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Circular No. 67-185
September 20, 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 $1,500,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing September 30, 1967, in the amount of
$1,400,163,000, as follows:
272-DAY BILLS (to m aturity date) to be issued October 2, 1967, in the amount of $500,000,000, or there­
abouts, representing an additional amount of bills dated June 30, 1967, and to mature June 30, 1968,
originally issued in the amount of $1,000,547,000, the additional and original bills to be freely interchangeable.
366-DAY BILLS for $1,000,000,000, or thereabouts, to be dated September 30, 1967, and to mature September
30, 1968.
T he 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
Daylight Saving Time, Tuesday, September 26, 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 366-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 Department 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 October 2, 1967, in
cash or other immediately available funds or in a like face amount of Treasury bills maturing September 30, 1967. Cash and
exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of m a t u r i n g
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 die 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
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

In accordance with the ab ove 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 Daylight Saving Time, Tuesday, September 26, 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 June 30, 1967

Maturing June 30, 1968

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

H ouston 77001


S an A ntonio 78206


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

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

COMPETITIVE TENDERS -------------------------- @------------$------------------------------

tT ^ ^ c im a T p ta tt

I $ ___________________ @ _________ $________________________

e. g., 99.925. F ractions
m u st no t be used.

D enom inations D esired
Number of
P ieces

P aym ent fo r th is issue of bills cannot be m ade
by credit to T reasu ry T ax and L oan Account.

M a tu rity V alue


(5) $
(5) $

1,000 $
5,000 $


(3) $
(5) $

10,000 $
50,000 $


(5) $ 100,000 $...
(5) $ 500,000 $ .
(3) $1 ,000,000 $
Delivery Instructions:

Hold in Custody Account— Member
banks for own account only

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


(A d d ress)


A ccount

Ship to___________________________

Charge our reserve account on payment
D raft enclosed ( 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 se n t­
m e n t in o rd e r to o b ta in irrevo cab ly collected fu n d s on
p a y m e n t d a te )

Pledge to secure Treasury Tax and
L oan



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

(A u th o rized official s ig n a tu re a n d title )

( F o r th e a cc o u n t of, if te n d e r is f o r a n o th e r su b scrib er)


1. No tender fo r less th an $1,000 w ill be considered and each tender 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 gen t of th e
U nited S tates, w ith notation on th e envelope reading “TEN D E R FOR TREA SU RY BILLS”. Since envelopes received
w ith this legend will not be opened u n til a fte r th e closing tim e specified in th e public announcem ent, com m unications
relatin g to other m a tte rs should no t be enclosed. Envelopes fo r subm itting tenders m ay be obtained fro m th is bank
or ap p ro p riate branch.
3. A ny qualified or conditional ten d er w ill be rejected.
4. If a corporation m akes th e tender, th e form should be signed by an officer of th e corporation authorized to m ake th e
tender and th e signing of the form by an officer of th e corporation w ill be construed as a rep resen tatio n by him th a t he
has been so authorized. If th e 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 th e form “ ................................. .....................t a copartnership, by................ ................................................................. ,
a m ember of th e 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 th e to tal am ount (m atu rity value)
of the T reasu ry bills applied for, or unless th e tenders are accompanied by an express g u ara n ty of fu ll paym ent by an
incorporated bank or tru s t company.
6. If the language of this form is changed in any respect, which, in th e opinion of th e S ecretary of th e T reasu ry is
m aterial, th e tender m ay be disregarded.
(See reverse for announcement)

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