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F ederal r eser ve Ba n k o f D allas


Circular No. 67-183
Septem ber 20, 1967

To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your attention is invited to the follo w in g sta tem ent giving details of tw o issu e s 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 Treasury bills m aturing Septem ber 28, 1967, in the am ount of
$2,300,608,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued Septem ber 28, 1967, in the am ount of $1,400,000,000, or th ere­
abouts, representing an additional am ount of bills dated June 29, 1967, and to m ature D ecem ber 28, 1967,
originally issued in the am ount of $1,000,439,000, 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 Septem ber 28, 1867, and to m ature M arch 28, 1968.
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 w ithout 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).
Tenders will be received a t F ederal R eserve B anks and B ranches u p to th e closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, M onday, Septem ber 25, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. E ach
tender m ust 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 m ay not be used. I t is urged th a t tenders be made
on the printed forms and forwarded in the special envelopes which will be supplied by F ederal Reserve Banks or Branches
on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided th e nam es of th e 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 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 Federal R eserve B anks and Branches, following which
public announcem ent will be m ade 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 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 at 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 Bank on Septem ber 28, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Septem ber 28, 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 atur­
ing bills accepted in exchange and the 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 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, w hether
Federal 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 the U nited States, or by any local taxing authority. For purposes of taxation th e am ount of discount
at which T reasury bills are originally sold by the 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 at 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 than life insurance com panies) issued hereunder need include
in his income tax retu rn 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 ep artm en t 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 their issue. Copies of th e circular may be obtained from any Federal R eserve B ank or Branch.

In acc ord an c e with the a b o v e an n o u n c em en t, tenders will b e received at this b a n k 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 on d ay , S eptem ber 25, 1967. Tenders
may not b e entered by tele p h o n e .
Yours very truly,
Watrous H. Irons
Amount, R ange and Approxim ate Y ield of A ccepted T enders
91-Day Bills
182-Day Bills
D ue D ecem ber 21, 1967
D ue M arch 21, 1968
T otal Applied F or_______________________________ $1,810,078,000
$1,400,007,000________________________________ T otal A ccepted_________________________________$1,000,014,000
98.875____________.4.451% _________________________ H igh______________________97.490__________ 4.965%
98.856____________ 4.526% __________________________Low______________________ 97.462__________ 5.020%
98.865____________ 4.490% ( 1 ) ____________________ Average____________________ 97.473__________ 4.998% (1 )
( 1 ) These rates are on a bank discount basis. T he equivalent coupon issue yields are 4.62% for the 91-day bills, and 5 .21% for
the 182-day bills.

(See reverse side for tender form)

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


Dated S e p te m b e r 28, 1967

M aturing March 28, 1968

T o: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_______________________________ Branch
E l Paso 79999

H ouston 77001

San Antonio 78206

(D ate)

Pursuant to the provisions of T reasury D epartm ent Circular No. 418 (curren t revision) and the provisions of th e
public announcement issued by th e T reasury D epartm ent, the undersigned offers to purchase T reasury bills in the am ount
shown below, and agrees to pay fo r th e am ount allotted, on or before the issue date, by the method and a t th e r a te indicated.

NONCOMPETITIVE TENDER $_____________________________ NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in f u ll a t th e a v e r a g e
price (in three decimals) of accepted com petitive bids.
Prices should be ex­
pressed on th e basis of

COMPETITIVE TENDERS ( $ ------------------------@------------$-----------------------------$
$ ...

tT rer^ecT m aT places"
e. g., 99.925. F ractions
m ust not be used.

Denominations Desired

P aym ent fo r this issue of bills cannot be m ade
bY credit to T reasury T ax and Loan Account.

Number of

M aturity Value

(a) $
(a) $
(a) $

5,000 $
10,000 $ -

(a) $


1,000 $

50,000 $


(a) $ 100,000 $


(a) $ 500,000 $
(5) $ 1 ,000,000 $


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

Charge our reserve account on paym ent
D raft enclosed ( E f f e c t u a l d e liv e r y o f e n c lo se d
draft shall be on latest day which will permit present­
ment in order to obtain irrevocably collected funds on
paym ent date)

(Subscriber’s full name or corporate title)



Pledge to secure Treasury Tax and____________ _________________________________ __


By m aturing bills
held by____________________
Paym ent to be made by_

A cC O U nt

Ship to---------------------------------------

(Authorized official signature and title)

----(F or the account of, if tender is for another subscriber)


1. No tender fo r less th an $1,000 will be considered and each tend er m u st be fo r an am ount in multiples of $1,000 ( m a t u r i t y

2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of th e
United States, w ith notation on the envelope reading “T E N D E R FOR TREASURY BILLS”. Since envelopes received
w ith this legend will not be opened until a fte r the closing tim e specified^ in the public announcement, com munications
relating to other m atters should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank
or app ropriate branch.
3. A ny qualified or conditional ten der will be rejected.
4. If a corporation makes th e tender, the form should be
signed by
an officer of th e corporation authorized to m ake t h e
tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t h e
has been so authorized. If the tender is made by a p artnership it should be signed by a member of the firm, w h o
should sign in the form “......................................................., a copartnership, by.................................................................................. f
a member of th e firm ”.
5. Tenders from those other th an incorporated banks and tr u s t companies or responsible and recognized dealers in in v e st­
m ent securities will he disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity value)
of the T reasury bills applied for, or unless the tenders are accompanied by an express g u ara n ty of full paym ent by an
incorporated bank or tr u s t company.
6. If the language of this form is changed in any respect, which, in the opinion of the S ecretary of th e T r e a s u r y is
m aterial, the tender m ay be disregarded.

(See reverse for announcement)

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