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F ederal R eserv e Bank





Circular No. 67-63
March 22, 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 reasu ry D epartm ent, by th is public notice, invites tenders for two 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 reasu ry bills m aturing M arch 31, 1967, in th e am ount of
$1,400,808,000, as follows:
275-DAY B IL L S (to m a tu rity d a te ) to be issued M arch 31, 1967, in th e am ount of $500,000,000, or th ere­
abouts, representing an additional am ount of bills dated D ecem ber 31, 1966, and to m atu re D ecem ber 31, 1967,
originally issued in th e am ount of $901,030,000, 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 M arch 31, 1967, and to m ature M arch 31, 1968.
T h e bills of b o th series w ill b e issued on a discount basis u nder com petitive and noncom petitive bidding as hereinafter
provided, and a t m a tu rity th e ir face am ount w ill be payable w ithout in terest. T h ey w ill b e 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 ed eral R eserve B anks and B ranches u p to th e closing hour, o n e-thirty p.m ., E astern
S tandard T im e, T uesday, M arch 28, 1967. T enders w ill n ot be received a t th e T reasu ry D epartm ent, W ashington.
E ach ten d er m ust be for an even m u ltip le of $1,000, and in th e case of com petitive tenders th e price offered m ust b e expressed
on th e basis of 100, w ith n o t m ore th a n th ree decim als, e.g., 99.925. F ractions m ay n o t be used. (N otw ithstanding th e fact th a t
th e one-year bills w ill ru n for 366-days, th e discount rate w ill 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 b e m ade on th e p rin ted form s and forw arded in th e special
envelopes w hich w ill b e supplied by F ed eral R eserve B anks or B ranches on application therefor.
B anking in stitu tio n s generally m ay subm it ten d ers 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 in stitu tio n s w ill n ot be p erm 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 en d ers from others m ust be accom panied by paym ent of 2 percen t of th e face am ount of
T reasury bills applied for, unless th e ten d ers are accom panied by an express guaranty of paym ent by an incorporated bank or
tru st com pany.
Im m ediately a fte r th e closing hour, tenders w ill b e opened a t th e F ed eral R eserve B anks and B ranches, following which
public announcem ent w ill be m ade by th e T reasury D ep artm en t of th e am ount and price range of accepted bids. Those
subm itting tenders w ill be advised of th e acceptance or rejection thereof. T h e S ecretary of th e T reasu ry expressly reserves th e
rig h t to accept or reject any or all tenders, in w hole or in p art, and his action in any such respect shall b e final. S ubject to
these reservations, noncom petitive ten d ers for each issue fo r $200,000 or less w ithout stated price from any one b id d er w ill 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 ed eral R eserve B ank on M arch 31, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M arch 31, 1967. Cash and
exchange tenders w ill receive equal treatm en t. Cash adjustm ents w ill be m ade for differences betw een th e p ar value of m aturing
bills accepted in exchange and th e issue p rice of th e new bills.
T h e incom e derived from T reasury bills, w hether in terest or gain from th e sale or o th er disposition of th e bills, does not
have any exem ption, as such, and loss from th e sale or o ther disposition of T reasury bills does n o t have any special treatm en t,
as such, under th e In te rn a l R evenue Code of 1954. T h e b ills 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 h ereafter im posed on th e p rincipal or in terest thereof by any S tate,
or any of th e possessions of th e U nited S tates, or by any local taxing authority. F o r purposes of taxation th e am ount of discount
a t which T reasury b ills are originally sold by th e U nited S tates is considered to b e 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 n til such b ills are sold, redeem ed or otherw ise disposed of, and such bills are excluded from consideration as capital
assets. A ccordingly, th e ow ner of T reasu ry bills (o th er th a n life insurance com panies) issued hereunder need include in his
incom e 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 e ith e r upon sale or redem ption a t m atu rity during th e taxable year for w hich th e retu rn is
m ade, as ordinary gain or loss.
T reasury D ep artm en t C ircular N o. 418 (cu rren t revision) and th is 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 F ederal 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, March 28, 1967. Tenders
may 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 March 31, 1967

Maturing March 31, 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 ra te 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 ex15--------------------------- @ --------------- « ---------------------------------- pressed on the basis of

COMPETITIVE TENDERS h ---------------- ----- @------------$-------------------------1$__________________ @ __________ $ ______________________

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

Denominations Desired
Num ber of

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

Maturity Value

<> $
(5) $
(a) $ 10,000
(a) $ 50,000
(5) $ 100,000
< $ 500,000
(5) $1 ,000,000

D l v r Isrcin:
e i e y ntutos
□ Hold i Custody Account— Member
banks f r own account o l
□ Ple t s c r Treasury Tax and
dge o e u e
L oan



□ By maturing bls
h l by_____________
□ Payment t be made b .
□ Charge ourr s r ea
e e v ccoun on payment
||Draft e c o e (E ffe c tu a l d eliv ery o f en closed
draft shall be on latest day which w ill permit present­
ment in order to obtain irrevocably collected funds on
payment date)

(Subscriber’s full name or corporate title)


A ccou n t

□ Shipt _________________

(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 fo r 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 A gent 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 subm itting 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.

( e r v r ef ra n u c m n )
S e ees o n o n e e t

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