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F ederal Reserve Bank of Dallas



Circular 67-12
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 tem en t giving details of tw o issu e s of Treasury bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for two series of Treasury 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 ILLS for $1,000,000,000, or thereabouts, to be dated Jan uary 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 hereinafter
provided, and at m aturity th eir 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).
T enders will be received a t Federal Reserve Banks and Branches u p to the closing hour, one-thirty p.m., E astern
Standard Tim e, M onday, Jan u ary 23, 1967. T enders will not be received a t th e T reasury D epartm ent, Washington. E ach
tender m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on
the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged th a t tenders be made
on th e printed forms and forwarded in th e special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
B anking institutions generally may subm it tenders for account of customers provided the nam es of th e customers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for
their own account.
Tenders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securites. Tenders from others m ust be accompanied by paym ent of 2 percent of th e 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 the closing hour, tenders will be opened a t the F ederal Reserve B anks and Branches, following which
public announcem ent will be made by th e T reasury D epartm ent of the am ount and price range of accepted bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T he Secretary of the T reasury expressly reserves the
right 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 at the average price (in three decimals) of accepted com petitive bids for th e respective issues. S ettlem ent for
accepted tenders in accordance with th e bids m ust be made or com pleted a t th e Federal Reserve Bank on January 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 made for differences between the par value of m atu r­
ing bills accepted in exchange and the issue price of th e new bills.
T he income derived from T reasury bills, w hether interest or gain from the sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatm ent,
as such, under th e Internal R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether
F ederal or State, but are exem pt from all taxation now or hereafter imposed on the principal or interest thereof b 3' any State,
or any of the possessions of the United States, or by any local taxing authority. F or purposes of taxation the am ount of discount
at which 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 R evenue Code of 1954 the 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, the owner of T reasury bills (other than life insurance com panies) issued hereunder need include in his
income tax return only the difference between th e price paid for such bills, whether on original issue or on subsequent purchase,
and the am ount actually received either upon sale or redem ption at m aturity during th e taxable year for which the return is
made, as ordinary gain or loss.
T reasury D epartm en t Circular No. 418 (curren t revision) and this notice, prescribe the term s of th e T reasury bills and
govern th e conditions of their issue. Copies of the circular may be obtained from any Federal Reserve B ank or Branch.

In a cco rd ance with the a b o v e a n n o u n c em en t, tenders will b e received at this b an k a n d its branches at El Paso,
Houston a n d San A ntonio, up to tw elve-thirty p.m., Central Standard Time, M o n d ay, January 2 3 , 1967. Tenders m ay
not be entered by te le p h o n e .
Yours very truly,
Watrous H. Irons

A mount, R ange and Approxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue April 20, 1967
D ue Ju ly 20, 1967
T otal Applied F or_______________________________ $2,593,707,000
$1,301,474,000________________________________ T otal_A ccepted_________________________________$1,000,776,000
Y ield
4.684% _______ _
H igh__________________ 9 7.63 7____________ 4.674%
4.727% __________________________ Low______________________ 97.627___________ 4.694%
4.716% ( 1 ) ____________________ Average____________________ 97.631___________ 4.686% (1 )
( 1 ) These rates a re on a b an k discount basis. T h e eq uivalent coupon issue yields are 4 .8 4 % for th e 91-day bills, a n d 4 .8 7 % for
th e 182-day bills.

(See reverse side for tender form)

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


Dated January 26, 1967

Maturing July 27, 1967

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The___________________ B r a n c h __________________________________________________
El Paso 79999

Houston 77001

San Antonio 78206

(D ata)

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.

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.
Prices should be e x 1'P------------------------------ (£P--------------- <----------- -----------------------p
pressed on the basis o f
COMPETITIVE TENDERS <?------------------------ (a)
@------------$$-------------------------------- tT ^ d ed lL T p ta lle?





........................ -

e. g., 99.925. Fractions
must not be used.

Denominations Desired
N u m b er o f

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M a tu rity V alue


(a) $
(a) $

1,000 $
5,000 $


(a) $
(a) ?

10,000 $
50,000 $


(a) $ 100,000 $
(a) $ 500,000 $
(a) $1.,000,000 $


By m aturing bills
held by________________________
Paym ent to be made by.


Charge our reserve account on paym ent
C] D raft 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 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 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 u b scrib er’s fu ll n am e o r co rp o rate title)

Hold in Custody Account—Member
banks for own account only


(A ddress)

(A uthorized official s ig n a tu re and title)

Ship t o _ ----------------------------------(F o r th e a cco u nt of, if te n d e r is fo 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, w h o
should sign in the form “
, a copartnership, by................................................................................
a member of the firm”.
5. 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 value )
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by aa
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
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