________________________ $1,001,131,000 Price Y ield Price Y ield 98.752 4.937% ___________________________ H igh_______________________ 97.206____________ 5.496% 98.743 .4.973% ___________________________ Low________________________97.182____________ 5.544% 98.747 4.957% ( 1 ) _____________________ A verage______________________97 .186_____________5.536% ( 1 ) ( I ) T h ese rates a re on bank d iscou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 5 .1 0 % for th e 9 1 -d a y b ills, an d 5 .7 9 % for th e 1 8 3 -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 December 7, 1967 Maturing June 6, 1968 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________________Branch El Paso 79999 Houston 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 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. COMPETITIVE TENDERS Prices should be ex pressed on the basis of 100, with not more than three d ecim al p la c e s, e. g., 99.925. Fractions must not be used. -@ - E X T E N D E R S 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 METHOD OF PAYMENT 1,000 □ 5,000 10,000 □ By maturing bills held b y ____________________ Payment to be made by_ 50,000 □ 100,000 500,000 | I Charge our reserve account on paym ent date Draft enclosed ( E f f e c t u a l d e l i v e r y o f en clo se d $1,000,000 d r a f t sh all 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 rder to o b tain irrevocably collected funds on p a y m e n t date) Delivery Instructions: □ □ Pledge to secure Treasury Tax and Loan Account (S ub scrib er’s fu ll nam e o r co rpo rate title) Hold in Custody Account— Member banks for own account only □ (A ddress) 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 is fo r a n o th e r su bscriber) (A ddress) IM P O R T A N T 1. 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). 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 b a n k or appropriate branch. 3. Any qualified or conditional tender will he 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, b y ............................................................................... a member of the firm”. 5. Tenders from those other than incorporated banks 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 v alu 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 i s material, the tender may be disregarded. (See reverse for announcement)
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