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F ederal Reserve Bank of Dallas


Circular No. 67-121
Ju n e 21, 1967

To All Banking institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the follo w in g sta tem ent giving details o f tw o issues of 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 re a su ry bills m a tu rin g Ju n e 29, 1967, in the am ount of
$2,301,646,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued Ju n e 29, 1967, in th e a m o u n t of $1,300,000,000, or th ere­
abouts, representing an ad d itio n al a m o u n t of bills d a te d M a rc h 30, 1967, a n d to m a tu re S e p te m b e r 28, 1967,
originally issued in the am ount of $1,000,402,000, the a d d itio n al a n d original bills to b e freely interchangeable.
182-DAY B IL L S for $1,000,000,000, or th ere ab o u ts, to be dated Ju n e 29, 1967, and to m ature D e c e m b e r 28, 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 a t m a tu rity th eir face am ount will be payable w ithout interest. T hey 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 a t F ederal R e se rv e B a n k s and B ranches up to the closing hour, one-thirty p.m., E astern
D ay lig ht Saving Tim e, M onday, Ju n e 26, 1967. Tenders will not be received a t the T reasury D epartm ent, Washington. E a c h
ten d er m ust be for an even m ultiple of $1,000, and in the case of co m p e titiv e ten d e rs the price offered m ust be expressed on
th e basis of 100, w ith not 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 printed forms and forwarded in the special envelopes which will b e supplied by F ederal R eserve Banks or B ranches
on application therefor.
B anking institutions generally may subm it tenders for account of customers provided th e names of th e customers are
set forth in such tenders. O thers th an 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 securities. 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 th e 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 F ederal Reserve B anks and Branches, following which
p ublic announcem ent will be m ade 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 th e
rig h t 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 decimals) of accepted co m p e titiv e 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 F ederal R eserve B ank on June 29, 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 29, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents w ill be made for differences between th e par value of m atur­
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 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 Intern al R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ed eral 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. For purposes of taxation the am ount of discount
a t 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 Revenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is not con­
sidered to accrue u n til such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as
cap ital assets. Accordingly, the owner of T reasury bills (other th an life insurance com panies) issued hereunder need include
in his income tax return only th e 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 the taxable year for which th e
re tu rn is made, as ordinary gain or loss.
T reasury D epartm en t Circular No. 418 (curren t revision) and this notice, prescribe th e term s of th e Treasury bills and
govern th e conditions of th e ir issue. Copies of the circular may be obtained from any Federal R eserve 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 a t this b a n k an d its branches a t El Paso,

Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d a y , June 26, 1 967 . Tenders
ftay not b e entered by t ele p h o n e .
Yours very truly,
Wafrous H. Irons
Amount, R ange and A pproxim ate Y ield of Accepted T enders
91-Day Bills
182-Day Bills
D ue S eptem ber 21, 1967
D ue D ecem ber 21, 1967
T otal Applied F or------------$1,957,671,000
$1,300,691,000-------------------------------------------------T otal-A ccepted------------------------------------------------- $1,000,099,000
P rice
3.541% --------------------------------------H igh--------------------------------- 98.069___________ 3.820%
99.094-------------------3.584% ________________
Low_____________98.054___________ 3.849%
99.097------------------- 3.572% ( 1 ) ------------------------------Average-------------------------------98.058___________ 3.841% (1 )
( 1 ) T hese ra te s are on a bank discount basis. T h e eq u ivalen t coupon issue yields a re 3 .6 6 % for th e 91-day bills
th e 182-day bills.

a n d 3 9 8 % for

(S ee reverse for tender form)

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


Dated March 30, 1967

Maturing September 28, 1967

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
B r a n c h _______________________________________________
El Paso 7S999

Houston 77001

San Antonio 78206


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 tenders for $290,009or 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 ­
pressed on the basis of



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

th re^ lL ta X p la^ e?
e. g., 99.925. Fractions’
must not be used.

Denominations Desired
N u m b er of

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) $
<> *
(a) $


1,000 ¥5,000 ¥-




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


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

(A ddress)

Pledge to secure Treasury Tax and____________ ___________________________________
L o a il


Charge our reserve account on payment
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 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 ta in irrevocably collected fu n d s on
p a y m e n t date)

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

By maturing bills
held by____________________
Payment to be made by_

A cC O U nt

Ship to_________________________

(A u th orized official s ig n a tu re a n d title )


(F o r th e acc o u n t of, if te n d e r is f o r a n o th e r sub scrib er)

(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 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 th at 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 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.
(See reverse for announcement)

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