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FEDERAL RESERVE BANK OF DALLAS
F IS C A L A G EN T O F T H E U N ITED STA TES

D allas, T exas, D e ce m b er 20, 1966

NEW

O F F E R IN G — T R E A S U R Y BILLS

To A ll B a n k in g Institu tions a n d O th e rs C o n ce rn e d
in the E leventh Fed e ra l R e se rve 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 o f 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, b y th is p u b lic notice, invites te n d e rs for tw o series of T re a su ry bills to th e ag g reg ate 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 ­
ab o u ts, 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 te m b e r 30, 1967,
orig in ally issued in th e a m o u n t of $900,113,000, th e additio n al a n d original bills to b e free ly interch an g eab le.
365-D A Y B IL L S for $900,000,000, or th e re a b o u ts, to b e d a te d D ecem b er 31, 1966, a n d 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 isco u n t ba sis 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 as 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 w ill b e p a y a b 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 receiv ed a t F e d e ra l R e se rv e B a n k s and B ran ch es 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 ce m b er 27, 1966. T e n d e rs w ill n o t b e received a t th e T re a s u 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, a n d 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 b e 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 disco u n t ra te w ill b e c o m p u te d on a b an 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 fo rw ard ed in th e special
e nvelopes w hich w ill be su p p lie d b y F e d e ra l R e se rv e B an k s or B ra n ch e s on a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s g enerally m ay su b m it te n d e rs fo r acco u n t of cu sto m ers p ro v id ed th e na m e s of th e cu sto m ers are
se t fo rth in such ten d e rs. O th e rs th a n b a n 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 ten d e rs ex cep t fo r th e ir own account.
T e n d e rs w ill b e rece iv e d w ith o u t d e p o sit from in co rp o ra te d ban k s a n d tr u s t c o m p an ies a n d from responsible a n d recognized
d ealers in in v e s tm e n t securities. T e n d e rs from oth ers m u st b e accom panied 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 acco m p an ied by 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 or
tru s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill b e open ed a t th e F e d e ra l R e se rv e B an k s a n d B ran ch es, follow ing w hich
p u b lic an n o u n ce m e n t will b e m ad e b y th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d p rice ra n g e of a ccep ted bids. T hose
su b m ittin g te n d e rs w ill b e a d v ised of th e a cc ep ta n ce o r re je c tio n th ere o f. T h e S e c re ta ry of th e T re a s u ry expressly reserv es th e
rig h t to a cc ep t or re je c t a n y or all ten d e rs, in w hole or in p a rt, a n d h is a ctio n in a n y su c h re sp ec t shall be 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 o r less w ith o u t s ta te d p rice fro m a n y one b id d e r w ill b e
a cc ep te d in fu ll a t th e average p ric e (in th re e d e cim als) of a cc ep te d c o m p e titiv e b id s for th e re sp ec tiv e issues. S e ttle m e n t for
acc ep te d te n d e rs in accordance w ith th e bid s m u st b e m ad e or co m p le te d a t th e F e d e ra l R e se rv e B a n k on J a n u a ry 3, 1967, in
cash or o th e r im m e d ia te ly av ailab le fu n d s or in a like face a m o u n t of T re a su ry bills m a tu rin g D e ce m b er 31, 1966. C ash and
exchange te n d e rs w ill re ce iv e e q u a l tre a tm e n t. C ash a d ju stm e n ts w ill b e m a d e fo r differences b e tw ee n 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 fro m T re a su ry bills, w h e th er in te re s t or gain fro m th e sale or o th e r disp o sitio n of th e bills, does n o t
h a v e a n y exem p tio n , as such, a n d loss from th e sale or o th e r d isp o sitio n of T re a su ry bills does n o t h a v e a n y sp ecial 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, gift 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 e m p t from a ll ta x a tio n now or h e re a fte r im p o sed on th e p rin c ip a l o r in te re s t th e re o f b y a n y S ta te ,
or 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 rposes of ta x a tio n th e a m o u n t of disco u n t
a t w hich T re a su ry bills a re orig in ally sold b y th e U n ite d S ta te s is considered to be in te re st. U n d e r S ectio n s 454 ( b ) a n d 1221 ( 5 )
of th e In te rn a l R e v en u e C ode of 1954 th e a m o u n t of d isc o u n t a t w hich b ills issued h e re u n d e r a re sold is n o t considered to
accrue u n til such b ills are sold, red eem ed or otherw ise d isposed of, a n d such bills a re excluded from 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 co m p a n ies) issued h e re u n d e r need include in his
incom e ta x re tu rn only th e difference b e tw ee n th e p rice p a id for such bills, w h e th er on o riginal issue o r on su b seq u e n t purchase,
a n d th e a m o u n t a c tu a lly receiv ed 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 for w hich th e re tu rn is
m ade, as o rd in a ry gain or loss.
T re a s u ry D e p a rtm e n t C ircu la r N o. 418 (c u rre n t re v isio n ) a n d th is notice, p re scrib e th e te rm 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 e se rv e B a n k o r B ranch.

In a cc o rd a n ce w ith the a b o v e a n n o u n ce m e n t, te nde rs w ill b e received at this b a n k a n d its b ra n c h e s a t El P aso,
H o u sto n a n d S a n A n to n io , u p to tw e lve -th irty 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. T en ders
m a y not be entered b y te leph one.
Y o u rs v e ry truly,
W a t ro u s H. Iro ns

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 TREASURY BILLS

365 DAYS TO MATURITY
Dated December 31, 1966

Maturing December 31,1967

To: Federal Reserve Bank, Station R, Dallas, Texas
or —
The_________________________________ Branch
£1 Paso 79999

Houston 77001

75222

San Antonio 78206

(Data)

Pursuant to the provisions o f Treasury Department Circular No. 418 (current revision) and the provisions o f 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.
N O N C O M P E T I T I V E T E N D E R $_______________________________________ N O T T O E X C E E D $ 2 0 0 ,0 0 0
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) o f accepted competitive bids.
/_
_
Prices should be ex15------------------------------ (CO__________ $ __________________________
pressed on the basis of
C O M P E T IT IV E T E N D E R S

<f$___________________ @ __________ $ __________________________
( g ____________________@ __________ 5 __________________________
\

J h ^ d ^ im .T X V ? ."
e. g., 99.925. Fractions
must not be used.

1-iF* TENDERS M AY NOT BE ENTERED BY TELEPHONE. TENDERS BY W IRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired
N um ber o f
Plftcea

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

M aturity Valua

_________<§) $

1,0 0 0 $ _________________

$

5,000 $______________

_< > $
5

□ By maturin* bills
held by_

10,000 $

.(§> $

METHOD OF PAYMENT

n Payment to be made by_

50,000 $_

_ 2 $ 100,000 $______________
<>
„ .
"®
*

□ Charge our reserve account on payment
date
Q] Draft enclosed ( E f f e c t u a l d a U v G i y o f a n e l o a a d
d r a ft sh all he on latest day w h ich w ill p e r m it praaantm a n t in o r d e r to o b ta in irr e v o c a b ly c o lle c te d fu n d j on
p a y m e n t d a te )

-<3> $ 1,000,000 $_

Delivery Instructions:

____
(S u b s c r ib e r 's fu ll n a m e o r c o r p o r a t e t it le )

□ Hold in Custody Account— Member
banks for own account only

------

□ Pledge to secure Treasury Tax and

gy

L o a n AcCOUnt
□

S h ip to._________________________________

(Address)

(A uthorized official signature and title)

_____
( F o r the a c c o u n t o f , i f te n d e r is f o r a n o th e r s u b s c r ib e r )

(A d d r e s s )

IMPORTANT
1. No tender for less than $1,000 will be considered and each tender must be fo r an amount in multiples o f $1,000 (maturity
value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f the
United States, with notation on the envelope reading “ TENDER FOR TREASU RY 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 o f 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 o f 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 o f the total amount (maturity value)
o f 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. I f the language o f this form is changed in any respect, which, in the opinion o f the Secretary o f 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