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F ederal







Circular No. 67-17
January 18, 1967


To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statement giving details of two issues of Treasury bills:
The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $1,400,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing January 31, 1967, in the amount of
$1,001,391,000, as follows:
273-DAY BILLS (to m aturity date) to be issued January 31, 1967, in the amount of $500,000,000, or there­
abouts, representing an additional amount of bills dated October 31, 1966, and to mature October 31, 1967,
originally issued in the amount of $904,640,000, the additional and original bills to be freely interchangeable.
365-DAY BILLS for $900,000,0000, or thereabouts, to be dated January 31, 1967, and to mature January 31, 1968.
The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter
provided, and at m aturity their face amount will be 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 (m aturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard Time, Tuesday, January 24, 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 must be expressed
on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. (Notwithstanding the fact that
the one-year bills will run for 365-days, the discount rate will be computed on a bank discount basis of 360-days, as is currently
the practice on all issues of Treasury bills.) 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 Departm ent 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 January 31, 1967, in
cash or other immediately available funds or in a like face amount of Treasury bills maturing January 31, 1967. Cash and
exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing
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 considered 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 m aturity during the taxable year for which the return is
made, as ordinary gain or loss.
Treasury D epartment 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 accordance with the a b o v e announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio, up to twelve-thirty p.m., Central Standard Time, Tuesday, January 24, 1967. Tenders
m ay not be entered by telephone.
Yours very truly,
Watrous H. Irons
(See reverse side for tender form)

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


Dated October 31, 1966

Maturing October 31,1967

To: Federal Reserve Bank, Station K, Dallas, Texas
or —
The_______________________________ Branch
E l Paso 79999

H ouston 77001


San Antonio 78206

(D at«)

P u rsu an t to the provisions of T reasu ry D epartm ent C ircular No. 418 (cu rren t revision) and th e provisions of th e
public announcem ent issued by the T reasu ry D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ount
shown below, and agrees to pay fo r the am ount allotted, on or before th e issue date, by the m ethod and a t th e ra te indicated.

NONCOMPETITIVE TENDER $_____________________________ NOT TO EXCEED $200,000
N oncom petitive tenders for $200,000 or
less from any one bidder, w ithout stated price, will be accepted in full a t the average
price (in three decim als) of accepted com petitive bids.
Prices should be ex1 $ -------------------------------@ --------------$ ------------------------------------- pressed on the basis of

COMPETITIVE TENDERS [ $------------------------@----------- $------------------------------J S e f d^Tm aTJlaS
I $ ____________________ @ _________ $________________________

e. g., 99.925. F raction s
m ust not be used.

D enom inations D esired
Num ber of

P aym ent fo r th is issue of bills cannot be made
by credit to T reasu ry T ax and Loan Account.

M a tu rity V alue

(5) $
(a) $
(fib $


1,000 $
5,000 $


10,000 $
50,000 $


(a) $
(a) $ 100,000 $
(3) $ 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



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
d r a f t sh all be on la te st day w hich w ill p e rm it p re 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)

(S u b sc rib e r’s fu ll n a m e o r c o rp o ra te title )


(A ddress)


A ccount

Ship to___________________________

By m aturing bills
held by_____________________
Paym ent to be made by.

(A u tho rized official s ig n a tu re and title )

(F o r th e a ccou n t of, if te n d e r is fo r a n o th e r su bscrib er)
(A ddress)

1. No tend er fo r less th a n $1,000 will be considered and each ten d er m u st be fo r an am ount in m ultiples of $1,000 (m atu rity
2. Tenders should be forw arded in an envelope clearly addressed to th is bank or ap p ro p riate branch as F iscal A gent of th e
U nited S tates, w ith notation on the envelope reading “TEN D ER FOR TREA SU RY BILLS”. Since envelopes received
w ith th is legend will n ot be opened until a fte r th e closing tim e specified in th e public announcem ent, com munications
relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank
or ap p ro p riate branch.
3. A ny qualified or conditional ten d er will be rejected.
4. If a corporation m akes the tender, the form should be signed by an officer of the corporation authorized to m ake th e
ten der and the signing of th e form by an officer of the corporation will be construed as a rep resen tatio n by him th a t he
has been so authorized. If the ten d er is m ade by a p artn ersh ip it should be signed by a m em ber of th e firm , who
should sign in the form “.......................................................... , a copartnership, by.................................................................................... ,
a m em ber of the firm ”.
5. Tenders from those other th an incorporated banks and tru s t companies or responsible and recognized dealers in invest­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the to tal am ount (m atu rity value)
of th e Ti-easury bills applied for, or unless th e tenders are accompanied by an express g u aran ty of fu ll paym ent by an
incorporated bank or tru s t company.
6. If the language of th is form is changed in any respect, which, in the opinion of the S ecretary of the T reasu ry is
m aterial, the tender m ay be disregarded.
(See reverse for announcement)

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102