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FEDERAL RESERVE BA NK 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. 67-105
M ay 24, 1967

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is in vited to the f o llo w in g sta te m e n t giving details o f tw o issues o f Treasury bills:
T h e 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 Ju n e 1, 1967, in th e am ount of
$2,309,175,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued Ju n e 1, 1967, in th e am ount of $1,300,000,000, or th ere­
abouts, representing an additional am ount of bills dated August 31, 1966, and to m ature A ugust 31, 1967,
originally issued in th e am ount of $1,000,051,000 (additional am ounts of $500,717,000 and $1,004,485,000
were issued N ovem ber 30, 1966, and M arch 2, 1967,respectively), th e additonal and original bills to be freely
interchangeable.
182-DAY B ILLS (to m aturity d ate) to be issued Ju n e 1, 1967, in th e am ount of $1,000,000,000, or thereabouts,
representing an additional am ount of bills dated November 30, 1966, and to m ature N ovem ber 30, 1967, origi­
nally issued in th e am ount of $900,493,000 (an additional $499,956,000 was issued February 28, 1967), th e
additional and original bills to be freely interchangeable.
T h e bills of b oth series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and a t m atu rity th e ir face am ount will be payable w ithout interest. T hey will be issued in bearer form only, and in
d e n o m i n a t i o n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity v alu e).
T enders will be received at F ederal R eserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, M onday, M ay 29, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. E ach
te n der m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders th e price offered m ust be expressed on
th e basis of 100, w ith no t more th a n three decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be made
on th e prin ted forms and forwarded in th e special envelopes which will be supplied by F ederal R eserve B anks or Branches
on application therefor.
Banking institutions generally may subm it tenders for account of custom ers provided th e names 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 th e ir 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 securities. T enders 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 th e 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 th e F ederal Reserve B anks and Branches, following which
public announcem ent will be made by th e T reasury D epartm ent of th e am ount and price range of accepted bids. Those
subm itting tenders will be advised of th e acceptance or rejection thereof. T h e Secretary of th e T reasury expressly reserves th e
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 a t the average price (in three decim als) 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 m ade or com pleted a t the Federal R eserve B ank on Jun e 1, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Ju n e 1, 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 atu r­
ing bills accepted in exchange and th e 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 Intern al Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ederal or State, b u t are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State,
or any of th e possessions of th e 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 the Internal Revenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is not con­
sidered 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 betw een th e price paid for such bills, w hether on original issue or on subsequent
purchase, and th e am ount actually received either upon sale or redem ption at m aturity during the taxable year for which th e
retu rn is made, as ordinary gain or loss.
T reasury D ep artm ent Circular No. 418 (current revision) and this notice, prescribe th e term s of th e T reasury bills and
govern th e conditions of their issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank or Branch.

In a cc ord an c e 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 ank a n d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d a y , M a y 29 , 196 7 . Tenders
taay not b e entered by tele p h o n e .
Yours very truly,
Watrous H. Irons
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and A pproxim ate Y ield of Accepted Tenders
91-Day Bills
183-Day Bills
D ue A ugust 24, 1967
D ue N ovem ber 24, 1967
$2,080,676,000
T otal Applied F o r----------------------------------------------- $1,664,616,000
$1,300,026,000________________________________ T otal A ccepted------------------------------------------------- $1,000,116,000
Price
Y ield
Price
Yield
99.126
3.458% _________________________ H igh---------------------------------98.138___________ 3.663%
99.110
3.521% __________________________Low--------------------------------- 98.108___________ 3.722%
99.117
3.493% ( 1 ) ____________________ Average.------------------------------ 98.123___________ 3.692% (1 )
( 1 ) T hese ra te s a re on a b an k discount basis. T h e e q uiv alen t coupon issue yields a re 3 .5 8 % for th e 9 1 -d ay bills, a nd 3 .8 3 % for
th e 183-day bills.

(See reverse 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 RILLS

91 DAYS TO MATURITY
Dated August 31, 1966

Maturing August 31, 1967

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

Houston 77001

San Antonio 78208

(Date)

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
)00
ept
price (in three decimals) of accepted competitive bids.
Prices should be ex­
pressed on the basis of

\
A$
(ab._.
$
COMPETITIVE TENDERS <?$_______________ < >
g ________$___________________
-$......

thre^dec^mS^fa^eT
e. g., 99.925. Fractions
must not be used.

-

2® ^ TENDERS MAY NOT BE EN T ER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E
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 a tu rity V alue

METHOD OF P A Y M E N T

-

.. “
---

—

1,000 $.
5,000 $.

□

@ $

__

@ $
@ $

-

10,000 $.

□

@ $ 50,000 $.
@ $ 100,000 $.

□

@ $ 500,000 $.
_ @ $1,000,000 $.

Delivery Instructions:
□
□
□

Hold in Custody Account—Member
banks for own account only
Pledge to secure Treasury Tax and
Loan Account
Ship to---------------------------------------

□

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 l i v e r y o f e n c l o s e d
d r a f t sh a ll be on la te s t day w hich w ill p e rm it p re s e n t­
m e n t in o rd e r to o b ta in irrevocably collected fu n d s on
p a y m e n t date)

___
(S u b sc rib e r’s fu ll n am e o r co rp o rate title )

------

(A ddress)

gy
(A uth o rized official s ig n a tu re a n d title )

------

(F o r the accou nt of, if te n d e r is fo r a n o th e r su b scrib er)

(A ddress)

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 A gent of 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”.
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 value)
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