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F ederal reserve Bank of Dallas


Circular 67-11
Jan u ary 18, 1967

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 sta te m e n t giving d etails of tw o issu es of Treasury bills:
T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to th e aggregate am ount
of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Jan u ary 26, 1967, in th e am ount of
$2,302,000,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued January 26, 1967, in the am ount of $1,300,000,000, or th e re­
abouts, representing an additional am ount of bills dated October 27, 1966, and to m ature April 27, 1967,
originally issued in the am ount of $1,000,479,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated Jan u ary 26, 1967, and to m ature Ju ly 27, 1967.
T he bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as h ereinafter
provided, and a t m aturity their face am ount will be payable without interest. They will be issued in bearer form only, and in
denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity value).
Tenders will be received at F ederal R eserve B anks and B ranches up to th e closing hour, one-thirty p.m., E astern
S tandard Tim e, M onday, Janu ary 23, 1967. T enders will not be received at the T reasury D epartm ent, W ashington. Each
ten der m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders the price offered m ust be expressed on
th e basis of 100, with not more th an three decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be m ade
on th e printed forms and forwarded in th e special envelopes which will be supplied by Federal R eserve Banks or Branches
on application therefor.
Banking institutions generally may subm it tenders for account of customers provided the nam es of th e customers are
set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for their own account.
T enders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securites. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after th e closing hour, tenders will be opened a t the Federal Reserve B anks and Branches, following which
public announcem ent will be m ade by th e T reasury D ep artm en t of the am ount and price range of accepted bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of th e T reasury expressly reserves the
rig ht to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to
these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be
accepted in full a t the average price (in three decim als) of accepted com petitive bids for th e respective issues. Settlem ent for
accepted tenders in accordance with th e bids m ust be m ade or com pleted a t th e Federal Reserve B ank on Jan u ary 26, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Jan u ary 26, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m atur­
ing bills accepted in exchange and the issue price of th e new bills.
T h e income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of th e bills, does not
have any exemption, as such, and loss from th e sale or other disposition of T reasury bills does not have any special treatm ent,
as such, under th e Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether
F ederal or State, b u t are exem pt from all taxation now or hereafter im posed on the principal or interest thereof by any State,
or any of th e possessions of the U nited States, or by any local taxing authority. F or purposes of taxation th e am ount of discount
a t w hich T reasury bills are originally sold by th e U nited States is considered to be interest. U nder Sections 454 (b ) and 1221 (5 )
of th e Internal Revenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is not considered to
accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, th e owner of T reasury bills (other than life insurance com panies) issued hereunder need include in his
income tax retu rn only th e difference between th e price paid for such bills, w hether on original issue or on subsequent purchase,
and the am ount actually received eith er upon sale or redem ption at m aturity during th e taxable year for which th e retu rn is
m ade, as ordinary gain or loss.
T reasury D epartm en t Circular No. 418 (cu rren t revision) and this notice, prescribe the term s of th e T reasury bills and
govern th e conditions of th eir issue. Copies of th e circular may be obtained from any Federal R eserve B ank or Branch.

In acc o rd a n c e with the a b o v e an n o u n c em en t, fenders will b e received c t this b ank a n d its branches at El Paso,
Houston a n d San Antonio, up to tw elve-thirty p.m., Centra! Standard Time, M o n d a y , January 2 3 , 1967. Tenders m ay
not b e entered by te le p h o n e .
Yours very truly,
Watrous H. Irons

Amount, R ange and A pproxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue A pril 20, 1967
D ue Ju ly 20, 1967
T o tal Applied F or_______________________________ $2,593,707,000
$1,301,474,000________________________________ T otal-A ccepted------------------------------$1,000,776,000
P rice
Y ield
Y ield
4.684% __________________________ H igh______________________ 97.637___________ 4.674%
4.727% __________________________ Low______________________ 97.627___________ 4.694%
4.716% ( 1 ) ____________________ Average____________________ 97.631___________ .4.686% (1 )
( 1 ) T hese rates are on a b an k discount basis. T h e e q uiv alent coupon issue yields are 4 .8 4 % fo r th e 91-day bills,
th e 182-day bills.

(See reverse side for tender form)

and 4 .8 7 %



This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Maturing April 27, 1967

Dated October 27, 1966
T o: Federal Reserve Bank, Station K, Dallas, Texas
El Paso 79999

Houston 77001


San Antonio 78206

(D ate)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e
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


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 e x ­
pressed on the basis o f
100, with not more than
three decim al p la c e s,
e. g., 99.925. Fractions
a ...
$........... .-.must not be used.
Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

Denominations Desired
N u m b e r of

M a tu r ity V alue

.<> $
(a) $
(a) $


1,000 $.
5,000 ?-


10,000 $50,000 $-


(a) $
(a) $ 100,000 $M $ 500,000 $■
@ $1,000,000 ?.

By maturing bills
held by__________________________
Payment to be made by___________


Charge our reserve account on payment
| I 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 sh all be on la te st day w hich w ill p e rm it p r e s e n t­
m e n t in o rd e r to o b tain irrevocably collected fu n d s o n
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 n am e o r c o rp o ra te title)

Hold in Custody Account—Member
banks for own account only


(A ddress)


Ship to_________________________

(A uthorized official sig n a tu re and title)

(F o r th e a cco u n t of, i f te n d e r is f o r a n o th e r subscriber)

(A ddress)

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 aturity
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of th e
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 th e
tender and the signing of the form by an officer of the corporation will be construed as a representation by him that h e
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who
,a copartnership,by...........................................................................
should sign in the form “.............................................
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 valu e)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by a n
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 js
material, the tender may be disregarded.
(See reverse for announcement)

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102