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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

7 5 2 ,2 2
Circular No. 67-132
Ju ly 5, 1967

NEW OFFERING — TREASURY BILLS
T All Banking Institutions an d Others Concerned
o
in the 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 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 $2,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Ju ly 13, 1967, in the am ount of
$2,301,511,000, as follows:
92-DAY B ILLS (to m aturity d ate) to be issued Ju ly 13, 1967, in th e am ount of $1,400,000,000, or th e re­
abouts, representing an additional am ount of bills dated A pril 13, 1967, and to m ature O ctober 13, 1967,
originally issued in the am ount of $1,000,657,000, 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 Ju ly 13, 1967, and to m ature Janu ary 11, 1968.
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 their 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 atu rity v alue).
T enders will be received a t Federal Reserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, M onday, Ju ly 10, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. Each
te n der 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. I t 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 R eserve B anks or Branches
on application therefor.
B anking institutions generally m ay subm it tenders for account of customers 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 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 the 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 th e closing hour, tenders will be opened a t th e Federal Reserve Banks and Branches, following which
public announcem ent will be made by the T reasury D epartm ent of th e am ount and price range of accepted bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of th e T reasury expressly reserves the
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 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 th e F ederal R eserve B ank on July 13, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Ju ly 13, 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 a tu 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 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 the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether
F ederal or State, bu t 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 U nited States, or by any local taxing authority. F or purposes of taxation th e am ount of discount
a t which Treasury 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, 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 th e taxable year for which the
retu rn is made, as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (cu rren t revision) and this notice, prescribe th e term s of th e T reasury bills and
govern th e conditions of th e ir issue. Copies of th e circular m ay be obtained from any Federal R eserve B ank or Branch.

In a ccord ance wifh 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 an k a n d its branches at El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Centra! Daylight Saving Time, M on d ay, July 10, 1967. Tenders
'Hay not b e entered b y tele 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 Y ield of Accepted Tenders
91-Day Bills
D ue October 5, 1967
$1,987,996,000..
$1,300,291,000.
P rice
Yield
98.958.
.4.122% ____
.4.391% ____
98.890.
...4,280% (1)_
98.918-

182-Day Bills
D ue Jan uary 4, 1968
T otal Applied F o r-------------------------.$1,699,441,000
T o tal Accepted.
.$1,000,091,000
Price
Y ield
________H igh_____________________97.700...
.....4.549%
________ Low_____________________ 97.565__
.....4.816%
______ Average___________________ 97.616.
.4.716% (1 )

( 1 ) These rates are on a ban k discount basis. T h e equivalent coupon issue yields are 4 .4 0 % for the 91-day bills, and 4 .9 1 % for
th e 182-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 TREASURY BILLS

182 DAYS TO MATURITY
Dated July 13, 1967

Maturing January 11, 1968

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

Houston 77001

75222
____

__________________________

San Antonio 78206

(D ate)

P u rsu an t 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 $200,000or 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

$
()
a
$
COMPETITIVE TENDERS {% _______________ @________$______________________t h r e ^ e S m S ^ a ^
e. g., 99.925. Fractions
$
@
. $...........
I
must not be used.
TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um ber 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

@ $

1,000 $

...

.< > $
§

5,000 $

□

@ $

10,000 $

□

$ 50,000 $
$ 100,000 $
.< > $ 500,000 $
§

□
........ -

held by_
Payment to be made by-

date

□

$1,000,000 $
Delivery Instructions:_________________________ ____
□ Hold in Custody Account—Member
banks for own account only
------

d r a f t sh all be on la te st 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 ob 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 a m e o r co rp o rate title )
(A ddress)

□

Pledge to secure Treasury Tax and____________ __________________________________ _
Loan Account
(A u tho rized official s ig n a tu re a n d title)

□

Ship to_________________________ ______________

(F or th e acco u n t of, if te n d e r is fo r a n o th e r su bscriber)
(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 vest­
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. Tf the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury ig
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