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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. 67-248 D e c em b er 11, 1967 NEW OFFERING — TREASURY BILLS To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the follo 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, by th is p u b lic notice, invites ten d e rs for two 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 ereab o u ts, for cash a n d in exchange fo r T re a su ry bills m a tu rin g D e c em b er 21, 1967, in th e a m o u n t of $2,400,015,000, as follows: PLEASE OBSERVE CLOSING DATE F R ID A Y , DECEMBER IS, 7 9 6 7 91-D A Y B IL L S (to m a tu rity d a te ) to be issued D ecem ber 21, 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 a l a m o u n t of bills da te d S e p te m b e r 21, 1967, an d to m a tu re M a rc h 21, 1968, originally issued in th e a m o u n t of $1,000,249,000, th e a d d itio n al an d original bills to be freely interchangeable. 182-DA Y B IL L S for $1,000,000,000, o r th ere ab o u ts, to be d a te d D e c em b er 21, 1967, a n d to m a tu re J u n e 20, 1968. T h e bills of b o th series w ill be issued on a discount basis u n d e r co m p etitiv 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 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 den o m in atio 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 will be received a t F e d e ra l R eserv e B anks an d 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 , F rid a y , D e c em b er 15, 1967. T e n d e rs will 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 even m u ltip le of $1,000, a n d in th e case of c o m p e titiv e te n d e rs th e price 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 ay 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 b e su p p lied by F e d e ra l R e se rv e B an k s or B ran ch es o n a p p lic atio n therefor. B a n k in g in stitu tio n s generally m a y su b m it ten d e rs for a cc o u n t of custom ers p ro v id ed th e na m e s of th e custom ers are se t 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 own account. T e n d e rs will be received w ith o u t deposit from incorporated banks an d tru s t com panies a n d from responsible a n d recognized d ealers in in v e stm e n t securities. T e n d e rs from others m u st be accom panied by p a y m e n t of 2 p e rc e n t of the 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 are acco 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 inco rp o rated b a n k or tr u s t com pany. Im m e d ia te ly a fte r th e closing hour, ten d e rs will be o p en ed a t th e F e d e ral R eserv e B a n k s a n d B ranches, follow ing w hich p u b lic an 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 accepted 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 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 acc ep t or re je c t any or all tenders, in whole or in p a rt, a nd his action in an y such re sp e ct shall be final. S u b je ct to th ese 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 price (in th re e decim als) of a cc ep te d co m p e titiv e bids for th e respective 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 ade or c o m pleted a t the F e d e ra l R e se rv e B a n k on D e c em b er 21, 1967, in cash or o th er im m e d ia tely avafiable funds or in a like face a m o u n t of T re a su ry bills m atu rin g D e c em b er 21, 1967. C ash a n d exchange te n d e rs will receive equal tre a tm e n t. C ash a d ju stm e n ts will b e m ad e for differences b e tw e e n 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 the issue price of th e new bills. T h e incom e d eriv 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 of th e bills, does n o t h a v e an 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 h a 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, gift or o th e r excise taxes, w h e th er F e d e ra l or S tate, b u t are e xem pt from all tax 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 ta te , o r a n y of th e possessions of the U n ited S tates, or b y 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 a re 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 Code 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 are sold, re d ee m e d or otherw ise disposed of, a n 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 re u n d e r n eed include in his incom e tax re tu rn only th e difference b etw een 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 purchase, a n d th e a m o u n t a ctu a lly received e ith e r u p o n sale o r 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 rn is m ade, as o rd in ary gain or loss. T re a su ry D e p a rtm e n t C ircular No. 418 ( c u r re n t rev isio n ) a n d th is notice, p rescrib e 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 circular 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 accordance with the a b o v e an n ou n c em en t, tenders will b e received at this b ank an d its branches at El Paso, Houston an d San Antonio up to twelve-thirty p.m., Central Standard Time, Friday, D ecem ber 15, 1967. Tenders m a y not b e entered by t e le p h o n e . Yours very truly, Watrous H. Irons President Figures concerning offering of 9 1 -Day Treasury Bills maturing March 14, 1968, and 182-Day Treasury Bills maturing June 13, 1968, not available when this circular was printed. (S e e reverse 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 Maturing June 20,1968 Dated December 21,1867 To: Federal Reserve Bank, Station K, Dallas, Texas 7 5 2 2 2 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. _NOT TO EXCEED $200,000 PLEASE OBSERVE CLOSING DATE — FRIDAY, DECEMBER 15, 1967 NONCOMPETITIVE TENDER $_ 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 expressed on the basis of 100, with not more than three decim al p la ces, e. g., 99.925. Fractions must not be used. ^ T E N D E R S 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. Denominations Desired N u m b er of Pieces M a tu rity V alue (a) $ (a) $ @ $ METHOD OF PAYMENT 1,000 $ □ 5,000 $ 10,000 $ □ 50,000 $ ...(® $ 100,000 $ (a) $ 500,000 $ By maturing bills held b y Payment to be made by_________ _ _ (a) $ □ Charge our reserve account on payment date | I Draft enclosed ( E f f e c t u a l d e l i v e r y o f enclosed d r a f t shall be on la te st day w hich will p e rm it p re s e n t m e n t in ord er to o b tain irrevocably collected fu n d s on p a y m e n t date) (5) $1:,000,000 $ Delivery Instructions: □ Hold in Custody Account— Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to___________________________ (S u b scrib er’s fu ll n am e o r c o rp o rate title) (A ddress) By_ (A uth o rized official s ig n a tu re a n d title) (F o r th e a cco un t of, if te n d e r is fo r a n o th e r subscrib er) (A ddress) 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 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 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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