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FEDERAL 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

Circular No. 67-78
April 19, 1967

NEW OFFERING — TREASURY BILLS
To All B anking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your attention is invited to the fo llo w in g sta tem ent giving d etails of tw o is sues of Treasury bills:
T he T reasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount
of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills maturing April 27, 1967, in the am ount of
$2,303,803,000, as follows:
91-DAY B ILLS (to m aturity date) to be issued April 27, 1967, in the am ount of $1,300,000,000, or there­
abouts, representing an additional am ount of bills dated January 26, 1967, and to m ature Ju ly 27, 1967,
originally issued in the am ount of $999,932,000, the additional and original bills to be freely interchangeable.
182-DAY B ILLS for $1,000,000,000, or thereabouts, to be dated April 27, 1967, and to m ature October 26, 1967.
T h e 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 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).
T enders will be received a t Federal Reserve Banks and Branches u p to the closing hour, one-thirty p.m., E astern
S tandard Tim e, Monday, April 24, 1967. Tenders will not be received a t the T reasury D epartm ent, Washington. E ach
tender must be for an even multiple of $1,000, and in the case of com petitive tenders the price offered must 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 at tenders be made
on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Banking institutions generally may subm it tenders for account of customers provided the names of the 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.
T enders will be received without deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securities. Tenders from others must be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless the tenders are accompanied 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 Federal Reserve B anks and Branches, following which
public announcem ent will be made by the Treasury 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 Treasury 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, noncompetitive 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 the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be made or completed at the Federal Reserve Bank on April 27, 1967, in
cash or other im m ediately available funds or in a like face amount of T reasury bills m aturing April 27, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m a tur­
ing bills accepted in exchange and the issue price of the new bills.
T h e income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other disposition of T reasury bills does not have any special treatm ent,
as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ederal or State, but are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State,
or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the am ount of discount
at which Treasury bills are originally sold by the U nited States is considered to be interest. Under Sections 454 (b ) and
1221 (5 ) of the Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redeemed 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 the price paid for such bills, w hether on original issue or on subsequent
purchase, and the am ount actually received either upon sale or redem ption a t m aturity during th e taxable year for which the
retu rn is made, as ordinary gain or loss.
Treasury D epartm ent 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 their issue. Copies of the circular may be obtained from any Federal Reserve B ank or Branch.

In acco rd a nce with the a b o v e a n n o u n c em en t, tenders will b e received at this bank a n d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Standard Time, M o n d a y, April 24, 1967. Tenders may
not b e entered by t e le p h o n e .
Yours very truly,
Watrous H. Irons
President

LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and Approxim ate Yield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue Ju ly 20, 1967
D ue October 19, 1967
$2,510,751,000
T otal Applied F or----------------------------------------------- $2,174,566,000
$1,300,448,000________________________________ T o tal Accepted------------------------------------------------- $1,000,578,000
Price
Yield
P rice
Yield
99.016____________3.893% _________________________ -High_____________________ 98.009____________ 3.938%
99.009___________ 3.920% ___________________________L o w _ ____________________ 97.998___________ 3.960%
99.013___________ 3.905% ( 1 ) _____________________Average____________________ 98.003___________ 3.950% (1 )
( 1 ) These rates are on a ban k discount basis. T h e eq uivalent coupon issue yields are 4 .0 1 % for th e 91-day bills, a n d 4 .1 0 % for
th e 182-day bills.

(S ee 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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated January 26, 1967

Maturing July 27, 1967

To: Federal Reserve Bank, Station K, Dallas, Texas
or —
The_______________________________ Branch
El Paso 79999

Houston 77001

75222
___________________________________ _

San Antonio 78206

(Data)

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 in dicated

NONCOMPETITIVE TENDER $_____________________________ NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
/
Prices should be ex1$ -----------------------------@ ---------------- $ ------------------------------------pressed on the basis of

COMPETITIVE TENDERS

------------------------@------------$------------------------------

plates

I $___________________ @ __________ $ _______________________ e. g., 99.925. Fractions
\
’
must not be used.
E g 5 TENDERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
"
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired

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

Number of
Pieces

M aturity V alue

@ $
@ $

METHOD OF PAYMENT

1,000 ?.
5,000 $.

□

@ $ 10,000
@ $ 50,000
_
@ s 100,000
______ @ $ 500,000 *
- @ $1,000,000 $

□
□
□

□

Pledge

t o secure
L o a n AcCOUnt

Treasury Tax

Charge our reserve account on payment
date
Draft enclosed ( E f f e c t u a l d e liv e r y o f e n e lo a e d
draft shall be on latest day which will perm it p r e se n t­
m ent in order to obtain irrevocably collected fu n d s on
paym ent date)

Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□

By maturing bills
held by____________________
Payment to be made by.

and

Ship to_________________________

(Subscriber’s fu ll name or corporate title)

(Address)

______________________________________________
(Authorized official signature and title)

____

(For th e account of, if tender is for another subscriber)

(Address )

IMPORTANT
1. No tender for less than $1,000 will be considered and each tender must he for an amount in multiples of $1,000 (m aturity
value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent o f 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
, 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 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)

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