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FEDERAL RESERVE

BANK OF DALLAS

FISCA L. A G E N T O F T H E U N IT E D S T A T E S

D a lla s , T e x a s , D e c e m b e r 2 0 , 1 9 6 6

N E W OFFERING — TREASURY BILLS

To A ll B a n k in g Institutions a n d O th ers C o n ce rn e d
in the Eleventh Fe d e ra l R eserve District:

Y o u r attention is invite d to the fo llo w in g statem ent g iv in g d e ta ils of tw o issu e s o f T re a su ry bills:
T h e T re a su ry D e p a rtm e n t, by th is p u b lic notice, invites te n d e rs fo r tw o series of * re a su ry bills to th e aggregate a m o u n t
of $1,400,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g D e ce m b er 31, 1966, in th e a m o u n t of
$1,001,028,000, as follow s:
270-D A Y B IL L S (to m a tu rity d a te ) to b e issued Ja n u a ry 3, 1967, in th e a m o u n t of $500,000,000, or th e re ­
a bouts, re p re se n tin g a n a d d itio n al a m o u n t of bills dated S e p te m b e r 30, 1966, a n d to m a tu re S e p tem b e r 30, 1967,
o rig in a lly issued in th e a m o u n t of $900,113,000, th e a d d itio n al a n d o riginal bills to b e free ly in terch an g eab le.
365-D A Y B IL L S for $900,000,000, or th ere ab o u ts, to be d a te d D ecem b er 31, 1966, and to m a tu re D e ce m b er 31,
1967.
T h e bills of b o th series w ill b e issued on a d iscount basis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g a s h e re in a fte r
pro v id ed , a n d a t m a tu rity th e ir face a m o u n t will b e p a y ab le w ith o u t in te re st. T h e y w ill b e issued in b e a re r fo rm only, a n d in
d e n o m in a tio n s of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu r ity v a lu e ) .
T e n d e rs w ill b e received a t F e d e ra l R e se rv e B a n k s and B ranches u p to th e closing h o u r, o n e -th irty p.m ., E a s te rn
S ta n d a rd T im e , T u esd ay , D e cem b er 27, 1966. T en d e rs w ill n o t b e receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington.
E a c h te n d e r m u st be for an even m u ltip le of $1,000, and in th e case of c o m p e titiv e te n d e rs th e p rice offered m u st be expressed
on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay n o t b e used. (N o tw ith sta n d in g th e fa c t th a t
th e one-year bills w ill ru n for 365-days, th e discount ra te will b e c o m p u te d on a b a n k d isco u n t basis of 360-days, as is c u rre n tly
th e p ra ctic e on all issues of T re a su ry b ills.) I t is urg ed th a t te n d e rs b e m ad e on th e p rin te d form s a n d forw arded in th e special
envelopes w hich w ill be su p p lied b y F e d e ra l R e se rv e B anks o r B ra n ch e s on a p p lic atio n th erefo r.
B an k in g in stitu tio n s g enerally m ay su b m it ten d e rs for account of custom ers p ro v id ed th e n a m e s of th e cu sto m ers a re
se t fo rth in such ten d e rs. O thers th a n b an k in g in stitu tio n s w ill n o t b e p e rm itte d to su b m it te n d e rs ex cep t for th e ir own a c c o u n t
T e n d e rs w ill b e receiv ed w ith o u t deposit from in co rp o rated b anks a n d tru s t com panies a n d from resp o n sib le a n d recognized
d e alers in in v e s tm e n t securities. T en d e rs from o th ers m u st b e acco m p an ied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of
T re a su ry b ills a p p lie d for, unless th e te n d e rs a re accom panied b y a n express g u a ran ty of p a y m e n t b y a n in co rp o ra te d b a n k en­
tr u s t com pany.
Im m e d ia te ly a f te r th e closing hour, te n d e rs will b e op en ed a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich
p u b lic an n o u n cem en t w ill be m ad e by th e T re a su ry D e p a rtm e n t of tire a m o u n t a n d p rice range of accepted bids. T hose
su b m ittin g ten d ers w ill be advised of th o a cc ep ta n ce or re je ctio n thereof. T h e S e c retary of th e T re a su ry expressly reserves th e
rig h t to a cc ep t or re je c t any or all ten d ers, in w hole or in p a rt, and his a ctio n in a n y su c h re sp e c t shall b e final. S u b je c t to
th ese reserv atio n s, n o n c o m p e titiv e ten d e rs for each issue for $200,000 or less w ith o u t sta te d p rice from a n y one b id d e r w ill be
a cc ep te d in full a t th e average p rice (in th re e d e cim als) of a cc ep te d c o m p e titiv e b id s fo r th e re sp ec tiv e issues. S e ttle m e n t for
a cc ep te d te n d e rs in accordance w ith th e bids m u st b e m ade or c om pleted a t th e F e d e ra l R e se rv e B a n k on Ja n u a ry 3, 1967, in
cash or o th er im m e d ia tely av ailab le funds or in a lik e face am o u n t of T re a su ry bills m a tu rin g D e ce m b er 31, 1956. C ash and
exchange te n d e rs will receive e q u a l tre a tm e n t. C ash ad ju stm e n ts w ill b e m ad e for differences betw een th e p a r v a lu e of m atu rin g
b ills a cc ep te d in exchange a n d th e issue p rice of th e new bills.
T h e incom e d e riv e d from T re a su ry bills, w h e th er in te re s t or gain from th e sale o r o th e r disposition of th e bills, does no t
h a v e any exem ption, as such, a n d loss from th e sale or o th er disp o sitio n of T re a su ry bills does n o t h a v e a n y special tre a tm e n t,
as such, u n d e r th e In te rn a l R e v en u e C ode of 1954. T h e bills a re su b je c t to e state, in h eritan c e, g ift or o th e r excise taxes, w h eth er
F e d e ra l or S ta te , b u t a re e x em p t from all ta x a tio n now or h e re a fte r im p o sed on th e p rin cip al or in te re s t th ere o f b y a n y S ta te ,
o r a n y of th e possessions of th e U n ite d S ta te s, or b y a n y local taxing a u th o rity . F o r p u rp o ses of ta x a tio n th e a m o u n t of d iscount
a t w hich T re a su ry bills a re originally sold by th e U n ite d S ta te s is co n sid ered to be in te re st. U n d e r S ections 454 ( b ) a n d 1221 ( 5 )
of th e In te rn a l R e v en u e Code of 1954 th e a m o u n t of discount a t w hich b ills issued h e re u n d e r a re sold is n o t considered to
accru e u n til such bills a re sold, re d ee m e d or o therw ise disposed of, a n d such bills a re excluded fro m c o n sid era tio n as c a p ita l
assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life in su ran ce c o m p an ies) issued h e re u n d e r n eed in clu d e in his
incom e ta x re tu rn only th e difference b e tw ee n th e p ric e paid for such bills, w h eth er on original issue o r on su b seq u e n t p urchase,
an d th e a m o u n t a c tu a lly received e ith e r u p o n sale or re d e m p tio n a t m a tu rity d u rin g th e ta x a b le y e a r fo r w hich th e re tu rn is
m ade, as o rd in ary gain or loss.
T re a su ry D e p a rtm e n t C ircu lar N o. 418 (c u rre n t re v isio n ) a n d th is notice, p re scrib e th e term s of th e T re a su ry b ills a n d
govern th e co n d itio n s of th e ir issue. C opies of th e c irc u la r m ay be o b tain e d from a n y F e d e ra l R eserv e B a n k o r B ran ch .

In acc o rd a n ce w ith the a b o v e a n n o u n ce m e n t, tenders w ill b e received a t this b a n k a n d its b ra n c h e s a t El Paso,
H o u sto n a n d 5 a n A n to n io , up to tw elve -thirty p.m., Central S ta n d a rd Time, T u e sd a y, D e c e m b e r 27, 1966. Tenders
m a y not b e entered b y te lephone.

Yours very truly,
Watrous H. Irons
President

(See reverse side 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 ADDI1ION TO TREASURY BILLS

270 DAYS TO MATURITY
Dated September SO, 1966

Maturing September 30, 1967

To: Federal Reserve Bank, Station K, Dallas, Texas
or —
The_____________________________ Branch
El P aso 79999

H ouston 77001

75222
______

San A ntonio 78206

(Dnte)

P u rsu an t to th e provisions of T reasu ry D epartm ent C ircular No. 418 (cu rren t revision) and th e provisions of the
public announcem ent issued by th e 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 and a t th e ra 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
full at the average price (in three decim als) of accepted com petitive bids.
h !H
*• • _
Prices should be ex_
pressed on the basis of

$
I®
s
COMPETITIVE TENDERS ($---------------------- @----------- $---------------------------- th w decTmaT^i.?” .
e. jr., 99.925. Fraction.,
....................................... @
$
....................................m ust n o t be used.
■x

B ST TEND ERS MAY NOT BE E N TE R E D BY T E L E P H O N E . TEN D ER S BY W IR E, IF RECEIV ED B E FO R E THE
CLOSING HOUR, ARE ACCEPTABLE.
Denom inations D esired
N u m b e r of
Piecea

P aym ent fo r th is issue of bills cannot be m ade
by credit t o T reasu ry T ax and Loan Account.

M a tu rity V alue

$

1 ,0 0 0

$

5,000

METHOD OF PAYM ENT

$.

$

a

n y m atu rin g bills
held by_
|— P ay m en t to be m ade by_
|
________________________
□ C harge our reserve account on paym ent
date
!~|
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

$ 10,000 $
$ 50,000_$______________
.(a) $ l O O O O n ___________
_(g) $ 500,000 O
---------------------

@

q»-< v, v *. , j '
$ ± ,U U v J ,v v y * y -----------------------------------------------------------------

D elivery In stru ctio n s:
□ Hold in C ustody Account— M ember
banks fo r own account only
□ Pledge to secure T re asu ry T ax and
Loan A ccount

d ra ft sh a ll be on la te s t day w h ich w ill p e r m it p reaentm en t in ord er to o b ta in irrev o ca b ly co llected
p a y m en t d a te)

___
(S u b sc rib e r’s fu ll n a m e o r c o rp o ra te title )

-----

(A ddress)

j$v____________________________________
(A uthorized official s ig n a tu re a n d title )

□ Ship to_
( F o r the a c c o u n t o f, i f ten d er is f o r a n o th e r su b scrib er)

(A d d ress)

IM PORTANT
1. No tender fo r less th a n $1,000 will be considered and each tender m u st be fo r an am ount in m ultiples of $1,000 (m atu rity
value).
2. Tenders should be forw arded in an envelope clearly addressed to this bank or ap p ro p riate branch as Fiscal A gent of the
United S tates, w ith notation on the envelope reading “TEN D ER FOR TREASURY BILLS”. Since envelopes received
w ith this legend will not be opened until a f te r the closing tim e specified in the public announcem ent, com munications
relating to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank
or appropriate branch.
3. A ny qualified or conditional tender will be rejected.
4. If a corporation m akes the render, th e form shoulc he signed by an officer of the corporation authorized to m ake the
tender and the signing of th e form by an officer of the corporation will be construed as a representation by him th a t he
has bee;, so authorized. If the tender is m ade by a p artn ersh ip it should be signed by a member of the firm , who
should sign in th e form “..............................................
,acopartnership, 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 th e to ta l am ount (m atu rity value)
of th e T reasu ry bills applied for, or unless th e tenders are accompanied by an express g u ara n ty of full p ay m en t by an
incorporated bank or tru s t company.
6. If the language of th is form is changed in any respect, which, in the opinion of th e S ecretary of th e T re asu ry 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