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F ederal Reserve Ba n k o f D allas


Circular N o. 67-163
A ugust 17, 1967


To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the fo llo w in g sta te m e n t giving d eta ils of t w o issu es o f Treasury bills:
T h e Treasury D epartm ent, by th is public notice, invites tenders for tw o series of Treasury bills to the aggregate am ount
of $1,500,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing August 31, 1967, in the am ount of
$3,805,643,000, as follow s:
274-D A Y B IL L S (to m aturity d a te) to be issued August 31, 1967, in th e am ount of $500,000,000, or there­
abouts, representing an additional am ount of bills dated M ay 31, 1967, and to m ature M ay 31, 1968, originally
issued in th e am ount of $900,146,000, the additional and original bills to be freely interchangeable.
366-D A Y B IL L S for $1,000,000,000, or thereabouts, to be dated A ugust 31, 1967, and to m ature August 31, 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 at m aturity their face am ount w ill be payable w ithout interest. 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 aturity v a lu e ).
T enders w ill b e received at F ederal R eserve B anks and Branches up to th e closing hour, one-thirty p.m ., Eastern
D a y ligh t Saving T im e, Thursday, A ugust 24, 1967. T enders w ill not be received a t th e Treasury 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 p etitive tenders the price offered m ust be expressed
on the basis of 100, w ith not m ore than three decim als, e.g., 99.925. Fractions m ay not be used. (N otw ith stand in g th e fact that
th e one-year bills w ill run for 366-days, th e discount rate w ill be com puted on a bank discount basis of 360-days, as is currently
the practice on all issues of Treasury b ills.) It is urged that tenders be m ade on th e printed form s and forwarded in th e special
envelopes w hich w ill be supplied by Federal R eserve Banks or Branches 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. Others than banking institutions w ill not be perm itted to subm it tenders except for their own account.
Tenders w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent o f 2 percent of the face am ount of
Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent b y an incorporated bank or
trust com pany.
Im m ediately after th e closing hour, tenders w ill b e opened at the Federal R eserve Banks and Branches, follow ing which
public announcem ent w ill be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. T hose
subm itting tenders w ill be advised of th e acceptance or rejection thereof. T h e Secretary of th e T reasury expressly reserves the
right to accept or reject any or all tenders, in w hole or in part, 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 w ill be
accepted in fu ll at th e average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance w ith the bids m ust be m ade or com pleted at the Federal R eserve B ank on August 31, 1967, in
cash or other im m ed iately available funds or in a lik e face am ount of Treasury b ills m aturing A ugust 31, 1967. Cash and
exchange tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een the par value of maturing
bills accepted in exchange and th e issue price of th e new bills.
T h e incom e derived from Treasury bills, whether interest or gain from the sale or other disposition of th e bills, does not
have any exem ption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatm ent,
as such, under the Internal R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but 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 n ited States, or by any local taxing authority. For purposes of taxation th e am ount of discount
at which T reasury bills are originally sold by the U n ited S tates is considered to be interest. Under Section s 454 ( b ) and 1221 ( 5 )
o f th e Internal R evenue Code of 1954 the am ount of discount at 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. A ccordingly, th e owner of Treasury bills (other than life insurance com panies) issued hereunder need include in his
incom e tax return only th e difference betw een the price paid for such bills, whether on original issue or on subsequent purchase,
and th e am ount actually received either upon sale or redem ption at m aturity during th e taxable year for which th e return is
m ade, as ordinary gain or loss.
Treasury D epartm ent Circular N o. 418 (current revision ) and this notice, prescribe th e term s o f the Treasury bills and
govern th e conditions of their issue. C opies of the circular m ay be obtained from any Federal R eserve B ank or Branch.

in a ccord ance with the a b o v e a n n o u n c em en t, tenders will b e received at this b ank a n d its branches a t El Paso,
Houston a n d San Antonio, up to twelve-thirty p.m., Central Daylight Saving Time, Thursday, A ugu st 24, 1967. Tenders
m a y not b e en tered by t e le p h o n e .
Yours very truly,
Watrous H. Irons
(S e e reverse side for tender form )

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


Dated August 31, 1967

Maturing August 31, 1968

T o: Federal Reserve Bank, Station K, Dallas, Texas
or —
E l P aso 79999

H ouston 77001


San A ntonio 78206


P ursuant to th e provisions o f T reasury D epartm ent Circular N o. 418 (current revision) and the provisions of the
public announcem ent issued by the T reasury D epartm ent, th e undersigned offers to purchase T reasury b ills in the am ount
shown below, and agrees to pay fo r the am ount allotted, on or before the issu e date, by the method and a t th e rate indicated.

NONCOMPETITIVE TENDER $________________________________ NOT TO EXCEED $200,000
N oncom petitive tenders for $200,000 or le ss from any one bidder, w ithout stated price, w ill be accepted in fu ll at the average
price (in three decim als) o f accepted com petitive bids.
Prices should be exl v ------------------------------- @ --------------- « --------------------------------------P
pressed on the basis of
/ <
COMPETITIVE TENDERS < $_________________ (5)________ $______________________ 100, w ith not m ore than
wit} n.ot
th r e e d e c im a l p la c e s ,
e. g., 99.925. Fractions
... $ _________
. ..
m ust n ot be used.
D enom inations D esired
N um ber of

P aym ent fo r this issu e o f b ills cannot be m ade
by credit to T reasury T ax and Loan Account.

M aturity V alue

■2 $
(5) $

5,000 $.

<> $

10,000 $.

.< > $


1,000 $

50,000 $-

□ By maturing bills
held by______________________
□ Payment to be made by_
□ Charge our reserve account on payment
| | Draft enclosed ( E f f e c t u a l d e liv e r y o f e n c lo se d

(3) 1 100,000 $.
. 0 § 500,000 $.

draft shall be on latest day which w ill perm it present­
m ent in order to obtain irrevocably collected funds on
paym ent date)

$1 ,000,000 $-

Delivery Instructions:
□ Hold in Custody Account— Member
banks fo r own account only

(Subscriber’s fu ll nam e or corporate title)


□ Pledge to secure Treasury Tax and
Loan Account



Ship to_________________ __________ _

(Authorized official signature and title)

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


1. N o tender for le ss than $1,000 w ill be considered and each tender m ust be fo r an am ount in m ultiples o f $1,000 (m atu rity
v alu e).
2. Tenders should be forw arded in an envelope clearly addressed to th is bank or appropriate branch as F iscal A gen t o f the
U nited S tates, with notation on the envelope reading “T E N D E R FOR T R E A SU R Y BIL LS”. Since envelopes received
w ith th is legend w ill not be opened until a fter the closin g tim e specified in the public announcem ent, com m unications
relatin g to other m atters should not be en clo sed E nvelopes for subm itting tenders m ay be obtained from th is bank
or appropriate branch.
8. A ny qualified or conditional tender w ill be rejected.
4. If a corporation m akes th e tender, th e form should be signed by an officer o f the corporation authorized to m ake the
tender and the sig n in g o f the form by an officer o f the corporation w ill be construed as a representation by him th at he
has been so authorized. I f th e tender is m ade by a partnership it should be signed by a member o f th e firm, who
should sign in the form “.........................................
,a copartnership, by____ _______________________
a m em ber o f th e firm”.
5. Tenders from th ose other than incorporated banks and tru st com panies or responsible and recognized dealers in in vest­
m ent securities w ill be disregarded, u n less accompanied by a deposit o f 2 percent o f th e to ta l am ount (m atu rity value)
of th e T reasury b ills applied for, or u n less the tenders are accompanied by an ex p ress gu aran ty o f fu ll p aym ent by an
incorporated bank or tru st company.
6. I f the lan gu age o f th is form is changed in any respect, which, in th e opinion o f th e Secretary o f th e T reasury is
m aterial, the tender m ay be disregarded.
(S e e reverse fo r announcem ent)

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