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Circular No. 67-8
Dallas, Texas, January 11, 1967

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llow in g sta te m e n t giving details o f tw o issu es o f Treasury bills:
T he T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury 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 Jan u ary 19, 1967, in th e am ount of
$2,303,293,000, as follows:
91-DAY B ILLS (to m aturity d ate) to be issued January 19, 1967, in the am ount of $1,300,000,000, or th ere­
abouts, representing an additional am ount of bills dated October 20, 1966, and to m ature A pril 20, 1967,
originally issued in the am ount of $1,000,709,000, 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 Jan u ary 19, 1967, and to m ature Ju ly 20, 1967.
T he 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 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 aturity value).
T enders will be received a t F ederal R eserve B anks and Branches up to th e closing hour, one-thirty p.m., E astern
S tandard Tim e, M onday, Jan u ary 16, 1967. T enders will not be received a t the T reasury D epartm ent, W ashington. E ach
tender m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders the price offered m ust be expressed on
the basis of 100, w ith n o t more th an three decimals, e.g., 99.925. Fractions m ay 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 R eserve B anks or B ranches
on application therefor.
Banking institutions generally may subm it tenders for account of customers provided th e names of th e customers are
set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for th eir own account.
Tenders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securites. Tenders 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 th e closing hour, tenders will be opened at th e F ederal Reserve B anks and Branches, following which
public announcem ent will be made by the T reasury D ep artm ent of the am ount and price range of accepted bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of th e T reasury expressly reserves th e
right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. S ubject 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. S ettlem ent for
accepted tenders in accordance w ith th e bids m ust be m ade or com pleted a t the Federal R eserve B ank on Jan u ary 19, 1967, in
cash or other im m ediately available funds or in a like face amount of T reasury bills m aturing Janu ary 19, 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 the issue price of th e new bills.
T he 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 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 In ternal R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
Federal or State, b u t are exem pt from all taxation now or hereafter im posed on th e principal or interest thereof by any State,
or any of the possessions of the U nited States, or by any local taxing authority. F or purposes of taxation th e 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 R evenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not considered 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 than life insurance companies) issued hereunder need include in his
income tax return only th e difference between th e price paid for such bills, whether on original issue or on subsequent purchase,
and the am ount actually received either upon sale or redem ption a t m aturity during th e taxable year for which th e retu 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 their issue. Copies of the circular may be obtained from any F ederal R eserve B ank or Branch.

In a ccord an ce with th e a b o v e a n n o u n c em en t, tenders will b e received a t this b a n k a n d its branches at El Paso,
Houston a n d San A ntonio, up to twelve-thirty p.m., Central Standard Time, M o n d ay, January 16, 196 7. Tenders m a y
not b e entered by te le p h o n e .
Yours very truly,
Wafrous H. Irons

Amount, Range and Approxim ate Y ield of Accepted T enders
91-Day Bills
182-Day Bills
D ue A pril 13, 1967
D ue Ju ly 13, 1967
T o tal Applied F or_______________________________ $1,991,022,000
$1,300,659,000________________________________ T o tal_A ccepted_____________________
P rice
Y ield
98.794____________4.771% __________________________H igh_______________ _____ 97.534____________ 4.878%
98.7 74____________ 4.850% _____________________


Low__________ __ ___ 9 7.523.


4.818% ( 1 ) ____________________ Average______ _________ ____ 97.528------------------ 4.890% (1 )

( 1 ) These rates are on a ban k discount basis. T h e eq uivalent coupon issue yields a re 4 .9 5 % for the 91-day bills, a n d 5 .0 8 % for
th e 182-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
or —
The_______________________________ Branch
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
,00Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in
j decimals) of accepted competitive bids.
full at the average price (in three d
Prices should be ex­
pressed on the basis of


COMPETITIVE TENDERS < $------------------------@----------- $------------------------------{hS’ rdecimTJlaces”
#$___________________ @ _________ $________________________

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

Denominations Desired
N u m b er o i
p i ece8

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

M a tu rity V alue

(5) $
(5) $
(5) $


1,000 ?5,000 *
10,000 $.


(5) $ 50,000 $< ? 100,000 $.
$ 500,000 s.

By maturing bills
held by____________________________
Payment to be made by_


Charge our reserve account on payment
I I Draft enclosed ( E f f e c t u a l d e li v e r y o f e n c lo s e d


d r a f t sh all be on la te st day w hich w ill p e rm it p re sen t­
m e n t in o rder to o b ta in irrevocably collected fu n d s on
p a y m e n t d ate)

(5) $1 ,000,000 ?Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account

(S u b scrib er’s fu ll n am e o r c o rp o ra te title )

(A ddress)

(A u thorized official s ig n a tu re a n d title )

Ship to__________ ______________
(F o r th e a ccou n t of, if te n d e r is f o r a n o th e r su bscriber)

(A ddress)


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 enve ope 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 oi 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 s®
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