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F ederal Reserve Bank of Dallas


C ircular No. 67-90
M ay 3, 1967

To All Banking Institutions a n d Others Concerned
in t h e Eleventh Federal Reserve District:
Your attention is invited to the follo w in g sta te m e n t giving d etails of tw o issues o f Treasury bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount
of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M ay 11, 1967, in the am ount of
$2,300,030,000 as follows:
91-DAY B IL L S (to m aturity d ate) to be issued M ay 11, 1967, in the am ount of $1,300,000,000, or there­
abouts, representing an additional am ount of bills dated F ebruary 9, 1967, and to m ature August 10, 1967,
originally issued in th e am ount of $1,000,116,000, th e additional and original bills to be freely interchangeable.
182-DAY B ILLS for $1,000,000,000, or thereabouts, to be dated M ay 11, 1967, and to m ature N ovem ber 9, 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 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 at F ederal R eserve Banks and Branches up to th e closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, M onday, M ay 8, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. E ach
te n d er m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders th e price offered m ust be expressed on
th e basis of 100, w ith n ot 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 prin ted forms and forwarded in th e special envelopes which will be supplied by F ederal R eserve Banks or Branches
on application therefor.
Banking institutions generally m ay subm it tenders for account of custom ers provided th e names of th e customers are
set forth in such tenders. O thers th an banking institutions will not be perm itted to subm it tenders except for th eir own account.
T enders w ill 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 the closing hour, tenders will b e opened a t th e Federal Reserve Banks 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 h e Secretary of th e 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 th e average price (in th ree decim als) 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 a t th e Federal R eserve Bank on M ay 11, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M ay 11, 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 atu 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 th e bills, does not
have any exem ption, as such, and loss from th e sale or other disposition of T reasury bills does n ot have any special treatm ent,
as such, under th e In ternal Revenue Code of 1954. T he 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 th e principal or interest thereof by any State,
or any of th e possessions of the U nited States, or by any local taxing authority. F o r purposes of taxation th e am ount of discount
a t which T reasury bills are originally sold by th e U nited States is considered to be interest. U nder Sections 454 (b ) and
1221 (5 ) of th e Internal R evenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is n ot 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, th e 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 ep artm en t Circular No. 418 (current revision) and this notice, prescribe th e term s of th e T reasury bills and
govern th e conditions of th eir issue. Copies of th e circular m ay be obtained from any Federal R eserve B ank or Branch.

In accordance with the a b o v e a n n o u n c e m e n t tenders will be received at this bank a n d its branches at El Paso,
Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M on d a y, M a y 8, 19 6 7 . Tenders
may not b e en tered b y t e le p h o n e .
Yours very truly,
W atrous H. Irons

Amount, R ange and Approxim ate Y ield of A ccepted T enders
91-Day Bills
182-Day Bills
Due A ugust 3, 1967
D ue N ovem ber 2, 1967
$2,102,943,000-----------------------------------------------T o ta l Applied F or_______________________________ $1,812,100,000
$1,300,686,000------------------------------------------------- T o tal Accepted_____________________
P rice
Y ield
Y ield
3.719% ----------------------------------------H igh------------------------------- 98.038____________ 3.881%
3.786% ---------------------------------------- Low------------------------------- 98.016____________ 3.924%
3.770% ( 1 ) --------------------------------Average.---------------------------- 98.025____________ 3.907% (1 )
( 1 ) These ra te s are on a b a n k discount basis. T h e e q u iv alen t coupon issue yields are 3 .8 7 % for th e 9 1-d ay bills, a n d 4 .0 5 % for
th e 182-day bills.

(See reverse for tender form)

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


Dated May 11, 1967

Maturing November 9, 1967

To: Federal Reserve Bank, Station K, Dallas, Texas
or —
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 hills 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.

.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 ex1 $ ----------------------------- @ -----$ ------------------------------------pressed on the basis of


------------------------@------------ $----------------------------1$___________________ @ __________ $ ________________________

J S e ^ e S m a T p fa 'J S !
e. g., 99.925. Fractions
must not be used.

Denominations Desired
N u m b er o t

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

M a tu rity V alue

(2) $
.(a) ?
.(a) $
.(5) $



5,000 *
10,000 $.


50,000 $(5) $ 100,000 $.
.(5) $ 500,000 $(2) $1,000,000


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 l o s e d
d r a f t sh a ll be on la te s t day w hich w ill p e rm it p r e s e n t­
m e n t in o rd e r to o b ta in irrevocably collected fu n d s on
p a y m e n t date)

Delivery Instructions:

Hold in Custody Account—Member
banks for own account only


Pledge to secure Treasury Tax and
Loan Account


(S ub scrib er’s fu ll n a m e o r co rp o rate title )

(A ddress)

B y.
(A uthorized official s ig n a tu re a n d title)

Ship to______________________ ___

(F o r th e acco u n t of, if te n d e r is f o r a n o th e r su bscriber)
(A ddress)

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
Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal A gent o f 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.
Any qualified or conditional tender w ill he rejected.
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 th at 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”.
Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in v est­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity valu 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.
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)