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F ederal reserve b a n k o f Dallas



Circular No. 67-75
April 12, 1967


To Ail Banking Institutions a n d Others Concerned
in t h e Eleventh Federal Reserve District:
Your attention is in vited to the fo llo w in g sta te m e n t giving d etails o f tw o issu e s o f Treasury bills:
The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $2,300,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing April 20, 1S67, in the amount of
$2,302,437,000, as follows:
91-DAY BILLS (to maturity date) to be issued April 20, 1967, in the amount of $1,300,000,000, or there­
abouts, representing an additional amount of bills dated January 19, 1967, and to mature July 20, 1967,
originally issued in the amount of $1,000,906,000, the additional and original bills to be freely interchangeable.
182-DAY BILLS for $1,000,000,000, or thereabouts, to be dated April 20, 1967, and to mature October 19, 1967.
The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will b8 payable without interest. They will be issued in bearer form only, and in
denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard Time, Monday, April 17, 1967. Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered mu3t be expressed on
the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made
on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Banking institutions generally may submit tenders for account of customers provided the names of the customers are
set forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their own account.
Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or
trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the
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, noncompetitive tenders for each issue for $200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for
accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on April 20, 1967, in
cash or other immediately available funds or in a like face amount of Treasury bills maturing April 20, 1967. Cash and
exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of matur­
ing bills accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment,
as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State,
or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454 (b) and
1221 (5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include
in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent
purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

In accord ance with t h e a b o v e an n o u n c em en t, tenders will b e received at this b an k a n d its branches a t El Paso,
Houston a n d San Antonio, up to twelve-thirty p.m ., Central Sandard Time, M o n d a y , April 17, 196 7 . Tenders m a y
not b e en tered b y t e le p h o n e .
Yours very truly,
Watrous H. Irons




Amount, Range and Approximate Yield of Accepted Tenders
91-Day Bills
183-Day Bills
Due July 13, 1967
Due October 13, 1967
Total Applied For----------------------------------------------- $2,002,456,000
$1,300,726,000________________________________ Total Accepted------------------------------------------------- $1,000,485,000
99.047___________ 3.770%__________________________ High----------------------------------98.050___________ 3.836%
99.033___________ 3.825%__________________________ Low---------------------------------- 98.034___________ 3.868%
99.037___________ 3.810% (1 )____________________ Average_____________________98.040___________ 3.856% (1)
( 1 ) These rates are on a bank discount basis. T he equivalent coupon issue yields are 3.91% for the 91-day bills, and 4 .00% for
tfie 183 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 January 19, 1967

Maturing July 20, 1967

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The___________________ B r a n c h __________________________________________________
El Paso 79999

Houston 77001

San Antonio 78206

(D ate)

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 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« $------------------------------ @ ------------------$-------------------------------------pressed on the basis of
COMPETITIVE TENDERS <?----------------------- @-------------$$-------------------------------- JS e^ ecT m aT Jlat^


e. g., 99.925. Fractions
must not be used.



Denominations Desired
Number of

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M aturity V alue

(5) ?
(5) ?



(S $
m $ 50,000 ?
(a) $ 100,000 $
(cb $ 500,000 $
.. (a) $1,000,000 ?
Delivery Instructions:

Hold in Custody Account—Member
banks for own account only
Pledge to secure Treasury Tax and
L oan




By maturing bills
held by_____________________________
Payment to be made by_


Charge our reserve account on payment


| D r a f t e n c l o s e d ( E f f e c t u a l d e liv e r y o f e n c lo s e d
draft shall he on latest day w hich w ill perm it p r e se n t­
m ent in order to obtain irrevocably collected fu nds on
paym ent date)

(Subscriber’s fu ll nam e or corporate title)



______________________ ____________

A cC O U nt

Ship to_________________________



1,000 ?
5,000 ?
10,000 $

(Authorized official signatu re and title)


(For th e account of, if tender is for another subscriber)


1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent 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 invest­
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. 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