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federal
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
75222
Circular No. 67-76
April 12, 1967
NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in t h e Eleventh Federal Reserve District:
Your attention is invited to the f o llo w in g state m e n 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 Treasury bills to th e aggregate am ount
of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing April 20, 1967, in the am ount of
$2,302,437,000, as follows:
91-DAY B ILLS (to m aturity d ate) to be issued April 20, 1967, in th e am ount of $1,300,000,000, or the re
abouts, representing an additional am ount of bills dated Jan uary 19, 1967, and to m ature Ju ly 20, 1967,
originally issued in the am ount of $1,000,906,000, 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 April 20, 1967, and to m ature October 19, 1967.
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 atu rity th eir 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 Federal Reserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern
S tand ard Tim e, Monday, April 17, 1967. Tenders will not be received a t the T reasury D epartm ent, W ashington. Each
ten der 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, w ith not more th an three decimals, e.g., 99.925. Fractions may not be used. I t is urged th a t tenders be m ade
on th e printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
B anking institutions generally may subm it tenders for account of customers provided the names 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 the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t the 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 the am ount and price range of accepted bids. Those
subm itting tenders will be advised of th e acceptance or rejection thereof. T he Secretary of the T reasury 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, 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 decimals) of accepted com petitive bids for th e respective issues. Settlem ent for
accepted tenders in accordance w ith the bids m ust be made or com pleted at the Federal Reserve B ank on April 20, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing April 20, 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 th e 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 the 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 th e Internal R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether
F ederal 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 th e U nited States, or by any local taxing authority. For purposes of taxation the 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 th e Internal Revenue Code of 1954 the 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 the 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
retu rn is made, as ordinary gain or loss.
T reasury D ep artm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the T reasury bills and
govern th e conditions of th eir issue. Copies of th e circular m ay be obtained from any F ederal Reserve B ank or Branch.
In acc o rd 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 an d its branches at 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, 1967. Tenders m ay
not b e entered by t e le p h o n e .
Yours very truly,
Watrous H. Irons
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
Amount, R ange and A pproxim ate Yield of Accepted Tenders
91-Day Bills
183-Day Bills
D ue Ju ly 13, 1967
D ue October 13, 1967
$2,534,169,000
T otal Applied For----------------------------------------------- $2,002,456,000
$ 1,300,726,000________________________________ T otal-Accepted------------------------------------------------- $1,000,485,000
Price
Yield
Price
Yield
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 ra te s a re on a ban k discount basis. T h e eq uiv alen t coupon issue yields are 3 .9 1 % for th e 91-day bills, a n d 4 .0 0 % for
th e 183 d ay bills.
(S ee 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 TREASURY BILLS
182 DAYS TO MATURITY
Dated April 20, 1967
Maturing October 19, 1967
To: Federal Reserve Bank, Station K, Dallas, Texas
or —
The
Branch
E l Paso 79999
Houston 77001
75222
San Antonio 78206
(Date)
Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount
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 e x
pressed on the basis of
$
(a)
$
COMPETITIVE TENDERS { $_______________
@________$___________________
$
@
th S e^ ecT m aT Jfa^
e. g., 99.925. Fractions
must not be used.
$
0 3 P TENDERS MAY NOT BE EN TER ED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um b er 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
(a) $
(a) $
(5) $
METHOD OF PAYMENT
1,000 $
5,000 $
□
10,000 $
50,000 $
□
(a) $
(5) $ 100,000 $
(5) $ 500,000 $
(a) $1 ,000,000 $
Delivery Instructions:
□
□
□
Charge our reserve account on payment
date
Draft enclosed ( 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 be on latest day which w ill perm it p r e se n t
m ent in order to obtain irrevocably collected fu n d s o n
paym ent date)
____
(Subscriber’s fu ll nam e or corporate title)
Hold in Custody Account—Member
banks for own account only
--------------------------------- (Address)
——— --------------
Pledge to secure Treasury Tax and
g y___________________________________
L oan
□
□
By maturing bills
held by______________________ ______
Payment to be made by_
A cC O U nt
Ship to_________________________
(Authorized official signature and title)
____
(For the account of, if tender is for another subscriber)
(Address)
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 th e
United States, with notation on the envelope reading “ T E N D E R F O R T R E A S U R Y 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 th 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 he
has been so_ authorized. If the tender is made by a partnership it should be signed by a member of the firm, w ho
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 v a lu e)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment b y 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)
@FedFRASER