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F ederal 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, TEXAS 75222 C ircu la r No. 67-260 D e c em 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 f o llow in g sta te m e n t giving 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 p u b lic notice, in v ites ten 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, o r thereab o u ts, for cash a n d in exchange for T re a s u ry bills m a tu rin g J a n u a ry 4, 1968, in th e a m o u n t of $2,400,723,000, as follows: o a itw v t CLOSING D ATE FRIDAY, DECEMBER 29, 1 96 7' 91-D A Y B IL L S (to m a tu rity d a te ) to be issued J a n u a ry 4, 1968, 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 O ctober 5, 1967, a n d to m a tu re A pril 4, 1968, o riginally issued in th e a m o u n t of $1,000,305,000, th e a d d itio n a l a n d original bills to b e freely interchangeable. 183-D A Y B IL L S for $1,000,000,000, or thereab o u ts, to be d a te d J a n u a r y 4, 1968, a n d to m a tu re J u ly 5, 1968. T h e bills o f bo th series w ill be issued on a discount 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 rovided, an 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 w ill be issued in b e are r fo rm only, a n d in d e n om inations 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 will be received a t F e d e ra l R e se rv e B anks a n d B ran ch es up 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 29, 1967. T e n d e rs will not be received a t th e T re a s u 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, an d in the case of co 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 b e 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 by F e d e ra l R e se rv e B a n k s or B ran ch es on 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 te n d e rs for a ccount of custom ers p ro v id ed th e nam es of th e custom ers are se t forth in such tenders. O thers th a n ba n k in g in stitu tio n s will n e 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 en d e rs will be received w ith o u t deposit from incorporated banks a n d tru st 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 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 te n 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 in co rp o ra ted b a n k or tru 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 e n ed 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 an n o u n ce m en t will be m ad e b y th e T re a su ry D e p a rtm e n t of th e a m o u n t an 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 c tio 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 w hole or in p a rt, an d his actio n in a n y such re sp e ct shall be final. S u b je c t to these 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 p rice from a n y one b id d er will be accep ted in full a t th e average price (in th re e d ecim als) of a cc ep te d co m p e titiv e bids for th e resp ectiv e issues. S e ttle m e n t for a ccep 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 eserve B a n k on J a n u a r y 4, 1968, in cash or o th e r im m e d ia te ly 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 J a n u a r y 4, 1968. C ash a n d exchange te n d e rs will receive equal tre a tm e n t. Cash 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 a cc ep te d in exchange a n d the issue price of th e new bills. T h e incom e derived 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 have a ny exem ption, as such, an d loss from th e sale o r o th er d isposition 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 are su b je ct to estate, in heritance, gift o r o th er excise taxes, w h e th er F e d e ra l or S ta te , b u t a re e x em p t from all tax a tio n now or h e re a fte r im posed on th e prin cip a l or in te re st th ere o f by a n y State, or an y of th e possessions of th e U n ite d S tates, or b y an 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 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 ) an 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 of discount a t w hich 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, redeem ed 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 a n ies) issued h e re u n d e r need 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 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 or re d e m p tio n a t m a tu rity durin g th e taxable y e a r for w hich th e r e 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 rre n t re v isio n ) a nd th is notice, pre sc rib e th e te rm s of th e T re a su ry bills an d govern th e conditions of th e ir issue. Copies of th e circular 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 an n o u n c em en t, tenders will be received at this b ank a n d its branches at El Paso, Houston and San A ntonio up to twelve-thirty p.m., Central Standard Time, Friday, D ecem ber 29, 1967. Tenders m ay not b e entered by t e le p h o n e . Yours very truly, Wafrous H. Irons President Figures concerning offering of 9 1 -Day Treasury Bills maturing March 28, 1968, a n d 182-Day Treasury Bilis maturing June 27, 1968, not available when this circular was printed. (S e e reverse for tender form) A This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 183 DAYS TO MATURITY D ated Ja n u a ry 4, 1968 M aturing July 5,1988 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The _ B r a n c h El Paso 79999 H ouston 77001 ________________________________________ San Antonio 78206 (Date) P ursu an t to the provisions of T reasu ry D epartm ent Circular No. 418 (current revision) and the provisions of the public announcem ent issued by the T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am ount shown below, and agrees to pay for th e am ount allotted, on or before the issue date, by the method and a t th e ra te indicated. N O T TO EX CEED $200,000 PLEASE OBSERVE CLOSING DATE — FRIDAY, DECEMBER 29, 1967 NONCOM PETITIVE T E N D ER $_ 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 ex1 $___________________@ ___________$________________________pressed on the basis of COMPETITIVE T EN D ER S -------------------------@------------- ?------------------------------ t h r e ^ d ' e c T m S V l a ^ $________________________ e. g., 99.925. Fractions m ust not be used. E X T E N D E R S MAY NOT BE E N TER ED BY TELEPH O N E. TEND ERS BY W IRE, IF RECEIVED B EFO RE THE CLOSING HOUR, ARE ACCEPTABLE. Paym ent fo r this issue of bills cannot be made by credit to T reasury Tax and Loan Account. Denominations Desired N u m b e r of Pieces M a tu rity V alue (a) $ (a) $ (a) $ (a) $ METHOD OF PAYMENT 1,000 $- □ 5,000 $10,000 $. □ 50,000 $(a) $ 100,000 $. (a) $ 500,000 ?. (a) ?1.,000,000 By m atu rin g bills held b y ______________________________ P ay m en t to be m ade by______________ □ C harge our reserve account on payment date | | D r a f t e n c l o s e d ( E f f e c t u a l d e l i v e r y of enclosed d r a f t shall be on la te st day w hich will p e rm it p re sen t m e n t in o rd e r to o b tain irrevocably collected funds on p a y m e n t date) Delivery In stru c tio n s : □ Hold in Custody Account— Member banks fo r own account only □ Pledge to secure T reasury T ax and Loan Account □ Ship to. (S u b scriber’s fu ll nam e o r co rp o rate title ) (A ddress) Bya u t h o r i z e d official s ig n a tu re a n d title) (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 sub scrib er) (A ddress) IM PORTANT 1. No tender for less than $1,000 will be considered and each tend er m ust be for an am ount in multiples of $1,000 (m atu rity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of the United States, w ith notation on the envelope reading “TENDER FOR TREASURY BILLS”. Since envelopes received with this legend will not be opened until a fte r the closing tim e specified in the public announcement, communications relating to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay 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 th e corporation authorized to m ake the tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t he has been so authorized. If the tender is made by a partnership it should be signed by a mem ber of the firm, who should sign in the form “ ....... , a copartnership, b y ................................................................................. . a member of the firm”. 5. Tenders from those other th an incorporated banks and tru st companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity value) of the T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an incorporated bank or tru s t company. 6. If the language of this form is changed in any respect, which, in the opinion of th e S ecretary of the T reasury is m aterial, the tender m ay be disregarded. (See reverse for announcement)
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