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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

Circular No. 67-79
A pril 19, 1967

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your attention is invited to the fo llow in g statem en t giving details of tw o issues of Treasury bills:
T he 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 April 27, 1967, in the am ount of
$2,303,803,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued April 27, 1967, in th e am ount of $1,300,000,000, or th ere­
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 IL L S 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 aturity value).
T enders will be received at F ederal Reserve Banks and Branches u p to the closing hour, one-thirty p.m., E astern
S tandard Tim e, M onday, April 24, 1967. Tenders will not be received a t the T reasury D epartm ent, Washington. Each
tender must 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
th e 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 the 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 m ay 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 Banks 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. S ettlem ent for
accepted tenders in accordance with the bids m ust be made or completed at the Federal R eserve 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 m ade for differences between the par value of m atur­
ing bills accepted in exchange and the issue price of the new bills.
T he 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 Treasury 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, whether
F ederal or State, but are exempt 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 amount 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.
T reasury D epartm ent Circular No. 418 (current 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 Bank or Branch.

In a cco rd a nce 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 a n d San Antonio up to twelve-thirty p.m., Central Standard Time, M on d ay, April 24, 1967. Tenders may
not b e en tered by t e le p h o n e .
Yours very truly,
W atrous H. Irons
President

LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and A pproxim 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 For----------------------------------------------- $2,174,566,000
$1,300,448,000________________________________ T otal Accepted_________________________________$1,000,578,000
Price
Yield
P rice
Yield
99.016___________ 3.893% __________________________ -High_____________________ 98.009___________ 3.938%
99.009___________ 3.920% __________________________ Low______________________ 97.998_________ _3.960%
99.013___________ 3.905% ( 1 ) ____________________ Average____________________ 98.003___________ 3.950% (1 )
( 1 ) These rates a re on a ban k discount basis. T h e equ iv alen t 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated April 27, 1967

Maturing October 26, 1967

T o: 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 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.

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 ex* ------------------------------------P
pressed on the basis of
S«P---------------------------------

COMPETITIVE TENDERS / $

(d)

$

1°°*

n.ot

than

____________ _____________ ____ ^
v
three decim al p la ces,
f $ ___________________ @ __________ $________________________ e. g., 99.925. Fractions
\
must not be used.
TENDERS MAY NOT BE EN TERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um b er of
Pieces

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

M a tu rity V alue

METHOD OF PAYMENT

_(5) $
_(5) $

1,000 $.
5,000 $.

□

_(o) $
(a) $

10,000 $.
50,000 $.

□

$ 100,000
_(a) $ 500,000 $.
_< $1.,000,000
3>

□
□

By maturing bills
held by
Payment to be made by_

_

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 c l o s e d
draft shall be on latest day which will perm it presen t­
m ent in order to obtain irrevocably collected fu n d s on
paym ent date)

Delivery Instructions:
□
□

Pledge to secure Treasury Tax and
Loan Account
Ship to_________________________

(Subscriber’s fu ll name or corporate title)

Hold in Custody Account—Member
banks for own account only

□

(Address)

gy
(Authorized official signatu re and title)

____
(For the 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 be 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 Agent 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
should sign in the form “
, a copartnership, by...............................................................................
a member of the firm”.
1
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 b y 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.
(S e e reverse fo r announcement)

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