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F ed era l R ese r v e Bank


Da l l a s



C ircular No. 67-37
F ebruary 15, 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:
T h e T reasury D epartm ent, by th is public notice, invites tenders for tw o series of T reasury bills to th e aggregate am ount
of $1,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing F eb ruary 28, 1967, in th e am ount of
$1,000,172,000, as follows:
275-DAY B IL L S (to m aturity d a te) to be issued F ebruary 28, 1967, in th e am ount of $500,000,000, or th e re­
abouts, representing an additional am ount of bills dated N ovem ber 30, 1966, and to m ature N ovem ber 30, 1967,
originally issued in th e am ount of $900,493,000, th e additional and original bills to be freely interchangeable.
366-DAY B IL L S for $900,000,000, or thereabouts, to be dated F eb ruary 28, 1967, and to m ature F ebruary 29, 1968.
T h e bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and a t m atu rity th e ir 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 v alu e).
T enders w ill b e received a t F ederal R eserve B anks and B ranches up to th e closing hour, one-thirty p.m., E astern
S tandard Tim e, Tuesday, F ebruary 21, 1967. T enders w ill not be received a t th e T reasury D epartm ent, W ashington.
E ach ten der 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 not m ore th a n th ree decim als, e.g., 99.925. F ractions m ay no t be used. (N otw ithstanding th e fact th a t
th e one-year bills will ru n for 366-days, th e discount rate will be com puted on a bank discount basis of 360-days, as is currently
th e practice on all issues of T reasury b ills.) I t is urged th a t tenders be m ade on th e printed form s and forw arded in th e special
envelopes which w ill be supplied by F ederal R eserve B anks or B ranches on application therefor.
B anking institutions generally m ay subm it tenders for account of custom ers provided th e nam es of th e custom ers are
set forth in such tenders. O thers th a n banking institutions w ill not be perm itted to subm it tenders except for th e ir own account.
T enders w ill be received w ithout deposit from incorporated banks and tru st com panies and from responsible and recognized
dealers in investm ent securities. T enders from others m ust be accom panied 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 com pany.
Im m ediately a fter th e closing hour, tenders will be opened a t th e F ederal R eserve B anks and Branches, following which
public announcem ent will be m ade by th e T reasury D epartm ent of th e 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 th e T reasury expressly reserves th e
right to accept or reject any or all tenders, in whole or in p art, 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. S ettlem ent for
accepted tenders in accordance w ith th e bids m ust be m ade or com pleted a t th e F ederal R eserve B ank on F ebruary 28, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing F ebruary 28, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences betw een th e par value of m aturing
bills accepted in exchange and th e issue price of th e new bills.
T he income derived from T reasury bills, w hether in terest 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 no t have any special treatm ent,
as such, under th e In tern al R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ederal or S tate, 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 th e possessions of th e U nited States, or by any local taxing authority. F or purposes of taxation th e am ount of discount
a t which T reasury bills are originally sold by th e U nited S tates is considered to be interest. U nder Sections 454 (b ) and 1221 (5 )
of th e In tern al R evenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is n o t considered to
accrue u ntil such bills are sold, redeem ed or otherw ise disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, th e owner of T reasury bills (o th er th a n life insurance com panies) issued hereunder need include in his
income tax retu rn only th e difference betw een 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 th e retu rn is
made, as ordinary gain or loss.
T reasury D ep artm en t C ircular 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 e ir issue. Copies of th e circular m ay be obtained from any Federal R eserve B ank or B ranch.

In accordance with the above 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, February 21, 1967. Tenders
nay not be entered by telephone.

Yours very truly,
Watrous H. Irons
(S ee reverse side for te n d er form )

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


Dated February 28,1967

Maturing February 29, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The____________________________ Branch
E l Paso 79999

Houston 77001


San Antonio 78206


Pursuant to the provisions of Treasury D epartm ent 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 a t 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 ex1 ?-------- ------------------- @ -------------- $----------------------------------- pressed on the basis of
--------------------- ffl-----------$-----------! --------------COMPETITIVE TENDERS '$ ;

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

Denominations Desired
Number of

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

M aturity Value

.(fib $
-<® $ 10,000
.<> $ 50,000
.(3) $ 100,000
<> $ 500,000
(5) $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 fe c tu a l d e liv e ry o f en clo sed
d ra ft shall be on latest day which will p erm it present­
m ent in order to obtain irrevocably collected funds on
paym ent date)


Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□ Ship to_______________________

(Subscriber’s full nam e or corporate title)


(Authorized official signature and title)


(For the account of, if tender is for another subscriber)

1. No tender for less than $1,000 will be considered and each tender m ust be for an amount in multiples of $1,000 (m aturity
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 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 m atters should not be enclosed. Envelopes fo r 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 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, who
should sign in the form “............... ....................................... , a copartnership, by.................................. ................... ........................ ,
a member of the firm”.
5. Tenders from those other than incorporated banks and tru st 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 (m aturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or tru st company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
m aterial, the tender may be disregarded.
(See reverse fo r announcement)

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