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F ederal R eserve Bank of Dallas


Circular No. 67-212
October 25, 1967

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llo w in g state m e n 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 T reasury bills to the aggregate am ount
of $2,500,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing N ovem ber 2, 1967, in th e am ount of
$2,405,296,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued N ovem ber 2, 1967, in the am ount of $1,500,000,000, or there­
abouts, representing an additional am ount of bills dated A ugust 3, 1967, and to m ature February 1, 1968, origi­
nally issued in th e am ount of $1,000,357,000, th e additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,000,000,000, or thereabouts, to be dated November 2, 1967, and to m ature M ay 2, 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 a t 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 value).
T enders will be received a t F ederal Reserve B anks and B ranches up to th e closing hour, one-thirty p.m., E astern
S tandard Tim e, M onday, October 30, 1967. T enders will n o t be received a t th e T reasury D epartm ent, W ashington. E ach
te nd er m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders th e price offered m ust be expressed on
th e basis of 100, with 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 th e special envelopes which will be supplied by B'ederal Reserve B anks or Branches
on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided the nam es 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 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 accom panied by paym ent of 2 percent of the face am ount of
T reasu ry bills applied for, unless th e tenders are accom panied by a n 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 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 the acceptance or rejection thereof. T he Secretary of the 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 th e average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance with the bids m ust be m ade or com pleted a t th e F ederal R eserve B ank on November 2, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing N ovem ber 2, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m atu r­
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 the sale or other disposition of the bills, does not
have any exem ption, 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 Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ed eral or State, but 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 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 R evenue 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 retu rn only the difference between 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 a t m aturity during th e taxable year for which the
re tu 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 the Treasury bills and
govern the conditions of th e ir issue. Copies of th e circular may be obtained from any F ederal R eserve B ank or Branch.

In a ccord ance 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 a t El Paso,
Houston an d San Antonio up to twelve-thirty p.m ., Central Standard Time, M on d ay , October 30, 1967. Tenders may
not b e entered by t e le p h o n e .
Yours very truly,
Watrous H. Irons
Amount, R ange and Approxim ate Yield of A ccepted T enders
91-Day Bills
182-Day Bills
D ue Jan u ary 25, 1968
D ue A pril 25, 1968
$2,756,896,000______________________________ .T otal Applied F o r______________________________ $1,964,262,000
$1,501,090,000________________________________ T o tal A ccepted_________ ———__________________ $1,000,558,000
P rice
98.841___________ .4.585% __________________________ High_____________________ 97.421___________ 5.101%
98.836___________ .4.605% ___________________________ Low_____________________ 97.402___________ 5.139%
.4.597% ( 1 ) ____________________ A v e r a g e - ________
97.409____________ 5.125% (1 )
(1 ) These rates are on bank discount basis. T he equivalent coupon issue yields are 4.73% for the 91-day bills, and 5.35% 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 August 3, 1967

M aturing February 1, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The______________________________ Branch
E l Paso 79999

Houston 77001

San Antonio 78206

(D ate)

P ursuant to the provisions of T reasury D epartm ent Circular No. 418 (current revision) and th e provisions of th e
public announcem ent issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasury bills in the am ount
shown below, and agrees to pay fo r the am ount allotted, on or before the issue date, by the method a n d 'a t the r a te 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-------------- v---- — ---------------------------- pressed on th e basis of


It --------------------@---------- $--------------------------

/ $ ------------------------------@ -------------- $ ________________________ e. g., 99.925. F ractions
m ust not be used.
Paym ent fo r this issue of bills cannot be made
by credit to T reasury T ax and Loan Account.

Denominations Desired
Number of

Maturity Value


(2) $
(5) $

1,000 $
5,000 $


(a) $
(a) $

10,000 $
50,000 $


(5) $ 100,000 $
(a) $ 500,000 $
(a) $1:,000,000 $


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

Pledge to secure Treasury Tax and
Loan Account
Ship to_________________________


By m aturing bills
held by____________________
Paym ent to be made by_
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 e ed
d r a f t shall be on latest day which will permit present­
m e n t in order to obtain irrevocably collected funds on
payment date)

(Subscriber’s full name or corporate title)



(Authorized official signature and title)


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



1. No tender for less th a n $1,000 will be considered and each tender m ust be fo r an am ount in multiples of $1,000 (maturity
2. Tenders should be forw arded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent of the
United States, w ith notation on th e envelope reading “T E N D E R FOR TREA SU RY BILLS”. Since envelopes received
w ith this legend will not be opened u ntil a f te r the closing tim e specified in the public announcement, communications
relating to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from this bank
or appropriate branch.
3. A ny qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of th e corporation authorized to m ake the
tender and the signing of the form by an officer of th e corporation will be construed as a representation by him th a t he
has been so authorized. I f the tender is m ade by a partn ersh ip it should be signed by a m em ber of th e firm, who
should sign in the form “ ......................................................., a copartnership, by ......
a member of the firm”.
5. Tenders from those other th an incorporated banks and tr u s t companies or responsible and recognized dealers in invest­
m ent securities will be 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 tru st company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of th e T re asu ry is
m aterial, the tender may be disregarded.

(See reverse for announcement)

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